First and Last Mile Delivery Market Report 2026

The first and last mile delivery market size has grown rapidly in recent years. It will grow from $238.99 billion in 2025 to $263.44 billion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to expansion of e-commerce platforms, growth in urbanization, increasing consumer demand for fast delivery, development of local distribution hubs, availability of last-mile delivery fleets.

The first and last mile delivery market size is expected to see strong growth in the next few years. It will grow to $383.27 billion in 2030 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to increasing investments in autonomous delivery solutions, rising adoption of sustainable delivery models, expansion of smart city logistics infrastructure, growing integration of real-time tracking systems, increasing focus on delivery efficiency optimization. Major trends in the forecast period include increasing adoption of ai-driven route optimization, rising use of electric delivery vehicles, growing demand for same-day and rapid delivery, expansion of micro-fulfillment centers, enhanced focus on delivery cost optimization.

The rapid growth of e-commerce is expected to drive the expansion of the first- and last-mile delivery market in the coming years. E-commerce involves the buying and selling of goods and services through electronic networks, primarily the internet. First- and last-mile delivery services act as a critical link between suppliers and end customers, facilitating smooth transactions and timely deliveries. As online shopping volumes continue to rise, the demand for efficient first- and last-mile delivery solutions increases accordingly. For example, in November 2023, according to reports published by the United States Census Bureau, a US-based government agency, US retail e-commerce sales reached $284.1 billion in the third quarter of 2023, reflecting a 7.6% increase compared to the same period in 2022 and accounting for 15.6% of total retail sales. Therefore, the growth of e-commerce is driving the first- and last-mile delivery market.

Companies operating in the first- and last-mile delivery market are increasingly focusing on innovative approaches such as zero-emissions delivery to support sustainable transportation, reduce traffic congestion, and improve access to safe and convenient goods and services. Zero-emissions delivery initiatives aim to transform delivery operations by promoting or mandating the use of emission-free transportation options for goods movement. For instance, in November 2023, Amazon.com Inc., a US-based e-commerce company, launched the Last Mile Fleet Programme in India, introducing a fully electric vehicle fleet and marking a global first for the company. The program supports more than 300 delivery service partners in completing customer deliveries with zero tailpipe emissions. It enables partners to procure reliable zero-emission vehicles through a fleet management company, building on Amazon’s earlier successes in North America and Europe.

In September 2025, ADL Final Mile, a US-based provider of final-mile delivery and logistics services, acquired DMC Logistics LLC for an undisclosed amount. Through this acquisition, ADL Final Mile aims to strengthen its delivery capabilities across the southwestern United States by integrating DMC Logistics’ customized final-mile services and expanding its distribution network throughout New Mexico, Arizona, Colorado, Nevada, Texas, and Utah. DMC Logistics LLC is a US-based logistics company specializing in tailored final-mile delivery solutions for regional and national customers across western and mountain-state markets.

Major companies operating in the first and last mile delivery market are FedEx Corporation, DHL Global Forwarding, Cargo Carriers Limited, United Parcel Services Inc., Concargo Private Limited, TNT Holdings B.V., Transtech Logistics Pvt Ltd., DB Schenker, Swift Transportation Company, Kerry Logistics Network Limited, KART, XPO Logistics, DSV A/S, J.B. Hunt Transport Inc., Agility, CEVA Logistics, STO Express, Dachser Group SE & Co. KG, The Toll Group, C.H. Robinson, China Post Group Corporation, Kuehne + Nagel International AG, GEODIS, Nippon Express Co. Ltd.

Asia-Pacific was the largest region in the first and last mile delivery market in 2025. The regions covered in the first and last mile delivery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the first and last mile delivery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The first and last-mile delivery market includes revenues earned by providing dark stores delivery services and curbside pickup delivery services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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