Last Mile Delivery Software Market Size, Share, Growth, Trends and Industry Analysis, By Type (Cloud-based, On-premises), By Application (Courier, express and parcel, Retail and fmcg, E-commerce, Transportation, BFSI, Manufacturing, Pharmaceutical, Others), Regional Insights and Forecast From 2025 to 2033

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LAST MILE DELIVERY SOFTWARE MARKET OVERVIEW

The global last mile delivery software market size was anticipated to be worth USD 2.35 billion in 2024, projected to reach USD 4.41 billion by 2033 at a 7.26% CAGR during the forecast period from 2025 to 2033.

In online shopping, last mile delivery refers to the route a shipment takes from the final delivery point to the customer's door. This is the shortest stage of forwarding logistics. However, this is hampered by a number of issues, including late orders and delivery exceptions. Basically, a last mile delivery solution is a shipper that helps optimize the last mile of shipping. Such software can be integrated into an online store to provide accurate estimated delivery dates at checkout, carefully handle logistics and take immediate action if a delivery goes wrong in the last mile. The main goals of a company should be customer retention and satisfaction.

The growth of the market is due to the increasing demand for last mile delivery software, which has manufacturing, pharmaceutical, transportation and other applications across the globe. In addition to monitoring the distribution team, as the owner of the delivery service, you must ensure that the consumer receives the goods at the door. Last mile shipping is the process where a product is delivered from a warehouse to a customer. During this process, it is necessary to ensure that the end customer receives the package on time. In fact, the entire delivery process must be monitored until the recipients receive the package. Now, with traditional technology, last mile delivery can take some time. Last-mile delivery software meets customer needs by automating every step of the delivery process.

COVID-19 IMPACT

Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID-19 has caused short-term disruptions and long-term structural changes, resulting in slow growth of the e-commerce sector in new online categories such as grocery and home care. Due to the COVID-19 pandemic, total e-commerce sales in the U.S. have increased. According to industry experts, as urbanization will increase, the majority of people will live in cities in the near future, and among them, customers are expected to buy goods online by 2021. In March 2021, the city's AIN pharmacy also started independent delivery of medicines to patients and homes. In 2020, Starship Technologies began delivering food during the pandemic. Factors such as increasing customer demand for contactless delivery, growth of the e-commerce sector during pandemics, and partnerships and collaborations between various companies and manufacturers of autonomous vehicles and ground transportation robots are expected to boost the market during the pandemic.

LATEST TRENDS

Increasing Focus on Technological Development Is A Growing Trend In The Market

The growing adoption of advanced technology in real-time tracking, which allows consumers to manage and customize retail deliveries using readily available online tools, is a key market trend. Thanks to this, such a tool offers customers greater transparency in addition to the control of package delivery. Therefore, such factors influence the growth of the market during the forecast period.

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LAST MILE DELIVERY SOFTWARE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Cloud-based, On-premises.

Cloud-based software offers end-to-end encryption for rapid scalability, increased computing power and large storage capacity, and enables highly productive services and management functions without the expense of setting up and maintaining your own IT infrastructure. Cloud-based software is becoming increasingly popular because it offers end-to-end encryption.

Within the organization and internal system, local software is created, as well as hardware and other infrastructure necessary for the operation of the software.

By Application

Based on application the global market can be categorized into Retail and fmcg, E-commerce, Transportation, BFSI, Manufacturing, Pharmaceutical, Others.

The Last Mile Delivery market plays a huge role in both retail and e-commerce, facilitating the timely and efficient transportation of goods from distribution centers or fulfillment centers to the final destination - customers and by the door.

FMCG distribution software is an all-in-one solution for FMCG distributors, high-end retailers and wholesalers to automate and simplify their product flow, managing bulk purchases to delivery to customers and hands and also burns.

E-commerce accounted for the largest market share and will grow at the highest CAGR during the forecast period. In the e-commerce space, last-mile delivery software helps increase customer delight with a better last-mile delivery experience, on-time deliveries and better adherence to Service Level Agreements (SLAs). In addition, it lowers overheads and improves delivery efficiency through automated shipment ordering and optimized route planning, improving supply chain optimization in e-commerce.

Customization plays a key role in retailers customizing standalone systems to handle specific product categories with ultimate security and efficiency. From food and electronics to fashion and pharmaceuticals, various products can now be shipped seamlessly using these advanced methods. Retailers are actively investing in autonomous delivery technology and adapting to meet the changing needs of today's consumers.

