growing global e-commerce industry is driving the Last Mile Delivery Market
Technavio analyzes that the Last Mile Delivery Market is expected to grow at a CAGR of 5.12% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 60.82 billion.There are various factors that contribute to the growth of the market. The global e-commerce sector is experiencing unprecedented growth, leading to an increased demand for efficient last mile delivery solutions. Last mile delivery refers to the final leg of the supply chain, which involves transporting goods from a transportation hub to the end consumer's doorstep. This crucial aspect of the supply chain is gaining significant attention due to the escalating e-commerce industry, with companies continually seeking innovative methods to streamline the delivery process and provide timely, cost-effective, and reliable services to meet the evolving needs of consumers.
In the business context, last mile delivery refers to the critical phase of transporting goods from adjacent transportation hubs or warehouses to final delivery destinations, primarily to consumers' homes. This B2C (business-to-consumer) last mile delivery model is distinct from B2B (business-to-business) delivery, as it involves the transportation of smaller, lightweight packages to individual consumers. The growing trend of e-commerce sales, which increased by 10% Q1 year-over-year from 2012 to 2021 in the US, has significantly amplified the importance of efficient last mile delivery solutions. However, this sector poses unique challenges to delivery operators due to the individualized nature of household deliveries, necessitating route optimization, cloud kitchens, mobile applications, and warehouse management to ensure timely, cost-effective, and accurate delivery services.
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Last Mile Delivery Market Segmentation
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Last Mile Delivery Market: Consumers demand real-time tracking and on-demand services, shaping the logistics process from distribution centers to their doorstep. Urban congestion and sustainability considerations challenge traditional methods, leading to innovations like autonomous vehicles and drones. E-commerce, retail stores, and peer-to-peer marketplaces adapt to changing consumer behavior. Technology insights drive the use of autonomous and non-autonomous technology, while brick-and-mortar retailers and omnichannel retailing explore cloud kitchens and food delivery platforms. Route optimization, mobile applications, and transportation hubs streamline last mile logistics, reducing company and shipping costs for customers.
The last mile delivery market, a segment of the expansive global trucking market, experiences significant growth due to escalating consumer expectations for real-time tracking and on-demand services. Urban congestion poses a challenge, necessitating logistical innovations and sustainability considerations. Technavio, a leading market research firm, calculates the size of the global trucking market by aggregating the revenues of companies involved in goods and freight transportation, including those specializing in trucks, cars, campers, buses, vans, and motorbikes. Key growth drivers include the increasing demand for goods transportation in line with the global economy's expansion. Consumers increasingly anticipate seamless delivery experiences from distribution centers to their doorsteps or retail stores, necessitating logistical advancements in the last mile delivery sector.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
