The birth of e-commerce has boosted the demand for last mile delivery services globally. Based on the premise of delivering packages to customers in the shortest time span, last mile delivery market is looking at an excellent growth rate. According to Fairfield Market Research, the global last mile delivery market is expected to surge at a CAGR of 16% between the forecast years of 2021 to 2025. Growing internet access and avenues for online shopping are expected to give the last mile delivery market exponential opportunities in the forecast period.  

Retailers to Make Heavy Investments in Last Mile Delivery Services to Create Easy Shopping Experience 

Retailers utilize last-mile delivery as a key to stay ahead in the competition. In 2018, Amazon took 41% of the U.S. retail market share with its Amazon Prime’s same and next day delivery services. Analysts predict that numerous e-commerce players are investing in their last-mile delivery services to appeal to a wider consumer base. Its features such as route optimization, auto-dispatch, bird’s eye view, proof of delivery, real-time status update, real-time visibility, audit key metrics, and analytics allow easy tracking to end customer, creating a more transparent shopping experience. 

Introduction and application of sensors, delivery by drones/self-driving cars/robots and city warehousing are expected be some of the upcoming trends in the global last-mile delivery market. These technological advancements will accelerate the market’s growth in the coming future by boosting investor’s confidence. 

Vulnerability of FMGC Goods to Create Dependence on Last Mile Delivery Services 

The FMGC segment will emerge as the key user of last mile delivery services as its products remain highly susceptible to spoilage within a short span. Entry of e-commerce to retail FMCG goods has significantly created the demand for seamless last mile delivery services. Increasing number of consumers are adopting the trend of online shopping or e-retail. The global pandemic has accelerated the need to shop online while staying home, which has further strengthened the demand for FMCG sector. This sector will be highly influenced by technological developments such as real-time monitoring, shopping assistants, and no-contact delivery in light of the COVID-19 pandemic. Companies such as Wing Aviation LLC, Kiwi Campus and Boxbot are partnering with numerous food joints and local restaurants to facilitate the same in the U.K, U.S., and Australia.   

Wide Acceptance of E-commerce to Boost Market Growth in North America  

North America is expected to lead the global market as the region sees continuous development in autonomous delivery robots mechanisms. E-commerce has wide acceptance in this region as consumers are opting for quick delivery and increased e-retail transactions. Additionally, numerous retailers are providing free returns and exchanges that is expected to further accelerate the demand for reverse logistics in the last mile delivery model.  

Asia Pacific is also expected to rise in the competition as this region has increasing number of exports and imports due to developing economies such as China and India. This region is a hub for major industries and car manufacturers hence, bolstering the demand for last mile delivery market. Furthermore, a younger population base with adequate disposable income has also been fueling this market by embracing the online shopping culture. 

Key Players are Extending their Services and Consumer Base to Stay Ahead in the Competition  

The global last mile delivery market is highly fragmented in nature. Key players are increasingly adopting numerous strategies such as mergers and acquisitions, collaboration and joint ventures to stay ahead in the competition.  

FedEx Express has opened a new ramp operation facility at Luis Munoz Marin International Airport in Carolina, Puerto Rico in 2019. This new facility is company’s strategy to accelerate operational efficiency and cater the needs of growing consumers. In 2018, XPO Logistics in Europe extended its last mile logistics service in 2018. It included services for heavy goods. It focused on France, the Netherlands, Spain and U.S. The company is expected to achieve more than 750,000 last mile deliveries from retailers and e-commerce in Europe.  

The key players operating in the global last mile delivery market are Cargo Carriers, CJ Logistics,  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, KART, SNCF Geodis, Swift Transportation, TNT Holding B.V., Procet Freight, Tuma Transport, Yamato Holdings Co., Ltd. and United Parcel Service Inc. among others.