Global Last Mile in E-Commerce Delivery Market Size, Share, Statistics Analysis Report By Service Type (B2C, B2B, C2C), By Technology (Autonomous, Non-autonomous), By Vertical (Apparels, Consumer Electronics, Healthcare, Food and Beverage, Others), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2025-2034

Report Overview

The Global Last Mile in E-Commerce Delivery Market size is expected to be worth around USD 165.1 Billion By 2034, from USD 68.48 Billion in 2024, growing at a CAGR of 9.20% during the forecast period from 2025 to 2034. In 2024, North America led the global last mile delivery market with over 32.7% market share and USD 22.3 billion in revenue. The U.S. market alone was valued at USD 20.26 billion, growing at a projected CAGR of 8.4%.

The last mile in e-commerce delivery represents the final step in the delivery process, where goods are transported from a distribution hub to the customer’s doorstep. This critical phase affects customer satisfaction and loyalty. Urban challenges like traffic, complex addresses, and high volumes make it difficult, prompting companies to use route optimization, local hubs, and delivery innovations like drones and autonomous vehicles.

The demand for rapid and reliable delivery is growing, fueled by consumer expectations for same-day and next-day options. Driven by the convenience of online shopping and the desire for instant gratification, this trend is pushing retailers to invest in faster logistics, real-time tracking, and efficient last-mile delivery systems especially during peak shopping seasons.

Technological innovations are reshaping last-mile delivery, with autonomous vehicles, drones, and electric bikes speeding up service and lowering environmental impact. AI and advanced analytics optimize routes, predict demand, and boost efficiency helping to meet consumer expectations while tackling traffic congestion and reducing delivery costs.

According to DHL’s Online Shopper Report 2023, Indian consumers lead globally in their demand for faster e-commerce deliveries. An overwhelming 92% of shoppers prefer home delivery, while 50% tend to avoid cross-border purchases due to extended delivery times.

Supporting this trend, PwC’s Global Consumer Insights Pulse Survey 2023 found that 41% of Indian consumers are more likely to buy from retailers offering efficient delivery or collection services. These figures underscore a clear shift in consumer expectations, with speed and convenience emerging as top priorities in India’s fast-evolving e-commerce landscape.

To stay competitive and meet rising customer expectations, businesses are rapidly adopting new delivery technologies. Smart lockers, mobile apps, and real-time tracking enhance transparency and convenience, while data analytics enables accurate demand forecasting, efficient inventory management, and streamlined delivery operations.

The booming last-mile delivery market offers significant investment opportunities. Investors are targeting startups with innovative solutions like drones and autonomous vehicles, as well as infrastructure upgrades such as micro-fulfillment centers and advanced logistics platforms all aimed at speeding up delivery, cutting costs, and boosting customer satisfaction.

Key Takeaways

• The Global Last Mile in E-Commerce Delivery Market size is expected to reach around USD 165.1 Billion by 2034, growing from USD 68.48 Billion in 2024 at a CAGR of 9.20% during 2025 to 2034.
• In 2024, the B2C (Business-to-Consumer) segment dominated, capturing more than 76.4% share of the global last mile in e-commerce delivery market.
• The Non-autonomous segment held a dominant position in 2024, accounting for over 97.5% share of the last mile in e-commerce delivery market.
• The Apparels segment led in 2024, holding more than 39.7% share of the last mile in e-commerce delivery market.
• North America dominated the global last mile delivery market in 2024, representing over 32.7% of the total market share and generating approximately USD 22.3 billion in revenue.
• The U.S. e-commerce last-mile delivery market was valued at around USD 20.26 billion in 2024, with a strong projected CAGR of 8.4%, indicating robust growth ahead.

Business Benefits

Efficient last-mile delivery can boost e-commerce sales by improving conversion rates and average order values. According to a report by Supply Chain Dive, optimized last-mile delivery has led to an 8.9% improvement in e-commerce conversion rates and a 10.6% increase in average order values . These enhancements contribute to higher revenues and profitability for businesses.

Implementing effective last-mile delivery strategies can lead to significant cost savings. The Shipium report notes that last-mile delivery accounts for approximately 41% of overall supply chain costs . By optimizing delivery routes and leveraging local service providers, businesses can reduce expenses related to labor, fuel, and vehicle maintenance.

Advanced last-mile delivery capabilities enable businesses to reach customers in remote or underserved areas. By overcoming logistical challenges and ensuring reliable deliveries in these regions, companies can tap into new customer bases and drive growth.

