First & Last Mile Delivery Market to reach $293 Billion by 2031; Rising adoption of electric vehicles, growth of ecommerce, sustainability in supply chain and the demand for same day delivery are driving the demand for First & Last Mile Delivery.

The First & Last Mile Delivery Market size is estimated to reach $293 Billion by 2031, growing at a CAGR of 7.1% during the forecast period 2025-2031, according to a recent report published by IndustryARC, titled, “First & Last Mile Delivery Market - By Increasing preference for air travel is boosting the need for First & Last Mile Delivery. Additionally, the industry is shifting towards predictive maintenance strategies, where data analytics is used to anticipate potential issues before they occur. This proactive approach minimizes costly unscheduled maintenance, reduces downtime, and enhances operational efficiency. Such factors are driving the growth of the First & Last Mile Delivery market. 

APAC accounted for the largest share of 38% of the First & Last Mile Delivery Market in 2024 owing to high e-commerce penetration and strong infrastructure development. Countries like China and India are driving market growth supported by ecommerce industry and increasing smartphone usage. The region’s extensive logistics networks combined with a surge in online retail led to high demand for efficient delivery solutions. Governments in the region are investing in smart logistics and electric vehicle adoption to enhance sustainability. For instance, during the Policy Support & Enablers to Accelerate India's Electric Mobility conference held in July 2023, NITI Aayog announced the Government of India's vision to achieve 100% electric last-mile logistics by 2030. Additionally, the expansion of quick commerce, food delivery services and cross-border trade further boosts the market.

The rapid growth of e-commerce is a primary driver of first and last mile delivery, with online shopping becoming a dominant retail channel worldwide. Consumers increasingly prefer digital platforms for purchasing goods fuels the need for efficient delivery networks. Retail giants and marketplaces are expanding their last-mile capabilities, investing in fulfillment centers and optimizing logistics infrastructure. The rise of mobile shopping and digital payments further strengthens this demand. For instance, China's e-commerce sector saw robust growth in the first half of 2024. Online retail sales during this period surged 9.8% year on year to about $996 billion, of which the retail sales of goods reached to approximately $848 billion marking an increase of 8.8%, according to data released by the Ministry of Commerce in July 2024.

The surge in online grocery shopping is significantly driving first and last mile delivery demand. Consumers now prefer home delivery of fresh produce, dairy, and packaged foods, prompting retailers to expand their logistics networks. Grocery chains and e-commerce platforms are investing in cold storage, temperature-controlled logistics, and express delivery options to maintain product freshness. The growth of meal-kit delivery services and subscription-based grocery models further strengthens this

Key companies profiled in the First & Last Mile Delivery Market are FedEx Corp., United Parcel Service Inc., CEVA Logistics, DHL Group, CJ Logistics Corporation, GEODIS, KUEHNE + NAGEL, DSV, Nippon Express, Kerry Logistics Network Limited and Others. 

General Logistics Market - The General Logistics market size is forecast to reach USD 8,456.2 billion by 2029, after growing at a CAGR of 5.2% during the forecast period 2024-2029. Increasing globalization of trade and business operations drives the demand for logistics services to facilitate the cross-border movement of goods and materials

Logistics Automation Market - The Logistics Automation Market size is estimated to reach $56.9 billion by 2030, growing at a CAGR of 7.9% during the forecast period 2024-2030. With the growing orders and demand in e-commerce, the logistics industry is in need of automated solutions that accept large order volumes and handle the order in a quick and accurate way.

Fourth Party Logistics Market - Fourth Party Logistics market size is forecast to reach US$96.1 billion by 2030, after growing at a CAGR of 6.3% during 2024-2030 driven by the increasing complexity of global supply chains which necessitates integrated solutions, growth of e-commerce and retail, rise in growth of logistics sector, rise in adoption of advanced technologies like big data analytics, IoT, and AI are which are enhancing supply chain visibility and efficiency.