First and Last-mile Delivery Market Analysis and Global Forecast 2022-2030

The Global first and last-mile delivery market size is projected to reach approximately $ XX billion by 2030, at a CAGR of X% from 2022 to 2030.

First-mile delivery begins after ordering. It involves the preparation of the product and ends with loading the goods into the final means of transport to get them into the hands of the final consumer. The final step is delivery to the customer’s orders, whether in-store (click and collect), at home, at the office, or a point of delivery.

There is a difference between a first-mile delivery and a last-mile delivery. Most first-mile deliveries are small but heavy-load shipments, making shipping and delivery much easier. The last mile is harder and takes longer because it deals with smaller quantities and more specific products that the customer will receive.

Industry 4.0 technology is expected to affect the way companies connect products, customers, production, and services. Supply chain solutions will become more efficient, adaptive, and customer-centric through digitization. Digital supply chains will be enabled by key technologies such as logistics and smart warehousing, as well as better data analytics. The technology adoption of Industry 4.0  is a key factor that is expected to drive the growth of the market. supply chain solutions, such as first- and last-mile logistics.

COVID-19 Impact Analysis

The COVID19 pandemic has altered established logistics strategies and impacted last-mile deliveries. The way packages are received, delivered, and received has changed due to social distancing restrictions. Contactless delivery has become a standard expectation. It ensures that social distancing compliance is maintained. Contactless delivery may seem like a simple operation where an executive simply leaves an item outside the customer’s door, but it’s not.

The customer must be notified when the delivery is complete without opening the door. To be contactless, cash and card payments must be eliminated. To maintain security requirements at a high level, companies must also provide customers with the most recent body temperature of delivery and retail employees, along with timestamps. As a result, there is increasing demand for innovative first- and last-mile delivery strategies, which will positively benefit the market in the long run.

Market Dynamics

The growth in the first and last-mile delivery market is driven by the rising globalization of businesses. The global economic recovery, growing business travel and trade, and increasing popularity of corporate events are some of the factors that are driving this growth. Technological advancement and investment in infrastructure will create opportunities for the first and last-mile delivery market.

Drivers

Ø  The rapid expansion of the transport facilities and reduction in delivery cost

The rapid expansion of vehicles due to technological advancements is driving the growth of the global first- and last-mile delivery market. The use of smart technologies and sensors along with the adaptation of the omnichannel ecosystem are contributing to the increase in market growth. The growing penetration of smartphones and high-speed internet access has also had a positive impact on the market. The consumption and supply of food and other goods are increasing due to population growth, which is expected to drive demand for the global first- and last-mile delivery market.

Reducing delivery costs due to the use of ground delivery vehicles, technological advancements in ground delivery vehicles, and increased venture capital to develop NextLevel ground delivery vehicles are considered key drivers of the market during the first and last-mile delivery forecast periods. market The factors that govern the first mile and last-mile market is the development and strict implementation of regulations regarding the operation of ground-delivery vehicles and performance issues in the environment untested and lacking in sound decision-making.

Restraint:

• Poor management of last-mile delivery operations

One of the main reasons for high delivery costs is poor management of last-mile delivery operations, which is a key factor holding back market growth. High last-mile shipping costs, poor performance visibility, inability to track orders in real-time, high delivery costs,  orders not delivered on time, poor customer experience, push Fast delivery, outdated technology to manage deliveries, and inadequate route planning is some of the other important challenges that retailers and e-commerce stores face. Last-mile logistics service.

Opportunity:

• Rise of e-commerce

With the rise of e-commerce, consumer preferences are increasingly becoming the center of attention in the business-driven delivery market. Large e-commerce companies as well as various startups have identified end-to-end services as the main differentiator from their competitors. The variety of delivery options and the perceived quality of the delivery service are the main deciding factors for online customers and thus have a direct impact on the success of the delivery services. e-commerce companies in the market. With this in mind, sellers are working hard to provide their customers with the best customer experience possible, including improving delivery times.

Segment Overview

By Good’s Type

The goods type segment of the market is divided into dry goods, postal, and liquid goods. The dry goods segment holds the highest market share. The market segment is expected to grow as the demand for dry goods imports and exports increases as the supply chain recovers from the pandemic. Companies are ordering truck boxes for last-mile deliveries, with dry cargo volumes rising sharply.

By Mode of Operation

The mode of operation segment is divided into light-duty vehicles, medium-duty vehicles, heavy-duty vehicles, self-driving vans and trucks, and delivery bots. The delivery bots segment is expected to grow at the highest CAGR during the forecast period. , companies are meeting these challenges through innovation. and create new products.

The delivery bot segment is forecast to grow at the highest CAGR during the forecast period. Long-distance logistics are difficult for logistics companies, where large-scale and efficient transportation is an individual logistics challenge with special handling requirements, careful management, and unstable coordination with customers. Thus, businesses face these challenges through innovation. For example, Refraction AI, maker of REV-1, a low-cost, lightweight autonomous robot launched in 2019, will use the $4.2 million raised to expand its customer base, expand its territory, and develop new ones. product.

