North America Same Day Delivery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

The North America Same Day Delivery Market size is estimated at 10.26 billion USD in 2024, and is expected to reach 14.63 billion USD by 2030, growing at a CAGR of 6.09% during the forecast period (2024-2030).

Environment and infrastructure playing a major role in same day delivery services

• Major same day delivery providers in the United States have taken initiatives to curb pollution by facilitating domestic and international same day deliveries, specifically by road and air. Thus, companies are moving toward net-zero emissions and reducing carbon emissions by 2050. For instance, Amazon's Sacramento same day delivery facility opened in 2022, the first logistics facility in the world to get the International Living Future Institute's Zero Carbon certification. DHL has bought 33 million L of sustainable aviation fuel (SAF) and plans to update aviation solutions to reach net zero by 2050.
• The Canadian government invested USD 17 million in Québec City Jean Lesage International Airport in 2021, facilitating domestic and international same day deliveries in Canada. About USD 12.5 million was used to expand the airport's capacity for air cargo transportation. Regional air carriers that require room to reach remote locations were also allotted designated space in the 5,600-sq. m structure, which is a major supporter for companies and carriers in the industrial sectors of the Québec City region, the East and the North, which are particularly sensitive to delivery times.
• In 2020, the Mexican last mile delivery market for retail e-commerce was worth USD 400 million. It is projected to reach USD 1.1 billion by 2025, mainly due to the increasing e-commerce usage. The same day delivery of small and medium-sized goods within Mexico's major cities by niche players greatly contributes to this prediction. Puerto Rico's same day delivery demand is driven by e-commerce, wherein the user penetration rate is expected to reach 46% by 2027.

Robotic delivery vehicles, machine learning algorithms, and warehouse automations facilitating same day deliveries

• The United States along with Canada, Mexico and other countries comprise the regional market. Same day delivery is currently the fastest-growing service type for e-commerce deliveries in the United States, specifically emerging from the B2C e-commerce segment. For instance, approximately 67% of the customers in the United States expect same day delivery for online purchases. E-commerce users accounted for over 75% of the Canadian population in 2022 and are expected to grow to 77.6% in 2025. With the growth in online users, the demand for same day delivery is rising in Canada.
• With the growth in regional e-commerce demand by a CAGR of 15.46% during 2017-2022, most shoppers expect faster delivery of online orders, particularly same day delivery. Demand for prescribed medicines, OTC medications, personal care products, and wellness products, along with grocery delivery, necessitates same day delivery of shipments. Further, in Mexico, to facilitate and reduce the operational costs of last mile logistics and expedite same day delivery, technological innovations such as automatic fulfillment quotation tool, AI-enabled micro fulfillment, API connections, and plug-ins in delivery services have been adopted by several logistic startups and last mile tech companies such as Justo, Locus, and 99 minutes.
• With last mile delivery of parcels making up 53% of total supply chain costs, technological innovations have paced up to facilitate same day delivery in the region, such as robotic delivery cars, machine learning algorithms enabling customer experience, warehouse automation and shipments, and several other innovations. With the adoption of autonomous and zero-emission delivery modes, the last mile delivery landscape in transportation is evolving in the region.

North America Same Day Delivery Market Trends

Mexico's transportation sector propels GDP with 21.3% surge, initiates USD 39.38 billion investments for infrastructure modernization

• Transportation and warehousing contributed a GDP of MXN 1.84 trillion (USD 0.094 trillion) during the third quarter of 2022, marking a 0.62% quarterly increase and a substantial 21.3% surge compared to the previous year's corresponding period. The Infrastructure, Communications, and Transport Ministry, in collaboration with the public and private sectors, committed investments totaling MXN 768 billion (USD 39.38 billion) in 2022 to enhance Mexico's road and rail infrastructure. This comprehensive effort aims to modernize railways, highways, and bridges while also addressing road safety enhancements.
• The Port Infrastructure Development Program of the Maritime Administration, which the US Department of Transportation announced in 2022, would receive more than USD 703 million to support 41 projects in 22 states and one territory that will enhance port facilities. The funding will help improve supply chain reliability by increasing port capacity and resilience, improving operations, lowering emissions from the port, and creating new employment opportunities for coastal seaports, Great Lakes ports, and inland river ports.
• In North America, the United States is the largest contributor to the GDP of the transportation and storage sector, accounting for 86% of the total North American transportation and storage sector's GDP. The United States contributes six times the combined value of Canada and Mexico. The Canadian government provided an additional CAD 1.9 billion (USD 1.46 billion) to the National Trade Corridors Fund over four years (2021-22 to 2024-25), which may spur investments in much-needed improvements to Canada's roads, rails, and shipping routes, build long-term resilience for the Canadian economy, and support internal trade.

Low supply and high demand for natural gas in the United States are anticipated to increase natural gas prices

• In 2021, natural gas prices declined by 14.7% YoY. However, in 2022, natural gas prices recorded a YoY growth of 34.3%, and the YoY growth of gasoline prices stood at 2.02% due to high inflation and the Russia-Ukraine War. The supply of crude oil became more constrained, and the gasoline demand increased, which raised the price even higher. The retail diesel prices were predicted to average around USD 4.20/gal in 2023, down by 16% from 2022, and the diesel refining margins in the country were expected to decline by 20% in 2023 and 38% in 2024. The prices are expected to keep dropping in 2024 and average close to USD 3.70/gal.
• The primary driver of high gas and diesel prices is the price of crude oil, which is now 75% higher than in 2021. For instance, in Canada, gas prices jumped by more than 50% in 2021, pushing the cost of a liter to more than USD 1.56 in many parts of the country. Similarly, many western states faced much higher gas prices in the United States because of more limited refining capacity.
• There has been a rapid rise in diesel fuel prices, squeezing freight transportation companies and their customers. The impact is evident more in Mexico, where about 80% of trucks are managed by small trucking companies or owner-operators. The increase in natural gas prices in the United States will inevitably spread to Mexico's gas and power markets. However, Mexico imports 80% of its fuel from the United States. Still, gas and diesel cost less in Mexico because the Mexican government offers subsidies to the trucking industry to offset operating expenses. A weaker-than-expected supply response in the United States, combined with high natural gas demand in domestic and export markets, is expected to increase the prices further.

North America Same Day Delivery Industry Overview

The North America Same Day Delivery Market is moderately consolidated, with the top five companies occupying 41.95%. The major players in this market are DHL Group, FedEx, OnTrac, United Parcel Service of America, Inc. (UPS) and USPS (sorted alphabetically).

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