Last Mile Delivery Transportation Market Size is Expanding to USD 297 BN by 2030
Precedence Research
12 min read
Precedence Research
The global last mile delivery transportation market size is expanding to USD 297 billion by 2030 and growing at a CAGR of 9.6% over the forecast period 2022 to 2030.
Ottawa, June 20, 2023 (GLOBE NEWSWIRE) -- As per Precedence Research, the last mile delivery transportation market size accounted for at USD 142.9 billion in 2022. The adoption of diverse last-mile services, evaluation of incurring costs of sold items, and expansion of the omnichannel inventory selection are a few of the variables that are anticipated to facilitate the growth of the last-mile delivery transportation market.
Market Overview
Last-mile logistics and last-mile delivery both relate to delivery from the distribution hub to the final doorstep of the customer. The main goal of this delivery system is to provide the requested goods and services in the required quantity, at the required price, and in acceptable condition to the customer at the requested location. The last-mile delivery sector is also developed and anticipated to grow rapidly in the coming years. Consumers and businesses are paying more attention to last-mile logistics, which will make them stand out in the market. Together with the rise in international shipping via digitally advanced supply chains and Omni channel modes, the significance of last-mile techniques that are ultramodern in nature to shippers and customers is increasing. Changes in integration and process standardization, customer purchasing preferences, and preferred means of delivery are further factors affecting new investment objectives.
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Food delivery exhibit the fastest growth, with $27.7 billion in 2022 and projected to reach $62.9 billion by 2030, growing at a CAGR of 10.8% during 2022 to 2030.
North America was accounted at $52.3 billion in 2022 and is growing at a CAGR of 9.0% during 2022 to 2030.
Regional Analysis
In 2022, Asia Pacific held a market largestshare in last-mile delivery transportation market. More than half of the world's population resides in Asia and the Pacific, creating a sizable consumer base. One of the key macroeconomic reasons driving the growth of the last-mile delivery transportation industry in Asia Pacific is fast urbanization, rising disposable income, busy and hectic lifestyle, rising internet penetration, and rising smartphone use.
It is anticipated that North America would expand significantly during the projection period. A few of the key drivers of the expansion of the North American last-mile delivery transportation market include rising purchasing power, better access to digital technologies, increasing internet penetration, and rising smart device adoption. Due to the conveniences involved, the strong demand for the items combined with the busy and hectic schedules of the consumers is driving up demand for last-mile delivery transportation services.
GLOBAL LAST MILE DELIVERY TRANSPORTATION MARKET REVENUE, BY REGION, 2019-2030 ($ BILLION)
Region
2021
2022
2030
CAGR
North America
48.3
52.3
104.5
9
%
Europe
36.8
39.6
74.7
8.3
%
Asia Pacific
28.6
32
84.3
12.9
%
LAMEA
17.6
19
33.6
7.4
%
Covid-19 Impact on the market
The logistics companies have been on the front lines since the Covid-19 pandemic broke out, with fully supplied warehouses and active trading. The disruption of the worldwide supply chain brought on by the mostly globalized shutdown, however, further restricted the growth of the merchandise trade in the aforementioned logistics industry. Yet, one aspect of this Covid pandemic that stood out was the enormous rise of the e-Commerce industry, which introduced consumers to digital business models and efficient and secure logistical practices. With the growth in Covid-19 instances worldwide, there has been a noticeable surge in the quick or same-day delivery trends for online purchases. Customers feel secure placing online orders and having them delivered right to their door rather than going to a busy location.
The COVID-19 pandemic presented a series of challenges for stakeholders operating in numerous industrial sectors. Challenges in trade activities along with the disruptions in supply chains led participants to face the heat in the last mile delivery transportation market, as governments across the globe continued to control the outspread of the pandemic. One of the critical aspects in those critical times was faced by the last mile delivery transportation across the healthcare industry. Several companies witnessed negative externalities during the pandemic, as most stores were forcefully closed, and consumers looked towards r-commerce purchases. In addition, the pandemic acted as an enhancer for a different trend such as the surge in B2C e-commerce, the consequence of proximity warehouses, increase in the innovative last mile delivery services, need of involving logistics in planning policies, and inflated awareness of consumers related to expectations and sustainability issues.
The impact of the COVID-19 changed the way individuals buy or purchase goods, boosting the increase in online shopping and e-commerce deliveries. In the opinion of a new report published by the World Economic Forum, there was an increase of approximately 25% in the deliveries of customer e-commerce in the year 2020.
Cities and companies have raised commitments to provide emission-free deliveries. At the same time, various economic stimulus packages related to pandemic, primarily in the China and the European Union, include provisions to support green mobility and goods transport. The revolution in the last mile delivery transportation is occurring as proven technologies like drones and delivery robots are scaling up and are expected to emerge speedily and in continuation. In addition, as consumers are adopting ways of buying an array of goods online, they are becoming ecologically ware. Certain logistics companies are now offering services to online retailers, which will help them identify the delivery routes most suited to make the immediate transition to electric delivery vehicles. These factors are a few of the structural changes adopted across the globe because of the COVID-19 pandemic, which are anticipated to fuel the growth of the last mile delivery transportation market.
