Last Mile Delivery Market By Delivery Mode, By Service Type, By Technology, By Application, By Region and By Country: Industry Size, Share, Growth Analysis and Forecast, 2025 – 2032

Report Summary

Last Mile Delivery Market Size Statistics

•    As per Vertex, Last Mile Delivery Market is projected to grow at a CAGR of 9% from 2025 to 2032.
•    The Global Last Mile Delivery Market is estimated to reach USD 300 Billion by 2032.
•    The Global Last Mile Delivery Market size was valued at USD 155 Billion in 2024.

The last mile delivery market is growing rapidly due to shifting consumer demands and advancements in logistics technology. Key drivers include the increasing demand for same-day and next-day deliveries, a heightened need for real-time tracking and visibility, the rise of on-demand services, and the challenges posed by urban congestion and sustainability efforts.

Last Mile Delivery Market Overview and Outlook

Last mile delivery is the final and most critical step in the logistics supply chain, where goods are transported from distribution centers, fulfillment hubs, or retail locations directly to the consumer. This phase plays a vital role in determining the overall speed, cost-efficiency, and reliability of the entire supply chain.

The last mile delivery market is essential across multiple sectors, including e-commerce, food delivery, pharmaceuticals, and retail. With consumers increasingly seeking faster, more flexible, and affordable delivery options, companies are focusing on advanced solutions to meet these demands. Technologies such as autonomous vehicles, drones, and electric delivery fleets are gaining traction, helping to streamline operations while also supporting sustainability goals.

What are the Last Mile Delivery Market Segmentations and Bifurcations?

Last Mile Delivery Market Segments by Delivery Mode

• Regular Delivery
• Same Day / Express Delivery

Based on delivery mode, regular delivery held leading share of the global last mile delivery market in 2024. Regular Delivery refers to standard delivery services that typically take longer to fulfill, with transit times ranging from 2 to 7 business days. This mode of delivery is primarily focused on cost-effectiveness rather than speed. The regular delivery segment continues to dominate the last-mile delivery market due to its affordability and established infrastructure.

The same-day delivery segment is the fastest-growing within the last-mile delivery market. Fueled by increasing consumer demand for quicker deliveries and advancements in delivery technologies, this segment has seen explosive growth. Same day / express delivery is a premium service that guarantees the delivery of goods within a single day of purchase or order confirmation. This segment caters to consumers and businesses that require speed and reliability, offering faster transit times and higher costs. Same-day delivery is prevalent in industries such as e-commerce, grocery delivery, pharmaceuticals, and food delivery.

Last Mile Delivery Market Segments by Service Type

• B2C (Business-to-Consumer)
• B2B (Business-to-Business)
• C2C (Customer-to-Customer)

In 2024, B2C segment dominated the last mile delivery market, accounting for more than 65% of the global share. This growth is largely attributed to the rapid expansion of the online retail and e-commerce sectors, where businesses deliver goods directly to individual consumers.

The C2C segment is also experiencing significant growth, driven by the increasing popularity of peer-to-peer (P2P) platforms and local delivery services. C2C last mile delivery involves transactions where consumers send packages to other consumers, a trend that is being fueled by online marketplaces, social commerce, and the growing demand for used goods, second-hand items, and personal shipments. This service type is gaining traction as consumer behaviors shift toward more personalized and community-driven transactions.

Last Mile Delivery Market Segments by Technology

• Autonomous Vehicles
• Drones
• Non-Autonomous Vehicles

In 2024, non-autonomous vehicles dominated the last mile delivery market, accounting for over 90% of the total revenue share. These vehicles, operated by human drivers, include a wide range of options such as vans, trucks, motorcycles, and bikes. While they are less advanced than autonomous vehicles and drones, non-autonomous vehicles remain essential in last-mile delivery operations due to their adaptability, scalability, and established infrastructure. They are particularly effective for transporting bulkier items and navigating areas that emerging technologies have not yet fully penetrated.

The autonomous vehicle and drone segments are poised for substantial growth, fueled by technological advancements and increasing demand for faster, efficient delivery solutions. Drones, or unmanned aerial vehicles (UAVs), are being increasingly adopted for the delivery of smaller packages, including medical supplies, food, and e-commerce items, particularly in remote or difficult-to-reach regions. This growth is further driven by ongoing improvements in drone technology, favorable regulatory changes, and substantial investments from major industry players such as UPS, Amazon, and Google, all of which are accelerating innovation in the last mile delivery market.

