The global last-mile delivery market is projected to reach USD 170.7 billion in 2025 and is expected to grow to USD 398.1 billion by 2034, registering a CAGR of 9.9% during the forecast period. This growth is driven by rising e-commerce demand, same-day delivery trends, and the integration of advanced logistics technologies.
Local delivery giants and postal services have adapted to high-frequency, low-volume delivery patterns driven by consumer electronics, groceries, and subscription-based retail.
With a projected CAGR of 6.2% from 2025 to 2034, Japan's growth is steady but moderated by demographic factors such as an aging population and labor shortages in the logistics sector. These challenges have sparked innovation in automation, with companies deploying robotics, AI-based delivery systems, and even autonomous delivery vehicles to streamline operations. Additionally, Japan is witnessing rising investments in smart lockers, micro-fulfillment centers, and contactless delivery to improve last-mile efficiency in dense urban neighborhoods. The country’s focus on quality, technology integration, and space optimization positions it as a key market for last-mile innovation, even if overall growth remains more incremental compared to emerging economies.
Global Last Mile Delivery Market: Key Takeaways
• Market Value: The global last-mile delivery market size is expected to reach a value of USD 398.1 billion by 2034 from a base value of USD 170.7 billion in 2025 at a CAGR of 9.9%.
• By Delivery Mode Segment Analysis: Ground Transportation is anticipated to maintain its dominance in the delivery mode segment, capturing 78.0% of the total market share in 2025.
• By Vehicle Type Segment Analysis: Light Commercial Vehicles (LCVs) are poised to consolidate their dominance in the vehicle type segment, capturing 46.0% of the total market share in 2025.
• By Service Time Segment Analysis: B2C service types are expected to maintain their dominance in the service time segment, capturing 64.0% of the total market share in 2025.
• By Delivery Time Frame Segment Analysis: Next-day Delivery will lead in the delivery time frame segment, capturing 41.0% of the market share in 2025.
• By Application Segment Analysis: The E-commerce/Retail applications are anticipated to maintain their dominance in the application segment, capturing 52.0% of the total market share in 2025.
• By End-User Segment Analysis: Retail Customers will lead the end-user segment, capturing 60.0% of the market share in 2025.
• Regional Analysis: Asia Pacific is anticipated to lead the global last-mile delivery market landscape with 36.0% of total global market revenue in 2025.
• Key Players: Some key players in the global last-mile delivery market are Amazon Logistics, FedEx, UPS, DHL, JD Logistics, SF Express, DPDgroup, XPO Logistics, Postmates, DoorDash, Uber Eats, Instacart, Gopuff, Delhivery, Shadowfax, Blue Dart, and Other Key Players.
Global Last Mile Delivery Market: Use Cases
• E-commerce Fulfillment in Urban Areas: E-commerce giants and D2C brands are optimizing last-mile delivery for densely populated urban centers where consumer expectations for speed and convenience are highest. By leveraging localized fulfillment hubs and AI-powered route optimization tools, retailers can fulfill same-day or next-day delivery promises even during peak traffic hours. Real-time tracking, automated sorting, and contactless delivery are integrated to streamline urban logistics and improve customer satisfaction. This use case reflects the industry's pivot toward hyperlocal delivery models and micro-warehousing to handle high order volumes efficiently.
• Last Mile Delivery for Perishable Goods: In sectors like grocery, meal kits, and pharmaceuticals, the last mile plays a crucial role in preserving product integrity and ensuring timely delivery. Cold chain logistics, temperature-controlled packaging, and delivery time-slot selection are essential components of these operations. Companies like Instacart and Gopuff use advanced fleet management systems and predictive algorithms to reduce spoilage and enhance delivery precision. This use case underscores the importance of quality assurance and compliance in time-sensitive and high-risk deliveries.
