Last Mile Delivery Transportation Market Report Overview
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The global last mile delivery transportation market size was USD 42860 million in 2022 and is expected to reach USD 98601.23 million in 2031, at a CAGR of 9.7% during the forecast period.
The transit of products from a transportation hub to the ultimate delivery location is referred to as last mile delivery. Usually, a person's home is the final delivery location. Delivering goods to the final user as quickly as feasible is the main goal of last mile logistics. Delivery to the ultimate doorstep of the consumer from the distribution hub is referred to as last mile logistics and is known as last mile delivery transportation. This delivery system's major objective is to deliver the requested goods and services to the customer's requested location within the specified time period, at the specified fee, and in good condition.
Additionally, the last mile delivery transportation market is advanced and expected to soar soon. The last mile logistics are currently receiving greater attention from consumers and merchants, which will help them stand out in the market. Companies in the last mile delivery transportation business are currently looking more closely at various strategies that could reduce the price of shipping goods during the final leg of the journey. Traditional delivery businesses are looking into various strategies to make the most of their current resources in order to streamline last mile delivery transportation. Personal delivery, automated delivery, and locker delivery are a few of the options being considered right now.
COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth
The global COVID-19 pandemic has been unprecedented and staggering, with last mile delivery transportation experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The rise in CAGR is attributable to the last mile delivery transportation market's growth and demand returning to pre-pandemic levels once the pandemic is over.
The COVID-19 pandemic had a significant negative effect on the last mile delivery transportation market's growth globally in 2020. The COVID-19 epidemic has presented a variety of difficulties for those involved who work in a variety of industrial fields. The COVID-19 epidemic hindered a number of industries around the world and presented them with numerous obstacles to Last Mile Delivery Transportation market survival. Trade restrictions and supply chain interruptions had a negative impact on the expansion of the global last mile delivery transportation market. With the coronavirus variety becoming active, last mile delivery transportation across the healthcare sector will continue to be a crucial component in the fight against it.
"Technological Improvements to Boost Market Growth"
"The primary factors driving the last mile delivery transportation market throughout the forecast period will continue to be technological improvements and the rising eCommerce sector. Furthermore, the future of last mile delivery transportation will be fundamentally changed by developments in robotics and the anticipated implementation of semi-autonomous and autonomous delivery vehicles. A few other developments that are anticipated to gain traction in the market include the adoption of electric vehicles in light of growing environmental concerns, the introduction of autonomous delivery trucks, and semiautonomous vehicles. As a result, these advances are likely to be implemented with strict emission regulations, which will reduce delivery costs and maybe accelerate the introduction of these technologies into the current market environment.
Last Mile Delivery Transportation Market Segmentation
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- By Type Analysis
As per the type, the market is classified as follows: Business-to-Business (B2B), Business-to-Consumer (B2C), and Customer-to-Customer (C2C). Business-to-business is the leading segment in the last mile delivery transportation market share.
- By Application Analysis
Based on application, the market is segmented as follows: Motorcycles, Commercial Vehicles, and Drones. Due to their quick delivery times and affordable operating costs, drones and automated guided vehicles (AGVs) are expected to rise in last mile delivery transportation market share during the projected period.
"Rising Middle-Class population to Facilitate Market Development"
The worldwide last mile delivery transportation market is expanding due to factors including the rising middle-class population in both established and emerging nations. Global middle-class population growth and economic growth in both developing and developed nations over the past few years have increased consumption, which is predicted to increase the volume of commodities transported. The global last mile delivery transportation market is expanding as a result of the quick urbanization, industrialization, and growth of the logistics sector. The increasing use of mobile phones and internet penetration is one of the key drivers boosting the worldwide last mile delivery transportation business.
"Increase in International Shipping to Promote Industry Progress"
The importance of last mile methods that are ultramodern in nature to shippers and customers is growing along with the increase in international shipping via digitally sophisticated supply chains and Omni channel modes. Other factors that are influencing new investment objectives include changes in integration and process standardization, guest purchasing preferences, and preferred modes of delivery. Increased industry and urbanization have also increased transportation volume. In order to meet this expanding need for goods from industries and individuals, more trade agreements are being made between various countries, which is likely to present the logistics industry with significant potential. The transportation and logistics sector has been propelled by an increase in trade activity.