The COVID-19 pandemic happened to be the turning point for the last mile delivery transportation market as it has boosted tremendously. While it had a negative impact as well, owing to the strict lockdowns announced by various governments of nations for the safety and to control the spread of this virus, which resulted in the whole disturbed supply chain, and even the stoppage of transportation except the essential goods.
Market Dynamics
Market Drivers: Improving Delivery Services as e-Commerce Platforms Gain Popularity
Online shopping portals have expanded significantly over the past several years because of public interest in how it all works. Later, after becoming accustomed to the online shopping model through various online portals and e-Commerce platforms, buyers expressed reluctance about receiving their ordered goods. Before, it was anticipated that a product ordered online would take at least 7-8 working days to arrive. Yet over time, e-Commerce platforms improved the concept of online purchasing and, in some instances, brought the expected delivery time as close to same-day delivery.
To provide its clients with efficient logistical services, the logistics sector has grown and modernized. One of the major factors fueling the expansion of the worldwide last-mile delivery market is the industry's development of door-to-door delivery of goods. Any type of service, including movers and packers, product delivery, industrial deliveries, etc., can be provided door-to-door. By 2032, 70% of the world's population will live in urban areas, and the emergence of new start-ups offering city-by-city services is creating new opportunities in the global last-mile delivery market.
Market Restraints: Corruption in the Supply Chain Decreases Reliability
One of the main obstacles on this planet is corruption, which has affected almost every industry, including the worldwide market for last-mile deliveries. The complete supply chain, from SKUs, stock allocation, and dispatch through delivery, is involved when a product is ready to be transported from the distribution center to the end-user. There is a potential that during this entire process, an employee will violate the code of conduct and divulge important information about the deliverables, sell the authentic product and replace it with a replica, etc. Corruption can affect the dependability of the market for delivery services in a number of ways in the aforementioned delivery sector.
Market Opportunities: Customers' Preference for Quicker and Simpler Shipping Delivery Methods Opens Up a Broad Range of Possibilities on the Global Market
Customer expectations have increased since they now demand same-day delivery instead of the five to six days they were previously willing to wait for. Few of the top retailers have been able to keep up with the rising needs for the delivery and fulfillment of their customer's demands as the global retail market changes as a result of these shipment expectations. As Amazon is the leader in international shipping, its one-day delivery services have drawn more customers. This has created opportunities for new businesses to gain market share by providing time-limited delivery alternatives with free shipping policies.
Numerous top e-Commerce businesses are building out their e-Commerce fulfillment networks and growing them in order to provide their customers with fresh shipping options and hassle-free exchange and return policies. To deliver orders swiftly and effectively without any communication or network issues, certain major retailers in the global market are working to update their logistical infrastructure. Even some of the industry's biggest firms are working to improve their supply chains and stocks in an effort to lower shipping costs and reach out to more customers with quick and effective services.
Report Highlights
By Type Insights
The market category with the largest market share is B2C (Business to Consumer) in 2022. Due to the rapid expansion of the e-Commerce industry and the proliferation of digital payment methods that enable consumers to make instant payments whenever and wherever they choose, the Business to Consumer (B2C) product segment currently accounts for the largest share of the global last-mile delivery market. Through the provision of raw materials, semi-produced items, and finished goods, the B2B or Business to Business product segmentation owns the second-largest share of the last-mile delivery market share. The bulk orders that the business requests for subsequent procedures are typically handled by the B2B deliverables. The B2B distribution market segment relies less on branding and marketing than B2C procedures do.
By Industry Insights
Retail clients, e-Commerce clients, and manufacturing enterprises are the three industry-type segments that make up the last-mile delivery market share. The retail client sector makes up the majority of the market in 2022. Businesses or organizations that use products for direct sales or subsequent processing make up the manufacturing companies category. Due to its high order volume, huge order size, and long-standing business relationships, this last-mile delivery market segment serves a sizeable portion of the world's population. With an anticipated CAGR of 12.4% over the forecast period, the manufacturing sector's share of the last-mile delivery market is anticipated to reach USD 85674.32 million in sales.
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Recent Development
In April 2020, Express Delivery, a new service introduced by Walmart Inc., will deliver more store merchandise in less than two hours than ever before.
In May 2020, In order to better serve its customers, Ryder System Inc. expanded its eCommerce fulfillment network by adding two new facilities and food-grade capabilities.
In August 2020, Together with the leading companies in the sector, Target Corporation cooperated with Closed Loop Partner's Center for Circular Economy.
In December 2019, to enhance last-mile delivery services and maintain a constant connection with the supply chain across several locations, Amazon ordered roughly 1000 electric vehicles.
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