Last Mile Delivery Market SWOT and PEST Analysis 2021-2031
Last Mile Delivery market size is projected to reach US$ 363.75 billion by 2031 from US$ 145.97 billion in 2023. The market is expected to register a CAGR of 12.09% in 2023–2031. 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 major factors driving the global last-mile delivery market is the increased penetration of the e-commerce sector across the globe. Online shopping across the globe is growing rapidly across developing countries such as India, Mexico, Brazil, and Argentina.
Last Mile Delivery Market Analysis
Last mile delivery providers transports more than 25 billion packages globally. The last-mile delivery is majorly done by third party logistic providers by roadways and air transport. Last-mile delivery is the final delivery process in which the parcel is delivered to the end customers. Last mile delivery includes a warehouse to the customer’s doorstep, which is known as the last mile delivery. Last-mile delivery is an expensive and time-consuming shipping process, but overall customer satisfaction is a major criterion for the key companies.
Last Mile Delivery Market Overview
Logistics companies then step in and use modern software to plan delivery routes based on criteria such as location, traffic, and delivery windows. To handle various metropolitan settings, goods are transported quickly using a broad fleet of vehicles ranging from basic trucks to cutting-edge drones and electric cars. The critical 'last mile' phase covers the final leg of delivery, where products are delivered directly to clients, which is frequently helped by real-time tracking technologies for transparency and convenience.
The last-mile delivery market constitutes a network of diverse stakeholders, technology integrations, logistical infrastructures, and evolving consumer behaviors. The primary stakeholders are e-commerce giants and retailers, and then logistics companies come into the picture. These organizations take help from technological companies that offer tools such as route optimization delivery management, among others. Apart from software companies, many drone manufacturers and service providers have come into the picture.
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Last Mile Delivery Market: Strategic Insights
Market Size Value in US$ 1.99 Billion in 2018 Market Size Value by US$ 7.69 Billion by 2027 Growth rate CAGR of 16.7% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Last Mile Delivery Market: Strategic Insights
| Market Size Value in | US$ 1.99 Billion in 2018 |
| Market Size Value by | US$ 7.69 Billion by 2027 |
| Growth rate | CAGR of 16.7% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Last Mile Delivery Market Drivers and Opportunities
Increased E-commerce Industry Drives the Last Mile Delivery Market Growth
The e-commerce sector mostly depends on last-mile delivery to manage the parcel deliveries to the end customers. The increased demand for online shopping across the globe, along with the surge in internet penetration across the globe, is a major driving factor for the Last Mile Delivery market growth during the forecast period. 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 rising adoption of unmanned delivery systems and rapid adoption of advanced technologies by logistic companies is expected to create ample opportunity for market growth.
In the future, US businesses have planned to deploy millions of unmanned delivery vehicles for parcel deliveries to meet the growing e-commerce sector requirements. Also, there has been increased demand for compact delivery cars and vehicles that are used in the on-demand e-commerce sector by retailers, merchants, restaurants, hotels, and grocery stores. The cars, such as full-size passenger vehicles, are designed to meet growing last-mile delivery requirements. Further, several key players in the market are developing and launching advanced technology-based solutions to meet customer's requirements for parcel or goods deliveries. For instance, in September 2023, Magna International developed and launched autonomous last-mile delivery solutions. The new solution was launched for metropolitan cities across North America.
Further, in March 2022, Magna also developed the robot to deliver a pizza business in the Detroit, US, area. Magna has consistently developed to improve the last-mile delivery service business. Such initiatives launched by the key players in the market are projected to create ample opportunities for the global last-mile delivery market during the forecast period.
Last Mile Delivery Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Last Mile Delivery market analysis are type, platform, application, and end-user.
- By type, the market is divided into B2C and B2B.
- Based on vehicle type, the market is divided into motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others.
- Depending upon the end users, the market is segmented into 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, and others.
Last Mile Delivery Market Share Analysis by Geography
The geographic scope of the Last Mile Delivery market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The North American last-mile delivery market is projected to have the largest share in Asia Pacific and is growing at the highest CAGR during the forecast period. North America’s market is driven by rapid growth in online shopping, with a surge in the e-commerce industry growth driving the global last-mile delivery market growth. In the US, there were more than 274.70 million people who shop goods online as of 2023. In the US, around 81% of the total US population is shopping the goods through online e-commerce websites. As of 2023, the total e-commerce sector revenue in the US reached US$ 1,137 billion. Such rapid growth in online shopping across North American countries has created massive growth for the last-mile delivery market.
Last Mile Delivery Market Report Scope
Last Mile Delivery Market News and Recent Developments
The Last Mile Delivery market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Last Mile Delivery market and strategies:
- In November 2023, Amazon.com Inc. launched the last-mile delivery fleet program in India that uses electric vehicles for its delivery service providers. Under this program, the company launched and adopted Mahindra Zor Grand's three-wheeler electric vehicle for offering Amazon's last-mile deliveries. (Source: DJI, Press Release/Company Website/Newsletter)
- In October 2023, Bringg, a Delivery Management Platform provider, launched the ROAD modular platform to optimize and dynamically manage internal fleets and automate last-mile delivery to create a seamless experience for drivers, dispatchers, and customers. (Source: Flyability, Press Release/Company Website/Newsletter)
Last Mile Delivery Market Report Coverage and Deliverables
The “Last Mile Delivery Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology ; Type ; Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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