 By Application

The application segment of the market is divided into logistics and transportation (package delivery, postal delivery), retail and food (e-commerce, grocery delivery, food delivery), healthcare & pharmacy (medicine supply, blood supply, organ transport, equipment transport, others), and others.

In the retail and food segments, the food delivery segment is expected to hold the highest market share. Companies have already begun testing self-driving vehicles in food delivery. and everything is delivered to their door, contributing to the growth of the segment.

By Solution

The solution segment of the market is divided into hardware and software. Hardware is further segmented into ground control stations, charging stations, micro-fulfillment centers, and others. Software is further segmented into route planning and optimization, inventory management, live tracking, fleet management, computer vision, and others.

The hardware segment represents the highest market size and the segment’s growth is attributable to the use of in-vehicle hardware units. Last-mile delivery vehicles can benefit from the right access hardware in terms of safety and convenience.

Regional Analysis

Based on region, the first and last-mile delivery market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific is a leading market for first and last-mile delivery, globally. North America and Europe have emerged as the leading market for the first mile and last mile.

North America Market

The last-mile delivery market in North America is driven by the premiumization of goods and merchandise delivery. In addition, the premiumization of goods and merchandise delivery is anticipated to boost the growth of the Last-Mile Delivery Market in North America.

Asia-Pacific Market

The Asia-Pacific market is estimated to record the fastest growth in  CAGR over the forecast period. As the Asia-Pacific continues to gain global attention as an integral part of global supply chains and trade flows, the region is poised for a logistics boom. As Asian consumers become richer, more Internet-savvy, and more sophisticated, the retail industry has undergone significant momentum and transformation in recent years. investments are visible to everyone.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as Sprinter, UPS Supply Chain Solutions, DHL Supply Chain & Global Forwarding, FedEx, Kuehne + Nagel, SF Express, XPO Logistics, DB Schenker Logistics, Nippon Express, GEODIS, CEVA Logistics, J.B. Hunt (JBI, DCS & ICS), Agility, China POST, Hitachi Transport System, DSV, YTO Express, Panalpina, Toll Holdings, and Expeditors International of Washington. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.

Prominent Players:

• Sprinter
• UPS Supply Chain Solutions
• DHL Supply Chain & Global Forwarding
• FedEx
• Kuehne + Nagel
• SF Express
• XPO Logistics
• DB Schenker Logistics
• Nippon Express
• GEODIS
• CEVA Logistics
• B. Hunt (JBI, DCS & ICS)
• Agility
• China POST
• Hitachi Transport System
• DSV
• YTO Express
• Panalpina
• Toll Holdings
• Expeditors International of Washington

Scope of the Report

First and last-mile delivery Market, by Good’s Type

• dry goods
• postal
• liquid goods

First and last-mile delivery Market, by Mode of Operation

• light-duty vehicle
• medium-duty vehicle
• heavy-duty vehicle
• self-driving vans and trucks
• delivery bots

First and last-mile delivery Market, by Application

• logistics and transportation (package delivery, postal delivery)
• retail and food (e-commerce, grocery delivery food delivery)
• healthcare & pharmacy (medicine supply, blood supply, organ transport, equipment transport, others)
• others

First and last-mile delivery Market, by Solution

• hardware (ground control station, charging station, micro-fulfillment centers, others)
• software (route planning and optimization, inventory management, live tracking, fleet management, computer vision, others).

Global first and last-mile delivery market Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• The Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Rest of the World

 

Parameters	Indicators
Market Size	2030: $ XX Billion
CAGR	X% CAGR (2022-2030)
Base year	2021
Forecast Period	2022-2030
Historical Data	2020
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Goods Type, Mode of Operation, Application, Solution, and Region
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Sprinter, UPS Supply Chain Solutions, DHL Supply Chain & Global Forwarding, FedEx, Kuehne + Nagel, SF Express, XPO Logistics, DB Schenker Logistics, Nippon Express, GEODIS, CEVA Logistics, J.B. Hunt (JBI, DCS & ICS), Agility, China POST, Hitachi Transport System, DSV, YTO Express, Panalpina, Toll Holdings, and Expeditors International of Washington
Key Market Opportunities	Rise of e-commerce
Key Market Drivers	The rapid expansion of the transport facilities and reduction in delivery cost

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Global first and last-mile delivery market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Global first and last-mile delivery market historical market size for the year 2020, and forecast from 2021 to 2028
• Global first and last-mile delivery market share analysis at each product level
• Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.

• Identifies key strategies adopted, including product launches and developments, mergers and acquisitions, joint ventures, collaborations, partnerships, and funding taken and investment done, among others.
• To identify and understand the various factors involved in the first and last-mile delivery market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.