• On-Demand Delivery for Food and Beverages: With the surge of on-demand platforms, consumers now expect their food and beverages delivered within 30 minutes. Services like DoorDash, Uber Eats, and Meituan operate through a decentralized network of drivers and restaurants, enabled by dynamic route planning and real-time order syncing. This use case emphasizes speed, customer convenience, and mobile-based order tracking, making last-mile operations critical for brand reputation. As more users prefer app-based ordering, the success of these platforms hinges on their last-mile efficiency.
• Retail Omnichannel Integration: Brick-and-mortar retailers are integrating their inventory systems with online channels to provide flexible delivery options such as curbside pickup, ship-from-store, and same-day delivery. This requires a seamless last-mile ecosystem where warehouse systems, customer apps, and delivery partners are interconnected. Retailers like Walmart and Target are leading in this transformation by converting physical stores into fulfillment nodes. This use case illustrates how omnichannel retail and last-mile delivery work hand-in-hand to drive customer engagement and loyalty.
Global Last Mile Delivery Market: Stats & Facts
• U.S. Department of Energy – Alternative Fuels Data Center
o E‑commerce rose from 13.6% of total retail sales in 2019 to 18% in 2020.
o A Chicago study showed replacing shopping trips with truck delivery reduced vehicle miles traveled (VMT) by 34–56%.
o That same shift lowered energy use by 29–54%.
o Drone package delivery could reduce energy use by around 30%.
o Truck platooning with three vehicles can cut fuel consumption by 13%.
o Nationwide adoption of platooning could save 2.1 billion gallons of fuel annually.
• U.S. GAO (Government Accountability Office)
o In 2022, nearly 4% of full‑time delivery staff experienced serious injuries.
o Warehouse worker serious injury rates rose by 20% from 2018 to 2022.
o Last‑mile delivery worker injuries rose by 23% in the same period.
o Overexertion, contact with equipment, and falls/trips accounted for about 91% of serious injuries among delivery staff.
o OSHA recorded over 2,500 violations in warehouses and last‑mile delivery firms between 2018–2023.
• U.S. Bureau of Transportation Statistics / Bureau of Labor Statistics
o Transportation occupations had a self‑employment rate of 7.0% (0.9 million) in 2022.
o Self‑employed couriers/messengers made up 63.9% of that specific occupation.
o Their number grew from 19,200 in 2012 to 138,700 in 2022.
o Taxi drivers had 91.5% self‑employment in 2022.
o Independent truck operators totaled 293,900 in 2022, representing 7.5% of truck drivers.
o The Federal Motor Carrier Safety Administration reported 922,854 independent owner-operators by late 2023.
• U.S. Bureau of Labor Statistics – Transportation & Warehousing Sector
o The sector employed 7.9 million workers in 2022, or 6.1% of non‑farm employees.
o Couriers and messengers accounted for ~1.3 million workers, with ~2.1 billion annual work hours.
o From 2019–2022, transportation/warehousing hours grew by 14.4%, while retail hours declined by 2.5%.
o From 2007–2019, transportation hours grew by 18.1%, followed by another 14.4% from 2019–2022.
• U.S. DOT – Federal Highway Administration
o Last-mile delivery contributes roughly 25% of total logistics emissions.
o It comprises nearly 28% of transport-related supply chain costs.
o Growth in e-commerce has led to a sharp increase in short-haul truck trips and urban warehousing demand.
o 67% of U.S. consumers in 2020 expected delivery within two days or less.
o Urban density, traffic congestion, and limited loading zones strain last-mile efficiency.
• FHWA on Urban Freight and Land Use
o Assessment tools are in place to evaluate travel demand impacts from last‑mile delivery.
o Urban planning increasingly focuses on curbside management and logistics zoning.
o Public-private data sharing improves freight efficiency.
o Community pilots are being conducted using autonomous delivery lockers and drones.
• European Parliament / European Commission
o Last‑mile delivery makes up approximately 25% of logistics-related emissions in urban areas.
o It accounts for around 28% of overall transport costs in EU supply chains.
o The EU aims for all vans, buses, and trucks to be zero-emission by 2050.
o EU rail freight traffic is projected to double by 2050.
o Urban consolidation centers and parcel locker systems have been shown to improve delivery efficiency while reducing environmental impact.