AI Impact On The Market

• Smarter Route Planning: AI systems analyze real-time data like traffic patterns and weather conditions to determine the most efficient delivery routes. This dynamic routing minimizes delays and reduces fuel consumption, leading to faster and more reliable deliveries.
• Predictive Demand Management: By examining historical sales data and current market trends, AI can forecast demand surges. This foresight enables better inventory management and resource allocation, ensuring that delivery networks are prepared for fluctuations in order volumes.
• Enhanced Customer Communication: AI-driven platforms provide customers with real-time updates on their delivery status. This transparency improves the customer experience by keeping them informed and allowing for better planning on their end.
• Autonomous Delivery Solutions: The integration of AI with autonomous vehicles and drones is revolutionizing last-mile delivery. These technologies can operate continuously, reducing human labor costs and increasing delivery speed, especially in densely populated urban areas.
• Operational Efficiency and Cost Reduction: AI optimizes various aspects of the delivery process, from load planning to delivery scheduling. This optimization leads to significant cost savings by reducing idle times, improving vehicle utilization, and minimizing failed delivery attempts.

U.S. Market Analysis

In 2024, the U.S. last mile delivery market within the e-commerce sector was valued at approximately USD 20.26 billion. This segment, which focuses on the final leg of the delivery process from distribution centers to the end consumer, has become increasingly critical due to the rapid expansion of online retail.

The compound annual growth rate (CAGR) of 8.4% projected for the U.S. last mile delivery market highlights the robust expansion anticipated over the coming years. This growth is attributed to multiple factors, including the increasing penetration of smartphones and internet services, the rise of same-day and next-day delivery expectations, and the integration of advanced technologies such as route optimization algorithms, autonomous delivery vehicles, and real-time tracking systems.

Moreover, the last mile delivery market is witnessing heightened competition among logistics providers, retailers, and new-age delivery startups aiming to capitalize on the growing demand for personalized and expedited services. Strategic partnerships, acquisitions, and innovative models like crowd-sourced delivery and micro-fulfillment centers are increasingly used to meet changing consumer demands.

Regulatory considerations related to urban congestion and sustainability are also shaping market dynamics, encouraging adoption of eco-friendly vehicles and optimized delivery routes. The U.S. last mile delivery market is set for growth, fueled by technological advances and changing consumer behaviors in e-commerce.

In 2024, North America held a dominant position in the global last mile delivery market for e-commerce, accounting for more than 32.7% of the total market share and generating approximately USD 22.3 billion in revenue. This leadership can be attributed to the region’s advanced infrastructure, high internet penetration, and mature e-commerce ecosystem.

Major e-commerce players, logistics providers, and tech innovators have solidified North America’s market leadership by adopting AI, machine learning, and autonomous delivery systems. These technologies have boosted delivery speed and efficiency while cutting costs, helping businesses meet rising consumer demands for same- and next-day delivery.

Additionally, the increasing urbanization and expansion of suburban areas in North America have created both challenges and opportunities for last mile delivery providers. Urban congestion and environmental concerns have driven investments in sustainable delivery methods, including electric vehicles and micro-fulfillment centers located closer to consumers.

This strategic shift has allowed companies to reduce delivery times while minimizing their carbon footprint, thus aligning with regulatory pressures and consumer demand for environmentally responsible services. Overall, North America’s dominant share in the last mile delivery market reflects its robust infrastructure, innovative capabilities, and evolving consumer preferences, positioning it as a critical region in the global e-commerce delivery landscape.

Service Type Analysis

In 2024, the B2C (Business-to-Consumer) segment held a dominant market position, capturing more than 76.4% share of the global Last Mile in E-Commerce Delivery Market. This dominance stems from the rapid rise in online retail, driven by e-commerce giants. Urban and semi-urban consumers increasingly prefer doorstep delivery, boosting demand for fast last-mile logistics. Mobile shopping apps and real-time tracking have further strengthened trust in B2C delivery.

B2C logistics leads due to its scalability and simplicity, with point-to-point, tech-enabled deliveries unlike complex B2B networks. Investments in AI, route optimization, and automation have boosted efficiency. Same-day and next-day delivery, especially for fashion, electronics, groceries, and pharma, drive higher volume and revenue.

The rise of digital payments and embedded checkouts has made B2C logistics more seamless and customer-focused. Growing expectations for personalized delivery, easy returns, and flexible shipping drive the need for agile networks. Innovations like smart lockers, drone deliveries, and EV fleets highlight the shift toward sustainable last-mile solutions.

B2B and C2C segments see steady but limited growth due to bulk handling challenges and fewer transactions. B2B focuses on structured supply chains, while C2C depends on low-volume peer-to-peer platforms. B2C is set to stay dominant, driven by convenience, scalability, and technology-led fulfillment.

Technology Analysis

In 2024, the Non-autonomous segment held a dominant market position, capturing more than a 97.5% share of the Last Mile in E-Commerce Delivery Market. This dominance can be attributed to the widespread use of traditional delivery vehicles, human couriers, and established logistics frameworks across both developed and emerging economies.

