LONDON, Sept. 29, 2021 /PRNewswire/ -- The Global Last Mile Delivery Market size in terms of revenue was worth of USD 108.10 Billion in 2020 and is expected to reach USD 200.42 Billion in 2027, growing at a CAGR of 9.29% from 2021 to 2027. The Global Last Mile Delivery Market is expected to grow at a significant growth rate due to number of driving factors.
The rise in the online orders has increased the demand for last-mile delivery which has upsurge the growth of many companies in this field. A large number of consumers are ready to pay extra charges for a fast delivery which has led in the increasing demand for the last mile delivery and is projected to increment the growth of the market in the coming years. Advancement in light-duty vehicles such as economic fuel, retail price, and acceleration has helped in increasing the ease in the transportation and operation in carrying end-products to the consumers. Also, road transportation activities are increasing, worldwide which thereby boosting the growth of the market.
Last-mile delivery is a service which delivers the items to an end-user as fast as possible. It is defined as the movement of items from the transportation hub to the final destination. The rapid growth in the logistics industry coupled with an increase in the demand for the last mile delivery services is driving the growth of the last-mile delivery market. Moreover, growing expansion in transport facilities by the major companies as well as start-ups companies has boosted the growth of the market. The changing living standards and high penetration growth of smartphones are also contributing to the growth of the market. Additionally, advancement & automation in the technology due to rising disposable income and growing capacity are some of the factors propelling the growth of the last mile delivery market.
The study provides a crucial view of the global last mile delivery Market report is segmented on the basis of service type, delivery type, end-user, and region & country level. Based upon service type, last mile delivery market is classified into B2B (business-to-business), B2C (business-to-consumer), and C2C (customer-to-customer). On the basis of delivery type, the market is classified into regular delivery, and same-day delivery. On the basis of end-user, the market is classified into chemicals industry, pharmaceutical & healthcare industry, hi-tech product industry, food and beverage industry, and others.
Last Mile Delivery companies: The major players operating in the last mile delivery market are United Parcel Service of America, Inc., FedEx Corporation, USPS (United States Postal Service), XPO Logistics Inc., DHL International GmbH, Ryder System Inc. / MXD Group, Schneider National Inc., J.B. Hunt Transport Inc., ArcBest Corporation, SEKO Worldwide LLC (SEKO Logistics), and Others.
Several factors are responsible to drive the market for last mile delivery including increasing digitalization, linear growth in the number of online buyers, the growing popularity of online food as well as online shopping, and many others. The surge in the expansion of e-commerce across the world is one of the major factors substantially propelling the growth of the last mile delivery market. E-commerce has developed as an imperative part of the retail framework worldwide. For instance; in 2020, e-commerce sales reported 18 percent of total retail sales globally. The percentage of e-commerce sales jumped from 13.6 percent in 2019 to 18 percentage. The segment of e-commerce sales is estimated to achieve 19.5 percent by the end of 2021, and 21.8 percent by 2024. It is anticipated that there will be nearly 2.14 billion buyers online by the end of 2021 globally. Similarly, more than two billion people bought goods or services online in 2020, and throughout the same year, e-retail sales exceeded 4.2 trillion U.S. dollars worldwide. This expansion of e-commerce resulting in a large number of deliveries to the customers. The last leg of the supply of goods or services is ultimately climbing along with the high amount of e-commerce throughout the world.
The type segment of the global last mile delivery market is dominated by B2B segment with the largest market share of 52.05% in 2020. The Service Provider segment of the global last mile delivery market is dominated by National Parcel Carriers drive with the largest market share of 47.24% in 2020.
On geographic basis, Asia Pacific has captured the largest market share and is expected to dominate the last mile delivery market within the forecast period owing to the several factors such as increasing e-commerce industries in the region, growing online shopping, and many others. Soaring recent technical developments in the region are one of the remarkable contributors to the last mile delivery market growth during in North America. For instance; Domino's Pizza, Inc. signed a partnership with a U.S.-based robotics company, Nuro to provide pizzas in designated areas of Houston in 2019. Also, San Francisco-based UAV manufacturer Zipline started the delivery of medicines and healthcare products in Ghana and Rwanda by means of drones in April 2019.
The Asia Pacific is the fastest-growing region in last mile delivery market owing to the growing popularity of online food as well as online shopping in the region. Online shopping and online ordering food are respectively increasing. For instance; more than 1,06,086 websites are recorded regularly. The figure indicates that over 71 percent of internet users have purchased products online in India in 2019. In India, the online consumers are projected to achieve 220 million by 2025. The digital buyer penetration rate has approached nearly 57 percent by 2021 in China. Similarly, according to the report published on 20 June 2021, it is projected that about 63 percent of shopping events begin online in Korea. Passionate demands of consumers and boosting the number and diversity of goods accessible are the causes behind the enormous expansion of online shopping. This recent trend in online shopping and online food is increasing in Asian countries which leads to a large number of transportation of goods and services. Whereas last mile delivery is the final step of the supply procedure of these food and other services.
Increasing Adoption of E-Commerce Platform and Addition of Novel Technologies are the Major Factors Driving Factors for the Growth of This Market
The committed e-commerce distribution contracts and expansion of warehousing due to increasing adoption of e-commerce for ordering are boosting the market growth upward and are hugely benefiting logistics providers. Moreover, increasing value-added services is considered to be the key trend in boosting the logistics industry and propelling market growth. Growing focus on sectors like automotive, pharmaceuticals, and high-technology by the logistics providers enhancing market growth.
Likewise, offering value-added additional services which are drawing the consumer attentions are boosting the demand for the last-mile delivery market. Novel technologies such as self-driving vehicles, vehicle management software, augmented reality, robotics, and internet of things applications, are discovering multiple ways into logistics services to enhance service and improve productivity. The major logistics providers are categorized based on asset ownership models, differing service lines, types of customers they serve and geographical scope.
Market Trends of last mile delivery
The process of movement of goods from a transportation hub or warehouse to their final delivery destination is nothing but the last mile delivery and that final destination is the customer's doorstep in most cases. It is an essential part in the e-commerce because customers can easily find an alternative product or retailer if shipping options don't meet their expectations. Before the explosion of e-commerce, the delivery endpoint of goods is the stores where the consumers must go to and purchase the goods physically. But nowadays, this last mile delivery has made things easier as the goods must be delivered to the consumers who purchased the goods at different destinations as it gives choice to consumers to select company that could provide the last mile delivery service as per their needs. It has become a popular area of concern for stores due to the growing demand for fully joined omnichannel retailing. With this evolving omnichannel, retailers must have ability to evaluate current transportation network capabilities and make adjustments accordingly.
Some of the major trends of global last mile delivery market are as follows:
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