Straits Research: Last Mile Delivery Market Size $123B by 2030 - CAGR 13.21%:

July 25, 2022

The global last mile delivery market size was valued at USD 40.5 Billion in 2021 and is anticipated to generate USD 123.7 Billion in 2030. The market is projected to grow at a CAGR of 13.21% during the forecast period (2022–2030). The Asia-Pacific region leads the market share at USD 15953 million in 2021 and is expected to reach USD 53539.78 million at a CAGR of 14.4% by 2030.

Last mile delivery is a process or service that provides faster, easier, and smooth shipping of products right to the customer. The last mile delivery facility is provided by various industries or companies, through which they deliver the product right from the distribution center or the company outlet directly to the customer’s place in a stipulated amount of time.

Dan Nevin, General Manager of Inmar Post-Purchase Solutions explained, "Historically, many markets have been dominated by one or two leading national carriers who dictate prices and services in their respective countries. In the US, this has been USPS, FedEx and UPS - all of which were operating long before the age of e-commerce. Consequently, their networks were designed for small mail or B2B fulfillment. Although these carriers have all adapted over the years, it's only recently that they've really been forced to innovate, but they might have difficulty catching up. There are now dozens of disruptors in the first and final mile space, capitalizing on the huge increase in parcel volume that creates the economics to carve out regions of the country or entire categories. And they're winning for the simple fact that they built their networks and solutions with e-commerce fulfillment as the primary objective. Companies like XDelivery and Pandion are leveraging empty space on existing rails to help reduce costs, while companies like Deliverr are increasing the points of distribution to reduce miles, costs and increase speed. All of these strategies are ones that the big three find hard to replicate without major disruptions to their networks or sabotaging their top line revenue. I predict that it'll be just a few years before the US market is completely fragmented with shippers able to diversify their carrier mix without fear of negatively impacting their volume-based pricing; which is currently one of the biggest competitive levers for carriers."

Consumers Reliance on the Faster and Easier Mode of Shipment Creates a Wide Range of Opportunities in the Global Last Mile Delivery Market

With the evolution of new technologies that perform better and faster, consumers’ expectations have gone up. Nowadays, consumers seek same-day delivery, for which they used to wait for 4-5 days. This rise in the consumers' expectations has given a ray of hope for growth and improvement in the global last mile delivery market. Many leading retailers have been able to match the growing demands for delivering and fulfilling their consumer’s demand.

Amazon is one of the global leaders in the e-Commerce space, has tried on global shipments, and attracted more customers with their smart and efficient international delivery. Amazon and such key players in the industry have opened new doors for emerging players to attract consumers by offering time-bounded delivery options and growing in the global last mile delivery market.

Many leading e-Commerce companies establish e-Commerce fulfillment networks to offer their consumers new and exciting shipping offers with hassle-free returns and exchange policies. Even some key retailers in the global market are trying to upgrade logistics infrastructure to match their consumer’s expectations and deliver quickly within a stipulated time frame. Major key players in the global last mile delivery market are innovating on their logistics and inventories to reduce their shipping costs and serve their end consumers with better service.

Impact of Covid-19 on the Global Last Mile Delivery Market

The global last mile delivery market has seen noteworthy growth in the revenue generated with a sudden rise in delivery services during the pandemic. The Covid-19 outbreak proved to be a business booster for the global last mile delivery market, as only the delivery services were in action during the entire lockdown measures. However, the imposed lockdown created a disruption in the global supply chain, which narrowed down the merchandise trade growth in logistics industry.

The growth of the e-Commerce industry has led the delivery services market to new heights even in the most difficult times when people were house arrested by force. According to reports, the e-Commerce sector has achieved growth of about 30% in the first and second quadrant of the year 2020. The only positive thing the covid-19 pandemic did was to the e-Commerce industry as they generated a lot of revenue through the online selling portals and gained the trust of the consumers by delivering their goods safely to their doorstep.

Key Highlights –

The global last mile delivery market is growing with a whopping sales figure of USD 1,32,159.3 million in 2030 at a CAGR of 13.2% from USD 43,29.2 million in 2021.

With the emergence of the e-Commerce industry, the delivery services has also evolved at lot with new smart technological developments to track the entire process.

According to reports, the e-Commerce sector has played the major role in making the global last mile delivery market a big one with an expected valuation of about USD 1,32,159.3 million by 2030.

The global last mile delivery market is segmented across five regions: North America, Europe, South America, Asia-Pacific (APAC), and Middle-East & Africa.

The Asia-Pacific region leads the market share at USD 15953 million in 2021 and is expected to reach USD 53539.78 million at a CAGR of 14.4% by 2030.

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