Global Last Mile Delivery Market: Market Dynamics
Global Last Mile Delivery Market: Driving Factors
Growth of E-Commerce and Q-Commerce
The exponential rise in online shopping, especially in categories like electronics, apparel, and groceries, has drastically increased the demand for efficient last-mile delivery solutions. The emergence of quick commerce (Q-commerce), which promises deliveries in under an hour, is pushing logistics providers to build agile and responsive networks. Companies are leveraging digital platforms, automated dispatch systems, and crowd-sourced delivery fleets to meet customer expectations and drive logistics scalability.
Technological Advancements in Delivery Systems
Integration of technologies such as real-time GPS tracking, AI-based route optimization, and IoT-enabled fleet monitoring is transforming last-mile logistics. These innovations reduce delivery delays, enhance fuel efficiency, and offer a transparent customer experience. Advanced delivery software also allows businesses to optimize driver allocation and minimize failed deliveries, making operations more cost-effective and customer-centric.
Global Last Mile Delivery Market: Restraints
High Cost of Last Mile Operations
The last mile is the most expensive segment in the supply chain, often accounting for over 50% of total logistics costs. Challenges such as route fragmentation, failed delivery attempts, and limited delivery density in suburban or rural areas increase operational expenses. The need for frequent stops, idle times, and driver shortages further strains profitability, particularly for small and medium logistics providers.
Infrastructure and Regulatory Constraints
Inadequate road infrastructure, congested urban areas, and inconsistent delivery access can hinder timely delivery execution. Moreover, varying regulations related to data privacy, emissions, and labor classification across countries pose additional compliance burdens. These factors slow down innovation and increase the complexity of implementing autonomous or drone-based last-mile delivery solutions.
Global Last Mile Delivery Market: Opportunities
Rise of Sustainable and Green Logistics
As businesses commit to carbon-neutral operations, there is growing investment in electric delivery vehicles, bicycle couriers, and eco-friendly packaging. Urban logistics providers are now integrating green technologies into last-mile strategies to appeal to environmentally conscious consumers and comply with government mandates. This transition opens doors for green fleet management solutions, energy-efficient warehousing, and carbon offset platforms.
Expansion into Tier 2 and Tier 3 Cities
The digital penetration in smaller cities and rural regions has opened up a vast new customer base. Logistics firms are building regional hubs and partnering with local carriers to improve delivery coverage and reduce turnaround times. This decentralization is enabling better last-mile access while supporting job creation and regional economic development. Localized fulfillment is becoming a key growth lever in untapped markets.
Global Last Mile Delivery Market: Trends
Emergence of Autonomous and Drone Delivery
Autonomous delivery bots and drones are moving from pilot projects to practical applications in areas with predictable routes or high delivery density. These solutions offer contactless delivery, reduce dependency on human labor, and enhance last-mile efficiency. Companies are testing drone corridors, sidewalk robots, and AI-based decision systems to bring more automation into the final leg of logistics.
Focus on Hyperlocal Delivery and Real-Time Visibility
Consumers now expect real-time updates on their orders, down to the minute. To meet this demand, companies are investing in hyperlocal delivery networks and API-integrated visibility platforms. These systems enable precise ETA predictions, instant proof of delivery, and proactive issue resolution, significantly improving the end-user experience and brand loyalty in last-mile services.
Global Last Mile Delivery Market: Research Scope and Analysis
By Delivery Mode Analysis
Ground transportation is expected to continue leading the delivery mode segment in the global last-mile delivery market, accounting for a projected 78.0% of the total share in 2025. This dominance can be attributed to the widespread infrastructure, flexibility, and cost-effectiveness of road-based logistics. Ground transport includes a variety of vehicle types such as two-wheelers, vans, and light commercial trucks that can navigate urban and rural environments efficiently. These vehicles are essential for fulfilling both scheduled and on-demand deliveries across diverse industries like retail, food, and healthcare. The well-established network of roads and distribution centers further enhances ground transportation’s reliability and scalability, making it the backbone of last-mile logistics.
