What Is The Current and Historic Market Size Analysis Of The Middle Mile Delivery Market?
The middle mile delivery market has seen considerable growth due to a variety of factors.
• The market size for middle mile delivery has seen a swift expansion in the past years. The market is projected to grow from $113.42 billion in 2024 to $125.1 billion in 2025, with a compound annual growth rate (CAGR) of 10.3%.
The notable growth during the historical period is due to factors such as heightened attention on optimizing supply chains, augmentation of warehouses and distribution centers, increased consumer demand for instant tracking and transparency, rising investments in logistics networks and infrastructure, and the proliferation of third-party logistics (3PL) providers.
What Is The Forecast For The Middle Mile Delivery Market Size?
The middle mile delivery market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of the middle mile delivery is forecasted to experience swift growth in the coming years. By 2029, it is projected to reach $183.62 billion, flourishing at a compound annual growth rate (CAGR) of 10.1%.
The escalation projected for this period can be credited to the expansion of e-commerce and online retail, accelerated consumer demand for quicker delivery periods, the growth of international and cross-border commerce, increasing urbanization, and heightened demand for perishable items. In this forecast period, significant trends include the rise of advanced algorithms and AI, escalating technological progress, the appearance of drones and autonomous vehicles, IoT device integration, and advancements in route optimization software.
What Are The Essential Drivers Behind The Growth Of The Middle Mile Delivery Market?
The surge in e-commerce activity is anticipated to fuel the expansion of the middle mile delivery market in the future. E-commerce signifies the online transactions of goods and services, utilizing digital platforms and electronic payment methods. The increasing convenience of online shopping, an expansive array of product choices, and the rising popularity of mobile shopping and digital transactions contribute to the exponential growth of e-commerce. Middle mile delivery plays a crucial role in supporting e-commerce by effectively transporting goods from warehouses to local hubs, thus curbing delivery periods and expenses, and assuring products are swiftly set up for last-mile delivery to consumers. For example, data from the United States Census Bureau, a government agency in the U.S., in May 2024 showed that the projected U.S. retail e-commerce sales for the initial quarter of 2024 touched $289.2 billion, indicating a 2.1 percent (±0.7%) surge from the last quarter of 2023. As a result, the swift expansion of e-commerce is fuelling the growth of the middle mile delivery market.
How Is The Global Middle Mile Delivery Market Divided Into Key Segments?
The middle mile deliverymarket covered in this report is segmented –
1) By Service Type: Warehousing And Distribution, Freight Forwarding, Transportation Management
2) By Transportation Mode: Roadways, Railways, Airways, Maritime
3) By End User Industry: Retail And E-Commerce, Manufacturing, Healthcare, Automotive, Food And Beverage, Energy And Utilities, Aerospace And Defense, Other End User Industries
Subsegments:
1) Warehousing And Distribution: Storage Services, Inventory Management, Order Fulfillment Services, Cross-Docking Services, Pick And Pack Services
2) Freight Forwarding: Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding, Customs Brokerage Services
3) Transportation Management: Route Optimization Services, Fleet Management Solutions, Shipment Tracking and Visibility, Load Planning And Consolidation, Carrier Management Services.
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What Trends Are Shaping The Middle Mile Delivery Market?
Several major businesses participating in the middle mile delivery market have begun to prioritize investments in cutting-edge technological solutions such as middle-mile logistics services, which are intended to optimize operations and facilitate a more effective delivery process. This specific logistic service relates to the section of the supply chain that deals with transporting goods from a company's distribution locations to their final delivery or retail spots. As an illustration, AIT Worldwide Logistics, Inc., a freight forwarder company based in the U.S., unveiled its expedient Middle Mile Network service in November 2024. This service was positioned as a fast, secure, and economically efficient substitute for the conventional expedited less-than-truckload (LTL) shipping. It links over 90% of significant U.S. urban areas through key hubs located in cities like Atlanta, Chicago, Columbus, Dallas, and Los Angeles. Operating on more than 160 shipping routes, the network enables quick door-to-door shipment deliveries. The system permits collective pickups and transfers, resulting in greatly enhanced transit durations in contrast to normal LTL shipping. Initially focusing on importers and large companies that ship heavy cargo, the service's main goal is to improve logistics performance during the high-volume holiday season, with additional expansion into Canada and Mexico planned for the future.
Who Are the Key Players In The Middle Mile Delivery Market?
Major companies operating in the middle mile delivery market are:
• United Parcel Service Inc. (UPS)
• DHL Supply Chain
• FedEx Corporation
• Blue Dart Express
• Kuehne + Nagel International AG
• DSV Panalpina A/S
• DB Schenker
• C.H. Robinson Worldwide Inc.
• Nippon Express
• CEVA Logistics
• Expeditors International
• J.B. Hunt Transport Services
• Geodis
• Ryder System Inc.
• XPO Logistics
• Toll Group
• TForce Logistics
• Hub Group
• Werner Enterprises
• Americold Logistics LLC
• Agility Logistics
• GEFCO Group
• NFI Industries
• Penske Logistics
• Uber Freight
• Cardinal Logistics Management
• Lineage Logistics LLC
• Rhenus Group
What Are The Regional Insights Into The Middle Mile Delivery Market?
North America was the largest region in the middle mile delivery market in 2024. The regions covered in the middle mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
