North America Last Mile Delivery Market Analysis by 2030

The North America last mile delivery market accounted for US$ 39.73 billion in 2022 and is expected to reach US$ 75.13 billion by 2030; it is expected to register a CAGR of 8.3% during 2022–2030.

Analyst Perspective:

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.

Market Overview:

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

North America Last Mile Delivery Market

• Market Size 2022
  US$ 39.73 Billion
• Market Size 2030
  US$ 75.13 Billion

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• North America

Market Segmentation

Type

• B2C and B2B

Vehicle Type

• Motorcycles
• Commercial Vehicles
• Drones
• Autonomous Ground Vehicles

End User

• Groceries
• Home Essentials/Houseware and Home Furnishings
• Restaurant Meals
• Clothing and Apparel
• Consumer Electronics
• Toys/Hobbies/Sporting Goods
• Mass Merchants
• Jewelry
• Specialty
• Automotive Parts and Accessories

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Market Driver:

Growing E-Commerce Industry is Driving the North America Last Mile Delivery Market Growth

One of the main factors driving the last 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, 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. 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. It is also one of the fastest rates of US e-commerce growth in seven years, trailing only 2017's 15.5% year-over-year gain. The numbers reveal that US e-commerce sales hit US$ 581.5 billion in the first three quarters of 2020 alone. This is only a percentage of the overall e-commerce sales for 2019. This represents a 32.4% increase year-on-year. The strongest quarter of the year was Q2 2020 when US e-commerce sales reached a record-high US$ 211.6 billion, representing a 31.9% quarterly growth. Sales at the top e-commerce companies in the US skyrocketed. Such revenue shows increased penetration of the e-commerce industry, ultimately driving the North America last mile delivery market.

Canadians have embraced electronic shopping positively. There were over 27 million e-commerce users in Canada in 2022, representing 75% of the Canadian population. This figure is predicted to rise to 77.6% by 2025. With more online shoppers, retail e-commerce sales in Canada continue to increase. Companies in the US do not need to have a separate website. Many American businesses have integrated Canadian transactions into their existing websites. Thus, owing to the abovementioned factors, the e-commerce industry is growing. The increase in orders directly fuels the demand for last mile delivery services, ultimately driving the North America last mile delivery market.

Segmental Analysis:

Based on type, the North America last mile delivery market share is categorized into B2C and B2B. Last mile delivery of the B2C focuses on delivering packages and items from close transportation hubs to end clients. The North America last mile delivery market for the B2C segment has grown gradually due to digitization and the advent of new technologies. Apart from digitalization, continuous growth in e-commerce is one of the primary factors for the development of the B2C segment. Business-to-business (B2B) last-mile delivery sends products from a warehouse or fulfillment center to the brick-and-mortar retailers or enterprises that order them.

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Regional Analysis:

The continuously expanding e-commerce industry in the US is one of the primary factors for the North America last mile delivery market growth. As per Digital Commerce, in 2022, e-commerce sales in the US surpassed US$ 1 trillion. An increase in online purchasing is one of the main factors for the growth of e-commerce. As per the data published by the Tidio in 2022, ~70% of the US population prefers shopping online. In 2022, 268 billion buyers opted for online shopping in the US. As a result, the US has secured second rank in the e-commerce spending by country list. An average American spends ~US$ 3,428 on online shopping. E-commerce sales in the US account for 15% of the total retail sales. Thus, continuous growth in e-commerce sales is projected to drive the North America last mile delivery market in the coming years.

Key Player Analysis:

United Parcel Service Inc., XPO Inc., J B Hunt Transport Services Inc., Canada Post Corp., General Logistics Systems BV., Ceva Logistics AG, Intelcom Courrier Canada Inc., Ontrac Logistics Inc., TFORCE Logistics LLC, Amazon.com Inc., SEKO Logistic LLC, Deutsche Post AG, FedEx Corp, Pitney Bowes Inc., and AP MOLLER-MAERSK AS are the prominent North America last mile delivery market players.

Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies operating in the market. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The North America last mile delivery market players present in the market are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings. A few recent developments by the key players are listed below:

North America Last Mile Delivery Report Scope