Last Mile Delivery Transportation Market
Last Mile Delivery Transportation Market (Vehicle Type: Light Duty Vehicle, Medium Duty Vehicle, and Heavy Duty Vehicle; End Use: Chemical, Pharmaceuticals & Healthcare, Hi-tech Product Industry, FMCG, Food & Beverages, and Others; and Cargo Type: Dry Goods, Liquid Goods, and Postal Goods) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030
Press Release :
Growing Emphasis on Optimizing Supply Chains Models to Propel Market Growth
Technological advancements over the past few years have raised customer expectations and influenced the purchasing patterns of consumers, along with how these products are delivered to them. Apart from evolving consumer preferences, consumers are increasingly demanding cost-effective and convenient last mile delivery due to which, last mile delivery transportation services have gained noteworthy popularity in recent years. Stakeholders operating in the current last mile delivery transportation market are of the opinion that the autonomous delivery vehicle technology is likely to open up new avenues in last mile delivery transportation. As delivery autonomous vehicles are likely to address the consumer demands for efficient delivery at lower costs, the adoption is likely to gain considerable traction during the forecast period.
At present, players operating in the last mile delivery transportation market are seeking different ways to minimize the delivery costs across the last leg of the journey i.e. from the transportation hub to the last point of delivery. In addition, retail outlets and restaurants who have incorporated a lean operational model are increasingly challenged with problems such as efficient logistics and supply chain management. At the back of these factors, along with the flourishing e-Commerce sector, the global last mile delivery transportation market is expected to attain a market value of ~US$ 400 Bn by the end of 2030.
Request a sample to get extensive insights into the Last Mile Delivery Transportation Market
Entry of New Final Mile Delivery Models on Rise
At present, participants within the last mile delivery transportation market are increasingly examining different methods that are likely to minimize the costs of transportation of goods in the last leg of the journey. In their efforts to attain the set objectives, direct-to-consumer delivery models are experiencing significant developments and innovations. Traditional delivery companies, including FedEx and DHL are investigating different ways to utilize their existing resources to streamline last mile delivery transportation. Some of the solutions that are currently being reviewed include personal delivery, automated delivery, and locker delivery.
Advancements in technology are likely to drive innovations and the development of new last mile delivery transportation models. The flourishing e-Commerce sector has presented significant opportunities for participants in the last mile delivery transportation market. Currently, pilot testing of new technologies and new transportation models around the world has increased at a rapid pace– a trend that is likely to continue during the assessment period. Some of the factors that are likely to enable the growth of the last mile delivery transportation market include the adoption of diversified last mile services, assessment of incurring costs of sold goods, and expansion of the omnichannel inventory selection.
To understand how our report can bring difference to your business strategy, Ask for a brochure
While developed regions of the world, including North America and Europe, are likely to establish reliable and robust last mile delivery transportations models, developing countries are currently focusing on addressing some key challenges within the last mile delivery transportation market, including ambiguity in commodity & program portfolio, sub-standard execution of storage guidelines, lack of efficient information systems, and inventory management systems. Moreover, technological developments within the last mile delivery sphere is redefining last mile delivery transportation. Some of the advancements that are likely to make inroads within the last mile delivery transportation market include uptake of electric vehicles amid mounting environmental concerns, entry of semiautonomous vehicles, and autonomous delivery vehicles. These innovations are expected to minimize delivery costs and comply with stringent emission-related guidelines due to which, the entry of these technologies within the current market landscape could be sooner than expected.
Last Mile Delivery Transportation Strategies under Review amid COVID-19 Pandemic
The COVID-19 pandemic has put forward a spectrum of challenges for stakeholders operating in an array of industrial sectors. As governments across the world continue to curb the novel COVID-19 infection, trade restrictions coupled with stringent lockdowns have led to severe disruptions across the supply chains worldwide due to which, participants in the last mile delivery transportation market processes are likely to face the heat. The last mile delivery transportation across the healthcare sector in these testing times will remain a critical aspect in the fight against novel COVID-19 disease. As government supply chains across the world continue to be burdened with soaring demands for medical supplies and personal protective equipment, companies are expected to formulate an efficient model to address these demands.
Stuck in a neck-to-neck competition with other brands? Request a custom report on Last Mile Delivery Transportation Market
The global last mile delivery transportation market is expected to grow at a sluggish CAGR of ~3% during the forecast period. Technological advancements and the booming e-Commerce sector will remain the leading factors that will propel the market growth during the assessment period. In addition, advancements in robotics and the projected adoption of semi-autonomous and autonomous delivery vehicles will play an imperative role in redefining last mile delivery transportation in the upcoming years.
Last Mile Delivery Transportation Market: Overview
- The global last mile delivery transportation market is anticipated to expand at a CAGR of ~3% during the forecast period, owing to a rise in the middle class population across the globe that has led to an increase in consumption and hence, is expected to boost the volume of goods transported. Changes in consumer tastes and preferences where people are inclined toward Western lifestyle have fueled the demand for deliveries that take lesser time. This is projected to boost the last mile delivery transportation market during the forecast period.
- The last mile delivery transportation market has benefitted by the introduction and use of new technologies. Some new technologies include global positioning system (GPS), warehouse management systems, dispatching communication systems, order entry systems, and transportation management systems (TMS).
Drivers of Last Mile Delivery Transportation Market
- Demand for online shopping is witnessing significant rise, owing to an increase in speedy internet access, which has led to a surge in preference toward e-tailing among consumers. Furthermore, convenience and easy access related to home delivery services are projected to boost the last mile delivery transportation market during the forecast period.
- Growing urbanization and rise in trade volume have resulted in the increase in transport volumes. Rapid expansion of the e-Commerce market across the globe is driving the last mile delivery transportation market. Increased trend of online shopping is a major factor driving the last mile delivery transportation market.
