Same Day Delivery Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

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 Drivers

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 Restraints

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.

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.

Regional Analysis

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

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.

Segmental Analysis

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

Based on the application, the global same-day delivery market is bifurcated into retail, e-commerce, healthcare, manufacturing, documents & letters, and others.

It is anticipated that the documents and letters section will grow at a compound annual growth rate of 22.6% and will hold the largest market share. Due to the fact that they need to be delivered to the intended recipient as quickly as possible, letters and documents play an important part in the same-day delivery industry located all over the world. The owner of a legal document must receive it as quickly as possible after it has been sent by a company or a bank. As a result of this, providers of same-day delivery services offer prompt service for the same, which contributes to the expansion of the segment's footprint in the global market.

Approximately the second-largest portion will be held by the retail sector. The growing utilization of multi-modal transportation and the emergence of international commerce are the primary factors that are driving the expansion of the same-day delivery market in the retail sector. As a result of the innovative last-mile delivery system that is currently being implemented in the retail e-commerce market, it is anticipated that the retail industry will experience rapid expansion. Additionally, it is anticipated that the demand for retail logistics services will be driven by rising levels of consumer purchasing power and disposable income, which will result in an increase in the demand for same-day delivery in the retail sector.

Based on the mode of transportation, the global same-day delivery market is bifurcated into airways, roadways, railways, and intermodal.

It is anticipated that the roadway section will hold the largest revenue share, with a compound annual growth rate of 22.5%. First and foremost, the development of railroad logistics transportation is a direct result of the increased congestion that occurs on highways. Other factors that have contributed to the growth of the railway logistics market include an increase in investments, a rapid evolution of regulatory laws, and the implementation of large-scale infrastructure projects in the region. In addition, transporting goods via rail reduces the number of trucks and other large vehicles that are on the road, which in turn makes traffic flow more smoothly and lowers the amount of carbon emissions. Furthermore, it is anticipated that the expansion of rail-based logistics transport would be accelerated by the increased urbanization and industrialization that would occur concurrently.

The airways division will be in possession of the second-largest contribution. Through the provision of a service that is both prompt and dependable for the initial delivery of the product, airlines establish a new market for logistics. Additionally, the role that air transportation plays in supporting reverse logistics, such as the work that is done to repair and warranty high-end consumer electronics, will continue to expand. Because of this, the market for same-day delivery in the airline segment will benefit. In addition, it is anticipated that air logistics will increase in order to cut down on inventory and provide assistance with just-in-time production, which will further fuel the expansion of the market.

Based on end-user, the global same-day delivery market is bifurcated into B2B, B2C and C2C.

It is anticipated that the business-to-consumer segment will have the highest revenue holding, with a compound annual growth rate of 23%. Same-day delivery services are responsible for making deliveries to customers for documents or other essential items that are sent by businesses such as banks or governmental entities within a single day. In the same-day delivery industry, business-to-consumer (B2C) product delivery services have flourished as a result of the ease with which goods or services can be exchanged, which has ultimately contributed to the expansion of the segment. Additionally, as a result of the exponential growth in popularity of online shopping across the globe, businesses have been able to develop models for the rapid delivery of products, which has contributed to the segment's rise to prominence in the global market.

The second-largest shareholding will be held by the business-to-business sector. The business-to-business mode of operation involves the delivery of products, such as confidential documents and other materials, to same-day delivery service providers. These service providers then deliver the products to their final destination in a shorter amount of time. Businesses-to-business transactions for same-day delivery services have become increasingly popular as a result of the growing demand for the expeditious transfer of official documents from one office to another in a shorter amount of time. In addition, a large number of companies, such as A1-SameDay, Aramex, and DHL, amongst others, offer same-day delivery services to customers located in different parts of the world.

Impact of covid-19

The post-COVID-19 scenario for the pharmaceutical industry is expected to be of strong growth. Pharmaceutical companies will look to manufacture locally, creating a robust and resilient supply chain. India looks to gain massively from this step. It is expected that the pharmaceutical industry in India is projected to grow at 5% till 2040. The ICRA Indian Credit Rating Agency has changed the outlook of pharma from ‘negative’ to ‘stable.

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.