On the other hand, drone delivery is emerging as a promising alternative, particularly in remote or congested urban areas where traditional vehicles face limitations. Drones offer faster delivery times, reduced carbon emissions, and minimal human intervention, which are crucial benefits for sectors requiring speed and precision, such as medical supplies and urgent e-commerce orders. While regulatory hurdles, limited payload capacity, and airspace restrictions currently limit large-scale deployment, ongoing advancements in drone technology and pilot programs in countries like the U.S., China, and Australia are paving the way for its broader adoption. Over time, drone delivery is expected to complement ground transport by servicing niche and high-priority routes within the last-mile ecosystem.
By Vehicle Type Analysis
Light Commercial Vehicles (LCVs) are set to maintain a leading position in the vehicle type segment of the last-mile delivery market, expected to capture around 46.0% of the market share in 2025. LCVs, which include small trucks and vans, are highly favored due to their capacity to carry larger volumes of goods while still being maneuverable enough for urban and suburban routes. They offer an optimal balance between payload capability and operational efficiency, making them suitable for a wide range of delivery needs from e-commerce packages to groceries and retail goods. Their versatility allows logistics providers to optimize delivery routes, reduce the number of trips required, and meet growing consumer demand for faster and bulk deliveries.
Two-wheelers also play a crucial role in this segment, particularly in congested urban areas and regions with narrow streets or heavy traffic. Motorcycles, scooters, and electric bikes are widely used for quick, last-mile deliveries of smaller parcels, food, and documents. Their ability to navigate through traffic jams and access areas inaccessible to larger vehicles gives two-wheelers a distinct advantage in ensuring timely deliveries. Additionally, two-wheelers contribute to cost savings and lower emissions, which aligns with the growing push for greener logistics solutions. As urban populations grow and delivery volumes increase, two-wheelers will continue to be an essential part of the last-mile vehicle mix, especially for hyperlocal and express delivery services.
By Service Type Analysis
B2C service types are expected to continue dominating the service time segment in the last-mile delivery market, accounting for approximately 64.0% of the total share in 2025. This dominance is driven largely by the surge in online retail and direct-to-consumer sales, where speedy and reliable delivery is a critical factor in customer satisfaction. B2C deliveries often require flexibility in delivery windows, real-time tracking, and last-minute order modifications to meet the expectations of individual consumers. The growing preference for same-day and next-day deliveries further strengthens the importance of efficient last-mile solutions tailored to B2C needs. This segment encompasses a wide range of products, including electronics, apparel, groceries, and personal care items, making it a key growth driver in the market.
Conversely, the B2B service time segment involves deliveries between businesses, such as shipments to retailers, warehouses, or offices. Although the volume of B2B deliveries is significant, the nature of these shipments often allows for more predictable schedules and bulk orders, which can be planned well in advance. B2B deliveries typically prioritize reliability and cost-efficiency over rapid delivery times, and they often involve larger consignments compared to B2C. This segment benefits from streamlined logistics processes and long-term contracts, but it is less driven by the urgency and last-minute demands that characterize B2C deliveries. As businesses continue to adopt just-in-time inventory practices, the efficiency of last-mile B2B deliveries will remain crucial to supply chain optimization.
By Delivery Time Frame Analysis
Next-day delivery is expected to lead the delivery time frame segment in the last-mile delivery market, capturing around 41.0% of the market share in 2025. This service option strikes a balance between speed and cost-efficiency, making it highly popular among consumers and businesses alike. Next-day delivery meets the growing demand for faster shipping while allowing logistics providers sufficient time to consolidate shipments and optimize delivery routes. It is especially favored in e-commerce and retail sectors where customers value promptness but are willing to wait slightly longer than a same-day window in exchange for lower shipping costs. The widespread adoption of next-day delivery is supported by enhanced warehousing networks, sophisticated order management systems, and effective inventory distribution strategies.