"High Cost of Fuel to Hinder Market Growth"
The last mile delivery transportation market growth is harmed in rural areas where the distribution sites are spread out and the parcel prices are low by comparison. The laws put in place by government authorities to regulate greenhouse gas and carbon emissions, on the other hand, provide a significant obstacle to the growth of the global last mile delivery transportation business. The market for freight trucking is hampered by the larger, heavier, and bulkier nature of freight trucks, which makes road freight transportation relatively slower. Logistics companies encounter additional difficulties as a result of poor road infrastructure and a lack of effort to upgrade transportation infrastructure. These difficulties restrict the global market for last mile delivery transportation by raising the cost of fuel, lengthening delivery times, and harming the reputation of the logistics providers.
Last Mile Delivery Transportation Market Regional Insights
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"Increase in Demand to Propel Market Progress in Asia"
In 2020, Asia held a market share of more than 60%, making it the largest last mile delivery transportation market. More than half of the world's population resides in Asia, creating a sizable consumer base. One of the key macroeconomic reasons driving the growth of the last mile delivery transportation industry in Asia is the fast urbanization, rising disposable income, busy and hectic lifestyle, rising internet penetration, and rising smartphone use. Due to the region's robust economic expansion, nations like China and India are offering market players great chances for growth. Additionally, Asia has the largest e-commerce market in the world, and it is growing faster than those other areas. This increases Asia’s market share in terms of last mile delivery transportation globally.
KEY MARKET PLAYERS
"Market Players Focus on New Product Launches to Strengthen Market Position"
Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.
List of Market Players Profiled
- Cargo Carriers Limited (South Africa)
- CJ Logistics Corporation (South Korea)
- CEVA Logistics (France)
- Concargo Private Ltd (South Africa)
- DB SCHENKER (Germany)
- Interlogix Pty Ltd. (Australia)
- DHL Paket GmbH (Germany)
- Estes Express Lines (U.S.)
- FedEx Corporation (U.S.)
- Kuehne + Nagel (Switzerland)
- Nippon Express Co., Ltd. (Japan)
- KART (Thailand)
- SNCF Geodis (France)
- Swift Transportation (U.S.)
- TNT Holding B.V. (Netherlands)
- Procet Freight (South Africa)
- Tuma Transport (Namibia)
- Yamato Holdings Co., Ltd. (U.S.)
- United Parcel Service Inc.
The report covers overall market aspects, including market segmentation based on its type and application. The report depicts a diverse group of participants that includes the market and the potential market leaders. Major factors that are expected to drive major growth in the market. The factors anticipated to expand the market share are also included in the report to offer market insights. The estimated growth of the market in the forecast period is also included in the report. The regional analysis is completed to explain the region's dominance in the global market. The factors hindering the growth of the market are discussed in detail. The SWOT analysis of the market is depicted in the report. It contains all-inclusive market details.
Market Size Value In
US$ 42860 Million in 2022
Market Size Value By
US$ 98601.23 Million by 2031
CAGR of 9.7% from 2022 to 2031
Historical Data Available
Type & Application
Frequently Asked Questions
What value is the last mile delivery transportation market expected to touch by 2031?
Based on our research, the last mile delivery transportation market is projected to touch USD 98601.23 million by 2031.
What CAGR is the last mile delivery transportation market expected to exhibit by 2031?
The last mile delivery transportation market is expected to exhibit a CAGR of 9.7% by 2031.
What are the driving factors of the last mile delivery transportation market?
The rising middle-class population and Increase in International Shipping are the driving factors of the last mile delivery transportation market.
Which are the top companies operating in the last mile delivery transportation market?
- Cargo Carriers Limited, CJ Logistics Corporation, CEVA Logistics, Concargo Private Ltd, DB SCHENKER, Interlogix Pty Ltd., DHL Paket GmbH, Estes Express Lines, FedEx Corporation, Kuehne + Nagel, Nippon Express Co., Ltd., KART, SNCF Geodis, Swift Transportation, TNT Holding B.V., Procet Freight, Tuma Transport, Yamato Holdings Co., Ltd., and United Parcel Service Inc. are the top companies operating in the last mile delivery transportation market.