First and Last Mile Delivery Market Size, Share, By Component (Hardware, Software, and Services), Good Type (Dry Goods, Postal, and Liquid Goods), Transaction Mode (Road/Surface Transport, Ocean/Marine Transport, Aerial Transport, and Rail Transport), Mode of Operation (Business-to-Business (B2B), and Business-to-Consumer (B2C)), End-Use Industry (Pharmaceutical & Healthcare, Food & Beverage, Logistic & Transportation, E-commerce, Automotive, Manufacturing, and Others), and Region - Trends, Analysis and Forecast till 2035

• Prior to 2035, the market is awaited to enlarge at USD 531.1 Billion.
• In 2024, the first & last mile delivery market size was worth at USD 189.65 Billion.
• Target market is developing at a CAGR of 10.8%.

The "First Mile" refers to the beginning of the delivery journey, where goods are collected from producers or manufacturers. It encompasses the initial stage of the logistics chain, including the collection, packaging, and initial transportation of goods. The "Last Mile" signifies the journey's final stretch. This is where goods are transported from the local distribution center to the end consumer. It is the concluding point of contact in the logistics chain and significantly influences the consumer's experience, making it a critical element of customer satisfaction.

Role of AI in First & Last Mile Delivery:

Artificial Intelligence is transforming the first and last mile delivery by helping manage inefficiencies, high, costs and evolving customer expectations. Businesses are increasingly investing in AI tools, such as route optimization, predictive analytics and dynamic scheduling to streamline processes, reduce operational costs, and improve customer experiences.

Key Drivers of Target Market:

Market is Accelerating on Account of Last-Mile Delivery Tracking in Real-Time

In today's digital age, having a reliable logistics tracking platform for last-mile carriers is essential to eliminate inefficiencies and improve the customer delivery experience. Last-mile carrier tracking allows customers to know exactly where their shipment is with real-time updates, enabling them to anticipate its arrival better. It also helps companies identify gaps along the delivery route to ensure deliveries are made on time and with minimal cost.

• For instance, in January 2023, Rollo announced the launch of its Las Vegas EV Fleet, a carbon-friendly solution to last-mile logistics. Rollo will be offering free pick up for legacy carriers, GPS tracking, and same-day delivery on packages within Las Vegas–Rollo’s first test market with plans for expansion into other metropolitan cities.

Restraints:

Market is obstructed by Manual Processes, which Leads to Errors

Many businesses still rely on manual systems for tasks, such as scheduling pickups, labeling packages, and maintaining documentation. It increases the likelihood of errors, including misplaced shipments and incorrect labels that can cause significant delays.

• Counterbalance Statements: Key strategies for overcoming this issue are automated routing and dispatching, real-time tracking and communication, digital address verification, customer self-service platforms, and others.

Opportunities:

AI and ML can Helps to Achieve Market Growth in Upcoming Years

Artificial Intelligence is transforming the last mile delivery by addressing its toughest challenges. It is helping the businesses improve efficiency, reduce costs, and meet sustainability goals. Route optimization, predictive analytics, dynamic resource allocation, improved customer experience, and others are some of the key benefits of implementing AI in first and last mile delivery.

• For instance, in July 2024, Hangar A LLC announced the launch of Version 2.0 of its Express Cargo Management System (eCMS), featuring a comprehensive dock-to-door express air shipping platform with support for over 10,000 daily commercial flights and a high-quality nationwide network of first and final-mile carriers.

The market is separated into component, good type, transaction mode, mode of operation, end-use industry, and region.

Component

Corresponding to component, the market is grouped into hardware, software, and services. The hardware component holds the biggest first & last mile delivery market share owing to the use of hardware units on vehicles is growing.

Good Type

Dry goods, postal, and liquid goods are good types upon which the market is dismembered. Dry goods have the dominant market share as they are a significant part of e-commerce orders.

Transaction Mode

Road/surface transport, ocean/marine transport, aerial transport, and rail transport are transaction mode of the market. Road transportation is expected to lead the market during the forecast period due to its connectivity.

• For Instance, in October 2023, Bringg, the leading Delivery Management Platform (DMP) provider, announced the launch of ROAD, a modular offering designed to dynamically manage internal fleets and automate the last mile delivery journey to create a seamless experience for drivers, dispatchers, and customers.

Mode of Operation

Based on the mode of operation, the market is categorized into Business-to-Business (B2B) and Business-to-Consumer (B2C). Among these, the Business-to-Consumer (B2C) segment is dominating the market due to the increasing popularity of online shopping.

