Last Mile Delivery Market Size & Share | Global Trends 2027

Last Mile Delivery Market to 2027 - Global Analysis and Forecasts by Technology (Drones, Autonomous Ground Vehicles, Droids, Semi-autonomous Vehicles); Type (B2B, B2C); Application (3C Products, Fresh Products, Others)

Publication Month : Jun 2019

  • Report Code : TIPRE00004153
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 160
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The last mile delivery market accounted to US$ 1.99 Bn in 2018 and is expected to grow at a CAGR of 16.7% during the forecast period 2019 – 2027, to account to US$ 7.69 Bn by 2027.

Geographically, the last mile delivery market is segmented into North America, APAC, Europe, Middle-East and Africa, and South America regions. North America leads the last mile delivery market in 2018 with a significant market share and is anticipated to continue its dominance in the coming years. The growing industrial sector such as automotive, manufacturing, retail, food & beverages industries is driving the growth of freight as well as logistics market in the North America region. The e-commerce industry has recorded robust growth, and it is possible because of the efficient and effective logistics and supply chain management. 

Europe is the second largest market in the last mile delivery market. Apart from North America and Europe, Asia Pacific remains at the third largest geographic segment in the last mile delivery market. Moreover, the factors which strengthen the outlook of last mile deliveries are increased interest of customers in outsourcing a more extensive range of logistics services. Along with this, continual growth in internationalization is expected to deliver substantial growth opportunity to the industry players in Europe. Such initiatives would help the logistics service providers to introduce new solutions with advanced technologies in the last mile delivery market.

Lucrative Regional Last Mile Delivery Markets

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Market Insights

Continuous growth in the demand on-time delivery by the consumers

Customers are becoming sophisticated related to what they expect or demand from last-mile deliveries. In addition to this, many customers opt for instant or same-day delivery if these are available at affordable prices. With a rising demand for last mile delivery and fulfillment of the same business and consumer packages within a specified timeframe, excellence in final mile deliveries has become critical. Fortunately, shippers, logistics and technology providers’ looks ahead to fulfill all expected demand of customers timely through accepting innovative technologies designed for last mile deliveries. This factor is expected to influence the growth of last mile delivery market.

Endless developments to evolve entire business trade

The outlook of last-mile delivery is changing rapidly. Technology stands at the center stage and transforming itself to become more responsive, lean, and capable able to fulfill all customer expectations. Many trucking companies are developing their supply chain and delivery process by accepting innovations. Some of the technologically driven trends which help in reforming the last-mile delivery consist of a mobile warehouse, gig economy and crowdsourcing applications, on-demand drivers, and robotization in the supply chain management. This trend is anticipated to provide prosperous opportunities to the market to grow in the region; thus, positively impacting the last mile delivery market.

Technology Insights

The global last mile delivery market by technology is segmented into drones, autonomous ground vehicles, droids, and others. Drones segment dominates the last mile delivery market heavily and is expected to continue its dominance throughout the forecast period from 2019 – 2027. As the scope of parcel delivery is widening, the use of drones is rising as they overcome the challenges caused due to cars. The drones are capable of fulfilling ample of needs as the drones are designed in such a way that evade delays and surface congestion while enabling customized delivery at affordable prices.

Type Insights

The global last mile delivery market by type is segmented into B2B and B2C. B2C segment dominates the last mile delivery market heavily and is expected to continue its dominance throughout the forecast period from 2019 – 2027. When it is about B2C, the last mile is different from B2B. Owing to the fact, the carriers who deliver to final mile face various challenges such as high level of unpredictability in respect to customer and transit availability.

Application Insights

The last mile delivery market by application is further segmented into 3C Products, Fresh Products, and Others. Fresh products segment of the last mile delivery market dominate the application segment and is expected to continue its dominance throughout the forecast period from 2019 – 2027. Last mile delivery is the final process in the logistics industry, which plays a significant role in the food industry. Use of special containers to maintain temperature for fresh products is an essential part.

Rest of Asia Pacific Last Mile Delivery Market by Technology

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Last Mile Delivery Market: Strategic Insights

last-mile-delivery-market
Market Size Value inUS$ 1.99 Billion in 2018
Market Size Value byUS$ 7.69 Billion by 2027
Growth rateCAGR of 16.7% from 2019-2027
Forecast Period2019-2027
Base Year2019
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Some of the market initiatives were observed to be most adopted strategy in the global last mile delivery market. Few of the recent market initiatives are listed below;

2019:DSV in Turkey has moved into a new logistics facility in Istanbul. This facility is developed to manage warehouse operations. The facility is located nearby airports and ports which enables easy transportation of inventories.
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.
2018:XPO Logistics extended last mile logistics service that includes services for heavy goods in Europe. It focuses on Ireland, UK, Spain, the Netherlands, and France. The company anticipates of achieving success in more than 750,000 last mile deliveries made from e-commerce and retailers in Europe.
2018:Deutsche Post DHL Group acquired Suppla Group. This acquisition is enabling DHL Supply Chain to gain a competitive footprint in Colombia, a country with increasing competitiveness ranking and a favorable environment for foreign investment. 


GLOBAL LAST MILE DELIVERY MARKET SEGMENTATION


Global Last Mile Delivery Market – By Technology

  • Drones
  • Autonomous Ground Vehicles
  • Droids
  • Others

Global Last Mile Delivery Market - By Type

  • B2B
  • B2C

Global Last Mile Delivery Market - By Application

  • 3C Products
  • Fresh Products
  • Others

Global Last Mile Delivery Market - By Geography

  • North America

    • U.S.
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • Spain
    • UK
    • Rest of Europe
  • Asia Pacific (APAC)

    • South Korea
    • China
    • India
    • Japan
    • Australia
    • Rest of APAC
  • Middle East & Africa

    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of Middle East and Africa
  • South America

    • Brazil
    • Argentina
    • Rest of South America

Global Last Mile Delivery Market - Company Profiles

  • CEVA Logistics AG
  • DB Schenker (Deutsche Bahn AG)
  • DHL (Deutsche Post AG)
  • DSV A/S
  • FedEex Corporation
  • GEODIS
  • KUEHNE + NAGEL International AG
  • Nippon Express Co., Ltd.
  • XPO Logistics, Inc.
  • United Parcel Service, Inc.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Technology ; Type ; Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies - Last Mile Delivery Market

  1. CEVA Logistics AG
  2. DB Schenker (Deutsche Bahn AG)
  3. DHL (Deutsche Post AG)
  4. DSV A/S
  5. FedEx Corporation
  6. GEODIS
  7. Kuehne + Nagel International AG
  8. Nippon Express Co., Ltd.
  9. XPO Logistics, Inc.
  10. United Parcel Service, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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