Last Mile Delivery Transportation Market Surges 10.04% CAGR by 2034

Last Mile Delivery Transportation Market Strategic & Growth Opportunities

The global last mile delivery transportation market valued at USD 171.3 billion in 2024, is anticipated to reach USD 448.9 billion by 2034, growing at a CAGR of 10.04% over the next decade. Asia Pacific leads the last-mile delivery market, driven by rapid urban growth in China and India and increasing smartphone use. North America is set for strong growth, fueled by logistics tech advancements and internet expansion. Light-duty trucks dominate for their cost-efficiency and flexibility, while dry goods top demand due to rising non-perishable food needs.

Last Mile Delivery Transportation Market Forecast and Competitive Strategies

The last mile delivery transportation market size is anticipated to grow from USD 188.6 billion in 2025 to USD 448.9 billion by 2034, with a compound annual growth rate (CAGR) of 10.04% during the forecast period from 2025 to 2034.

Last Mile Delivery Transportation Market Size 2023 - 2034

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Introduction

The last mile delivery transportation market is a crucial segment of the logistics and transportation industry. This industry deals in providing last mile delivery services across the world. There are numerous types of vehicles used in this sector consisting of cargo bike, two-wheeler vehicle, drones, robots, AGVs, vans, light duty vehicles, medium & heavy-duty vehicles and some others. This market is engaged in transporting different types of cargos including dry goods, postal goods, liquid goods and some others.

It finds application in several end-user sector comprising of food delivery, FMCG products, health products postal, automotive products, electronic products and some others. The rapid developments in the e-commerce sector hsas contributed to the industrial expansion. This market is expected to rise significantly with the growth of the online retail industry around the globe.

China E-Commerce Market Size in USD Trillion (2020-25)

  • According to the World Economic Forum, the e-commerce industry size of China in 2020 was valued at US$ 1.3 trillion in 2020 that is projected to reach 2 trillion in 2025.

Highlights of the Last Mile Delivery Transportation Market

  • Asia Pacific dominated the last mile delivery transportation market due to the rapid urbanization in China and India coupled with growing usage of smartphones in this region.
  • North America is expected to grow with a significant CAGR due to the technological advancements in logistics sector along with rising penetration of internet in U.S. and Canada.
  • The light duty trucks segment held a significant share of the market due to its several benefits including higher cargo room, low cost, high speed & flexibility and some others.
  • The dry goods segment led the market due to the growing demand for non-perishable food items such as dried snack foods, pasta and dried noodles.
  • According to the Mobile Telecom Operators of Bangladesh, the total number of mobile phone subscribers in Bangladesh was 187.58 million at the end of December, 2024.
  • According to the Our World in Data, around 97.3% people of North America used internet connection in 2023.
  • According to the Australian eCommerce Statistics, around 17.08 million people of Australia used online shopping websites in 2024.
  • According to the Invest India, the e-commerce industry of India is expected to reach US$ 325 billion by 2030.

Industry Leader Announcement

In January 2025, Shaban Habib, the Co-Founder of Burq made an announcement stating that, “With these innovations, we’re not just improving delivery, we’re setting a new standard for customer experience and scalability across industries, Whether it’s ensuring fast, reliable delivery for grocery orders or creating a branded experience for retailers, our platform enables businesses to grow with confidence.”

Competitive Landscape

Last Mile Delivery Transportation Market Companies

The last mile delivery transportation market is a fragmented industry with the presence of numerous dominant players. Some of the prominent market players in this industry consists of Cargo Carriers Limited, CEVA Logistics, CJ Logistics Corporation, Concargo Private Limited, DB SCHENKER, DHL Global Forwarding, FedEx Corporation and some others. These market players are constantly engaged in launching new last mile delivery services and investing large amount to maintain their dominant position in this industry.

Fedex Ground Segment Revenue in USD Million (2023-24)

  • According to the annual report of Fedex, the revenue of ground segment was US$ 33507 million in 2023 that increased to US$ 34256 million in 2024.

Segments Covered in the Report

By Vehicle Type

  • Two Wheeler Vehicle
  • Robots/AGVs
  • Light Duty Vehicles
  • Medium & Heavy Duty Vehicles

By Cargo Type

  • Dry Goods
  • Liquid Goods

By Delivery Speed

  • Within 2 Days
  • 2-5 Days
  • 5-10 Days
  • More than 10 Days

By End Use

  • Food Delivery
  • FMCG Products
  • Health/Pharmaceutical Products
  • Automotive Products
  • Electronic Products
  • Others

By Ownership  

  • In-house
  • Third Party Logistics (3PL)

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa
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  • Insight Code: 1499
  • No. of Pages: 150+
  • Format: PDF/PPT/Excel
  • Last Updated: 04 February 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Laxmi Narayan is a Research Analyst at Towards Automotive with 5 years of experience, specializing in edge computing and blockchain applications shaping the future of connected and intelligent mobility.

Learn more about Laxmi Narayan

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar
FAQ's

The last mile delivery transportation market was valued at US$ 188.6 billion in 2025.

The growing development in the FMCG sector coupled with rising investment in 3PL logistics industry has driven the market growth.

Some of the prominent players of this industry consists of Cargo Carriers Limited, CEVA Logistics, CJ Logistics Corporation, Concargo Private Limited, DB SCHENKER, DHL Global Forwarding and some others.

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