|Base Year Market Size
|USD 143.8 Billion
|Forecast Year Market Size
|USD 428.9 Billion
|Fastest Growing Market
The global last mile delivery market size was valued at USD 143.8 Billion in 2021 and is anticipated to generate USD 428.9 Billion by 2031. The market is projected to grow at a CAGR of 11.2% during the forecast period (2022–2030).
Last mile delivery is a process or service that provides faster, easier, and smooth shipping of products right to the customer. The last mile delivery facility is provided by various industries or companies, through which they deliver the product right from the distribution center or the company outlet directly to the customer’s place in a stipulated amount of time.
But earlier, these services were bound to limited or short distances, but with the evolution of the e-Commerce industry, the last mile delivery services are now covering more than 100 miles of shipping directly to the consumer’s door. The trend of e-Commerce shopping has led to a new foundation stone for such delivery services, which in turn have given a boost to the shipping and logistics industry.
The last few years saw an impeccable growth of online shopping portals, as people were curious about how it works. Later, when the consumers got habitual with the online shopping model through various online portals and e-Commerce platforms, they were hesitant regarding the delivery of their purchased items. Earlier, the estimated time for delivering an online purchased product would take at least 7-8 working days. But with time, the e-Commerce platforms enhanced the online shopping model and took the estimated delivery time to as close as same-day delivery in some cases.
Nowadays, an ideal delivery time for a random product purchased on an e-Commerce platform is 3-4 working days, which has taken the online shopping consumer number to an all-time high. This led to a huge demand for fast delivery services, as the delivery time would impact the customer retention of an online selling platform. This is where the last mile delivery market comes into play, as the logistics and shipping department plays a vital role in the growth of such e-Commerce platforms.
The logistics industry has developed and upgraded to serve its customers with smooth logistical services. The industry has developed the door-to-door delivery of goods, one of the key driving factors of the global last mile delivery market growth. The door-to-door services can be anything, like movers & packers, goods delivery, industrial deliveries, etc. According to industry experts, about 65% of the population will be settled in urban areas by 2030, and the evolution of new start-ups providing city-by-city services is unlocking new opportunities in the global market of last mile delivery.
Corruption is one of the major restraints in nearly every sector present on this planet, and it hasn’t spared the global market of last mile delivery as well. When a product is ready to be delivered from the distribution center to the end-user, the entire supply chain involves different stages of inventories, starting from SKUs, stock assignment, and dispatch to delivery. In this entire process, there are chances that an employee could breach the code of conduct and share some valuable information about the deliverables, sell the original product in the market and exchange it with a duplicate one, etc. there are several ways in which corruption happens in the said delivery sector that can hamper the reliability of the delivery services market.
Lack of transparency is a growing concern in the online seller’s community as there are huge chances of buyer fraud, which means unethical actions of the end consumer after making the purchase. This includes consumers claiming the product as undelivered even when receiving the product through different means and asking for money exchange or an immediate replacement. Such false allegations create a nuisance at both the seller and the buyer's location. Even the same happens with the sellers as well. Some delivery agent's unprofessional work ethics makes it difficult to track the consignment due to inaccurate product tracking and poor inventory management, which delays the entire product shipment and can cause the defamation of the seller or the manufacturer.
Consumer expectations have risen to another level as they want same-day delivery, for which earlier they were ready to wait for 5-6 days. These shipment expectations are evolving the global retail market, and few of the leading retailers have been able to match the growing demands for the delivery and fulfillment of their consumer’s demands. Being the leader in global shipments, Amazon has attracted more customers with its one-day delivery services, which has opened doors for emerging players to attract consumers by offering time-bounded delivery options with free shipping norms.
Many leading e-Commerce companies are expanding and establishing their e-Commerce fulfillment network to offer their consumers new and exciting shipping offers with hassle-free returns and exchange policies. Some key retailers in the global market are trying to upgrade their logistics infrastructure to fulfill orders quickly and efficiently without any communication or network glitches. Even some major players in the industry are trying to innovate their logistics and inventories in order to reduce their shipping costs and connect with more customers with efficient and rapid services.