- Reduction in delivery time and increase in efficiency of delivery of goods have led to the use of aerial delivery drones and ground delivery vehicles to carry out the autonomous last mile delivery of packages. Rise in development of advanced and cost-effective aerial delivery drones and ground delivery vehicles is propelling the autonomous last mile delivery market across the globe. Industry 4.0 has started to emerge as a real driving force shaping the future of the global supply chain. Diverse technologies, including advanced robotics and Artificial Intelligence, sophisticated sensors, big data analytics, 3D printing, cloud-enabled business models; high powered mobile devices; and algorithms to direct motor vehicles (navigation tools, ride-sharing apps, autonomous vehicles and last mile delivery services) are enabling advanced interchangeability across companies, countries, collaborators and competitors. This, in turn, is creating a rapid in shift in processes to accommodate the fundamentals of Industry 4.0, although development toward automation and digitization in manufacturing is being significantly realized across the transport & logistics sector.
- Belt and Road Initiative (BRI), previously known as One Belt One Road, is an ambitious effort proposed by China to advance regional cooperation and connectivity on a trans-continental scale. The Silk Road Economic Belt connects three major road routes from China to Europe, the Persian Gulf, the Mediterranean, and the Indian Ocean. However, 21st Century Maritime Silk Road is based on waterways. The main objective of BRI is to build trade routes between China and the countries in Central Asia, Europe, and Indo-Pacific littoral countries. This project involves developing infrastructure mostly around transport and energy such as roads, bridges, and power plants, which in turn is likely to propel the demand for freight transport on roadways. This, in turn, is projected to boost the last mile delivery transportation market during the forecast period.
Challenges for Last Mile Delivery Transportation Market
- Freight trucks are bigger, heavier, and bulkier vehicles, which makes road freight transportation comparatively slower and hence, hampers the last mile delivery transportation market. Additionally, massive backlog in proper maintenance is also a major factor that is likely to hinder the last mile delivery transportation market during the forecast period. Furthermore, toll roads or booths lead to massive time loss, which results in slow transportation.
- Improper road infrastructure coupled with a lack of intent to improve transport facilities in developing and developed countries is expected to restrain the last mile delivery transportation market during the forecast period. Furthermore, several areas of Asia Pacific, Latin America, and Africa require investments in order to develop and upgrade their infrastructure facilities.
Last Mile Delivery Transportation Market Segmentation
- Based on cargo type, the dry goods segment dominated the global last mile delivery transportation market due to the rise in volume of import of industry and manufacturing raw materials and export and import of food and pharmaceuticals
- Based on end use, the FMCG segment dominated the market, as demand for quality goods and services has been rising in rural areas, owing to improved distribution channels of FMCG companies. Rising volume of transport of oil & gas over the years has been boosting the demand for freight trucks. Moreover, increase in export of oil and diesel over the years is anticipated to propel the last mile delivery transportation market.
Last Mile Delivery Transportation Market: Regional Analysis
- Based on region, the global last mile delivery transportation market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Asia Pacific and North America are projected to be highly lucrative markets during the forecast period. This is primarily due to the improvement in road network transport, and inclination toward development of industries over the years in these regions.
Last Mile Delivery Transportation Market: Competition Landscape
- Key players operating in the global last mile delivery transportation market include
- Cargo Carriers Limited
- CJ Logistics Corporation
- CEVA Logistics
- Concargo Private Ltd
- DB SCHENKER
- Interlogix Pty Ltd.
- DHL Paket GmbH
- Estes Express Lines
- FedEx Corporation
- Kuehne + Nagel
- Nippon Express Co., Ltd.
- J&J Global Limited
- SNCF Geodis
- Swift Transportation
- TNT Holding B.V.
- Procet Freight
- Tuma Transport
- Yamato Holdings Co., Ltd.
- United Parcel Service Inc.
- Key players at the global level are expanding their footprint by engaging in mergers & acquisitions with several players in industry. In 2018, Kuehne+Nagel announced the acquisition of Wira Logistics, a leading Indonesia-based logistics company. The acquisition is expected to strengthen the company’s logistics and distribution network across Indonesia and consolidate its position in the contract logistics market.
Last Mile Delivery Transportation Market – Scope of the Report
Transparency Market Research’s recent report on the last mile delivery transportation market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the last mile delivery transportation market analyzes the scenario for the period of 2019 to 2030, wherein, 2019 is the base year and 2018 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the last mile delivery transportation market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the last mile delivery transportation market gives readers an individual understanding of the market.
This study also discusses the underlying trends and impact of various factors that are driving the last mile delivery transportation market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the last mile delivery transportation market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.
Key Questions Answered in This Report on Last Mile Delivery Transportation Market
- How much value will the last mile delivery transportation market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2030?
- What are the impact factors and there effects on the market for last mile delivery transportation?
- What regions currently contribute the maximum share to the overall last mile delivery transportation market?
- What are the indicators expected to drive the last mile delivery transportation market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the last mile delivery transportation market to expand their geographic presence?
- What are the major advancements witnessed in the last mile delivery transportation market?
- How regulatory norms affected the market for last mile delivery transportation market?
This report answers these questions and more about the last mile delivery transportation market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Last Mile Delivery Transportation Market: Research Methodology
This TMR report on the last mile delivery transportation market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the last mile delivery transportation market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by the key players, researchers of the last mile delivery transportation market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the last mile delivery transportation market, with both a bottom-up and top-down approach.
This detailed assessment of the last mile delivery transportation market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the last mile delivery transportation market is estimated to expand are based on carefully vetted primary and secondary sources.
Last Mile Delivery Transportation Market: Segmentation
This report on the last mile delivery transportation market provides information on the basis of vehicle type, cargo type, end use, and region.