AUSTIN, Texas and TOKYO, Oct. 3, 2025 /PRNewswire/ — The global last-mile delivery market was valued at US$ 166.45 billion in 2024 and is projected to reach US$ 311.31 billion by 2031, growing at a CAGR of 9.62%. Growth is fueled by e-commerce expansion, demand for faster deliveries, and technologies like real-time tracking and autonomous vehicles. As the most complex and costly supply chain stage, last-mile delivery is crucial for customer satisfaction, driving businesses to invest in route optimization, flexible options, and sustainable solutions.
Efficient Last-Mile Logistics Key to E-Commerce Success
Effective last-mile delivery is vital for customer retention and revenue growth. Same-day or next-day options meet rising expectations, build trust, and encourage repeat business. With online shopping surging, consumers now expect delivery within 3–4 days or faster, making speed and reliability key drivers of satisfaction. Notably, 98% of consumers tie delivery experience to loyalty, while 84% avoid repurchase after poor service.
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B2C Segment Dominates Last-Mile Delivery Market with 70% Revenue Share
The B2C segment held over 70% of last-mile delivery revenue in 2024, driven by growing online shopping and e-commerce platforms. The rise of direct-to-consumer (D2C) models further boosts its importance, enabling direct customer relationships and efficient service. With increasing investments in logistics and technology, B2C last-mile delivery is set for continued strong growth.
Autonomous Last-Mile Segment Gains Momentum Amid Rising E-Commerce Demand
The autonomous last-mile delivery segment is expected to grow substantially at a CAGR of approximately 17.6% to 24.8% during the forecast period, reflecting strong market potential driven by advances in technology. Technological advancements in AI, machine learning, LiDAR, computer vision, and sensor networks are enhancing the reliability, safety, and efficiency of autonomous delivery vehicles, drones, and robots, making them increasingly practical for widespread deployment. These autonomous solutions are providing cost savings, operational efficiency, and contactless delivery that complement traditional last-mile methods, helping meet growing e-commerce demand and consumer expectations for fast, reliable delivery.
North America Leads Last-Mile Delivery with Over 35% Share in 2024
North America dominated the last-mile delivery market in 2024 with over 35% market share, driven by a surge in e-commerce and a strong consumer preference for convenient online shopping. The region’s advanced technological infrastructure, including real-time tracking and route optimization, bolstered the demand for efficient last-mile delivery services, reinforcing North America’s market leadership.
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APAC Leads Last-Mile Delivery Growth with Innovative Urban Solutions
Asia-Pacific is the fastest-growing last-mile delivery market growing at a CAGR of 12.5% from 2024 to 2030. The region’s rapid e-commerce expansion, urban population density, high mobile penetration, and widespread digital payment adoption fuel this growth. Innovative delivery solutions such as two-wheeler deliveries and micro-fulfillment centers cater to challenges in dense urban areas, boosting operational efficiency and customer satisfaction.
Europe’s Last-Mile Delivery Grows at 9.1% CAGR, Driven by E-Commerce and Sustainability
The European last-mile delivery market is growing at a 9.1% CAGR, driven by rising e-commerce, demand for fast service, and sustainability efforts. Environmental concerns are pushing eco-friendly solutions, while challenges like urban congestion and strict labor laws affect costs and models. Key players such as DHL, Deutsche Post, and DPD are investing in green initiatives and AI-driven optimization, with regional innovation shaping consumer loyalty.
The key players operating in the global last mile delivery market include:
The major global players in the last-mile delivery market include Amazon.com, Inc., United Parcel Service of America, Inc., FedEx, DHL International GmbH, Contrary Research, Starship Technologies, Zipline International Inc., DPDgroup, Hermes Europe GmbH, and Continental AG.
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Key Developments in the market
March 2024, Last-mile delivery was used to increase vaccine uptake in Sierra Leone, an intervention that combines community mobilization with the last-mile delivery of medical experts and medication to the most remote locations.
On November 7, 2023, Amazon launched its pioneering last-mile fleet initiative in India, marking a significant milestone as the company introduces a fleet comprised entirely of electric vehicles (EVs), a groundbreaking move on a global scale. This initiative is poised to empower over 300 Delivery Service Partners (DSPs) to conduct customer deliveries while eliminating tailpipe emissions.
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