First and Last Mile Delivery Market, By Goods Type (Dry Goods, Postal, Liquid Goods), By Mode Of Operation (Light Duty Vehicle, Medium Duty Vehicle, Heavy Duty Vehicle, Self-Driving Vans And Trucks, Delivery Bots), 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), By Solution (Hardware {Ground Control Station, Charging Station, Micro-Fulfillment Centers, Others} And Software {Route Planning And Optimization, Inventory Management, Live Tracking, Fleet Management, Computer Vision, Others}), By Region (Asia Pacific, Middle East & Africa, North America, Europe, And South America) – Industry Trends and Forecast To 2030

The Global First and Last Mile Delivery Market reach USD 493.2 Million in 2021 and is expected to exhibit a CAGR of 13.8% over the forecast period 2021 to 2030. The transfer of products from a merchant's premises or warehouse to the next hub, from where the items are carried farther, is known as first-mile delivery. Last-mile delivery is the process of carrying packaged goods from a transportation company's storage to the customer's address.

The digitalization of logistics will become a necessity when it comes to making first-mile delivery more competitive and profitable. The first-mile delivery is a vital logistics stage and that, with the e-commerce boom, logistics operators work tirelessly to minimize complications and obtain optimal customer satisfaction. Hence, the significance of Logistics 4.0. in first-mile delivery is increasing, which is also expected to drive the market growth.  

Different supply chains and industries use first-mile delivery such as retail, ecommerce, shipping, food industry, healthcare, and pharmacy. Due to the increased desire for fully integrated omnichannel retailing, last mile logistics has been a popular topic of focus for retailers. Retailers have been obliged to review their current transportation network capabilities and make improvements in response to changing omnichannel needs.

Considering the burden placed on health care to operate at the lowest possible cost while still providing the best possible services, it is understandable that health care material managers are looking for help to maximize service and improve efficiencies from their logistic partners.

First-mile delivery plays a significant role in streamlining logistics along the supply chain. The importance of first-mile delivery in simplifying logistics throughout the supply chain cannot be underestimated. However, if the wrong judgments are made, a faulty first-mile delivery service might affect the rest of the supply chain's processes, including last-mile delivery.

Labeling packages is one of the most important aspects of first-mile delivery. Most merchants fail to appreciate the need of a correct label, opting for handwritten versions that exclude crucial information. The courier companies are thus unable to collect the orders on schedule because of the incomplete information.

Impact of COVID-19 on Global First and Last Mile Delivery Market

The Covid-19 has changed many markets bottlenecks in many industries. The Covid-19 pandemic has changed the buying behavior of people all over the world even in e-commerce platform. People shifted to online shopping platforms during this Covid-19 period. The structure of e-commerce markets transformed over the period of Covid-19 and online sales as the last mile delivery managers faced many challenges in delivering huge quantities of products to their customers doorstep while adhering the Covid-19 precautionary and contactless delivery.

Last mile logistic enterprises must develop clear and well-defined cloud-based planning and optimizing procedures that will serve as a roadmap for their organizations to adapt to shifting delivery needs and modes as a result of the Covid-19 pandemic disruptions. Following Covid-19, e-commerce initiatives may witness a boost in the demand for last-mile delivery capabilities as well as an integrated expansion in new technology tools and applications.

TABLE 1: GLOBAL FIRST AND LAST MILE DELIVERY MARKET OVERALL SNAPSHOT

TABLE 1: GLOBAL FIRST AND LAST MILE DELIVERY MARKET OVERALL SNAPSHOT

Market Segmentation

The global first and last mile delivery market report has been segmented by goods type, by mode of operation, by application, by solution and region.

FIGURE 1: GLOBAL FIRST AND LAST MILE DELIVERY MARKET SEGMENTATION

FIGURE 1: GLOBAL FIRST AND LAST MILE DELIVERY MARKET SEGMENTATION

First and Last Mile Delivery Market, By Goods Type

The goods type segment of the market is divided into dry goods, postal, liquid goods. The dry goods segment accounts for the highest market share. The growth of the segment is on account of online purchases of dry goods, which are delivered within a certain lead-time. If the promised lead-time is two days, the dry goods are delivered the same day or before time. This creates an opportunity to provide discounts on shorter lead-times in specific areas, e.g., same-day delivery could be discounted if a company is planning on visiting that area today.

First and Last Mile Delivery market, By Mode of Operation

The mode of operation segment is divided into light duty vehicle, medium duty vehicle, heavy duty vehicle, self-driving vans and trucks, delivery bots. The delivery bots segment is expected to register a highest CAGR during the forecast period.

During the pandemic, the employment of delivery robots increased as these little vehicles met the demand for social distancing by transporting food and vital goods to consumers. For last-mile deliveries, companies are exploring the delivery bot option.

First and last mile delivery market, 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), others.

In the retail and food segment the ecommerce segment is expected to be the highest growing segment in terms of CAGR. The first mile in eCommerce refers to the distance between the retailer and the courier who will deliver the goods to the customer's office, house, collection location, or smart locker. Any worldwide eCommerce shipping must have a smooth first mile delivery. This means that the goods will have a better chance of moving quickly and smoothly through the next stages of the B2C supply chain.

First and last mile delivery by Solution

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

Hardware segment accounts for the highest market size and the growth of the segment is due to the use of hardware units on vehicles. Consumers can track their packages using the same technology that is used in route planning tools. Automated route planning software is a management system that uses hardware devices to track the location of each vehicle.

Global First and Last Mile Delivery Market, based on Regional Analysis

The region segment includes major regions such as Asia Pacific, Middle East & Africa, North America, Europe, and South America.

