Market Overview:

The Global First And Last Mile Delivery Market Will Reach USD 174.0 Billion By 2022, And Is Projected To Reach USD 288.38 Billion By 2030 With CAGR Of 6.12% Over The Forecast Period 2022 To 2030.

First mile delivery is the transportation of products from a warehouse or location to various hubs, from which they are then sent on to various suppliers, retailers, and other destinations. Delivering packaged goods from a shipping company's warehouse to a customer's address is known as last mile delivery.

First-mile delivery is regarded as a procedure in which product is selected from retailers and then transferred to third-party logistics companies or courier services. The final consumer can receive the goods after they have been delivered to warehouses or courier services. Top last mile delivery companies are also making significant investments in the creation of last mile delivery solutions. The retail sector's digitization, the rise of e-commerce platforms, and consumers' growing preference for online shopping are a few of the factors anticipated to propel the first and last mile delivery market. Similarly, the size of the first and last mile delivery market is anticipated to increase as a result of scientific advances in delivery services such as artificial intelligence, robotics, and aircrafts for warehouse automation and first and last mile logistics development during forecast period.

COVID-19 Impact:

The Covid-19 has changed many markets bottlenecks in many industries. The Covid-19 pandemic has changed the buying behaviour 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 customer 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.

Market Dynamics:

Driving Factors:

• Increase in Transport Volumes of Commodities 

Population growth around the world affects the supply and demand of goods, especially food and other basic needs. Governments and private groups all over the world are giving money to transportation companies so that they can meet the needs and deliver the goods on time. But with more money and better transportation, the logistics industry has a chance to improve their solutions for the first and last mile of delivery. At the moment, countries are moving toward greener and more sustainable ways to get around. This can help make economies safer and healthier. Also, as the economies of most developed and developing countries have grown, more goods are being moved from one place to another. These things should make the first and last mile delivery market share go up.

• Adoption of Technology for Advancement of Warehouses and Logistics Services

People all over the world are switching from shopping in stores to shopping online or through e-commerce platforms. This means that delivery companies have to change how they deliver goods to end customers. Because of this change in consumer tastes, companies have to improve their last-mile delivery services to gain an edge in the market. But technology integration has made middle mile logistics less important. For example, goods can now be sent from a distribution center or warehouse to a number of places where they can be bought by consumers. Also, technological solutions improve supply chain management because automation of processes can speed up product delivery. Also, service providers are automating their warehouses and logistics processes by using smart technology, sensors, cameras, and an omnichannel ecosystem. This makes delivery times and costs go down even more. The omnichannel ecosystem can track from the time a product is ordered to the time it is delivered. This makes delivery faster and more efficient. So, the first and last mile delivery market is expected to grow during the forecast period thanks to the integration of technology in logistics.

Restraining Factors:

• Lack of Transparency

Buyers want to know where their goods are and when they will get there. Because of this, visibility is the most important factor for building trustworthiness. Most companies give package trace IDs that show where a product is in the delivery process. People don't like tracking codes in the tech-driven world of today. Even if the delivery is made the same day, they want to check every step of the last mile process.

• High Delivery Costs

Retailers and logistics companies have trouble making money and giving great delivery service at the same time. In fact, just the last mile costs 28% of the total cost of delivery. One big reason is that there isn't enough infrastructure to get things done on time. Costs of delivery are affected a lot by things like failed deliveries, long routes, driver pay, and how the fleet works.

 Opportunities:

• Drones and Delivery Bots are both on the Rise

Several logistics companies are trying out robots like drones and cars that drive themselves to make last-mile deliveries. Amazon has already put $530 million into Aurora, a company that is making self-driving cars. But before companies can hire them, they have to get permission from the government.

• Increase in the Number of Urban Warehouses

As same-day delivery becomes more popular, eCommerce companies will have to start building warehouses in big cities. It is very important for cities to have warehouses so that things can be sent out quickly. This not only speeds up delivery, but it also makes the jobs of the people who deliver easier.

• Smart Tracking Technology

Logistics companies use technology like LI (Location Intelligence) to improve the last mile delivery process. This technology lets you do things like track in real time, see more, find the best route, and manage your fleet.

The LI system keeps track of the shipment and lets users know where it is in the delivery process. Retailers could use this technology to keep an eye on the weather and figure out the best way to get packages to their customers. This technology helps last-mile delivery problems for eCommerce businesses.

Challenges:

• Ensuring Timely and Accurate Deliveries

One of the most important aspects of the first and last mile delivery market is ensuring that deliveries are made on time and without errors. This can be a challenge due to the many variables involved in the delivery process, from traffic and weather conditions to the availability of workers. To overcome this challenge, delivery companies need to have a robust system in place to track and manage deliveries.

• Managing the Expectations of Customers

Another challenge faced by delivery companies is managing the expectations of customers. Customers today are used to getting their orders delivered quickly and efficiently, and they are often not willing to wait days or even weeks for their items to arrive. This can be a challenge for delivery companies, who need to ensure that they are able to meet the expectations of their customers.

