A recent report published by Infinium Global Research on the last mile delivery market provides an in-depth analysis of segments and sub-segments in the global as well as regional last mile delivery market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional last mile delivery market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast, and dollar values of the global last mile delivery market. According to the report, the global last mile delivery market is projected to grow at a CAGR of 7.6% over the forecast period of 2020-2026.
Last-mile delivery is defined as the association of goods from a transportation hub to the final delivery destination. The focus of last-mile logistics is to deliver products to the end-user as fast as possible. This has been driven by the continuously growing market and demand for a well-situated customer experience across industries such as retail, e-commerce, food, and others. Last-mile logistics allow shippers to deliver more products to consumers cost-effectively and earlier. Further, last-mile delivery can provide comprehensive analytics with granular visibility. It offers all data about operations planning operations processes, process efficiency, and quality management.
The current concerns over the spread of coronavirus are creating a major gap for last-mile delivery in the global market. As the spread of COVID-19 is accelerating, the global last-mile delivery market is experiencing a higher demand from end-users to keep up with safety standards and regulations during pandemics. Various restaurants and retail stores are now relying entirely on delivery options to keep their businesses afloat. In this coronavirus pandemic, many individuals are relying on services such as the delivery of groceries, food parcels, and other essentials. However, transporting perishables always emphasize the need for quick, efficient deliveries and proper adherence to best practices. These benefits offered by the service vendors are anticipated to escalate the demand for the last mile delivery market.
Growing demand for a parcel in e-commerce, retail, and online food is a key driving factor for the last-mile delivery market. The integration of advanced technologies into existing systems and rising demand for just in time delivery are expected to propel the demand for last-mile delivery. This emergence of modern technology enables greater efficiency and an effective operating model is expected to escalate the growth of the last-mile delivery market. However, the inappropriate structure of transportation mode leading to difficulty in navigating and parking regulations are likely to hamper the last-mile delivery market. Furthermore, increasing the adoption of advanced technology and autonomous vehicles are anticipated to increase market growth in the forecast period. Also, the implementation of self-driving and electric vehicles or drones can support market growth. In addition, augmented reality and optimization in an integrated network considerably cut delivery costs which will add value to last-mile delivery.
Geographically, Asia Pacific held the largest share in the last-mile delivery market in 2019. Due to the presence of many logistics service providers and intense competition owing to the rising demand for outsourced services are the key revenue generator in the Asia Pacific last-mile delivery market. Further, rising demand for value-added services, adequate last-mile deliveries, and the adoption of automated technologies into logistics services escalate the demand in this region. However, North America is anticipated to witness rapid growth in the market owing to rapid industrialization in the region. Further, rapid growth in the e-commerce sector and internet penetration is expected to escalate the demand for last-mile delivery over the forecast period.
The report on the global last mile delivery market covers segments such as service type, vehicle type, and end-user. On the basis of service type, the sub-markets include Business-to-business (B2B), Business-to-consumer (B2C), and Customer-to-customer (C2C). On the basis of vehicle type, the sub-markets include motorcycle, light commercial vehicle, heavy commercial vehicle, and drones. On the basis of end-user, the sub-markets include retail, groceries, food, mails, and packages.
The report provides profiles of the companies in the market such as FedEx Corp., GEODIS SA, J.B. Hunt Transport Inc., CEVA Logistics AG, Deutsche Post DHL Group, United Parcel Service Inc., XPO Logistics Inc., DHL International GmbH, ArcBest Corporation, and Schneider National Inc.
The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the last mile delivery market. Moreover, the study highlights current market trends and provides forecast from 2020-2026. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.