PUBLISHER: The Business Research Company | PRODUCT CODE: 1664306
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664306
First-and last-mile delivery involves the transportation of finished goods from the factory to a distribution center and ultimately to an end customer, representing the initial and final stages of the fulfillment process within the supply chain. This transportation is crucial for the delivery of goods to the end consumer.
The primary categories of first and last-mile delivery include dry goods, postal, and liquid goods. Dry goods typically refer to non-liquid grocery items. Various types of vehicles, such as light-duty, medium-duty, and heavy-duty vehicles, play a role in this process. These vehicles are utilized across industries such as chemical, pharmaceutical, healthcare, fast-moving consumer goods, hi-tech products, food and beverage, and others.
The first and last mile delivery market research report is one of a series of new reports from The Business Research Company that provides first and last mile delivery market statistics, including first and last mile delivery industry global market size, regional shares, competitors with first and last mile delivery market share, detailed first and last mile delivery market segments, market trends, and opportunities, and any further data you may need to thrive in the first and last mile delivery industry. This first and last-mile delivery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The first and last mile delivery market size has grown rapidly in recent years. It will grow from $186.31 billion in 2024 to $205.17 billion in 2025 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to e-commerce boom, consumer demand for speed and convenience, environmental concerns, investments in delivery infrastructure, rise of on-demand services.
The first and last mile delivery market size is expected to see rapid growth in the next few years. It will grow to $306.21 billion in 2029 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to integration of autonomous vehicles, expansion of same-day delivery services, customization of delivery options, increased collaboration in urban mobility, implementation of sustainable practices. Major trends in the forecast period include autonomous delivery vehicles, micro-fulfillment centers, rise of electric and low-emission vehicles, integration of advanced route optimization, real-time visibility and tracking, contactless delivery solutions.
The growth of e-commerce is anticipated to drive the first-and last-mile delivery markets in the future. E-commerce involves the buying and selling of goods and services through electronic networks, primarily the internet. First-and last-mile delivery services act as a link between suppliers and end customers, facilitating transactions for both parties. As e-commerce continues to rise, it will significantly contribute to the expansion of the first-and last-mile delivery market. For example, in November 2023, the United States Census Bureau, a government agency, reported that U.S. retail e-commerce sales reached $284.1 billion in the third quarter of 2023, marking a 7.6% increase from the same period in 2022 and representing 15.6% of total sales. Thus, the increasing e-commerce activity is propelling the growth of the first and last-mile delivery market.
The ongoing trend of urbanization is expected to boost the first-and last-mile delivery market in the coming years. Urbanization is characterized by the large-scale migration of populations from rural areas to cities. This trend has led to an increased demand for efficient and sustainable logistics solutions to tackle the challenges of transporting goods in densely populated regions. First-and last-mile delivery services are crucial for addressing the needs of urban consumers by offering timely and convenient delivery options. For instance, in April 2023, the World Bank, a U.S.-based international financial institution, reported that approximately 4.4 billion people, or 56% of the global population, currently live in urban areas. By 2050, it is projected that about 7 out of 10 people will reside in cities, with the urban population expected to more than double from its current level. Therefore, the increasing urbanization is fueling the growth of the first-and last-mile delivery market.
Technological advancements are becoming a prominent trend in the first- and last-mile delivery markets. Leading companies in these markets are concentrating on creating new technological solutions to bolster their market positions. For example, in September 2022, Celcius Logistics Solutions Pvt Ltd, an India-based cold-chain marketplace, introduced the Smart Last Mile Delivery Platform. This platform combines a tech-enabled inventory management system (IMS) with IoT devices for real-time tracking, ensuring comprehensive visibility of products throughout the delivery process. It minimizes wastage, optimizes delivery times, and enhances food security by improving the efficiency of cold supply chains in India.
Major players in the first- and last-mile delivery market are focusing on innovative strategies, such as zero-emissions delivery, to reduce traffic, enhance access to safe and convenient goods and services, and experiment with new zero-emissions delivery methods. Zero-emissions delivery refers to initiatives and programs designed to transform sustainable transportation by encouraging or requiring the use of zero-emission vehicles for goods delivery. For instance, in November 2023, Amazon.com Inc., a U.S.-based online retail giant, launched the Last Mile Fleet Programme in India, featuring a fully electric vehicle (EV) fleet- a global first for the company. This initiative will assist over 300 Delivery Service Partners (DSPs) in completing customer deliveries with zero tailpipe emissions. It enables DSPs to obtain safe, high-quality zero-emission vehicles through a fleet management company, building on the success of its operations in North America and Europe.
In May 2022, United Parcel Service Inc. (UPS), a prominent US-based provider of package delivery and supply chain management solutions, finalized the undisclosed acquisition of Delivery Solutions. This strategic acquisition positions UPS to integrate its resources with Delivery Solutions, fortifying a customer-centric approach and positioning UPS as a digital front-runner in the industry. Delivery Solutions, a US-based retail e-commerce enterprise specializing in last-mile SaaS delivery services, aligns with UPS's objectives to enhance its capabilities in the last-mile delivery segment and strengthen its digital footprint within the market.
Major companies operating in the first and last mile delivery market include FedEx Corporation, DHL Global Forwarding, Cargo Carriers Limited, United Parcel Services Inc., Concargo Private Limited, TNT Holdings B.V., Transtech Logistics Pvt Ltd., DB Schenker, Swift Transportation Company, Kerry Logistics Network Limited, KART, XPO Logistics, DSV A/S, J.B. Hunt Transport Inc., Agility, CEVA Logistics, STO Express, Dachser Group SE & Co. KG, The Toll Group, C.H. Robinson, China Post Group Corporation, Kuehne + Nagel International AG, GEODIS, Nippon Express Co. Ltd.
Asia-Pacific was the largest region in the first and last mile delivery market in 2024. The regions covered in the first and last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the first and last mile delivery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The first and last-mile delivery market includes revenues earned by providing dark stores delivery services and curbside pickup delivery services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
First and Last Mile Delivery Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on first and last mile delivery market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for first and last mile delivery ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The first and last mile delivery market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.