PUBLISHER: The Business Research Company | PRODUCT CODE: 1409415
PUBLISHER: The Business Research Company | PRODUCT CODE: 1409415
“First and Last Mile Delivery Global Market Report 2024 ” 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.
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 $171.4 billion in 2023 to $189.56 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to the surge in e-commerce, driven by consumer demands for swift and convenient delivery services. Additionally, growing environmental concerns have prompted investments in delivery infrastructure, and there has been an increase in 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 $278.56 billion in 2028 at a compound annual growth rate (CAGR) of 10.1%. The anticipated growth in the forecast period can be attributed to the integration of autonomous vehicles, the expansion of same-day delivery services, customization of delivery options, increased collaboration in urban mobility, and the implementation of sustainable practices. Key trends in the forecast period include the utilization of autonomous delivery vehicles, the establishment of micro-fulfillment centers, the rise of electric and low-emission vehicles, the integration of advanced route optimization, and the implementation of real-time visibility and tracking, as well as contactless delivery solutions.
The burgeoning e-commerce landscape is anticipated to be a driving force propelling the first-and last-mile delivery markets in the foreseeable future. E-commerce, characterized by the online buying and selling of goods and services, primarily over the internet, continues to surge in prominence. First-and last-mile delivery services act as essential conduits linking suppliers with end customers during transactions. The escalating prevalence of e-commerce is expected to significantly boost the growth of the first-and last-mile delivery market. Notably, in the US, Forbes reported e-commerce sales soaring to $870 billion in 2021, marking a remarkable 50.5% increase from the previous year and a 14.2% rise from 2020. This surge in e-commerce accounted for 13.2% of retail sales in the US. Moreover, data from Morgan Stanley in June 2022 highlighted a global surge in e-commerce, escalating from 15% to 21% of total retail sales between 2019 and 2021, representing approximately 22% of overall sales. Hence, the upward trajectory of e-commerce is a key driver propelling the growth of the first and last-mile delivery market.
The escalating pace of urbanization stands as another significant catalyst fuelling the expansion of the first-and last-mile delivery market. Urbanization refers to the significant migration of populations from rural to urban areas. This phenomenon has led to increased demands for efficient and sustainable logistics solutions, particularly in transporting goods within densely populated urban zones. First-and last-mile delivery services play a pivotal role in meeting the evolving needs of urban consumers by offering timely and convenient delivery options. For instance, the World Bank's June 2021 report indicated that around 55% of the global population resides in urban areas, projected to surpass two-thirds by 2050, with South Asia and Sub-Saharan Africa contributing significantly to this urbanization trend. This surge in urbanization serves as a significant driver propelling the growth of the first-and last-mile delivery market.
Technological advancements emerge as a prominent trend shaping the first-and last-mile delivery markets. Leading companies within this sector are actively investing in innovative technological solutions to fortify their market positions. For instance, LogiNext, a US-based technology firm specializing in SaaS-based delivery automation platforms, introduced MILE, an integrated last-mile delivery platform in July 2021. MILE stands out for its interconnected ecosystem of web applications and mobile apps, ensuring a seamless last-mile delivery experience. Equipped with an AI-powered route planner, the platform streamlines trip generation for drivers via the LogiNext driver's app, enabling enterprises to swiftly automate delivery management with its plug-and-play feature, facilitating instant go-live capabilities. This emphasis on technological innovation underscores its pivotal role in the growth and evolution of the first-and last-mile delivery market.
Key players in the first-and last-mile delivery market are channeling their efforts towards innovative solutions, such as zero-emissions delivery pilots, with the objective of mitigating traffic congestion, facilitating access to safe and convenient goods and services, and exploring pioneering, zero-emission delivery alternatives. Zero-emissions delivery pilots denote initiatives aimed at transforming sustainable transportation by advocating or mandating the use of transportation modes with zero emissions for delivering goods. For instance, in June 2021, the Urban Freight Lab, a collaborative consortium involving private industry, academic researchers, and public transportation agencies, launched one of the nation's inaugural zero-emissions delivery pilots, specifically targeting the 'last-mile' phase, which involves transporting parcels from a transportation hub to their final destinations. This project, a joint effort between the City of Seattle and technology and delivery companies such as AxleHire, Coaster Cycles, BrightDrop, and REEF, leverages innovative technologies and strategies to promote sustainable delivery of goods and services. Aligned with the City of Seattle's Transportation Electrification Blueprint, the pilot aims to transition 30% of goods delivery to zero emissions by 2030, focusing on making delivery methods more environmentally sustainable.
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 report are FedEx Corporation, DHL Global Forwarding, Cargo Carriers Limited, J&J Global Limited, United Parcel Services Inc., Concargo Private Limited, Interlogix Pty Ltd., Tuma Transport AS, TNT Holdings B.V., Transtech Logistics Pvt Ltd., DB Schenker, Swift Transportation Company, Kerry Logistics Network Limited, KART, Procet Freight Forwarders Ltd., XPO Logistics, DSV A/S, J.B. Hunt Transport Inc., Panalpina World Transport Pte Ltd., Agility, CEVA Logistics, STO Express, Hitachi Ltd., 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 2023. 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.