Last Mile Delivery Market Segments by Application

• Food & Beverages
• Healthcare
• Retail & E-commerce
• Others

In 2024, the retail and e-commerce segment accounted for around 60% of the global last mile delivery market, fueled by the rapid growth of online shopping platforms. This segment spans a wide array of products, from apparel to groceries, and requires efficient route optimization, flexible delivery windows, and real-time tracking to meet customer demands for fast deliveries. To address this, companies are investing in automated fulfillment centers, AI-driven logistics, and autonomous delivery solutions. The rise of direct-to-consumer (DTC) brands and subscription models further accelerates the need for streamlined last mile delivery services.

The food and beverage segment is poised for significant growth, driven by increased demand for food delivery and online grocery shopping. Consumers’ preference for convenience has led to a surge in fast, temperature-controlled deliveries. The expansion of cloud kitchens and app-based food platforms is improving operational efficiency, while AI-powered logistics, predictive analytics, and contactless solutions are enhancing service quality and delivery speed. 

What are the Growth Drivers, Challenges, and Opportunities in Last Mile Delivery Market?

Rising Consumer Expectations for Speed and Convenience Boosts Demand for Last Mile Delivery Services

The global last mile delivery market has been significantly impacted by rising consumer demands for speed and convenience, as customers increasingly expect faster, flexible, and reliable delivery services. Consumers expect deliveries to be faster than ever before, leading to a substantial rise in demand for same-day and next-day deliveries. 

• As per our consumer surveys, 75% of consumers are willing to pay more for faster delivery, and nearly 60% expect their orders to be delivered the same day or the next day. 

This rising expectation is propelling businesses to adopt more efficient last-mile delivery solutions that can fulfill these tight delivery windows. 

Furthermore, on-demand services such as food delivery, grocery shopping, and personalized items delivery are also contributing to the surge in demand for last-mile delivery solutions. DoorDash, Uber Eats, and Instacart are operating in the on-demand delivery space, having reported rapid growth in their service areas.

Expansion of E-commerce Drives Last Mile Delivery Market

The expansion of e-commerce is one of the leading factors driving the growth of the Global Last Mile Delivery Market. As online shopping continues to flourish globally, the volume of goods purchased via digital platforms is increasing at an exponential rate. This surge in e-commerce activity has created an urgent need for more robust and efficient last-mile logistics solutions to handle the delivery of goods directly to consumers.

• In 2024, global e-commerce sales reached over US$6 trillion and are expected to cross US$8 trillion by 2027.

This rapid growth in e-commerce has dramatically increased the volume of packages that need to be delivered to individual consumers. Businesses are forced to invest in innovative technologies to maintain competitive edge and operational efficiency. Key areas of focus include route optimization, real-time tracking, and last-mile hubs located closer to consumers to minimize delivery time.

Technological Advancements and the Role of Autonomous Vehicles and Drones in Last Mile Delivery

The last mile delivery industry is rapidly evolving, driven by technological advancements such as artificial intelligence (AI), machine learning, and automation. These innovations are helping companies optimize logistics, reduce costs, and improve customer satisfaction. AI and machine learning are key drivers of efficiency, particularly in route planning and delivery scheduling. By processing real-time data, AI systems enable companies to select the most efficient delivery routes. A 2023 DHL report found that AI-powered route optimization can cut delivery times by up to 30%.

Additionally, autonomous vehicles and drones are transforming last mile delivery. Autonomous vehicles, such as Nuro's self-driving cars, are tackling delivery challenges in urban and suburban areas, reducing human intervention and enhancing efficiency. Drones are also revolutionizing small parcel deliveries, particularly for time-sensitive items such as food and medical supplies. 
•    For instance, in 2024, Wing (Alphabet/Google) completed over 350,000 drone deliveries across the U.S. and Australia, showcasing the growing potential of drone technology in the sector. 

Strategic Collaboration with Third Party Logistics and Last Mile as a Service (LMaaS)

As last mile delivery operations become increasingly complex, many companies are turning to third-party logistics (3PL) providers to optimize their processes. Partnering with 3PLs allows businesses to scale operations effectively while avoiding the challenges of managing their own fleets. These collaborations offer access to advanced infrastructure, expertise, and resources, helping companies reduce operational costs, improve delivery route efficiency, and expand service coverage, particularly in remote or difficult-to-reach areas. Such partnerships prove invaluable during peak demand periods, such as holiday seasons or promotional events, when delivery volumes rise and capacity requirements fluctuate.