• For instance, in July 2020, to offset the fall in revenue from its traditional ride-hailing service, cab aggregator Uber plans to expand its recently launched business to customer (B2C) and customer to customer (C2C) logistics services in India.

End-Use Industry

On the account of end-use industry, the market is divided into pharmaceutical & healthcare, food & beverage, logistic & transportation, e-commerce, automotive, manufacturing, and others. The e-commerce industry have the largest share due to consumer preference, increased disposable income, and others.

• For instance, in August 2024, Logistics firm Delhivery is set to launch a network of shared dark stores to enable e-commerce firms and direct-to-consumer brands to fulfil faster deliveries. The new network, coupled with last-mile delivery, will provide direct-to-consumer, or online-first, brands the chance to reach their products to consumers much faster

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: North America is the dominating region in the first and last mile delivery market. It has a well-developed e-commerce ecosystem and logistics infrastructure, which drives the demand for fast delivery services.

• For instance, in July 2021, LogiNext, a global technology company on a mission to optimize and automate delivery management for enterprises has launched MILE that is America’s first integrated best last mile delivery software. A monumental occasion in the field of logistics technology, this is the first time a cloud-based SaaS software has brought together various elements in the shipper, carrier, and dispatcher ecosystem to deliver a Transportation Management System 2.0, which LogiNext calls a Transportation Automation Platform.

Asia Pacific: The Asia Pacific region is the fastest growing region in the market first & last mile delivery. This is due to the region's growing population, rising e-commerce, and increasing demand for efficient delivery.

• For instance, in April 2024, APL Logistics has deployed the first three 100% electric heavy duty prime movers for Nike’s first-mile deliveries in Southern China. The trucks will stop over 2,000 MT CO2e from being released into the atmosphere each year. They have zero tailpipe emissions, and each truck in circulation will eliminate hundreds of diesel-powered kilometers from Nike’s supply chain.

First & Last Mile Delivery Market Report Scope:

Attribute	Details
Market Size 2025	USD 209.2 Billion
Projected Market Size 2035	USD 531.1 Billion
CAGR Growth Rate	10.8% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Regional scope	North America - U.S. and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia Malaysia, South Korea, and Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, and Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Component:

• Hardware
  • Commercial Vehicles
  • Loading/Unloading Equipment
  • Others
• Software
  • Order & Delivery Management Software
  • Predictive Analytics Software
  • Others
• Services
  • Delivery Services
  • Installation & Integration
  • Others

By Good Type:

• Dry Goods
• Postal
• Liquid Goods

By Transaction Mode:

• Road/Surface Transport
• Ocean/Marine Transport
• Aerial Transport
• Rail Transport

By Mode of Operation:

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)

By End Use Industry:

• Pharmaceutical & Healthcare
• Food & Beverage
• Logistic & Transportation
• E- commerce
• Automotive
• Manufacturing
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The companies operating in the market are FedEx, UNITED PARCEL SERVICE OF AMERICA, INC., KUEHNE+NAGEL, XPO, Inc., CEVA LOGISTICS, and others which are integrating plan of action including new product launch, partnership & collaborations, integration with advance technologies, and others for contributing to market expansion.  

List of Key Players in the Market:

• FedEx
• UNITED PARCEL SERVICE OF AMERICA, INC.
• KUEHNE+NAGEL
• XPO, Inc.
• CEVA LOGISTICS
• J.B. Hunt Transport, Inc.
• Ryder System, Inc.
• AMAZON WEB SERVICES, INC.
• DHL GROUP
• DB SCHENKER
• Gurobi Optimization, LLC
• Www.ekartlogistics.com
• ECOM EXPRESS LIMITED
• ZTO EXPRESS

• In March 2024, DroneUp, America's leading autonomous drone delivery company, unveiled groundbreaking technology to revolutionize last-mile logistics. DroneUp introduces its proprietary autonomous Ecosystem, integrating cutting-edge ground, air, and software products into a single platform. This marks an unprecedented move towards scalable, and economically feasible drone delivery for retailers, quick service restaurants, healthcare and other businesses.
• In June 2023, SpiceJet Ltd's cargo arm SpiceXpress and Logistics has partnered with supply chain services providers Ekart in the first and last-mile delivery space. As part of this partnership, Ekart will provide first-mile pickup of cargo shipments and will also help deliver them through last-mile connectivity across all serviceable pin codes in the country.

Analyst View:      

Rapid urbanization, rise in global population, increase in penetration of digitalization in the retail industry, and changing consumer preference toward online shopping are some of the key drivers responsible for market expansion.

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Company Name	AMAZON WEB SERVICES, INC.
Headquarter	Washington, U.S.
CEO	Matt Garman
Employee Count (2024)	131,000 Employees