The non-autonomous segment benefits significantly from existing road networks and well-trained delivery personnel, which are readily available across urban, suburban, and semi-rural regions. Manual delivery processes are still preferred for handling fragile or high-value goods that require human interaction, signature verification, or real-time communication with customers.

Despite the buzz around automation, most retailers and logistics providers face regulatory, technical, and financial constraints when it comes to integrating autonomous technologies at scale. The complex nature of city navigation, unpredictable weather conditions, and lack of uniform traffic laws for autonomous vehicles further slow down the transition.

Global tech infrastructure still limits large-scale use of autonomous delivery, with pilots confined to select smart cities. Meanwhile, non-autonomous models are advancing through GPS tracking, route optimization, and green fleets. This human-tech synergy offers unmatched flexibility and performance, sustaining B2C logistics’ dominance.

Vertical Analysis

In 2024, the Apparels segment held a dominant market position, capturing more than a 39.7% share of the last mile in e-commerce delivery market. B2C logistics leads in fashion due to frequent online purchases fueled by fast-changing trends and social media. High consumer demand for quick delivery has pushed retailers to enhance last-mile logistics for speed and efficiency.

The Apparels segment stands out due to the rise of fast fashion, requiring quick, agile deliveries to keep pace with frequent new collections. High return rates from sizing issues have also driven stronger reverse logistics, making this segment more advanced than others in handling both forward and return flows.

Moreover, the integration of advanced technologies such as AI-driven inventory management and predictive analytics has enabled apparel retailers to anticipate demand patterns and streamline their supply chains. These innovations have facilitated more accurate stock replenishment and efficient last-mile delivery operations, enhancing customer satisfaction and loyalty.

Other verticals like consumer electronics, healthcare, and food and beverage face unique challenges that limit their share in last-mile delivery. Consumer electronics require secure, specialized handling for high-value items like healthcare products must comply with strict regulations; and food and beverage need temperature-controlled logistics due to perishability. These complexities have slowed adoption in these sectors, allowing apparel to remain the market leader.

Key Market Segments

By Service Type

• B2C
• B2B
• C2C

By Technology

• Autonomous
• Non-autonomous

By Vertical

• Apparels
• Consumer Electronics
• Healthcare
• Food and Beverage
• Others

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Driver

Rising Customer Expectations for Speed and Convenience

In e-commerce, rising customer demand for fast, reliable delivery often same-day or within an hour, is driving key advancements in last-mile delivery. This expectation has become a standard businesses must meet to stay competitive.

The growing demand for speed and convenience has pushed companies to adopt technologies like real-time tracking and route optimization, improving delivery precision. Micro-fulfillment centers near urban areas further shorten delivery times.

As consumers make purchases via smartphones, the expectation for immediate gratification translates into pressure on e-commerce platforms to expedite the delivery process. This trend underscores the critical role of last-mile delivery in customer satisfaction and retention.

Restraint

High Operational Costs in Last-Mile Delivery

While advancements in last-mile delivery are essential for meeting customer expectations, they come with significant operational costs that act as a restraint for e-commerce businesses. The final leg of delivery often involves complex logistics, including navigating urban traffic, managing delivery personnel, and handling failed delivery attempts, all of which contribute to increased expenses.

One of the primary cost drivers is the need for a large fleet of delivery vehicles and personnel to meet the demand for rapid deliveries. Maintaining this infrastructure requires substantial investment in vehicle maintenance, fuel, and labor costs.

Additionally, the unpredictability of delivery routes and schedules can lead to inefficiencies and further escalate expenses. Moreover, the expectation for free or low-cost shipping among consumers places additional financial strain on e-commerce companies.

Opportunity

Integration of Sustainable Delivery Practices

The growing environmental consciousness among consumers presents an opportunity for e-commerce businesses to integrate sustainable practices into last-mile delivery. Implementing eco-friendly strategies not only aligns with consumer values but also offers potential cost savings and brand differentiation.

One approach is the adoption of electric vehicles (EVs) for delivery purposes. EVs reduce carbon emissions and can lower fuel costs over time. Companies like Amazon and UPS have begun incorporating EVs into their fleets, signaling a shift towards greener logistics solutions.

Another strategy involves optimizing delivery routes to minimize fuel consumption and emissions. Advanced route planning software can identify the most efficient paths, reducing the environmental impact and operational costs. Additionally, consolidating deliveries through the use of parcel lockers or designated pickup points can decrease the number of trips required, further enhancing sustainability.

