According to the new research report published by The Insight Partners, titled “Last Mile Delivery - Global Analysis and Forecast to 2027”, The Global Last Mile Delivery Market is expected to reach US$ 7.69 Bn in 2027, registering a CAGR of 16.7% during the forecast period 2019-2027.
In 2018, North America was accounted for the largest share in the last mile delivery market, and the Asia Pacific is expected to be the fastest growing region in the last mile delivery market. The market is experiencing steady growth with regards to the research and development activities, product innovations, investments, and technological integrations, and deployment in the current scenario and is anticipated to rise exponentially in the coming years. The market consists of some well-established players across the globe that cater highly advanced technologies. The benefits of last-mile deliveries, which attracted parcel delivery and e-commerce players include reduced roadway congestion, improved safety, optimized route flexibility, reduced greenhouse gas emission, and overnight or one-day delivery. These factors are anticipated to propel the growth of last mile delivery market.
In recent years, last mile delivery market has observed different product launch, partnership, as well as inauguration of new facilities which would help the players to grow in the market. For instance, in 2019, FedEx Express has opened a new state-of-the-art ramp operation facility at Luis Muñoz Marin International Airport (SJU) in Carolina, Puerto Rico. The new facility is part of the company’s strategy to increase its operational efficiency and meet its growing customer demands. Another initiative with respect to new product launch is undertaken by FedEx Corporation. In this, in 2019, FedEx has developed an autonomous battery-powered delivery robot to enable same-day last-mile deliveries. The FedEx SameDay Bot travels along roadsides and on sidewalks to deliver all the small shipments to its end users.
The drones are majorly used by e-commerce companies and several governments and private organizations to deliver time-sensitive goods, medicines, and emergency response goods. Disaster recovery, medical supplies, and other applications witness significant growth potential. Drone delivery is the ultimate solution for last-mile connectivity in rural areas. The drones in the current scenario are progressing substantially, as the governments of several countries are simplifying the laws and regulations, which is raising the number of drone operating companies. Such approvals and initiatives would help the companies to widen the scope of the last mile delivery market.
Key findings of the study:
The logistics industry is booming in the North America region. The global and regional trade network such as NAFTA (North America free trade agreement) between USE, Mexico and Canada have highly increased the trade between these countries, and as a result of this, the player in the logistics and supply chain industries have increased. Apart from this, these countries are also a member of the World Trade Organization (WTO) whose primary objective is to increase trade between the member countries across the world. Furthermore, the US currently holds the largest last mile delivery market share; however, Canada is expected to emerge as the fastest growing region in the near future. Increase in an inclination of manufacturers to develop paperless work along with a rise in adoption of just-in-time trucking for e-commerce companies is boosting the market for last mile delivery in the US.
Product Innovation and partnerships are expected to be the key growth strategy to be adopted by players for the next two to three years. However, this strategy could impact competition; it is also expected to generate new market as well as product opportunities as recently combined companies will thrive to maintain position and profitability.
Some of the key players operating in the last mile delivery market are CEVA Logistics AG, DB Schenker (Deutsche Bahn AG), DHL (Deutsche Post AG), DSV A/S, FedEx Corporation, GEODIS, Kuehne + Nagel International AG, Nippon Express Co., Ltd., XPO Logistics, Inc., and United Parcel Service, Inc.
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