The global last mile delivery market size was valued at USD 18.7 Bn in 2020, and it is expected to reach USD 62.7 Bn by 2027, with a CAGR of 18.9%, during the forecast period-2021-2027.
Last mile delivery is also known as last mile logistic which includes transportation of goods and services from distribution hub to the final door step of customer. The primary aim of last mile delivery is to deliver goods and services within time at affordable rate and in proper condition. The business of last mile delivery is refined and is expected to reach heights in coming years. Many retailers and shoppers are now focussing on last mile logistics, which would make them stand different in the market. Amazon prime has transformed into online retail distribution wherein, the goods and services are delivered in time frame and in proper condition. In case of rural area, delivery points are at distance and rate of parcels is also low, here, the last mile delivery market is impacted.
The cost and inefficiencies of last mile delivery market has further been affected by continuous rise in the e-commerce in U.S. retail sales, which ultimately increase the number of parcels and this led to increase in customer expectations for fast and free delivery service.
However, there are certain factors that tends to increase the demand for the growth of last mile delivery market. The driving factors influencing the growth of the last mile delivery market includes increase in e-commerce services, online purchases, awareness regarding parcels delivery options, increase in disposable income. Further, lack of required infrastructure for delivery process and government regulations hampers the growth of the last mile delivery market.
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Moreover, advancement in the development of delivery services like automated delivery services, aerial delivery services are getting importance all across the world. This includes contactless delivery, less time consuming and cost consuming last mile delivery service. However this creates an opportunity for the new players in the market which encourage aspiring players for development of more innovative delivery services.
Last mile delivery market is broadly segmented into different categories that includes vehicle, cargo, end user and geographical region. Based on vehicle, light duty vehicle accounted the highest market share in terms of revenue due to affordability, ease of transport and it has good load capacity. In cargo-based segmentation, dry good is expected to lead the last mile delivery market during forecast period due to increase in demand for import and export of raw material in bulk quantity for manufacturing purpose tends to grow the market segment.
Based on end user, e-commerce segment accounted the highest market share in 2020 and is expected to expand during forecast period. E-commerce services have been widely accepted throughout globe and considered to be emerging mode of shopping.
Geographically, Asia-Pacific is expected to show the highest growth during forecast period. Asia- Pacific is considered one of the emerging and developing in the last mile delivery market due to presence of required infrastructure.
Global Last Mile Delivery Market by Region Outlook (Revenue, USD Billion, 2021-2027)
Based on region, Asia-Pacific region accounted the highest market share in 2020 and expected to show expansion during forecast period. This is due to increase in demand of customer for highspeed and on-time service delivery, increase in transportation facilities and rising online shopping drives the growth of last mile delivery market in this region.
Moreover, North America hold second position in the growth of last mile delivery market due to increase in last mile delivery services, growing transportation infrastructure, thus, these are considerably the factors that boost the growth of last mile delivery market in North America.
Global Last Mile Delivery Market by Vehicle Outlook (Revenue, USD Billion, 2021-2027)
Global Last Mile Delivery Market by Cargo Outlook (Revenue, USD Billion, 2021-2027)
Global Last Mile Delivery Market by End User Outlook (Revenue, USD Billion, 2021-2027)