Middle Mile Delivery Market Report 2024

This Middle Mile Delivery market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The middle mile delivery market size has grown strongly in recent years. It will grow from $103.11 billion in 2023 to $113.42 billion in 2024 at a compound annual growth rate (CAGR) of 10%. The growth during the historic period can be attributed to several factors, including a heightened emphasis on supply chain optimization, the expansion of warehouses and distribution centers, growing consumer expectations for real-time tracking and transparency, increased investment in infrastructure and logistics networks, and the rise of third-party logistics (3PL) providers.

The middle mile delivery market size is expected to see strong growth in the next few years. It will grow to $166.99 billion in 2028 at a compound annual growth rate (CAGR) of 10.2%. The anticipated growth during the forecast period is driven by the expansion of e-commerce and online retail, growing consumer demand for quicker delivery, the rise in global and cross-border trade, increasing urbanization, and higher demand for perishable goods. Key trends shaping this period include the use of advanced algorithms and artificial intelligence (AI), ongoing technological innovations, the introduction of drones and autonomous vehicles, the integration of Internet of Things (IoT) devices, and improvements in route optimization software.

The rapid expansion of e-commerce is anticipated to drive the growth of the middle-mile delivery market. E-commerce, which involves the buying and selling of goods and services online through digital platforms and electronic payment systems, is flourishing due to the convenience of online shopping, a wider range of products, and the growing use of mobile shopping and digital payments. Middle-mile delivery is crucial for e-commerce, as it efficiently transports goods from warehouses to local hubs, reducing delivery times and costs, and ensuring that products are quickly available for last-mile delivery to customers. For example, in May 2024, the United States Census Bureau reported that U.S. retail e-commerce sales for the first quarter of 2024 totaled $289.2 billion, showing a 2.1% (±0.7%) increase from the previous quarter. This rapid growth in e-commerce is fueling the expansion of the middle-mile delivery market.

Key players in the middle-mile delivery market are focusing on investing in advanced technological solutions, such as middle-mile logistics services, to improve operational efficiency and streamline the delivery process. Middle-mile logistics services cover the transportation of goods between a company’s distribution centers and final delivery hubs or retail locations. For instance, in November 2024, AIT Worldwide Logistics, Inc., a US-based freight forwarder, introduced its expedited Middle Mile Network service. This service offers a faster, more secure, and cost-effective alternative to traditional expedited less-than-truckload (LTL) shipping. The network connects over 90% of major U.S. metropolitan areas through strategic hubs in cities such as Atlanta, Chicago, Columbus, Dallas, and Los Angeles. It operates on over 160 shipping lanes, enabling expedited door-to-door deliveries with consolidated pickups and transfers, which significantly enhance transit times compared to standard LTL shipping. The service, aimed at importers and large enterprises handling heavy freight, is designed to improve logistics efficiency ahead of the peak holiday season and plans to expand into Canada and Mexico.

In November 2023, AIT Worldwide Logistics, a global transportation and logistics company based in the US, acquired Lubbers Logistics Group for an undisclosed amount. This acquisition aims to expand AIT’s end-to-end solutions by introducing middle-mile services in Europe, similar to its US network, and extending its reach to Denmark, Norway, Romania, and Turkey. Lubbers Logistics Group, based in the Netherlands, specializes in road transport, project cargo, and international forwarding.

Major companies operating in the middle mile delivery market are United Parcel Service Inc. (UPS), DHL Supply Chain, FedEx Corporation, Blue Dart Express, Kuehne + Nagel International AG, DSV Panalpina A/S, DB Schenker, C.H. Robinson Worldwide Inc., Nippon Express, CEVA Logistics, Expeditors International, J.B. Hunt Transport Services, Geodis, Ryder System Inc., XPO Logistics, Toll Group, TForce Logistics, Hub Group, Werner Enterprises, Americold Logistics LLC, Agility Logistics, GEFCO Group, NFI Industries, Penske Logistics, Uber Freight, Cardinal Logistics Management, Lineage Logistics LLC, Rhenus Group.

North America was the largest region in the middle mile delivery market in 2023. The regions covered in the middle mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the middle mile delivery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Middle-mile delivery involves the logistics process of transporting goods from a warehouse or distribution center to a fulfillment center or retail location. This stage is critical as it connects the initial transport from the manufacturer to the final delivery to consumers, playing a key role in ensuring smooth supply chain operations.

The primary services within middle-mile delivery include warehousing and distribution, freight forwarding, and transportation management. Warehousing and distribution focus on storing goods and managing their movement to consumers or businesses, aiming to streamline inventory management and order fulfillment. These services utilize various transportation modes, including road, rail, air, and sea, and cater to a diverse range of industries such as retail and e-commerce, manufacturing, healthcare, automotive, food and beverage, energy and utilities, aerospace and defense, among others.

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

The middle mile delivery market includes revenues earned by entities by providing services such as inventory management, cross-docking, return management, route planning and optimization, and load consolidation. 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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