PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462731
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462731
According to Stratistics MRC, the Global Digital Last-Mile Platform Market is accounted for $7.46 billion in 2023 and is expected to reach $21.7 billion by 2030 growing at a CAGR of 16.5% during the forecast period. A digital last-mile platform is a technology-driven solution designed to optimize the final leg of product or service delivery to customers. It integrates various components like logistics, distribution, and communication channels to streamline and enhance the efficiency of last-mile operations. These platforms leverage data analytics, AI algorithms, and real-time tracking to improve route planning, minimize delivery times, and enhance customer experiences.
E-commerce growth
The rapid expansion of e-commerce is a significant driver for digital last-mile platforms. As more consumers shop online, there is a growing need for efficient and reliable delivery services to fulfill orders and ensure timely deliveries. As a result, businesses are turning to digital last-mile platforms to gain a competitive edge by improving delivery speed, accuracy, and overall customer satisfaction. Therefore, e-commerce growth is an element that accelerates market demand.
Security and privacy concerns
These platforms handle sensitive data, such as customer information, delivery addresses, and payment details, making them attractive targets for cyber attacks and data breaches. Moreover, the interconnected nature of digital last-mile platforms, which often involve multiple stakeholders such as retailers, logistics providers, and third-party delivery partners, increases the complexity of security management and introduces potential vulnerabilities in the supply chain. Overall, security and privacy concerns hinder the market's growth.
Urbanization and population density
The increasing urbanization and concentration of populations in cities drive the demand for digital last-mile solutions. The rise of on-demand services and the expectation for fast, convenient delivery options among urban consumers further amplify the demand for Digital Last-Mile Platforms. Moreover, these platforms enable businesses to offer flexible delivery choices such as same-day or express delivery, which are essential for meeting the expectations of urban customers who value speed and convenience.
Intense competition
As the demand for last-mile delivery solutions continues to rise, numerous players, including both established companies and startups, enter the market, intensifying competition. Moreover, the low barriers to entry in the digital last-mile space contribute to increased competition, as new entrants can quickly develop and launch competing platforms, leveraging readily available technologies and solutions. These factors limit the market's expansion.
Covid-19 Impact
The COVID-19 pandemic has had a profound impact on the digital last-mile platform market. As lockdowns and social distancing measures were implemented worldwide, e-commerce experienced a surge in demand as consumers turned to online shopping for their essential and non-essential needs. This rapid increase in e-commerce activity placed immense pressure on last-mile delivery systems, highlighting the critical importance of efficient and reliable digital last-mile platforms.
The software segment is expected to be the largest during the forecast period
The software segment is estimated to hold the largest share. Software plays a pivotal role in enabling the efficient management and optimization of last-mile delivery operations. This software encompasses a wide range of functionalities designed to streamline various aspects of the delivery process, from route planning and optimization to real-time tracking and customer communication. Additionally, by minimizing travel distances and maximizing delivery efficiency, this software helps businesses reduce transportation costs and improve overall operational performance.
The retail & e-commerce segment is expected to have the highest CAGR during the forecast period
The retail & e-commerce segment is anticipated to have lucrative growth during the forecast period. Digital last-mile platforms offer retailers and e-commerce businesses the tools and capabilities needed to streamline their last-mile delivery operations. These platforms utilize advanced technologies such as route optimization algorithms, real-time tracking systems, and predictive analytics to optimize delivery routes, minimize delivery times, and enhance overall efficiency.
North America commanded the largest market share during the extrapolated period. The region boasts a mature e-commerce ecosystem with a large and affluent consumer base that is increasingly adopting online shopping for a wide range of products and services. This surge in e-commerce activity has created a high demand for efficient last-mile delivery solutions, prompting businesses to invest in digital last-mile platforms to meet evolving customer expectations.
Europe is expected to witness profitable growth over the projection period. The region's diverse and highly developed e-commerce landscape has led to a surge in online shopping, driving the demand for efficient last-mile delivery solutions. Moreover, Europe's stringent environmental regulations and sustainability goals are driving the adoption of digital last-mile platforms that prioritize eco-friendly delivery practices, such as route optimization to reduce emissions and the use of electric vehicles.
Key players in the market
Some of the key players in the Digital Last-Mile Platform Market include Zebra Technologies Corporation, Shipwell, Inc., Onro, Inc., Onfleet, Inc., Shipsy.io, Descartes Systems Group Inc., FarEye Technologies, Inc., Loginext Solutions Private Limited, Scurri Ltd., Click Labs Inc, WorkWave LLC and Bringg Delivery Technologies Ltd.
In July 2023, Onfleet, the leading last mile delivery management Software Company and Riptide, a 3-way text messaging platform, announced a partnership integration to provide white glove experiences for every last mile delivery by bringing customers, drivers and dispatchers together instantly and at-scale.
In February 2023, Shipwell is continuing to expand its Managed Transportation Services (MTS) offerings with the addition of a new partnership with Marex Services, a leading provider of MTS for industrial, heavy equipment, and building products companies, as well as additional services such as freight forwarding, ocean, drayage, and more.
In September 2022, Shipwell and NMB Solutions Inc announced their partnership, bringing Shipwell's modern, best-in-class Transportation Management System (TMS) to the Microsoft D365 community.