In contrast, same-day delivery is gaining traction as an ultra-fast delivery option, appealing to consumers who require immediate access to products, such as groceries, pharmaceuticals, and urgent retail items. This segment is characterized by its focus on real-time order processing, rapid dispatch, and highly localized fulfillment centers that enable quick turnaround. Although same-day delivery tends to be more expensive and operationally complex due to the need for rapid last-mile execution, it is popular in urban areas with dense populations and high consumer expectations for instant gratification. Advances in delivery automation, dynamic route planning, and crowdsourced courier networks are driving the growth of same-day delivery, positioning it as a key differentiator for retailers looking to enhance customer experience.
By Application Analysis
E-commerce and retail applications are expected to continue dominating the last-mile delivery market, capturing approximately 52.0% of the total market share in 2025. This prominence is largely driven by the rapid growth of online shopping platforms, which require efficient and timely delivery of a wide variety of products directly to consumers’ doorsteps. The convenience of ordering electronics, apparel, home goods, and other retail items online has intensified the demand for robust last-mile logistics solutions that ensure fast order fulfillment, real-time tracking, and reliable delivery experiences. Retailers are investing in automated warehouses, advanced inventory management, and flexible delivery options to meet the high volume and varied delivery requirements characteristic of this sector.
In contrast, the grocery and food delivery segment is also a significant part of the last-mile delivery market, catering to the growing consumer preference for fresh, ready-to-eat meals and everyday essentials delivered quickly and safely. This application demands specialized logistics such as temperature-controlled packaging and rapid delivery times to preserve product quality and freshness. Food delivery platforms and grocery services leverage hyperlocal delivery networks, real-time order updates, and contactless delivery options to provide convenience and maintain customer satisfaction. The surge in on-demand meal delivery and online grocery shopping continues to push innovations in delivery route optimization and last-mile fleet management specific to this segment’s unique requirements.
By End-User Analysis
Retail customers are expected to lead the end-user segment in the last-mile delivery market, accounting for approximately 60.0% of the market share in 2025. This dominance is largely fueled by the expanding base of individual consumers shopping online across various categories such as electronics, fashion, and home essentials. Retail customers demand fast, reliable, and transparent delivery services that provide real-time tracking and flexible delivery options. Their expectations for convenience and speed are driving companies to invest heavily in enhancing last-mile logistics through innovations like smart lockers, contactless delivery, and optimized delivery routes. The rise of mobile commerce and omnichannel shopping experiences further strengthens the influence of retail customers on shaping last-mile delivery strategies.
Small and medium-sized enterprises (SMEs) also constitute an important segment within the last-mile delivery market. These businesses rely heavily on efficient and cost-effective logistics to maintain competitiveness, especially as many have expanded their online presence in response to growing digital commerce trends. SMEs often require customized delivery solutions that can handle smaller order volumes but with the same speed and reliability expected by larger retailers. Their needs are prompting logistics providers to develop scalable and flexible last-mile services that cater to diverse business models, including subscription services, local deliveries, and B2B shipments. As SMEs continue to embrace digital transformation, their demand for innovative delivery options and seamless customer experiences will be a key growth driver in the segment.
The Last Mile Delivery Market Report is segmented on the basis of the following:
By Delivery Mode
• Ground Transportation
• Drone Delivery
• Autonomous Vehicles
• Others
By Vehicle Type
• Light Commercial Vehicles (LCVs)
• Two-Wheelers
• Heavy Commercial Vehicles (HCVs)
• Others
By Service Type
• B2C
• B2B
• C2C
By Delivery Time Frame
• Next-day Delivery
• Same-day Delivery
• Standard (2-5 days)
By Application
• E-commerce/Retail
• Grocery & Food Delivery
• Healthcare & Pharmaceuticals
• Documents & Parcels
• Others
By End-User
• Retail Customers
• SMEs
• Large Enterprises
Global Last Mile Delivery Market: Regional Analysis
Region with the Largest Revenue Share
The Asia Pacific region is expected to lead the global last-mile delivery market, capturing around 36.0% of the total market revenue in 2025. This dominance is driven by rapid urbanization, booming e-commerce sectors, and growing smartphone penetration across countries like China, India, Japan, and Southeast Asia. The region’s expanding middle class and rising consumer demand for faster, more convenient delivery options are fueling investments in advanced logistics infrastructure, including fulfillment centers and automated sorting facilities. Additionally, innovative last-mile delivery solutions such as electric vehicles, drones, and app-based courier services are gaining traction, helping to overcome challenges related to traffic congestion and geographic diversity. The Asia Pacific’s dynamic market environment and supportive government policies make it a critical hub for growth and technological advancement in last-mile logistics.
