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

• The Last Mile Delivery Market is estimated to reach USD 300 Billion by 2032.

• The Global Last Mile Delivery Market was valued at USD 155 Billion in 2024.

• As per Vertex, the Last Mile Delivery Market is projected to grow at a CAGR of 9% from 2025 to 2032.

The last mile delivery market is undergoing rapid expansion, driven by shifting consumer expectations and advancements in logistics technology. Key factors fueling this growth include the rising demand for same-day and next-day deliveries, the increasing need for real-time tracking and visibility, the surge in on-demand services, and the complexities associated with urban congestion and sustainability initiatives.

Last Mile Delivery Market Overview and Outlook

Last Mile Delivery represents the final and most critical phase of the logistics supply chain, where goods are transported from distribution centers, fulfillment hubs, or retail locations to the end consumer. This stage is instrumental in defining the efficiency, speed, and cost-effectiveness of the overall supply chain.

The Last Mile Delivery market is a critical component of various industries, including e-commerce, food delivery, pharmaceuticals, and retail, among others. With consumers demanding faster, more flexible, and cost-effective deliveries, companies are focusing on innovative last-mile solutions, including autonomous vehicles, drones, and electric delivery fleets, to address logistical challenges while improving sustainability.

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)

The last mile delivery market is segmented into service types such as B2C (Business-to-Consumer), B2B (Business-to-Business), and C2C (Customer-to-Customer). In 2024, B2C segment held more than 65% market share of the global last mile delivery market, driven by the explosive growth of online retail and e-commerce industry. B2C involves the delivery of goods directly from businesses (retailers, online stores) to individual consumers.

C2C last mile delivery involves transactions between consumers, where individuals send packages to other consumers. This service type has gained traction with the rise of peer-to-peer (P2P) platforms, as well as local delivery services for used goods, second-hand items, and personal shipments. The C2C segment is rapidly growing, driven by the growing popularity of online marketplaces and social commerce.

Last Mile Delivery Market Segments by Technology

• Autonomous Vehicles
• Drones
• Non-Autonomous Vehicles

Based on technology, the global last mile delivery market is segmented into autonomous vehicles, drones, and non-autonomous vehicles. In 2024, non-autonomous vehicles dominate the market, accounting for over 90% of the total revenue share in last mile delivery. These vehicles are traditionally operated by human drivers and include a range of delivery options, such as vans, trucks, motorcycles, and bikes. While not as advanced as autonomous vehicles or drones, non-autonomous vehicles remain central to last-mile operations due to their versatility, scalability, and established infrastructure. Non-autonomous vehicles are particularly advantageous for handling bulkier deliveries and navigating areas that may not yet be accessible by emerging technologies.

The autonomous vehicles and drone segments in last mile delivery market are projected to experience substantial growth, driven by technological advancements and rising demand for faster, more efficient delivery methods. Drones or unmanned aerial vehicles (UAVs) are increasingly being adopted for the delivery of small packages such as medical supplies, food, and e-commerce products, particularly in remote or hard-to-reach areas. This growth is further fueled by continuous advancements in drone technology, favorable regulatory developments, and significant investments from key players such as Amazon, Google, and UPS.

Last Mile Delivery Market Segments by Application

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

In 2024, the retail and e-commerce segment accounted for approximately 60% of the global last mile delivery market share, driven by the rapid expansion of online shopping platforms. This segment includes the delivery of a wide range of products, from apparel and electronics to groceries and home essentials. The high volume of e-commerce transactions necessitates efficient route optimization, flexible delivery windows, and real-time tracking to enhance customer satisfaction. With growing consumer expectations for same-day and next-day deliveries, companies are heavily investing in automated fulfillment centers, AI-driven logistics, and autonomous delivery solutions. Additionally, the rise of direct-to-consumer (DTC) brands and subscription-based shopping models is further accelerating demand for seamless last mile delivery services.

The food and beverages segment is expected to witness significant growth during the forecast period, driven by the increasing reliance on food delivery services and online grocery shopping. The demand for fast and temperature-controlled deliveries has surged as consumer preferences shift toward convenience. The expansion of cloud kitchens and app-based food delivery platforms is transforming the industry by streamlining operations and enhancing delivery efficiency. Companies are leveraging AI-powered logistics, predictive analytics, and contactless delivery solutions to meet rising demand and ensure optimal service quality. 

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 experiencing rapid transformation, largely driven by advancements in technology. Companies are increasingly adopting cutting-edge solutions such as artificial intelligence (AI), machine learning, and automation to optimize logistics operations, reduce costs, and enhance customer satisfaction. 

One of the key technological advancements in last-mile delivery is the integration of AI and machine learning to optimize route planning and delivery scheduling. AI systems are capable of processing vast amounts of data in real-time, enabling delivery companies to identify the most efficient routes for drivers. According to DHL 2023 report, AI-powered route optimization can reduce delivery times by up to 30%. 

Beyond AI and machine learning, autonomous delivery vehicles and drones are emerging as major disruptors in last mile delivery market. These technologies promise significant reductions in labor costs while increasing delivery efficiency particularly in urban environments where traffic congestion and limited access make traditional delivery methods less efficient.

Autonomous delivery vehicles, such as those developed by Nuro, handle last-mile deliveries in suburban and urban areas. These small, self-driving vehicles can deliver packages and groceries with minimal human intervention. 

Drones are also proving to be a game-changer for small parcel deliveries, including food and medical supplies. 

• In 2024, Wing, (Alphabet/Google), achieved a significant milestone by conducting over 350,000 drone deliveries across the U.S. and Australia.

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

As the complexity of last-mile delivery operations continues to rise, many businesses are turning to third-party logistics (3PL) providers to streamline their processes. Collaborating with 3PL providers allows companies to scale their operations efficiently while minimizing the challenges of managing their own fleets. These partnerships enable businesses to access the advanced infrastructure and expertise of 3PL providers, ultimately reducing operational costs, optimizing delivery routes, and enhancing service reach, particularly in hard-to-serve or remote areas. These partnerships are particularly advantageous during high-demand periods, such as holiday seasons or special promotions, when delivery volumes surge and capacity needs fluctuate.

Last Mile as a Service (LMaaS) has emerged as an innovative model for businesses seeking to outsource their last-mile logistics. This model enables companies to engage specialized service providers who are dedicated to managing the final leg of the delivery process. By opting for LMaaS, businesses can tap into the expertise, technology, and resources of these providers, ensuring efficient, cost-effective, and scalable delivery solutions without investing in the infrastructure themselves.

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.