Artificial Intelligence-Enabled Last Mile Delivery Market Report 2026

The artificial intelligence-enabled last mile delivery market size has grown rapidly in recent years. It will grow from $1.56 billion in 2025 to $1.8 billion in 2026 at a compound annual growth rate (CAGR) of 15.4%. The growth in the historic period can be attributed to e-commerce expansion, urban delivery challenges, growth of logistics platforms, demand for cost optimization, early ai logistics adoption.

The artificial intelligence-enabled last mile delivery market size is expected to see rapid growth in the next few years. It will grow to $2.94 billion in 2030 at a compound annual growth rate (CAGR) of 13%. The growth in the forecast period can be attributed to autonomous delivery deployment, smart city initiatives, carbon reduction goals, real-time customer analytics, expansion of on-demand delivery. Major trends in the forecast period include AI-based route optimization adoption, growth of autonomous delivery vehicles, expansion of predictive delivery analytics, integration of real-time tracking, demand for faster fulfillment.

The increasing e-commerce activities are expected to drive the growth of the artificial intelligence (AI)-enabled last-mile delivery market. E-commerce involves online buying, selling, and exchanging of products and services, fueled by factors such as improved internet infrastructure, changing consumer preferences, and greater adoption of digital platforms. AI-enabled last-mile delivery enhances efficiency, reliability, and cost-effectiveness, improving customer satisfaction and supporting e-commerce growth. For instance, in February 2024, the United States Census Bureau reported that total e-commerce sales for 2023 reached $1.11 trillion, up 7.6% from 2022.

Key players in the AI-enabled last-mile delivery market are developing supply chain AI assistants to optimize logistics and decision-making. Supply chain AI assistants use intelligent automation to improve visibility, control, and responsiveness across the supply chain. For example, in February 2024, One Network Enterprises, a US-based supply chain management company, launched NEO Assistant, an AI-driven tool providing real-time insights, adaptive workflows, and predictive guidance across the entire supply chain - from raw materials to last-mile delivery.

In February 2023, Descartes Systems Group Inc., a Canada-based logistics technology company, acquired GroundCloud for approximately US$138 million. The acquisition aimed to enhance Descartes’ final-mile delivery capabilities by integrating GroundCloud’s carrier-focused safety, compliance, routing, and telematics solutions into its platform. GroundCloud is a US-based cloud technology company specializing in delivery order management, route planning, execution, and driver safety monitoring.

Major companies operating in the artificial intelligence-enabled last mile delivery market report include FarEye Technologies Inc., Bringg Delivery Technologies Ltd., LogiNext Solutions Private Limited, Onfleet Inc., Route4Me Inc., OptimoRoute Inc., Routific Inc., Wise Systems Inc., Circuit Logistics Inc., GetSwift Limited, Detrack Systems Pte. Ltd., WorkWave LLC, Transmetrics AD, ClearMetal Inc., Shipday Inc., Deliforce Technologies Pvt. Ltd., Shipsy Inc., Dropoff Inc., Stuart Delivery Ltd., Paack Logistics.

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

The artificial intelligence-enabled last-mile delivery market consists of revenues earned by entities by providing services such as dynamic routing, real-time tracking, and contactless delivery. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence-enabled last-mile delivery market also includes sales of drone delivery systems, fleet management systems, and predictive analytics tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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