First and Last Mile Delivery Market by Vehicle Type (Light Duty Vehicle, Medium Duty Vehicle, Heavy Duty Vehicle), Cargo Type (Dry Goods, Postal, Liquid Goods), End Use (Chemical, Pharmaceutical and Healthcare, FMCG), Region- Growth, COVID-19 Impact, Trends and Forecasting Till 2030

Market Overview:

Global first and last mile delivery market size is estimated at 1.40 USD Billion by 2028 and is anticipated to grow at a CAGR of 14.12% during the projected time frame (2021-2028). First mile delivery involves transfer of goods or products from a warehouse or merchant’s premise to courier service who provides to the final user, whereas last mile delivery involves transfer of goods to customers. First mile is the first stage in the delivery system which comes at the center of pickup chain and transit chain. Last mile is the last stage where the product reaches the end user. First mile delivery has a vital role in streamlining supply chain and logistics.

Dynamics of Market:

Drivers:

The supply chain management providers are opting for innovative and latest technologies to enhance their sustainability, elasticity, availability, and efficiency, which is expected to drive the market growth during the forecast period. Also, consumers are increasingly preferring to pay extra amount to get immediate delivery, augmenting the market. Technological advancements in the transport facilities is expected to contribute to first and last mile delivery market during the forecast period.

Restraints:

The availability of robots and drones is increasing, which can reduce the global employment rate. Thus, the risk of reduced employment and poor infrastructure of developing countries for first and last mile delivery can restrain the market growth during the forecast period.

COVID-19 Impact on the First and Last Mile Delivery Market:

The COVID-19 pandemic has altered the consumer buying behavior as people shifted to e-commerce platforms for online buying. Though, the e-commerce sector observed a rise the last mile delivery system was presented with various challenges to deliver the products to customers doorsteps. However, with ease of restrictions, the market is expected to accelerate at a significant rate during the forecast period.

TABLE 1: GLOBAL MARKET SCOPE

Market Segmentation of First and Last Mile Delivery Market

Vehicle Type of First and Last Mile Delivery Market

By vehicle type, the first and last mile delivery market is classified into light duty vehicle, medium duty vehicle, and heavy duty vehicle. The light duty vehicle segment is expected to dominate the market during the forecast period. The segment growth can be due to retail price, fuel economy, ease of operation and interior volume of light duty vehicles.

Cargo Type of First and Last Mile Delivery Market

By cargo type, the first and last mile delivery market is classified into dry goods, postal, and liquid goods. The dry goods segment is expected to hold the largest market share during the forecast period. The segment growth can be attributed to increasing online purchase of dry goods which can be delivered within a limited time.

End Use of First and Last Mile Delivery Market

By end use, the first and last mile delivery market is classified into chemical, pharmaceutical and healthcare, and FMCG. The FMGC segment is expected to lead the market during the forecast period. Increasing preference of urban customers for FMGC products is expected to contribute to segment growth during the forecast period.

Global Regional Analysis of First and Last Mile Delivery Market: North America to Hold a Lion’s Share

By region, the global First and Last Mile Delivery Market has been classified by North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is expected to dominate the first and last mile delivery market during the forecast period. The U.S. is expected to significantly contribute to regional market growth due to growing e-commerce retail sales in the country

Key Development

• In July 2021, LogiNext launched MILE, a first incorporated last mile delivery platform, to optimize and automate delivery management for enterprises
• In April 2021, DHL Express partnered with Fiat Professional for further electrification of last-mile delivery. It is another step towards DHL Express achieving the goal to electrify 60% of the fleet by 2030
• In January 2021, Mahindra Logistics Launched EDel – Electric Last-Mile Delivery Service. EDel aimed to become first pan-India service for high-end cargo EVs for last-mile delivery.

Market Segmentation

By Vehicle Type:

• Light Duty Vehicle
• Medium Duty Vehicle
• Heavy Duty Vehicle

By Cargo Type:

• Dry Goods
• Postal
• Liquid Goods

By End Use

• Chemical
• Pharmaceutical and Healthcare
• FMCG

By Region:

• North America
• Europe 
• Asia Pacific
• Middle East & Africa 
• South America 

Key Companies listed

The major companies listed in the first and last mile delivery market are FedEx, Cargo Carriers Limited, Transtech Logistics, United Parcel Service Inc., Swift Transportation Company, Concargo Private Limited, Swift Transport, TNT Express, Kerry Logistics Network Limited, and Transtech Shipping And Logistics Pvt. Ltd

These companies are span over North America, Europe, South America, and Asia Pacific markets, which empowers it to consider clients across the globe. The company’s leading position in the First and Last Mile Delivery Market is endorsed by its wide product portfolio.

Report Highlights:

•          Complete overview of market

•          Major drivers, restrain, opportunities, and challenges of the market

•          Market Trends and how they are boosting the market growth

•          Changing dynamics in the Market

•          Complete overview of the market

•          Historical, Base year, projected, and current market size in terms of value and volume

•          COVID-19 Impact analysis of the market

•          Current industry trends and developments