The global last mile delivery market share is segmented across five regions: North America, Europe, South America, Asia-Pacific (APAC), Middle-East & Africa. The North America region leads the market share at USD 51.6 billion in 2021 and is expected to grow at a CAGR of 9.9% during the forecast period.
The Asia-Pacific region is growing at the ultimate pace in the global market, with a major market share during the forecast period. APAC is one of those high-performing regions for the evolution of the e-Commerce industry, as major key players like India, China, and Japan operate at the highest level of technology and deliverables at the current time. According to reports, the Asia-Pacific region accounted for approximately 64.3% of the total e-Commerce spending in 2021. India and China are the hotspots for delivery services with a high number of manufacturing units located in the region, which contribute the major share of the delivery industry in the APAC region.
|By Product Type
|By Fulfillment Method
|By Industry Type
|By Vehicle Type
|Walmart Inc Ryder System Inc Target Corporation Amazon Inc Seko Logistics XPO Logistics
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global last mile delivery market share is categorized into product type as B2B products, B2C products, and C2C products. The B2C (Business to Consumer) segment earns the maximum share of the market, which was stated to be at USD 91.7 billion in 2021 and expected to be valued at USD 255.1 billion in 2031 at a CAGR of 10.4%.
The Business to Consumer (B2C) products segment holds the maximum share of the global market of last mile delivery due to the growth rate of the e-Commerce sector and the rise of digital payment modes through which the consumers can pay instantly anytime, anywhere. Further, the B2C modes of product deliveries can be categorized based on the –
The B2B or Business to Business product segmentation of the last mile delivery market share holds the second-largest share by the supply of raw materials, semi-produced goods, and finished products. The B2B deliverables mostly handle bulk orders demanded by the business for further procedures. Compared to the B2C processes, the B2B segment of the delivery market does not rely on branding and marketing. The B2B type market segment is second to the B2C segment in terms of revenue generation. The C2C or Consumer to Consumer segment has a very minimal share in the global market as it deals on an individual level.
The last mile delivery market share is further classified into industry type segments: Retail clients, e-Commerce clients, and manufacturing companies. Out of which the retail clients segment comprises the one of the major share of the market
The other segments, including e-Commerce clients and manufacturing companies, also have a significant share in the market. The manufacturing companies segment comprises businesses or companies that utilize goods for further processing or direct sales. This segment of the global market of last mile delivery caters to a significant share with the high-order volume and large order size along with long-term business relationships. The manufacturing segment in the last mile delivery market share is expected to touch the sales figure of USD 8041.81 million at an expected CAGR of 10.4% during the forecast period.
Since the outbreak of the Covid-19 pandemic, the logistics companies have been on the front line with fully-stocked warehouses and ongoing trade. However, the global supply chain disruption due to the lockdown imposed in the majority of the world further narrowed down the merchandise trade growth in the said logistics segment. But one thing which was notably remarkable in this Covid outbreak was the immense growth of the e-Commerce sector which introduced the consumers to digital business models and smart and safe logistics parameters.
There has been a significant rise in the instant or same-day delivery patterns in online purchases with the increase in Covid-19 cases worldwide. Consumers feel safe ordering things online and getting them delivered to their doorstep without visiting a crowded place. In the meantime, follow the Covid guidelines given by the governing authorities.
Some reports say that the e-Commerce sales have grown by 30% in the first and second quadrant of 2020, during which the Covid outbreak was humongous. The said period saw a significant rise in daily parcels globally which reached 9 million parcels a day from 5.3 million parcels a day in the pre-pandemic times. The only positive thing the covid-19 pandemic did was to the e-Commerce industry. They generated a lot of revenue through the online selling portals and gained the consumers' trust by delivering their goods safely to their doorstep.
The global market of last mile delivery has seen a noteworthy increase in revenue with a sudden rise in delivery services during the pandemic. Many key players in the industry are planning to improvise and connect to more customers through safe and efficient delivery services. Even after the Covid-19 outbreak, the online sales and e-Commerce platforms are expected to keep their rising momentum in the global last mile delivery market growth with the increase in the online shopping trends and safe and sound fast delivery options.