Same Day Delivery Market

Market Overview

The global same day delivery market size was valued at USD 6,055 million in 2021. It is expected to reach USD 34,424 million by 2030, growing at a CAGR of 21.3% during the forecast period (2022-2030).

The process of sending a product from the manufacturer to the customer in a shorter time is known as same-day delivery. Due to the attractive potential for service providers to build their businesses, same-day delivery services have gained popularity in logistics. In addition, manufacturers have chosen to use quick product delivery due to the rising demand for receiving the product in a shorter time. This has created good growth potential for the same day delivery market. Additionally, same-day delivery services have several benefits that enhance customer satisfaction while lowering the cost of logistics services, contributing to the expansion of the worldwide same day delivery market.

The same day delivery market has plenty of lucrative prospects to expand thanks to factors like the development of the e-commerce sector and the rise in trading activities due to globalization. However, the factors that restrict the expansion of the same-day delivery industry include inadequate infrastructure, increased logistics costs, and a lack of manufacturer and store control over the logistics service. The advent of last-mile deliveries, logistics automation, cost reductions, and a reduction in lead times due to the adoption of multi-modal systems are anticipated to create growth prospects for the worldwide same day delivery market shortly.

Market Dynamics

Market Driving Factors

• Advancement of E-Commerce Industry and Growing Trading Activities

E-commerce is the term used to describe purchasing and selling goods over the internet. Within 24 hours after receiving an order, same-day delivery services send merchandise to customers. Additionally, the e-commerce sector uses same-day delivery services to control and manage the supply chains of e-commerce businesses, allowing such firms to concentrate on the marketing and other company operations. The popularity of such speedy delivery services is rising rapidly, which fuels the expansion of the same day delivery market. This is because same-day delivery service providers offer the e-commerce industry several advantages that make them attractive to customers.

Global economic growth and dynamic market conditions are essential elements accelerating globalization. Due to the recent development in globalization, various trade-related activities have been seen to increase. Global industrial and commercial activity also rises as globalization continues to grow. Growing commerce operations call for an effective means of transporting commodities. It can be challenging for manufacturers or retailers to effectively monitor transportation activities; as a result, freight transportation companies assist these manufacturers in monitoring and controlling supply chain activities such as warehousing, distribution, and fulfillment services. Global demand for same-day delivery is anticipated to rise due to expanding commercial activity and increasing concerns about efficient transportation methods.

Market Restraining Factors

• Poor Infrastructure and High Logistics Costs

Good supply chains, infrastructure, and trade facilitation are essential for logistics. Without these, businesses must accumulate more working capital and stock reserves, which can significantly impact regional and national competitiveness due to high costs. Additionally, the logistics market is hampered by a lack of infrastructure, which drives up costs and undermines the dependability of the supply chain. This is due to significant inefficiencies in transportation, shoddy storage facilities, a complicated tax system, slow adoption of new technology, and inadequate logistical professional skills.

In addition, inadequate facilities and management lead to stock loss, damage, and deterioration, particularly for perishable commodities. Furthermore, one of the leading causes for the underdevelopment of the entire supply chain has been a shortage of competent people, IT standards, equipment, and systems integration. Due to weak transport infrastructure, enterprises must keep extensive inventories to cover contingencies, which increases logistics costs. Therefore, poor infrastructure, high inventory pricing, and insufficient warehousing space will slow the same day delivery market growth.

Key Market Opportunities

• The Advent of Last-Mile Delivery and Logistics Automation

Logistics for the last mile describes the last stage of delivery from a facility or distribution center to the end user. The logistics industry is seeing a significant increase in the availability of same-day last-mile delivery as e-commerce companies continue to proliferate. Additionally, receiving a shipment on the same day of delivery is now practically standard, which has led to the expansion of last-mile delivery services.

Additionally, the e-commerce industries are seeing a more significant emphasis on same-day last-mile delivery alternatives across logistics businesses due to the increase in demand for groceries, perishables, and food and beverages. Another possibility anticipated to fuel the growth of the same day delivery market soon is the ongoing endeavor of logistics businesses to provide practical & timely last mile deliveries.

Segmental Analysis

The global same day delivery market is analyzed across the application, mode of transportation, end-user, and region.

Per the application

the categories include retail, e-commerce, healthcare, manufacturing, documents & letters, and others.

The documents & letters section will likely develop at a CAGR of 22.6% and hold the largest market share. Letters and documents play a crucial role in the worldwide same-day delivery industry since they must be delivered to the intended recipient quickly. A legal document is sent by businesses or banks, and its owner must get it fast. Because of this, same-day delivery service providers supply prompt service for the same, promoting the segment's global market expansion.

The retail section will hold the second-largest share. The main drivers of the same day delivery market's expansion in the retail sector are the increasing use of multi-modal transportation and the emergence of international commerce. Additionally, the retail industry is anticipated to grow thanks to the novel last-mile delivery system in the retail e-commerce market quickly. Additionally, the need for retail logistics services is expected to be driven by rising disposable income and consumer purchasing power, increasing the demand for same-day delivery in the retail sector.

