Last-Mile Delivery Market
Last-Mile Delivery Market reached US$ 151.87 billion in 2023 and is expected to reach US$ 311.31 billion by 2031, growing at a CAGR of 9.62% during the forecast period 2024-2031. The market is expanding rapidly, driven by the surge in e-commerce, rising consumer expectations for faster and same-day deliveries, and the growing penetration of online retail across urban and semi-urban regions. Increased adoption of omnichannel retail strategies by businesses and the expansion of on-demand delivery services for groceries, food, pharmaceuticals, and consumer goods are further accelerating market growth.
Last-mile delivery refers to the final step of the delivery process, where goods are transported from a distribution hub or fulfillment center directly to the end customer. Companies are increasingly leveraging technology-driven solutions such as route optimization software, real-time tracking, autonomous delivery vehicles, drones, and electric delivery fleets to improve efficiency and reduce costs. Additionally, the rise of contactless delivery, micro-fulfillment centers, and partnerships with local logistics providers is reshaping last-mile operations. As sustainability concerns grow, the shift toward eco-friendly delivery models and electric vehicles is expected to further influence the evolution of the global last-mile delivery market over the forecast period.
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The Last-Mile Delivery Market is the sector that focuses on transporting goods from distribution centers or hubs to the final customer efficiently, quickly, and cost-effectively.
Key Developments
✅ October 2025: E-commerce companies in North America operated last-mile delivery networks using delivery vans, two-wheelers, and local distribution hubs to fulfill online orders.
✅ September 2025: European logistics providers deployed route optimization software and parcel tracking systems for urban and suburban last-mile delivery operations.
✅ August 2025: Asia-Pacific delivery service companies used electric vehicles and two-wheeler fleets for parcel and grocery deliveries in metropolitan areas.
✅ July 2025: Logistics operators integrated mobile applications and digital proof-of-delivery systems for real-time delivery status updates.
✅ May 2025: Retailers partnered with third-party logistics providers to manage last-mile delivery services for direct-to-consumer shipments.
✅ March 2025: Municipal authorities regulated delivery vehicle access, curbside loading zones, and urban logistics operations.
Mergers & Acquisitions
✅ November 2025: A global logistics company acquired a regional last-mile delivery services provider to expand its urban delivery network.
✅ August 2025: A European parcel delivery company partnered with a technology firm to enhance last-mile delivery management platforms.
✅ June 2025: An Asia-Pacific logistics firm acquired a local courier company to strengthen its last-mile delivery capabilities.
Key Players
Amazon.com, Inc. | United Parcel Service of America, Inc. | FedEx | DHL International GmbH | Contrary Research | Starship Technologies | Zipline International Inc. | DPDgroup | Hermes Europe GmbH | Continental AG
Key Highlights
Amazon.com, Inc. holds a share of 24.6 percent, leading the last-mile delivery market through its vertically integrated logistics network, extensive fulfillment infrastructure, and rapid adoption of automation, robotics, and same-day delivery capabilities.
United Parcel Service of America, Inc. holds a share of 18.3 percent, supported by a highly efficient global parcel network, advanced route optimization technologies, and strong B2B and e-commerce delivery services.
FedEx holds a share of 16.9 percent, leveraging air-ground integration, real-time tracking systems, and a strong international presence to deliver time-sensitive last-mile solutions.
DHL International GmbH holds a share of 14.2 percent, benefiting from its global logistics expertise, urban delivery innovations, and sustainability-focused last-mile operations.
DPDgroup holds a share of 8.1 percent, maintaining strong regional dominance in Europe with dense delivery networks, parcel lockers, and optimized cross-border logistics.
Hermes Europe GmbH holds a share of 6.4 percent, focused on cost-efficient residential deliveries and e-commerce partnerships across key European markets.
Continental AG holds a share of 4.2 percent, contributing through smart mobility solutions, vehicle technologies, and digital platforms that enhance last-mile delivery efficiency.
Starship Technologies holds a share of 3.3 percent, an emerging leader in autonomous sidewalk delivery robots serving campuses and urban neighborhoods.
