What is the Historic and Current Scenario of the First and Last Mile Delivery Market?
The first and last mile delivery market has seen considerable growth due to a variety of factors.
• The size of the market for first and last-mile delivery has witnessed a steep increase in recent years. The projected growth is from $186.31 billion in 2024 to $205.17 billion in 2025 with a compound annual growth rate (CAGR) of 10.1%. The escalating growth during the historic period is credited to the surge in e-commerce, consumer demands for quick and convenient services, environmental considerations, significant investments in delivery infrastructure, and the rise in on-demand services.
How Does the Forecast Look for the First and Last Mile Delivery Market?
The First and Last Mile Delivery market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for first and last mile delivery is predicted to experience swift expansion in the coming years. It's projected to reach a worth of $306.21 billion by 2029, witnessing a compound annual growth rate (CAGR) of 10.5%.
The anticipated growth within the forecast period is largely due to the inclusion of autonomous vehicles, growth of express delivery services, bespoke delivery choices, increased synergy in urban mobility, and initiation of green initiatives. The notable trends during this period are autonomous delivery vehicles, micro-fulfillment centers, the emergence of electric and low-emission vehicles, the application of cutting-edge route optimization, real-time monitoring and tracking, along with contactless delivery solutions.
What Are The Leading Drivers Of Growth In The First and Last Mile Delivery Market?
The expected growth in e-commerce is projected to boost the first and last-mile delivery markets in the future. E-commerce implies purchasing and selling goods and services via an electronic network, mostly via the internet. The first and last-mile delivery service serves as a bridge between the supplier and the ultimate consumer, assisting both during a transaction. The surge in e-commerce is anticipated to fuel the growth of the first and last-mile delivery market. As per the reports released by the United States Census Bureau, a government agency based in the US, in November 2023, the US retail e-commerce sales for the third quarter of 2023 stood at $284.1 billion. This depicts an increase of 7.6% in comparison to the same period in 2022 and constituted 15.6% of total sales. Thus, the growing e-commerce phenomenon is driving the first and last-mile delivery market.
How Are The Segments Defined Within The Global First and Last Mile Delivery Market?
The first and last mile delivery market covered in this report is segmented –
1) By Type: Dry Goods, Postal, Liquid Goods
2) By Vehicle Type: Light Duty Vehicle, Medium Duty Vehicle, Heavy Duty Vehicle
3) By End Use: Chemical, Pharmaceutical And Healthcare, Fast-Moving Consumer Goods, Hi Tech Product, Food And Beverage, Other End Uses
Subsegments:
1) By Dry Goods: Consumer Electronics, Apparel And Footwear, Home Goods And Furniture
2) By Postal: Letters And Documents, Small Packages, Bulk Mailing Services
3) By Liquid Goods: Beverages, Chemicals, Food Products
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How Are New Trends Expected To Influence The Growth Of The First and Last Mile Delivery Market?
There is a rising trend of technology development in the first- and last-mile delivery industry. Major players in these markets are investing in innovative tech solutions to solidify their competitive standing. As a testament to this, Celcius Logistics Solutions Pvt Ltd, an Indian cold-chain marketplace, unveiled the Smart Last Mile Delivery Platform in September 2022. Equipped with a technology-driven inventory management system (IMS) and IoT tracking apparatus, this platform assures end-to-end product visibility. It also lessens waste, improves delivery speed, and boosts food security by heightening the operational efficiency of India's cold supply chains.
Who Are the Key Players In The First and Last Mile Delivery 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.
What Is The Most Dominant Region In The First and Last Mile Delivery Market?
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
