Last Mile Delivery Market Report 2025

This Last Mile Delivery market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The last mile delivery market size has grown rapidly in recent years. It will grow from $178.92 billion in 2024 to $202.01 billion in 2025 at a compound annual growth rate (CAGR) of 12.9%. The growth in the historic period can be attributed to e-commerce growth, the shift to same-day delivery, investment in delivery infrastructure, environmental concerns, and regulatory changes.

The last mile delivery market size is expected to see rapid growth in the next few years. It will grow to $324.48 billion in 2029 at a compound annual growth rate (CAGR) of 12.6%. The growth in the forecast period can be attributed to advancements in autonomous delivery, demand for sustainable delivery solutions, last-mile analytics, and expansion of urban logistics solutions. Major trends in the forecast period include on-demand delivery, contactless delivery options, expansion of urban logistics solutions, last-mile automation, and data analytics and route optimization.

The anticipated growth of e-commerce is set to drive the expansion of the last-mile delivery market in the future. E-commerce, or electronic commerce, denotes the buying and selling of goods or services over the Internet or other electronic networks. The ongoing rise in e-commerce adoption is attributed to various factors, such as technological advancements, shifts in consumer behaviors, and evolving business models globally. Last-mile delivery within e-commerce is crucial for ensuring efficient, timely, and cost-effective product delivery to customers' homes, representing the final phase of the delivery process. It plays a crucial role in e-commerce business success by improving customer satisfaction and building brand loyalty. For example, in February 2024, the United States Census Bureau reported a 7.6% increase in e-commerce sales in the United States, reaching approximately $1.11 trillion in 2023, contributing significantly to the rapid growth of the last-mile delivery market.

Prominent companies in the last-mile delivery market are concentrating on developing technology-enabled cold chain solutions for efficient and safe transportation of perishable goods during the last-mile deliveries. Cold chain solutions for last-mile deliveries entail specialized logistics infrastructure and processes designed to maintain specific temperature conditions while transporting perishable goods from distribution centers or hubs to their final destinations. For instance, in September 2022, Celcius Logistics, a provider of logistics and supply chain solutions based in India, introduced its smart last-mile delivery platform to tackle challenges in delivering perishable goods during the last mile. This innovative platform is a tech-enabled cold chain solution designed to monitor distribution gaps, apply predictive algorithms to mitigate potential risks, minimize delays, expedite ETAs, and offer shippers complete visibility of their products throughout the journey. Celcius aims to establish a nationwide network of last-mile vehicles and storage facilities through this platform, enhancing the efficiency of primary and secondary movement and storage of perishable goods.

In February 2022, Mahindra Logistics Ltd., a domestic third-party logistics service provider in India, acquired a 60% stake in ZipZap for $8.75 million, aiming to enhance its last-mile delivery services by expanding technological solutions and leveraging ZipZap's digital capabilities and extensive delivery network. ZipZap is a logistics service company in India specializing in last-mile delivery.

Major companies operating in the last mile delivery market are Amazon.com Inc., United Parcel Service Inc., DHL International GmbH, FedEx Corporation, La Poste Group, SF Holding Co. Ltd., Uber Technologies Inc., DB Schenker, Poste Italiane S.p.A., DPD Group, DSV Panalpina AS, Royal Mail plc, Yamato Holdings Co. Ltd., Australia Post, DoorDash Inc., XPO Logistics Inc., Grubhub Inc., Deliveroo, Aramex PJSC, Zomato Pvt. Ltd., Postmates Inc., Correios, TNT Holdings B.V., Gopuff, Deliv Inc.

North America was the largest region in the last mile delivery market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the last mile delivery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Last-mile delivery denotes the final step in the logistics chain where items are moved from a distribution center, warehouse, or retail location to the customer's doorstep or preferred delivery spot. This service is crucial for ensuring prompt, efficient, and satisfactory delivery, meeting customer expectations for convenience and dependability.

The primary categories of last-mile delivery methods encompass regular, same-day, or express delivery. Regular delivery typically denotes standard shipping or delivery services provided by logistics firms or retailers, where goods are conveyed from a seller to a buyer using standard shipping methods and timelines. Diverse technologies, both autonomous and non-autonomous, are employed to offer various services, including business-to-business (B2B), business-to-consumer (B2C), and customer-to-customer (C2C) deliveries. It is utilized for both domestic and international destinations across various sectors such as food and beverages, retail and e-commerce, healthcare, among others.

The last mile delivery market research report is one of a series of new reports that provides last mile delivery market statistics, including last mile delivery industry global market size, regional shares, competitors with a last mile delivery market share, detailed last mile delivery market segments, market trends and opportunities, and any further data you may need to thrive in the last mile delivery industry. This last mile delivery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The last mile delivery market includes revenues earned by entities by providing services such as last mile logistics consulting, route optimization, scheduled delivery, in-store pickup, and specialty item delivery. 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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