DRIVING FACTORS

Increase in business and rapid growth and expansion of e-commerce to boost demand

The dynamic market situation and the movement of the world economy are the main factors of globalization. Various business activities have increased in recent years with the acceleration of globalization. In addition, the development of foreign markets is an important factor accelerating the growth of the industry. Business activity in cities and neighboring countries is expected to support the growth of the last mile delivery market in the coming years. Technological advances in self-driving vehicles are central to the adoption of autonomous last-mile delivery services in the e-commerce industry. Walmart and Target Corporation also offer same-day delivery programs at several locations. Last mile distribution is a very complex industry that is highly dependent on the local environment. The infrastructure of the city differs from the crowded streets of Mumbai to the less populated areas of Munich and Los Angeles. Local regulations, accessibility and labor costs, traffic intensity, purchasing behavior, etc. depend on where companies need to supply customers and ensure that deliveries arrive on time without loss and cost effectively. Like many related industries, the last mile sector is experiencing a massive revolution fueled by increasing customer demands supported by technological advances. Growing consumer demand for quick package delivery has led to the proliferation of aerial drones in global e-commerce.

Deployment Of Autonomous Ground Transport Vehicles to Augment Market Growth

The cloud-based segment accounted for the majority of the revenue in the global last-mile delivery software market with a significant CAGR and is projected to grow over the forecast years due to the increasing number of cloud-based platforms, solutions and other platforms service providers for the logistics industry. Startups offer delivery and bulk shipping solutions to differentiate themselves from other leading solution providers. These startups partner with end customers and complement their service offerings. This factor allows fleet management vendors to leverage cloud-based route optimization software from startups to provide scalable solutions to meet changing customer needs. The introduction of autonomous delivery to strengthen demand, reduce costs and shorten delivery time due to the adoption of a multimodal system and the growth of electronic commerce with the growth of B2C deliveries create many opportunities for last mile delivery software market growth.

RESTRAINING FACTORS

Poor Infrastructure And Higher Logistics Costs to Impede Market Growth

Poor infrastructure and higher logistics costs, lack of control over logistics services by manufacturers and retailers, and inaccurate postal address system are expected to hinder market growth. Operational issues faced by last mile delivery companies are a major challenge that is holding back the growth of the market. The biggest challenge for last-mile delivery operations is to ensure transparency and improve delivery efficiency while maintaining profitability. In addition, last-mile delivery requires separate deliveries to multiple locations in the region, which increases logistics costs. In addition, labor costs and fuel costs associated with last mile delivery are high, which will hamper the market during the forecast period.

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LAST MILE DELIVERY SOFTWARE MARKET REGIONAL INSIGHTS

North America to Dominate The Market Due To Demand For Same-Day And Same-Day Deliveries

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America accounted for the largest last mile delivery software market share in 2021 and is projected to grow at a highest CAGR during the forecast period. Demand for same-day and same-day deliveries is one of the key growth drivers for the region. Because the region is focused on adopting the latest software technologies such as big data, artificial intelligence, machine learning and others. North America has emerged as the dominant player in the market due to several key factors contributing to its supremacy in the evolving logistics landscape. First, there has been a remarkable growth of e-commerce in the region, as more and more consumers prefer e-commerce due to its convenience and variety of products. This increased the demand for efficient last mile delivery services and increased the visibility of the region and its location. North America and a strong technology infrastructure were key to supporting growth in last-mile deliveries.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

The last mile delivery software market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. As companies in the region continue to invest and develop their independent delivery solutions, the market is poised for significant growth. It promises to revolutionize last-mile logistics practices by promoting the global development of autonomous delivery technology.

List of Top Last Mile Delivery Software Companies

• FarEye
• DESCARTES (U.S.)
• CoDriver (U.S.)
• Bringg (U.S.)
• CubeXie Software (Norway)
• OneRail (Florida)
• Zippykind (U.S.)
• Kiva Logic (U.S.)
• Road Warrior (U.S.)
• Onfleet (U.S.)
• PetroClick Logistics (U.S.)
• Oracle (U.S.)
• Delivery Biz Pro (U.S.)
• LogiNext (U.K.)
• DispatchTrack (U.S.)

INDUSTRIAL DEVELOPMENT

December 2021: ID Logistics, one of Europe's leading contract logistics leaders, announces that it will acquire 100% of Colisweb, a French specialist in last mile deliveries, by contract. With the acquisition of Colisweb, ID Logistics strengthens its service offering to retailers and e-tailers by acquiring a platform for last mile delivery, a critical step in the supply chain, especially for large or bulky packages.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.