Zipline International Inc. holds a share of 2.6 percent, specializing in drone-based last-mile delivery for healthcare and remote logistics applications.
Contrary Research holds a share of 1.4 percent, supporting market insights and technology development initiatives related to last-mile logistics innovation.
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Market Drivers
– Increasing demand for fast, reliable, and convenient delivery services driven by e-commerce growth.
– Rising consumer expectations for next-day and same-day delivery options.
– Expansion of urbanization increasing pressure on efficient delivery logistics in dense population areas.
– Integration of advanced technologies such as route optimization, AI, robotics, and IoT for improved delivery efficiency.
– Growing adoption of contactless delivery solutions and digital tracking for enhanced customer experience.
– Rising demand for cold chain and specialized delivery services for perishable goods and healthcare products.
– Focus on sustainability and reducing delivery costs through electrification and optimized logistics networks.
Industry Developments
– Deployment of autonomous delivery robots, drones, and unmanned vehicles for last-mile operations.
– Launch of digital platforms and apps offering real-time tracking, delivery scheduling, and customer communication.
– Partnerships between e-commerce platforms, logistics providers, and technology firms.
– Expansion of micro-fulfillment centers and urban distribution hubs to speed delivery.
– Adoption of electric and alternative fuel vehicles to reduce carbon footprint and enhance sustainability.
– Growing mergers, acquisitions, and strategic investments in last-mile delivery startups and platforms.
– Introduction of crowdsourced delivery models and gig economy workforce platforms.
Regional Insights
North America – 35% share: “Driven by high e-commerce penetration, consumer demand for fast delivery, strong logistics infrastructure, and advanced technology adoption.”
Europe – 30% share: “Supported by rising online shopping trends, urban logistics innovations, sustainability focus, and collaboration between carriers and tech vendors.”
Asia Pacific – 28% share: “Fueled by rapid digital commerce expansion, growing internet and smartphone penetration, increasing urban populations, and logistics modernization.”
Latin America – 4% share: “Boosted by expanding e-commerce markets, improving logistics networks, and rising consumer expectations for delivery services.”
Middle East & Africa – 3% share: “Driven by expanding digital economies, investments in delivery infrastructure, and increasing online retail adoption.”
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Key Segments
By Service Type
Business-to-Business (B2B) services account for a significant share of the market, driven by growing demand from enterprises for efficient logistics, supply chain optimization, and last-mile delivery solutions. E-commerce platforms, retail chains, and manufacturing companies are key contributors to this segment. Business-to-Consumer (B2C) services are witnessing rapid growth, supported by the expansion of online shopping, food delivery platforms, and on-demand services that require fast and reliable delivery to end customers. Customer-to-Customer (C2C) services represent a smaller but steadily growing segment, fueled by peer-to-peer commerce, resale platforms, and parcel delivery between individual consumers.
By Destination
Domestic deliveries dominate the market, owing to high volumes of intra-country trade, urbanization, and increasing demand for same-day and next-day delivery services. The international segment is growing steadily, supported by cross-border e-commerce, globalization of supply chains, and rising demand for international parcel and freight movement.
By Mode of Operation
Non-autonomous operations currently hold the majority market share, as conventional delivery vehicles remain widely used across regions due to regulatory, technological, and cost considerations. However, autonomous operations are emerging as a high-growth segment, driven by advancements in artificial intelligence, sensor technologies, and automation aimed at improving delivery efficiency, reducing labor costs, and enhancing safety.
By Vehicle Type
Light commercial vehicles (LCVs) dominate the market due to their versatility, fuel efficiency, and suitability for urban and last-mile delivery operations. Motorcycles represent a fast-growing segment, particularly in densely populated urban areas, owing to their ability to navigate traffic congestion and enable quick deliveries. Heavy commercial vehicles (HCVs) are primarily used for long-haul and bulk transportation, supporting regional and intercity logistics networks. Other vehicle types, including vans and alternative fuel vehicles, contribute steadily as companies diversify their fleets to meet operational and sustainability requirements.
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