The North America last mile delivery market has been segmented into Canada, the US, and Mexico. The North America market was among the first to adopt e-commerce early and widely. The US dominates the North America last mile delivery market with majority of the total last mile delivery market share. The next-day or same-day last-mile delivery business has evolved into an industry within the retail sector. According to the US Bureau of Labor Statistics, 1.7 million delivery drivers were employed last year. That figure is expected to rise to 1.9 million by 2031. Amazon is still spending tons of capital to make the last-mile delivery process more efficient. Moreover, in June 2021, FedEx Corp. and Nuro announced a multi-year, multi-phase partnership to test Nuro's next-generation autonomous delivery vehicle within FedEx operations over several years. FedEx and Nuro's relationship began in April with a test run in Houston. This experiment marks Nuro's entry into package logistics. It allows FedEx to investigate multiple use cases for on-road autonomous vehicle logistics, such as multi-stop and appointment-based deliveries. The Nuro pilot is the newest addition to FedEx's arsenal of self-driving same-day and customized delivery vehicles. The development of autonomous vehicles for deliveries is projected to generate lucrative opportunities in the last mile delivery market.
Last mile delivery is the final step of the delivery process in which products are transferred from a transportation/warehouse center to their final destination, typically a personal residence or a business outlet. This is the most important phase in the delivery process, as the consumer's overall shopping experience and brand loyalty depend on it.
One of the main factors driving the North America last mile delivery market is the higher penetration of e-commerce in the region. Online shopping in the US has grown in popularity in recent years. This increment has directly affected the revenue generated. Total US e-commerce sales hit US$ 595.5 billion in 2019, an increase of 14.9% from US$ 518.5 billion in 2018. Many logistics giants in the North America last mile delivery market, such as UPS, FedEx, USPS, XPO Logistics, and Amazon, recognized the increasing demand for e-commerce delivery services. Thus, many key North America last mile delivery market players started focusing on organic and inorganic business growth strategies to acquire a larger North America last mile delivery market share. In June 2021, FedEx Corp. and Nuro announced a multi-phase partnership to test Nuro's next-generation autonomous delivery vehicle within FedEx operations. Currently, most of the industry's key players focus on drone deliveries. In August 2023, Wing, Alphabet's drone delivery service, partnered with Walmart to provide deliveries in the Dallas-Fort Worth metroplex.
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North America Last Mile Delivery Market: Strategic Insights
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 39.73 Billion |
| Market Size by 2030 | US$ 75.13 Billion |
| Global CAGR (2022 - 2030) | 8.3% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Type
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| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The List of Companies - North America Last Mile Delivery Market
One of the main factors driving the last mile delivery market is the higher penetration of e-commerce in the region. Online shopping in the US has grown in popularity in recent years, as indicated by an increasing number of people purchasing goods and services over the Internet. The number of online shoppers is expected to grow in the coming years.
United Parcel Service Inc., XPO Inc., Ceva Logistics AG, Amazon.com Inc., FedEx Corp, and AP MOLLER-MAERSK AS are the top key market players operating in the North America last mile delivery market.
In 2022, more than ten drone operators accomplished more than 5,000 commercial deliveries in the US. Between 2021 and 2022, the number of packages delivered by drone climbed by more than 80%, reaching ~875,000 deliveries globally. Globally, US has the highest market share in drone deliveries globally. Major retail and e-commerce companies such as Amazon and Walmart are investing heavily in drone last mile delivery.
The North America market was among the first to adopt e-commerce early and widely. The US mainly dominates the North America market, with more than 70% of the total market share. The next-day or same-day last-mile delivery business has evolved into an industry within the retail sector. According to the US Bureau of Labor Statistics, 1.7 million delivery drivers were employed last year.
Self-driving cars are an essential topic in the logistics industry these days. Large corporations such as Google, Uber, and Ford are making significant advances in autonomous technology. Although self-driving technology is still in its early stages, it is likely to substantially impact several industries, including logistics, shortly.