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

Regional Analysis

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North America has established itself as the dominant market for last mile delivery. The region is expected to hold 37.2% of the market share in 2024. With the rise of e-commerce and demand for fast shipping options, customers expect quick and reliable delivery from major retail markets like Amazon and Walmart. North America's dense population near major consumption centers allows for efficient multi-stop routes that keep costs low. Strong domestic consumption and wealth levels have fueled larger basket sizes that have benefited last mile operators through economies of scale.

For instance, In June 2023, Amazon unveiled a new program aimed at collaborating with small businesses across 23 U.S. states to bolster its last-mile delivery capabilities. The initiative, known as Amazon Hub Delivery, welcomes participation from a wide range of small enterprises, including clothing boutiques, florists, and convenience stores. According to Amazon's estimates, small business partners could potentially generate up to US$ 27,000 in additional annual revenue by fulfilling delivery duties as part of this program.

Meanwhile, the Asia Pacific region has emerged as the fastest growing market for last mile delivery services. Countries like India and China are experiencing major expansion of the consumer class who increasingly prefer online shopping. Rapid urbanization is creating dense population clusters near tier 1 and tier 2 cities that serve as profitable coverage areas. Local logistics companies have invested aggressively to cater to the evolving needs through innovative delivery models. For instance, partnerships with motorcycle taxi services allow for last mile connectivity even in congested areas.

The varying landscape across different APAC markets allows operators to experiment with new technologies and customer-centric approaches. For example, consolidating parcels from different sellers into a single delivery minimizes the number of trips while enhancing environmental sustainability. Lockers at central pickup points enable secure, flexible collection of packages even when customers are not home. As disposable incomes continue rising across Southeast Asia, we expect the APAC region to further its leading position in the global last mile delivery industry over the coming years through continued modernization and optimization of fulfillment networks.