Challenge

Navigating Urban Delivery Constraints

Urban environments present unique challenges for last-mile delivery, including traffic congestion, limited parking, and regulatory restrictions. These factors can lead to delays, increased operational costs, and customer dissatisfaction. Traffic congestion in densely populated areas can significantly impede delivery schedules.

Delivery vehicles often face delays due to peak traffic hours and road closures, affecting the reliability of delivery times. Additionally, finding suitable parking spaces for delivery vehicles can be difficult, leading to further delays and potential fines for illegal parking. Regulatory restrictions, such as vehicle emission standards and delivery time windows, add another layer of complexity.

Emerging Trends

One notable trend is the integration of smart technologies, such as artificial intelligence and machine learning, to enhance supply chain visibility and optimize delivery routes. These technologies enable real-time order tracking and help businesses prevent delays. Automation tools like autonomous vehicles and drones further streamline operations and speed up deliveries.

Sustainability has also become a focal point, with companies exploring eco-friendly delivery options to minimize environmental impact. This includes the use of electric vehicles and the implementation of green packaging solutions. Moreover, businesses are offering diverse delivery options, such as same-day and scheduled deliveries, to cater to varying customer preferences and enhance convenience.

The emphasis on data analytics is facilitating predictive logistics, enabling companies to forecast demand and manage inventory more effectively. This proactive approach ensures that products are readily available, reducing stockouts and improving customer satisfaction.

Key Player Analysis

The last mile delivery segment in the e-commerce market has become one of the most critical and competitive areas in the logistics industry.

FedEx is a global leader known for its reliable and fast delivery services. It combines a vast transportation network with cutting-edge technology to optimize last mile operations. FedEx focuses heavily on automation and digital tools, allowing customers to track packages in real time and schedule convenient delivery windows.

UPS is another heavyweight in the last mile delivery market, recognized for its robust logistics infrastructure and strong presence worldwide. UPS uses advanced data analytics and AI-powered routing systems to minimize delivery times and reduce operational costs. The company also offers flexible delivery options like UPS My Choice, empowering customers with greater control over their deliveries.

Purolator, a key player mainly in Canada, excels in combining regional expertise with comprehensive last mile solutions. Purolator is known for its customer-focused approach and strong local expertise in Canada. It combines traditional delivery with innovative solutions to ensure fast, reliable service in both cities and remote areas.

Top Key Players in the Market

• FedEx
• UPS
• Purolator
• DPD Group
• DHL
• XPO Supply Chain
• Gregory Distribution Holdings
• Wincanton
• Kuehne + Nagel
• Hermes
• Rajapack ltd.
• Clipper Logistics
• Others

Top Opportunities for Players

• Embracing Instant and Hyperlocal Delivery Models: The surge in consumer demand for rapid delivery has led to the adoption of instant and hyperlocal delivery services. Companies are investing in infrastructure to ensure deliveries within minutes, enhancing customer satisfaction and loyalty. This trend is particularly prominent in urban areas, where proximity to customers allows for quicker fulfillment.
• Leveraging Automation and Smart Technologies: The integration of automation, including drones, autonomous vehicles, and smart lockers, is revolutionizing last-mile delivery. These technologies reduce delivery times and costs while boosting efficiency. The growing autonomous delivery market reflects a shift toward advanced logistics.
• Prioritizing Sustainable Delivery Practices: Environmental concerns are pushing companies to adopt greener delivery methods. The use of electric vehicles, e-bikes, and optimized delivery routes are becoming standard practices to reduce carbon footprints. Sustainability is not only a regulatory requirement but also a competitive advantage, as consumers increasingly prefer eco-friendly options.
• Utilizing Data Analytics for Enhanced Efficiency: Data analytics is playing a crucial role in optimizing last-mile delivery. By analyzing customer behavior, traffic patterns, and delivery performance, companies can make informed decisions to improve service quality and reduce costs. Predictive analytics also aid in demand forecasting and inventory management, leading to more efficient operations.
• Expanding Micro-Fulfillment Centers: The establishment of micro-fulfillment centers closer to customer locations is gaining traction. These small-scale warehouses enable faster order processing and delivery, meeting the growing demand for same-day or next-day delivery services.

Recent Developments

• In May 2025, UPS sold its on-demand warehousing and fulfillment network, Ware2Go, to e-commerce logistics provider Stord. This strategic move allows UPS to focus more on its core logistics services.
• In May 2025, DHL Supply Chain acquired IDS Fulfillment, marking its second e-commerce acquisition in North America in 2025, to bolster its services for small and midsize businesses.
• In February 2025, FedEx acquired RouteSmart Technologies, a company specializing in route optimization software. FedEx’s acquisition of RouteSmart brings advanced route optimization technology and expertise, empowering team members to work smarter and safer while delivering exceptional customer service faster.

Report Scope