PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1535709
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1535709
First Mile Delivery Market size will depict over 7.5% CAGR between 2024 and 2032, led by the adoption of GPS and IoT technologies for providing real-time visibility into the location and status of shipments. For instance, in June 2023, Vilnius emerged as the first European city to have a fleet of ARCs (autonomous robot carriers) delivering groceries on its busy city center roads.
Of late, enhanced tracking systems are facilitating better communication with customers and stakeholders for sending updates and alerts on delivery status. The hefty investments in logistic infrastructure, including new warehouses and transportation networks will also support the growth and efficiency of first mile deliveries, stimulating the market expansion.
The overall industry is segmented into delivery mode, application, goods, sourcing, and region.
In terms of delivery mode, the first mile delivery industry size from the rail segment is likely to witness strong growth between 2024 and 2032. Rail transport is more cost-effective for moving large volumes of goods over long distances compared to road transport. Trains are also generally more fuel-efficient than trucks when transporting bulk goods, leading to lower fuel costs and overall cost savings. The advantages of rail networks in providing regular and scheduled services to enhance reliability and predictability in the supply chain will also boost the segment growth.
Based on application, the first mile delivery market share from the pharmaceutical segment will foresee considerable expansion up to 2032. The growth is mainly driven by the sensitive nature of pharmaceutical products and the strong need for strict compliance with regulatory standards. The use of automated systems for sorting, packing, and labeling is increasing the efficiency and accuracy of the first mile delivery process while reducing human error and operational costs. The pharmaceutical sector further deploys these delivery systems to meet urgent needs, such as restocking pharmacies and responding to medical emergencies.
Regionally, the Asia Pacific first mile delivery industry value will record substantial CAGR between 2024 and 2032, impelled by the growing e-commerce demand, rapid rate of urbanization, and the strong focus on sustainability. The rise in the number of first mile delivery startups is leading to the introduction of innovative technologies and business models to address the evolving needs of the logistics sector. Governments and regulatory bodies are also introducing policies to promote sustainable practices while influencing logistics providers to adopt greener approaches in their operations, further driving the regional market growth.