Researchers forecast 16% growth in Last Mile Delivery Market during 2022-25

New Delhi, India (Urban Transport News): With the exploding growth of the delivery logistics sector, the world has also been witnessing the exceptionally growing significance of last-mile delivery service providers. The World Economic Forum reveals that demand for last-mile delivery services across the world’s top 100 cities expects a whopping 60% rise over the next decade. Besides exponential e-commerce expansion, the global last-mile delivery market has benefited from the COVID-19 pandemic situation that compelled consumers to demand doorstep delivery of goods. This will continue to be the key factor driving demand for last-mile delivery services, says the latest Market Research study.  The report forecasts a robust CAGR of more than 16% for the market during 2022-25.

Last-Mile Delivery Service Providers Discover the Maximum Opportunity in FMCG

With over 37% share in total market revenue, FMCG will continue to represent the dominant end-use segment generating demand for last-mile delivery services. The COVID-19 pandemic and consequent lockdown situations played out as the major boosters to this demand surge as the need for doorstep supply of daily essentials, and FMCGs exploded since the onset of the pandemic. While the role of e-commerce has been indispensable in pushing sales of perishable F&B items over the recent past, the biggest factor that has accounted for this exceptional growth is the improving Internet access and deepening smartphone penetration across urban, semi-urban, as well as rural areas worldwide. This is likely to create newer avenues for last-mile delivery service providers as the need for faster delivery that ensures product integrity also soars. The other key end-user segments include pharma, healthcare, and F&B.

Opportunities Abound in Asian Markets

In terms of market value share, Asian markets are likely to retain their key position in the last mile delivery space. A massive consumer base, characterized by Generation Z, and Millennials will continue to play an important role in the top position of this region in the global market space. As a growing number of youngsters with a decent disposable income show preference for online shopping, the last mile delivery systems will be pushed in an upward direction across the region. Besides FMCG, the sale of personal care products, apparel, and fitness gear is expected to witness a considerable hike, thereby creating multiple windows of opportunities for last-mile delivery solution providers.

Key Market Players in Global Last-Mile Delivery Space

The Market Research Report presents some concrete analysis of the competitive landscape of the global last-mile delivery market space. The analysis offers a set of exclusive insights on the strategic, and financial developments of the significant players leading the competition. FedEx Corporation, Cargo Carriers, CEVA Logistics, Nippon Express Co., Ltd., Kuehne + Nagel, CJ Logistics, Concargo Private Ltd, DB SCHENKER, Interlogix Pty Ltd., DHL Paket GmbH, Estes Express Lines, Yamato Holdings Co., Ltd., J&J Global Limited, United Parcel Service Inc., and KART constitute some of the major companies that have been profiled in the report.

The direct-to-consumer delivery model is advancing and there are strong indications of service providers directly collaborating with restaurants and retailers. Although the companies have experienced the highest demand spike amid the initial months of the pandemic, they are yet to encounter the challenge of remaining relevant after the crisis subsides soon. A majority of companies continue to invest in M&A, whereas others remain focused on joint ventures.