Strategic Development:

• In April 2021- DHL Express partnered with Fiat Professional to further electrify last-mile delivery. This is another step towards DHL Express' goal of electrifying 60% of its fleet by 2030.
• In March 2018 - FedEx acquired P2P Mailing Limited, a global e-commerce shipping solutions provider, for US$129.8 million, significantly enhancing its last-mile network.
• In May 2019 - DHL Express launched the first scheduled fully automated smart city drone delivery service. The company plans to further develop and upgrade the smart drone delivery solution for last-mile delivery.
• 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.

Key Vendors:

Top players are focusing on offering cutting-edge logistics solutions as part of competitive strategies in the first and last mile delivery market. Some of the key players are

• Transtech Logistics

Transtech Logistics, a goods specialist with operations in South Africa, Zimbabwe, Zambia, Mozambique, and, of course, Malawi, was founded in Malawi in 1997. With its headquarters in Lilongwe (Malawi), Lusaka (Zambia), Harare (Zimbabwe), and Johannesburg, the company runs a fleet of just under 100 Freightliner trucks with the same number of drivers and 40 additional employees (South Africa).

• Swift Transport

The largest motor carrier in North America for full-truckload shipments is Swift Transportation. The Swift terminal network, which has its headquarters in Phoenix, Arizona, consists of over thirty full-service locations both in the United States and Mexico. Linehaul, flatbed, intermodal, refrigerated, dedicated, and logistics management are just a few of the service options offered by Swift. Moreover, Swift provides opportunities in a variety of fields, including operations, finance, account management, shop mechanics, human resources, payroll, and many others.

• Procet Freight

In order to focus on the evolving client requirements within the freight forwarding and customs clearance industries, Procet Freight (Member of Freight Net) was established. Personalized customer service is the cornerstone of our company's mission. On the three primary modes of transportation—air, sea, and road—we also provide consolidated and direct imports and exports.

• DB SCHENKER

We serve business and trade in the international exchange of commodities through land transportation, international air and ocean freight, contract logistics, and supply chain management. DB Schenker is one of the top global logistics providers in the world. DB Schenker is one of the leading transportation and logistics providers in the world.

• TNT Express

FedEx purchased TNT Express in 2016. With a global portfolio of shipping, transportation, e-commerce, and business services, FedEx connects people and opportunities. FedEx uses the knowledge and dependability represented by the FedEx brand to offer integrated business solutions through cooperatively managed operating entities – jointly delivering excellent service to clients.

• Interlogix Pvt. Ltd

For both residential and commercial applications, Interlogix offers industry-leading security and life-safety systems that address intrusion, video, transmission, and access. Interlogix assists clients in securing and protecting their most valuable assets by providing some of the most well-known brand names in the industry, as well as continuous partner services and support.

• United Parcel Service Inc.

UPS, which has operations in more than 220 nations and territories, is dedicated to advancing the world by delivering what matters. With more than 500,000 UPSers worldwide, UPS has grown from a modest messenger business founded with a $100 loan by ambitious adolescents into a global leader in transportation and logistics, providing cutting-edge solutions to clients of all sizes. UPS is aware of its obligation to contribute to the creation of communities that are more just, more robust, and more resilient, backed by a sustainable, healthy environment.

• J&J GLOBAL LOGISTICS LIMITED

J&J Logistics provides shippers with industry-leading customer experience and capacity with freight transportation services throughout North America. Safety and cargo security are our primary concerns when designing logistics solutions based on your freight requirements.

• DHL Global Forwarding

DHL Global Forwarding is part of Deutsche Post DHL Group with more than 31,000 freight forwarding experts in more than 190 countries around the world. Our air, ocean and overland freight forwarding services include standardised transport as well as multimodal and sector-specific solutions, together with individualised industrial projects.

• FedEx Corporation

Through our global shipping, transportation, e-commerce, and business services, FedEx connects people and opportunities. Using the expertise and dependability exemplified by the FedEx brand, we provide integrated business applications through our collaboratively managed operating companies, collectively delivering extraordinary service to our clients.

Segmentation Analysis:

By 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.

• Dry Goods
• Postal 
• Liquid Goods

By Vehicle Type:

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.

• Light Duty Vehicle
• Medium Duty Vehicle
• Heavy Duty Vehicle
• Self-driving vans and Trucks
• Delivery bots

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.

• 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:

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.

• Hardware
• Ground Control Station
• Charging Station
• Micro-Fulfilment Centres
• Others
• Software
• Route Planning and Optimization
• Inventory Management
• Live Tracking
• Fleet Management
• Computer Vision
• Others

Regional Insights:

North America is expected to be the major regional market. The continued growth of e-commerce in U.S. retail has dramatically increased the number of packages delivered each day and raised customer expectations for fast and free delivery.

The Asia Pacific region dominates the global first and last mile delivery market. Growing population; increasing demand for goods; presence of third-party logistics (3PL) service providers offering first- and last-mile delivery; and surge in online shopping trends are some of the major factors driving the Asia Pacific market.

Several software companies in the Asia-Pacific region are developing first-mile logistics software that can manage and control first-mile delivery operations without human intervention and with full visibility, further enhancing the convenience of production orders for customers. The large population in the Asia-Pacific region provides a large consumer base for the development of online retailing, which further promotes transportation services involving first-mile and last-mile delivery.

Geographically, the global First and Last Mile Delivery market has been analyzed in various regions such as North America, Europe, Asia-Pacific, Latin America, Middle East, and India. The global region is dominating this market in the upcoming future.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• 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.