Transport Services

Last Mile Delivery Market Outlook 2025 – Insights for Executive and Strategic Planning

July 26, 2025 by The Business Research Company

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#How Has the Last Mile Delivery Market Grown from 2024 to 2025?#_x000D_

The size of the last mile delivery market has expanded at a substantial rate in recent years. The projected growth from $178.92 billion in 2024 to $202.01 billion in 2025 represents a compound annual growth rate (CAGR) of 12.9%. Factors that have contributed to this growth in the past include the expansion of e-commerce, the transition to same-day delivery, investments in delivery infrastructure, environmental considerations, and changes in regulations._x000D_

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#What Growth Rate Is Anticipated for the Last Mile Delivery Market in the Coming Years?#_x000D_

The size of the last mile delivery market is projected to experience a swift expansion in the years to come. The market is set to soar to $324.48 billion by 2029, with a compound annual growth rate (CAGR) of 12.6%. The growth projected within this period is due to developments in autonomous delivery, the need for sustainable delivery solutions, last-mile analytics, and the proliferation of urban logistics solutions. Notable trends for this forecasted period encompass on-demand delivery, options for contactless delivery, the growth of urban logistics solutions, automation in the last mile, and the application of data analytics and route optimization._x000D_

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#Who Are the Leading Companies in the Last Mile Delivery Market?#_x000D_

Major companies operating in the last mile delivery market are Amazon.com Inc., United Parcel Service Inc., DHL International GmbH, FedEx Corporation, La Poste Group, SF Holding Co. Ltd., Uber Technologies Inc., DB Schenker, Poste Italiane S.p.A., DPD Group, DSV Panalpina AS, Royal Mail plc, Yamato Holdings Co. Ltd., Australia Post, DoorDash Inc., XPO Logistics Inc., Grubhub Inc., Deliveroo, Aramex PJSC, Zomato Pvt. Ltd., Postmates Inc., Correios, TNT Holdings B.V., Gopuff, Deliv Inc. _x000D_

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#What Are the Key Drivers of the Last Mile Delivery Market?#_x000D_

The surge in e-commerce is anticipated to significantly boost the expansion of the last-mile delivery market. Essentially, e-commerce involves the purchase and sale of products or services through the internet or other electronic networks. Its increased adoption is supported by a combination of factors, such as innovative technology, shifts in consumer behavior, and the advance of global business models. Within the e-commerce sector, last-mile delivery is crucial in guaranteeing effective, prompt, and economical delivery of items right to consumers’ doors, constituting the final phase of the shipping process. This element is integral to e-commerce firms’ success, as it bolsters customer contentment and cultivates brand allegiance. For instance, the U.S Census Bureau, a government agency in the U.S, reported in February 2024 that e-commerce sales in the country witnessed a jump to nearly $1,118.7 billion in 2023, showing a 7.6% rise compared to the former year. Consequently, the swift progression of e-commerce is stimulating the expansion of the last-mile delivery market._x000D_

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#What Are the Key Market Segments in the Last Mile Delivery Industry?#_x000D_

The last mile delivery market covered in this report is segmented – _x000D_

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1) By Delivery Mode: Regular Delivery, Same-Day Delivery Or Express Delivery_x000D_

2) By Technology: Autonomous, Non-autonomous_x000D_

3) By Service Type: Business-To-Business (B2B), Business-To-Consumer (B2C), Customer-To-Customer (C2C)_x000D_

4) By Destination: Domestic, International_x000D_

5) By Application: Food And Beverages, Retail And E-commerce, Healthcare, Other Applications_x000D_

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Subsegments:_x000D_

1) By Regular Delivery: Standard Delivery, Scheduled Delivery _x000D_

2) By Same-Day Delivery Or Express Delivery: Morning Delivery, Afternoon Delivery, Or 1-Hour Delivery, 2-Hour Delivery, 3-Hour Delivery_x000D_

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#What Are the Latest Trends in the Last Mile Delivery Market?#_x000D_

Companies that have a significant presence in the last mile delivery industry are concentrating on creating technologically-driven cold chain options to improve the effectiveness of last mile delivery and guarantee the safe transport of perishable goods. These cold chain solutions specifically cater to the logistic needs and procedures involved in maintaining particular temperature conditions during the transit of perishable items from distribution or hub centers to their final destination. For instance, Celcius Logistics, a logistics and supply chain solutions firm based in India, unveiled its smart last mile delivery platform in September 2022, to address the obstacles prevalent in the last mile delivery of perishable goods. This unique platform uses technology to provide a cold chain solution optimized for last mile delivery, enabling monitoring and gap analysis in distribution, deploying predictive algorithms to ward off potential risk areas, lessen bottlenecks, hasten ETAs, and provide the consignor with full visibility of their goods from the beginning to the end. Celcius aims to create a nationwide network of last-mile vehicles and storage points to enhance the efficiency of the primary and secondary movement and storage of perishable goods via this platform._x000D_

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#What Are the Key Regional Markets in the Last Mile Delivery Industry?#_x000D_

North Americawas the largest region in the last mile delivery market in 2023. Asia-Pacificis expected to be the fastest-growing region in the forecast period. The regions covered in the last mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa._x000D_

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#This Report Delivers Insight On: #_x000D_

1. How big is the last mile delivery market, and how is it changing globally?_x000D_

2. Who are the major companies in the last mile delivery market, and how are they performing?_x000D_

3. What are the key opportunities and risks in the last mile delivery market right now?_x000D_

4. Which products or customer segments are growing the most in the last mile delivery market?_x000D_

5. What factors are helping or slowing down the growth of the last mile delivery market?_x000D_

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