North America is projected to be the leading regional market. The continual rise of ecommerce in US retail sales has substantially increased the number of parcels delivered each day, as well as boosted customer expectations to include not only speedy, but also free delivery.

The Asia Pacific market is projected to grow at the highest CAGR over the predicted timeframe. Firms, particularly small and medium-sized businesses, must have a strong e-commerce presence now and after the pandemic. Warehouses and distribution centers are also in desperate need of investment.

TABLE 2: GLOBAL FIRST AND LAST MILE DELIVERY MARKET OVERVIEW

TABLE 2: GLOBAL FIRST AND LAST MILE DELIVERY MARKET OVERVIEW

FIGURE 2: GLOBAL FIRST AND LAST MILE DELIVERY MARKET (USD MILLION), 2021–2030

 

FIGURE 2: GLOBAL FIRST AND LAST MILE DELIVERY MARKET (USD MILLION), 2021–2030

Recent Developments in the Global First and Last Mile Delivery Market

  • July 20, 2021 - LogiNext, a global technology company on a mission to optimize and automate delivery management for enterprises launched MILE. In America it is launched as first incorporated last mile delivery platform.
  • July 2021 - Led by the global technology veterans and supported by international teams across the world, DAO EV Tech, a ‘Make in India’ dedicated smart electric mobility manufacturing start-up. The company has launched DAO ZOR integrated fleet partner program in India. The program helps to transform Last Mile Delivery business to Electric Vehicles (EVs).
  • January 2021 - Mahindra Logistics (MLL) has launched its cargo last-mile delivery service under the brand name ‘EDel’. The company is already known for its 3PL services. It will now explore sustainable last-mile logistics and fulfilment with ‘EDel’ for customers in FMCG, e-commerce, and other markets.
  • June 2018 - Amazon launched the Delivery Service Partner (DSP) program to share its experience in operations and logistics with aspiring entrepreneurs. It helps entrepreneurs build their own last-mile delivery companies from the ground with infrastructure, Amazon’s support, technology, and a host of exclusive services.

What Does This Report Provide?

This report provides a detailed understanding of the global first and last mile delivery market from qualitative and quantitative perspectives during the forecast period. The major market drivers, challenges, and opportunities for the global first and last mile delivery market have been covered in the report.

Major Companies: In this report, the major companies studied are Cargo Carriers (Pty) Limited (South Africa), FedEx (the United States), United Parcel Service of America, Inc. (Georgia, the United States), Tuma Transport AS (Norway), Swift Transportation Company (the United States), Interlogix Pty. Ltd. (South Africa), Transtech Shipping And Logistics Pvt. Ltd (India), Procet Freight (South Africa), Concargo Private Limited (Mumbai), DB SCHENKER (Germany), DHL Global Forwarding (Germany), TNT Holdings B.V. (Australia), Kerry Logistics Network Limited (Hong Kong).

Market Segmentation:

By Goods Type:

  • Dry Goods
  • Postal
  • Liquid Goods

By Mode Of Operation:

  • Light Duty Vehicle
  • Medium Duty Vehicle
  • Heavy Duty Vehicle
  • Self-Driving Vans And Trucks
  • Delivery Bots

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

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

By Region:

North America First and Last Mile Delivery Market 

  • North America, by Country
    • US
    • Canada
    • Mexico
  • North America, by Goods Type
  • North America, by Mode Of Operation
  • North America, by Solution

Europe First and Last Mile Delivery Market 

  • Europe, by Country
    • Germany
    • Russia
    • UK
    • France
    • Italy
    • Spain
    • The Netherlands
    • Rest of Europe 
  • Europe, by Goods Type
  • Europe, by Mode Of Operation
  • Europe, by Application
  • Europe, by Solution

Asia Pacific First and Last Mile Delivery Market 

  • Asia Pacific, by Country
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
    • Rest of Asia Pacific 
  • Asia Pacific, by Goods Type
  • Asia Pacific, by Mode Of Operation
  • Asia Pacific, by Solution

Middle East & Africa First and Last Mile Delivery Market 

  • Middle East & Africa, by Country 
    • UAE
    • Saudi Arabia
    • Qatar
    • South Africa
    • Rest of Middle East & Africa
  • Middle East & Africa, by Goods Type
  • Middle East & Africa, by Mode Of Operation
  • Middle East & Africa, by Application
  • Middle East & Africa, by Solution

South America First and Last Mile Delivery Market 

  • South America, by Country 
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • South America, by Goods Type
  • South America, by Mode Of Operation
  • South America, by Application
  • South America, by Solution

Objectives of this Report:

  • On a regional and worldwide scale, estimate the market size for first and last mile delivery market.
  • To provide a competitive scenario for the first and last mile delivery market with major developments observed by the key companies in the historic years.
  • To evaluate key factors governing the dynamics of first and last mile delivery market with their potential growth during the forecast period.

Key Questioned Answered in the Report:

  • What are major growth drivers and market trends that impacting on the global first and last mile delivery market?
  • What the market size both in terms of value and volume for global first and last mile delivery market?
  • Who are leading market players and who are the new market players that operate in the global first and last mile delivery market with an estimated market share?
  • What are the future investment pockets and opportunity in the global first and last mile delivery market?
  • Impact of COVID-19 on global first and last mile delivery market

Customization of the market analysis:

  • By sub-segment
  • By customer-specific demand of additional customization including type, country, and application market analysis
  • by potential listing of customers and pricing assessment
  • Type-specific competitive analysis

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