Region with significant growth
The Middle East and Africa (MEA) region is projected to experience the highest compound annual growth rate (CAGR) in the last-mile delivery market over the coming years. This rapid growth is fueled by growing internet penetration, a rising number of smartphone users, and expanding e-commerce adoption across countries like the UAE, Saudi Arabia, South Africa, and Nigeria. Investments in digital infrastructure, alongside growing urbanization and a young, tech-savvy population, are driving demand for faster and more efficient delivery services. Additionally, the region’s growing focus on modernizing logistics networks, implementing smart city initiatives, and adopting innovative delivery technologies such as drones and electric vehicles is accelerating the expansion of last-mile delivery solutions. This makes MEA one of the fastest-evolving and most promising markets for last-mile logistics growth globally.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Global Last Mile Delivery Market: Competitive Landscape
The global last-mile delivery market is highly competitive, driven by a diverse mix of logistics powerhouses, e-commerce-driven networks, regional couriers, and tech-led startups. Major players like Amazon Logistics, FedEx, UPS, and DHL maintain dominance through extensive delivery fleets, real-time tracking systems, and heavy investments in automation and predictive logistics. At the same time, platforms such as JD Logistics, Cainiao, DoorDash, and Uber Eats are reshaping delivery models with tech-enabled, on-demand, and hyperlocal services. In emerging markets, companies like Delhivery, Blue Dart, and Shadowfax are growing rapidly by offering localized, scalable solutions. The landscape is dynamic and innovation-driven, with competition intensifying around delivery speed, last-mile cost efficiency, and sustainable logistics practices.
Some of the prominent players in the global last-mile delivery market are:
• Amazon Logistics
• FedEx
• UPS
• DHL
• JD Logistics
• SF Express
• DPDgroup
• XPO Logistics
• Postmates
• DoorDash
• Uber Eats
• Instacart
• Gopuff
• Delhivery
• Shadowfax
• Blue Dart
• Cainiao (Alibaba Group)
• Glovo
• Meituan
• ShipBob
• Other Key Players
Global Last Mile Delivery Market: Recent Developments
• Product Launches
o June 2025: Walmart expanded its 30-minute drone delivery service to 100 additional U.S. locations, including Houston, Atlanta, Orlando, Charlotte, and Tampa, offering contactless replenishment of essentials like groceries and medicine via Wing drones.
o June 2025: BigBasket, backed by Tata, announced plans to launch a nationwide 10-minute food delivery service across Indian cities by March 2026, using a network of dark stores to compete with platforms like Swiggy and Blinkit.
• Mergers & Acquisitions
o May 2025: U.S.-based DoorDash acquired London-based Deliveroo in a £2.9 billion deal, marking a major consolidation in the global food and grocery delivery sector.
o March 2025: Deutsche Post DHL Group acquired UK-based green parcel courier Packfleet, known for its all-electric fleet and carbon-neutral operations, to strengthen its sustainable last-mile delivery offerings.
• Fundings
o May 2025: Portless, a logistics startup focused on fast shipping from China, raised USD 18 million in Series A financing led by Commerce Ventures to expand its last-mile cross-border fulfillment services.
o February 2025: Nexus Venture Partners invested ₹125 crore (~$15 million) in Rapido to support its expansion into food delivery from its core bike taxi and last-mile logistics business