Another emerging trend is Last Mile as a Service (LMaaS), a model that enables businesses to outsource their last-mile logistics to specialized service providers. Through LMaaS, companies can leverage the technology, expertise, and scalability offered by third-party providers, ensuring cost-effective and efficient delivery solutions without the need for significant infrastructure investments. This model allows businesses to focus on their core operations while relying on dedicated providers to manage the final delivery leg.

Last Mile Delivery Market Report Scope & Snapshot

What are the Regional and Country Trends in Last Mile Delivery Market?

Global Last Mile Delivery Market - Regional Insights and Trends

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

In 2024, the North America region held leading market share of the worldwide last mile delivery market, accounting for around 30%. Increasing growth in the e-commerce activities has significantly contributed to the increased demand for last-mile delivery services in this region. Consumers in North America increasingly prefer the convenience and product variety offered by online shopping, which has boosted the need for timely, efficient deliveries. North America also benefits from a strong technological infrastructure that supports the growth of last-mile logistics. North America region has well-established e-commerce ecosystem that drives the demand for faster, more reliable delivery solutions. Additionally, its developed logistics network allows for optimized last-mile operations, meeting the growing consumer expectation for fast, convenient delivery alternatives. Some of global key players such as Amazon, FedEx, UPS, and others operate in North America last mile delivery market.

• In 2023, U.S. Last Mile Delivery Market was valued at USD 35 billion and is projected to grow at CAGR of 8% during the forecast period.

Asia Pacific is expected to witness the highest CAGR throughout the forecast period, fueled by the region's rapid economic growth and its transformation into a dominant force in the logistics industry. The surge in e-commerce activities in Asia Pacific is driven by factors such as a growing middle-class population, rising smartphone penetration, and expanding internet connectivity, which collectively contribute to the booming demand for efficient last-mile delivery services.

• In 2023, India Last Mile Delivery Market was valued at USD 6 billion and is projected to expand at CAGR of 14% during the forecast period.

Last Mile Delivery Market - Competitive Landscape

The last mile delivery market is characterized by a highly dynamic and competitive environment, driven by a wide array of companies offering varied delivery solutions to meet the growing demands of consumers and businesses. This competitive market includes not only well-established logistics providers but also leading e-commerce giants, innovative startups, and technology-driven companies. These players are continually evolving their strategies to optimize delivery processes, improve efficiency, and address the increasing need for faster, more reliable last-mile services. 

Some of the key companies operating in the last mile delivery market include: 

• Aramex
• A1 Express Services Inc.
• A2Z Drone Delivery LLC
• Amazon.com
• Deutsche Post AG (DHL GROUP)
• Drone Delivery Canada Corp
• FedEx
• Flirtey
• Jet Delivery, Inc
• Kerry Logistics Network Limited
• Matternet
• Power Link Expedite
• Savioke
• United Parcel Service Inc. (UPS)
• XPO Logistics Inc.
• YTO Express Group Co

Last Mile Delivery Market Developments

• In March 2024, last-mile delivery played a critical role in boosting vaccine distribution in Sierra Leone. This initiative combined community mobilization with the delivery of medical experts and supplies to remote regions, ensuring vaccines reached even the most underserved areas.

• In November 2023, Shipyaari and India Post entered into a strategic partnership aimed at transforming last-mile delivery in India. Shipyaari, a prominent provider of SaaS-based logistics solutions, joined forces with India Post, the nation’s leading postal service. This collaboration is set to revolutionize last-mile logistics by expanding Shipyaari's reach, allowing for enhanced service in even the most remote parts of India.

• In June 2023, Amazon declared initiatives to involve small businesses in its efforts to optimize last-mile delivery operations across the United States. This initiative, which will span 23 states, is designed to integrate small enterprises like clothing boutiques, florists, and bodegas into Amazon’s logistics network. Amazon projects that these businesses could earn up to USD 27,000 annually by handling delivery responsibilities, with an average of 30 deliveries per day. The initiative will operate on weekends and exclude major holidays, offering about USD 2.50 per delivered item.