The integration of automated technologies into logistics services and rising demand of customers for faster deliveries are the key factors driving the growth of the last mile delivery market. Moreover, the strategic alliance is expected to support both CEP and CV players in cracking potential of full automation, which in turn is anticipated to boost the last mile delivery market growth in the near future. Asia Pacific region is concentrated with several technology companies, which has created substantial knowledge of modern technologies among the population. With continuous advancements in drone technology, the large multinational companies are seeking forward for drones to ensure quick delivery of parcels with high speed while lowering time and operational costs. Asian countries have the advantage of having the most confident shoppers when it comes to receiving deliveries through drones and using autonomous technology to make payments. Shoppers of Asia Pacific are excited to adopt and implement new shopping technologies to make the future of retail bright. Moreover, online merchants conduct tests to check the capabilities of drones with respect to package delivery at lightning-speed. As shoppers would be more confident and comfortable with the concept of autonomous technology, there is a huge opportunity for connected devices. The rapid growth of online business in Asian countries has made the region a prosperous market for parcel delivery. Continuous government support in the countries, particularly in India, is one of the major reason to improve and increase the adoption of advanced technologies in the market.
The B2C type led the last mile delivery market in the year 2018 with the highest market share and is expected to flourish its dominance during the forecast period. The supply chain companies’ look ahead to make necessary changes in their fulfillment processes to deliver products on time. An increase in the number of e-commerce businesses among B2B, B2C, and C2C market, it has raised several challenges in front of urban freight, such as high usage of public space, noise, pollution levels, road congestion, and safety. Therefore, the need to enhance urban freight is essential nowadays. The last mile delivery market by type is segmented into B2B and B2C. B2C sales include freight deliveries, parcels, and other factors. Companies such as Amazon looks ahead to adopt new technologies to make the delivery of packages successful even in the absence of the customer. The last mile logistics service provider companies enter into a partnership with technology provider companies to ensure secure, guaranteed, and timely delivery.
China dominated the last mile delivery market in 2018 and is expected to dominate the market with the highest share in the Asia Pacific region through the forecast period. China is the biggest markets for logistics adoptions. The traditional method for parcel delivery has now been replaced by advanced solutions for the consumers of the local e-commerce business. China is capable of providing economical and quick deliveries to the rural areas as these areas need to incur high cost on hand deliveries. The Chinese government is more accommodating when it comes to the adoption of advanced technologies. Thus, these factors are supporting the growth of last mile delivery market in this country. The figure given below highlights the revenue share of the rest of Asia Pacific in the last mile delivery market in the forecast period:
| Report Attribute | Details |
|---|---|
| Market size in 2018 | US$ 500.3 Million |
| Market Size by 2027 | US$ 2,292.6 Million |
| Global CAGR (2019 - 2027) | 19.0% |
| Historical Data | 2016-2017 |
| Forecast period | 2019-2027 |
| Segments Covered |
By Offerings: Technology
|
| Regions and Countries Covered | Asia-Pacific
|
| Market leaders and key company profiles |
The List of Companies