Last Mile Delivery Market to Reach US$720.9 Billion by 2025: Rapid E-commerce Expansion and Technological Advancements Drive Growth
The global last mile delivery market surpassed US$370 billion in revenue in 2020 and is expected to witness robust growth, reaching approximately US$720.9 billion by the end of 2025. This substantial growth is driven by the evolving landscape of e-commerce, which has experienced unprecedented expansion, particularly since the onset of the COVID-19 pandemic.
Key Findings of the Report:
- Major Players: Industry giants such as UPS, FedEx, and DHL operate across more than 220 countries and territories, while Amazon Logistics stands as the largest last mile delivery company globally.
- Segment Dominance: The business-to-business (B2B) segment is poised to capture the majority of the market share.
- Regional Outlook: Asia Pacific is expected to index the highest Compound Annual Growth Rate (CAGR) over the forecast period.
Market Analysis in Brief
The last mile delivery segment has become a pivotal component of various trade transactions, both locally and internationally. The growth of the e-commerce industry has presented numerous opportunities, especially in light of the pandemic. Key players in the industry witnessed substantial revenue increases during this period, with Amazon generating US$513.9 billion in 2022, reflecting a 9.4% increase from 2019. Furthermore, the integration of advanced technologies is anticipated to drive the growth prospects of the last mile delivery market in the years ahead.
Drivers of Market Growth
- Superior Last Mile Delivery Solutions: Urban mobility has been revitalized by the growth of the last mile delivery market, offering solutions that facilitate the final phase of the supply chain, delivering goods to consumers doorsteps. The industry has been characterized by rapid technological advancements, enhancing efficiency and meeting evolving consumer expectations. Innovations such as delivery drones and autonomous vehicles are shaping the future of last mile delivery.
- E-commerce Expansion: The e-commerce sector, fueled by technological advancements and changing consumer behaviors, has seen remarkable growth. Customers increasingly demand quicker deliveries, including same-day services, leading e-commerce and logistics sectors to focus on efficient last mile delivery solutions to ensure customer satisfaction.
- COVID-19 Impacts: The pandemic led to both short-term disruptions and long-term changes in the last mile delivery market. The demand for contactless and autonomous delivery solutions surged, aligning with social distancing measures.
Challenges Ahead
Despite its growth potential, the last mile delivery market faces challenges, including high costs, especially for smaller businesses that lack economies of scale, and the pressure to meet specific delivery windows, which can lead to missed deliveries and customer dissatisfaction.
Regional Growth Opportunities
Asia Pacific: The Asia Pacific region is expected to continue leading in revenue share contribution to the last mile delivery market. The rise of e-commerce platforms, convenience-driven shopping trends, and a young population with disposable incomes are significant drivers of growth in this region. The sale of various products, including personal care items, apparel, and fitness gear, is expected to contribute to higher demand for last mile delivery services.
Key Market Players
Key companies in the global last mile delivery market include Cargo Carriers, CJ Logistics, CEVA Logistics, DHL Paket GmbH, FedEx Corporation, Kuehne & Nagel, Nippon Express Co. Ltd., Swift Transportation, TNT Holding B.V., and United Parcel Service Inc., among others. These players are increasingly focusing on new product launches, partnerships, collaborations, acquisitions, and alliances to gain a competitive edge.
Browse Global Last Mile Delivery Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025 – [2023 UPDATE Available – Forecast 2023-2030*] (By Service Coverage, Vehicle Coverage , Delivery Time Coverage, Topography Coverage, Cargo Type Coverage, End Use Industry Coverage, By Geography, Leading Companies): https://www.fairfieldmarketresearch.com/report/last-mile-delivery-market
Similar Reports:
UK Last Mile Delivery Market: https://www.fairfieldmarketresearch.com/report/uk-last-mile-delivery-market
Autonomous Last Mile Delivery Market: https://www.fairfieldmarketresearch.com/report/autonomous-last-mile-delivery-market
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