Last Mile Delivery for E-commerce Market Size, Share, Growth, And Industry Analysis by Type (Traditional Logistics, Non-traditional Logistics) by Application (Furniture Assembly, Household Appliance Installation and Other Services), Regional Insights, and Forecast To 2031

Updated On: 08 July 2024

Last Mile Delivery for E-commerce Market Report Overview

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The global last mile delivery for e-commerce market size was USD 37 million in 2021 and market is projected to touch USD 93.73 million by 2031, exhibiting a CAGR of 9.7% during the forecast period. In the market study, our analysts have considered last mile delivery for e-commerce players such as XPO, EuroAGD, SEKO, United Parcel Service, Werner Global Logistics, Ryder, JD.com, Inc, J.B. Hunt Transport, Wayfair and Others

In supply chain management and transportation planning, "last mile delivery" refers to the final stage of a journey that involves moving goods and people from a transportation hub to their final location. The term "last mile" was first used by the telecom industry, which struggled to connect every residence to the main network. The "last mile" in supply chain management refers to the difficult last section of transporting people and packages from hubs to their ultimate locations. As the number of business-to-consumer (b2c) deliveries grows, notably from e-commerce businesses in freight transportation and ride-sharing companies in personal transportation, the study of last-mile delivery is becoming more and more important.

Faster customer fulfilment is increasingly essential for maintaining a competitive advantage. Therefore, to solve the challenging issues brought on by last-mile delivery, industry participants are turning to tech-based solutions. Robotic delivery, autonomous vehicles, trucks, and drones will offer highly specialised and trustworthy services in both urban and rural areas. The future seems promising even if these advancements are still in the testing stage. Over the next years, the last-mile delivery business will grow. Expectations from consumers increase along with trade activity. Customers could demand a higher charge for same-day delivery. Businesses must offer dependable delivery, rapid service, reasonably priced items, and efficient order processing. The globalisation process has led to an increase in the average travel distance. This has forced logistics service providers to evaluate how well their network infrastructure works for shipping items to far-flung parts of the world. Effective transportation, accurate design timelines, and little product damage are given top priority. This is thus expected to help the last mile delivery for e-commerce market growth throughout the course of the projected period.

COVID-19 Impact: Disruption of the Supply Chain Adversely Affected the Market

Since the Covid-19 outbreak first emerged, the logistics companies have been actively trading and maintaining well stocked warehouses. However, the disruption of the global supply chain caused by the shutdown, which was mostly globalised, further hampered the growth of the product trade in the aforementioned logistics sector. The massive growth of the e-Commerce sector, which introduced consumers to digital business models and effective and secure logistical practises, was one feature of the Covid pandemic that stood out in particular. The demand for rapid or same-day delivery for online purchases has significantly increased with the expansion of Covid-19 instances internationally. Instead of travelling to a crowded venue, customers feel safer ordering items online and having them delivered straight to their house. In the meanwhile, adhere to the Covid directions given by the governing organizations.

Latest Trends

"Preference of Customers for Faster and Easier Shipping Delivery Methods Creates a Variety of Opportunities for the Global Market"

Customers' demands for same-day delivery, as opposed to the five to six days they were previously ready to wait for, have raised their expectations. The worldwide retail industry is changing as a result of increasing shipment expectations, and just a few of the biggest retailers have been able to keep up with the rising demands for the delivery and fulfilment of their customers' wants. Given that Amazon is the industry leader in international shipping, more people are using its one-day delivery services. Other companies now have the chance to increase their last mile delivery for e-commerce market share by offering free shipping options with time-limited delivery options.

To offer their clients new shipping alternatives and hassle-free exchange and return policies, several leading e-Commerce companies are expanding and expanding their e-Commerce fulfilment networks. Some of the largest retailers operating on the global last mile delivery for e-commerce market are attempting to modernise their logistical infrastructure in order to fulfil orders efficiently and without any communication or network problems. Even some of the biggest companies in the sector are attempting to enhance their stock levels and supply chains in an effort to reduce shipping costs and provide rapid and efficient services to more customers.

