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Global Artificial Intelligence Enabled Last Mile Delivery Share 2025, Forecast To 2034

24 Mar, 2025

What Has Been the Progress and Growth of the Artificial Intelligence Enabled Last Mile Delivery Market in Recent Years?

The artificial intelligence enabled last mile delivery market has seen considerable growth due to a variety of factors.
• The market size of the artificial intelligence-powered last mile delivery sector has been on a rapid growth trend in the past few years. It's projected to expand from $1.35 billion in 2024 to $1.57 billion in 2025, with a compound annual growth rate (CAGR) of 16.0%.
The historical growth is largely due to factors like growing demand for e-commerce, increasing urbanization, heightened customer expectations, and advancements in AI technology, in addition to advancing data analytics capabilities.

What Is The Expected Growth In The Artificial Intelligence Enabled Last Mile Delivery Market Size Evolve over the Forecast Period?

The artificial intelligence enabled last mile delivery market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for last-mile delivery enabled by artificial intelligence is projected to experience swift expansion in the coming years. It is forecasted to reach $2.8 billion by 2029, growing at a compound annual growth rate (CAGR) of 15.6%.
The predicted growth during the forecast period can be credited to factors like the greater incorporation of robotics, the exponential growth of e-commerce, the broadening of IoT networks, increasing competitive pressure, and evolving regulatory changes. Noteworthy trends during the forecast period encompass the rise of electric vehicles, the wide acceptance of AI, sustainable delivery practices, quick commerce, and the adoption of contactless delivery methods.

What Main Forces Are Fueling Expansion In The Artificial Intelligence Enabled Last Mile Delivery Market?

The surge in E-commerce operations is predicted to fuel the expansion of the artificial intelligence-enabled last-mile delivery market. These E-commerce operations include online transactions such as purchasing and trading products and services through the Internet. The increase in e-commerce retail is credited to a variety of factors such as enhancements in internet infrastructure, the convenience provided by online shopping, evolving customer preferences, and the rising usage of digital platforms. The implementation of AI in last-mile delivery enhances the performance, reliability, and affordability of e-commerce operations, resulting in greater customer satisfaction and growth. For instance, the International Trade Administration, a US government agency, reported in November 2023 that the e-commerce sales in the UK are projected to see an annual growth rate of 12.6% by 2025. Furthermore, as of January 2021, consumer e-commerce represented 36.3% of the UK's retail sector and is anticipated to touch $285.60 billion by 2025. Consequently, the escalating E-commerce operations are propelling the growth of the artificial intelligence-enabled last-mile delivery market.

What Are The Primary Segments In The Global Artificial Intelligence Enabled Last Mile Delivery Market?

The artificial intelligence-enabled last mile delivery market covered in this report is segmented –
1) By Type: Hardware, Software, Services, Predictive Analysis, Other Types
2) By Business Model: On-Demand Delivery, Other Business Models
3) By End-User Industry: E-Commerce, Logistics, Healthcare, Travel And Tourism, Food And Beverage, Other End-User Industries Subsegments:
1) By Hardware: Delivery Drones, Autonomous Delivery Vehicles, GPS And Tracking Devices
2) By Software: Route Optimization Software, Delivery Management Software, Fleet Management Software
3) By Services: AI-Aased Delivery Services, AI Integration Services, AI Consulting Services
4) By Predictive Analysis: Demand Forecasting, Delivery Time Prediction, Customer Behavior Analytics
5) By Other Types: Smart Lockers, Automated Pickup Stations

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What New Trends Are Influencing The Artificial Intelligence Enabled Last Mile Delivery Market?

Leading corporations in the AI-enabled last-mile delivery sector are working on creating AI assistants for supply chains to enhance the movement and management of goods. These supply chain AI assistants help streamline logistics and improve decision-making via smart automation. As an example, in February 2024, One Network Enterprises, a US supply chain management firm, introduced NEO Assistant, an innovative AI tool for supply chain developed by the company. It improves decision-taking through real-time actions, adjustable flows, intelligent suggestions, and engaging visuals. This tool is constructed on a single digital supply chain network, resulting in comprehensive visibility and control with a unified model and factual data, from raw materials to last-mile delivery. NEO Assistant maintains an acute awareness of the real-time status of the user's supply chain and adjusts its assumptions when there are changes in this state.

Who Are the Key Players In The Artificial Intelligence Enabled Last Mile Delivery Market?

Major companies operating in the artificial intelligence-enabled last mile delivery market report are:
• NVIDIA Corporation
• DoorDash Inc.
• WorkWave LLC
• Locus Robotics Corporation
• FarEye Technologies Inc.
• Bringg Delivery Technologies Ltd.
• Magaya Corporation
• Circuit Logistics Inc.
• Shipwell Inc.
• LogiNext Solutions Private Limited
• Freightos Limited
• Wise Systems Inc.
• Route4Me Inc.
• GetSwift Limited
• Onfleet Inc.
• Transmetrics AD
• ClearMetal Inc.
• Boxbot Inc.
• Refraction AI Inc.
• Robby Technologies Inc.
• Rapidus Inc.
• OptimoRoute Inc.
• Routific Inc.
• Detrack Systems Pte. Ltd.
• PickPack LLC

What Is The Most Dominant Region In The Artificial Intelligence Enabled Last Mile Delivery Market?

North America was the largest region in the artificial intelligence-enabled last mile delivery market in 2024. The regions covered in the artificial intelligence-enabled last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.