LAST MILE DELIVERY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

One of the key challenges for the global last mile delivery market is the high operational costs associated with last mile delivery. Last mile delivery involves delivery of shipment from distribution centers or warehouses to the end customer which incurs substantial delivery and labour costs for logistics companies. The costs are high due to factors such as traffic congestion in urban areas, requirement of dedicated delivery vans and vehicles which need to be maintained, and employment of delivery personnel which are among the largest expense elements. Further, issues such as low shipment densities, return shipments, and single delivery points contribute to higher costs per delivery. If the costs are not managed efficiently, it can squeeze profit margins for logistics players. However, with rising customer expectations of faster delivery options, last mile delivery providers need to explore cost optimization strategies through route optimization, flexible delivery options and automation to address this challenge.

Market Opportunity - Adoption of innovative delivery technologies (e.g., drones)

One of the key opportunities for the global last mile delivery market is the adoption of innovative delivery technologies such as drones. With the advancements in drone technology, delivering shipments through drones can help address the challenges associated with the last mile operations like reducing delivery time and costs involved. Drone delivery has potential to automate the delivery process and bypass traffic complexities in crowded cities. Major logistics players are testing drone deliveries to analyze their benefits. Wider integration of drones for delivery alongside regulatory changes can improve efficiency, sustainability and open new revenue prospects. It can optimize routes through aerial paths. Drone technology can enable on-demand and same day delivery models which is a fast-growing customer requirement, presenting lucrative opportunities for last mile delivery market.