Last Mile Delivery for E-commerce Market SEGMENTATION

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• By type

Depending on last-mile delivery for e-commerce market given are types: Traditional LogisticsNon-traditional Logistics. The Traditional Logistics type will capture the maximum market share through 2031.

• By Application

The market is divided in Non-traditional Logistics, Segment by Application, Furniture Assembly, Household Appliance Installation and Other Services based on application. The global last mile delivery for e-commerce market players in cover segment like Application will dominate the market share during 2031.

Driving Factors

"Growth of the E-Commerce Sector to Boost the Market Size "

There is a growing need for better and more efficient delivery services as a result of the popularity of online shopping and customers' predisposition to buy items from an online retailer. Over the past several years, the e-commerce industry has grown astoundingly in many different regions of the world. Due to factors including easy access to a wide range of goods, the availability of several options for a single product, projected delivery times, and a number of shipping options with tracking capabilities, the last mile delivery for e-commerce market size is growing.

"Increased Trade Activity Fuels Market Expansion "

Shifting economic conditions and changing market conditions are the key driving elements behind globalisation. The current growth in globalisation has been linked to an increase in a number of trade-related activities. The growth of the sector is also significantly influenced by the expansion of the worldwide market. It is anticipated that commerce between cities and their neighbouring countries would encourage last mile delivery for e-commerce market growth in the next years.

Businesses and retailers may find it difficult to successfully keep an eye on transportation operations; as a consequence, freight transportation companies help these manufacturers keep an eye on and manage supply chain activities including storage, distribution, and fulfilment services. According to predictions, globalisation would stimulate the growth of the last-mile delivery sector by boosting trade activity and igniting debate about effective transportation.

Restraining Factors

"High Logistics Costs and Inadequate Infrastructure Might Constrain the Industry "

Logistics requires effective supply chains, infrastructure, and trade facilitation. Without these, companies are forced to build up larger working capital and stock buffers, which can have a big impact on regional and national competitiveness owing to high costs. The logistics industry is also constrained by a lack of infrastructure, which raises prices and jeopardizes the supply chain's dependability. This is a result of serious transit inefficiencies, subpar storage facilities, a convoluted tax structure, a poor uptake of new technologies, and insufficient logistical professional abilities.

A lack of skilled workers, IT standards, equipment, and a shoddy system integration have also been major factors in the underdevelopment of the whole supply chain. Infrastructure affects inventory levels, which in turn affects financial costs indirectly. Infrastructure also has a direct influence on transportation costs. Total logistics costs may increase as a result of the need for large stocks to address contingencies brought on by insufficient transportation infrastructure. As a result, it is projected that a lack of warehouse space, high inventory prices, and poor infrastructure would prevent the last mile delivery for e-commerce market from growing.

Last Mile Delivery for E-commerce Market Regional Insights

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"International Market Share to be Dominated By North America "

North America dominated the global market for last-mile delivery services in 2019. Industrialized countries like the United States and Canada, two of the world's major customers of last mile delivery services, are located in the region. Last mile logistics is one of the sectors in the region that is expanding the quickest. This might be attributed to the area's rapid technological adoption as well as the increasing efficiency of last mile delivery services. Some of the key players in this market are Deliv, FedEx Corporation, and the United States Postal Service.

Throughout the forecast period, the last-mile delivery market in LAMEA is predicted to grow at the fastest rate. Over the projection period, it is predicted that the health of the logistics and e-commerce business would significantly improve, supporting market growth. Brazil and Mexico are two major LATAM nations with growing economies. Furthermore, Brazil is expected to have the highest adoption of last mile delivery services in the region due to a changing taste for technological innovation and the availability of a highly flexible client base.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• XPO (U.S.)
• Fidelitone Last Mile Inc. (U.S.)
• EuroAGD (Poland)
• SEKO (U.S.)
• United Parcel Service (U.S.)
• Werner Global Logistics (U.S.)
• Ryder (U.S.)
• JD.com, Inc (China)
• J.B. Hunt Transport (U.S.)
• Wayfair (U.S.)
• MondoConvenienza (Italy)
• Schneider Electric (France)
• Geek Squad Inc. (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.