In 2018, the last mile delivery market in North America stood at $31.25 billion, reaching just under $51 billion in 2022. As the crucial link between transportation hubs and final delivery points, last-mile delivery has become the linchpin of the global logistics industry.
Market Size and Projections:
The sector’s 2021 valuation at $131 billion underscores its escalating significance in modern retail. Looking forward, the global final mile delivery market is poised to grow at a robust CAGR of 8.13% from 2022 to 2031.
Global Perspectives on e-Commerce Growth:
In North America, particularly the U.S., e-commerce retail sales surpassed $250 billion by Q3 2022, marking a 10% YoY increase. The region’s focus on price and speed continues to propel this growth. In the Asia-Pacific, led by China, the last-mile delivery market is the fastest-growing, with a predicted CAGR of 12.17%.
European, Latin American, and Middle Eastern Landscapes:
In Europe, a $599 billion market in 2021 is expected to reach $880 billion by 2028. Latin America faces challenges, with a $121 billion retail sales projection by 2023. The Middle East is predicted to reach $100 billion in e-commerce by 2025.
Key Market Segments:
- B2C Delivery: Dominated by giants like Amazon and Alibaba, this segment accounts for 63% of all deliveries, with Amazon alone commanding a market cap of around $1 billion.
- B2B Delivery: While not dominating in volume, B2B delivery plays a vital role in supporting businesses and supply chains.
- C2C Delivery: Enabled by P2P marketplaces, this segment has seen substantial growth, exceeding $6.6 billion in Europe alone.
Delivery Modes: From conventional courier services to the rise of third-party logistics and on-demand services, businesses are navigating diverse delivery modes based on needs, budgets, and customer expectations.
Vehicle and Service Types: Traditional vehicles like vans and trucks remain primary, but personal vehicles, micro-mobility solutions, and eco-friendly options like electric vehicles are gaining traction.
Market Trends:
- Same-Day and Instant Delivery: Technology and operational strategies are evolving to meet customer expectations for swift delivery.
- Smart Lockers and Pickup Points: Over 70,000 lockers in the U.S. offer a convenient alternative to home delivery.
- Contactless Delivery: Post-pandemic, contactless delivery has become standard, addressing health concerns and enhancing the customer experience.
Ride the Wave with KIVO BPO
As the last-mile delivery market surges, KIVO BPO stands at the forefront, offering an cost effective solution needed for optimized deliveries and increased customer satisfaction. Request a demo today to embark on a journey toward optimized deliveries and propel your business to new heights. KIVO BPO is here to help you make the most of the market boom!
