Australia Last Mile Delivery Market Report and Forecast 2025-2034

According to this report, the Australia last mile delivery market size witnessed a healthy growth in 2024. Aided by the thriving e-commerce sector and the increasing shift towards faster, more reliable delivery services, the market is projected to grow at a CAGR of 16.10% between 2025 and 2034.

The growth of the Australia last mile delivery market is primarily driven by the increasing demand for fast and efficient delivery services, particularly in the wake of the surge in online shopping. Over the past few years, Australian consumers have become accustomed to quicker delivery times, with many expecting their orders to be delivered on the same day or within a few hours. This shift in consumer expectations has prompted retailers and logistics providers to invest in innovative solutions for last mile delivery, with the aim of improving service efficiency and meeting customer demands.

E-commerce has played a pivotal role in shaping the Australia last mile delivery market landscape. As consumers increasingly prefer the convenience of shopping online, the demand for efficient delivery solutions has skyrocketed. The COVID-19 pandemic, in particular, further accelerated the shift to e-commerce, as many brick-and-mortar stores were forced to close, pushing more consumers to shop online for essentials and non-essential goods alike. This shift has increased pressure on logistics companies to enhance their last mile delivery services to accommodate the rising number of parcels being shipped to homes across the country.

Moreover, the growing adoption of same-day and next-day delivery services is contributing significantly to the Australia last mile delivery market expansion. Consumers are increasingly seeking faster delivery options, and retailers are responding by offering these services to remain competitive. Same-day delivery, in particular, has gained considerable traction, particularly in urban areas where delivery times are shorter and there is a high concentration of customers. To meet this demand, logistics companies are investing in localised hubs or fulfilment centres, allowing them to process and dispatch orders to nearby customers.

The rise of customer-centric delivery models has also influenced the Australia last mile delivery market dynamics. Consumers now have more control over when and how their orders are delivered. Many companies offer flexible delivery options, such as time-slot delivery, click-and-collect services, and locker deliveries. These options allow customers to select a delivery time that suits their schedule, offering greater convenience and control. The increasing popularity of these services is prompting more logistics providers to adapt their operations to cater to the changing needs of consumers.

In addition to customer convenience, sustainability has become an important factor influencing the Australia last mile delivery market development. As environmental concerns grow, there is increasing pressure on logistics providers to adopt greener and more sustainable delivery practices. The use of electric vehicles (EVs), cargo bikes, and other eco-friendly delivery methods is gaining momentum, particularly in urban areas where air pollution and traffic congestion are major concerns. Many companies are actively working towards reducing their carbon footprint by transitioning to cleaner delivery options. This shift toward more sustainable practices is not only benefiting the environment but is also resonating with environmentally-conscious consumers who are increasingly considering the environmental impact of their purchases.

Another significant Australia last mile delivery market trend is the increasing demand for personalised delivery experiences. Consumers today expect more than just fast deliveries - they also want deliveries that align with their preferences and lifestyles. For example, some consumers may prefer to have their parcels delivered to a secure locker or a nearby pick-up point rather than to their home address. Others may prefer to schedule deliveries at specific times or request a particular delivery window. To meet these diverse demands, logistics providers are investing in more flexible delivery options, which are improving customer satisfaction and loyalty.

The rapid development of urban infrastructure is also playing a role in boosting the Australia last mile delivery market revenue. As cities become more densely populated and the demand for delivery services increases, there is a growing need for efficient logistics solutions that can navigate urban environments. Smart city technologies, such as real-time traffic monitoring and dynamic delivery routing, are helping logistics companies streamline their operations in crowded metropolitan areas. These innovations allow companies to reduce delivery times and optimise their routes, ensuring that deliveries are made in a timely and cost-effective manner.

The rise of the gig economy is also creating lucrative Australia last mile delivery market opportunities. Many logistics providers are partnering with independent contractors and gig workers to handle last mile deliveries. These workers, often using their own vehicles, can offer more flexible delivery options and help logistics companies scale their operations to meet fluctuating demand. The gig economy has provided a new avenue for businesses to reach customers in a more agile and cost-effective manner, making it a crucial component of the last mile delivery ecosystem.

In conclusion, the Australia last mile delivery market is poised for strong growth over the next several years, driven by the increasing demand for faster, more efficient, and more personalised delivery services. E-commerce, technological advancements, sustainability efforts, and the rise of customer-centric delivery models are all contributing to the expansion of the market.

As consumers continue to demand quicker and more flexible delivery options, logistics companies will need to adapt and innovate to meet these evolving expectations. With the ongoing development of smart city infrastructure, green delivery practices, and the growing influence of the gig economy, the market is set to continue evolving, providing new opportunities for growth and innovation in the logistics and supply chain sectors.

Market Segmentation

The market can be divided based on type, destination, mode of operation, vehicle, delivery mode, application, and region.

Market Breakup by Type

• B2B
• B2C
• C2C

Market Breakup by Destination

• International
• Domestic

Market Breakup by Mode of Destination

• Non-Autonomous
• Autonomous

Market Breakup by Vehicle

• Motorcycle
• HCV
• Drones
• LCV

Market Breakup by Delivery Mode

• Regular Delivery
• Same-day Delivery or Express Delivery

Market Breakup by Application

• E Commerce
• Retail and FMCG
• Mails and Packages
• Healthcare
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia last mile delivery market. Some of the major players explored in the report are as follows:

• Australia Post Group
• Fleets Flyers Pty Limited
• Drive Yello Pty Ltd.
• Yellow Express Pty Ltd.
• BHF Couriers Express Pty Ltd.
• Pack & Send Online Pty Ltd
• Allied Express Transport Pty Ltd.
• StarTrack Express Pty Limited
• Toll Holdings Limited
• Whale Logistics (Australia) Pty Ltd.
• Others