Per the mode of transportation

the categories include airways, roadways, railways, and intermodal.

The roadway section will likely hold the largest revenue share, growing at a CAGR of 22.5%. The development of railroad logistics transportation is primarily due to increased highway traffic congestion. The market for railway logistics has also been boosted by an increase in investment, quick evolution of regulatory laws, and large-scale infrastructure projects in the area. Additionally, moving goods by rail minimizes the number of trucks and other large vehicles on the road, easing traffic and reducing carbon emissions. Further, it is projected that increased urbanization and industrialization would accelerate the expansion of rail-based logistics transport.

The airways section will hold the second-largest share. Airways create a new market for logistics by offering quick and dependable service for the product's initial delivery. Additionally, the role of air transportation in supporting reverse logistics, such as repair and warranty work for high-end consumer electronics, will grow. This will help the airways segment's same day delivery market. Additionally, air logistics is anticipated to rise to reduce inventory and assist just-in-time production, which will further fuel the market's expansion.

Per the end-user

the categories include B2B, B2C, and C2C.

The B2C section is forecasted to have the highest revenue holding, growing at a CAGR of 23%. Deliveries made by same-day delivery services are made to clients for documents or other necessary items sent by businesses like banks or governmental entities in a single day. Due to the ease of exchanging goods or services, B2C product delivery services have flourished in the same-day delivery industry, ultimately fueling the segment's expansion. Additionally, since online shopping has grown in popularity worldwide, businesses have been able to create speedy product delivery models, which has helped the segment thrive in the worldwide market.

The B2B section will have the second-largest shareholding. In B2B mode, products such as confidential documents and related materials are delivered to same-day delivery service providers, who provide the products to their final destination in a shorter period. Due to the growing desire to transfer official documents from one office to another in a shorter time, B2B transactions for same-day delivery services have become more popular. Additionally, a large number of businesses, like A1-SameDay, Aramex, DHL, and others, provide same-day delivery services to clients all over the world.

Regional Analysis

The region-wise segmentation of the global same day delivery market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and Europe will dominate the regional market

The Asia Pacific is forecasted to command the regional market while developing at a CAGR of 20.9%. Companies can now provide same-day delivery services to local customers, which has aided in the market's expansion throughout the area. The increase in online purchasing activities and the demand for product availability in a shorter time have made this conceivable. The demand for items has also grown due to consumers' higher incomes, which has aided in the market's expansion throughout the area.

Alibaba and JD.com, two of the largest e-commerce companies in China, dispatched more than 3 billion packages in a single day in November 2020. Additionally, these businesses made sure that their consumers in China received their merchandise without any touch. These businesses' effective services have aided in the expansion of the same-day delivery industry in the area. To guarantee same-day delivery services to domestic and international consumers, several advancements have been made by businesses across Japan, supporting the market expansion overall. For instance, Nippon Express began offering same-day delivery services in 2020 between Japan and the United States, with things being delivered via air.

Europe is probable to expand at a CAGR of 22.1% and hold USD 9,584 million. Due to a growth in logistics and transportation activities throughout the region, same-day delivery has become extremely popular in the European area. Additionally, businesses like DHL International GmbH, VSL Logistics Ltd., and others have been operating successfully in the European same day delivery market. They provide effective services to their clients at various places, complementing the industry's regional expansion.

Many local and international logistics service companies, including Amazon, DPD, and others, have been operating in France and are eager to provide goods or services in a shorter amount of time. The region’s market is growing as a result of such innovations and effective services offered by various businesses. Many businesses, such as Farfetch, PACK & SEND Systems Pty Ltd., Morrisons Supermarkets, and others, are active throughout the UK and prefer to offer effective services to local clients. For instance, Morrison Supermarkets in the UK began offering same-day delivery to Amazon Prime subscribers in August 2020. Additionally, Supermercato24, a same-day delivery service for online groceries, partnered with Lidl in 2019 to strengthen the infrastructure for same-day delivery. These businesses strive to deliver the purchased groceries to customers' homes in a shorter time. These factors boost the regional same day delivery market.

Recent Developments

• In 2022, Aramex revealed that it had signed a legally binding deal to fully acquire Access USA Shipping LLC, a global platform powered by technology that facilitates international e-commerce.
• In 2022, Aramex and what3words, a pioneer in geolocation technology, partnered to enhance last-mile delivery with an enhanced and more precise addressing system.

Same Day Delivery Market Segmentation

By Application

• Retail
• E-Commerce
• Healthcare
• Manufacturing
• Documents and Letters
• Others

By Mode of Transportation

• Airways
• Roadways
• Railways
• Intermodal

By End-User

• B2B
• B2C
• C2C

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA