Last Mile Delivery For E-Commerce Sector Market Analysis China - Size and Forecast 2024-2028

China Last Mile Delivery Market for E-commerce Sector Size 2024-2028

The China last mile delivery market for e-commerce sector size is estimated to grow by USD 23.5 billion at a CAGR of 17.89% between 2023 and 2028. The market in China, fueled by increasing internet connectivity penetration and the proliferation of smartphones, has created a fertile ground for businesses to thrive. With over 800 million internet users and counting, China boasts the world's largest online population. Moreover, the availability of numerous digital payment options, such as Alipay and WeChat Pay, has made online transactions seamless and convenient. This digital transformation has significantly impacted consumer behavior, leading to a shift towards online shopping and digital transactions. Businesses looking to tap into this vast market must adapt to the unique Chinese digital landscape and provide a seamless online shopping experience to succeed.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics

The market is rapidly evolving, driven by advanced analytics and artificial intelligence. Companies are increasingly adopting autonomous vehicles and drones to address urban congestion and enhance delivery efficiency. These technologies are particularly crucial in navigating urban populations and optimizing route optimization. Affordable cooling systems and low power consumption cooling devices are also integrated for on-demand services requiring temperature-sensitive deliveries. The shift towards direct-to-consumer business models and consumer-to-consumer segment (C2C) highlights a focus on improving brand experience and brand loyalty. Challenges like transport disruptions and workforce limitations are mitigated through safety protocols and personal protective equipment. The B2B segment is also adapting, blending autonomous and non-autonomous technology for streamlined operations in warehouses and distribution centers.Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving market growth is the growing B2C e-commerce market in China. The increasing Internet penetration and the rising purchasing power parity across China are the key factors contributing to the growth of e-commerce in the country. In addition, China is the major contributor to the e-commerce market in APAC.

Moreover, the demand for last-mile delivery services for the e-commerce sector in China from each end-user (individual who places orders) varies. This is due to the reason that end-users are willing to pay extra for the fast delivery of products. Hence, such factors are positively impacting the China market for the e-commerce sector. Therefore, it is expected to drive the market for the e-commerce sector growth during the forecast period.

Significant Market Trend

A key factor shaping market growth is the rise in social commerce. Social commerce comprises using social media and other online media to assist in the online buying and selling of products and services. In addition, the social commerce platform enables transaction-based social interactions and user experiences. In social commerce, social media is utilized as an e-commerce platform, enabling customers to purchase products directly from the news feed.

Moreover, several market players in social media, including Facebook, Instagram, YouTube, Pinterest, and Snapchat, provide opportunities for social commerce through their platforms. The products are shown on social sites in the form of advertisements. Furthermore, users are able to see the product description and details featured in the advertisement. Hence, such factors are positively impacting the market for the e-commerce sector. Therefore, it is expected to drive the market growth during the forecast period.

Major Market Challenge

Operational issues for last-mile delivery companies are one of the key challenges hindering market growth. A significant challenge associated with last-mile delivery operations for the e-commerce sector is to offer transparency and improve delivery efficiency while maintaining profitability. In addition, long-distance transportation (logistics) is mainly carried out in bulk via sea, rail, and road, which results in lower delivery costs.

However, last-mile delivery requires separate deliveries to various locations within a region, increasing logistics costs. Major costs related to last-mile delivery include labor and fuel costs. Furthermore, the presence of several last-mile delivery companies leads to intense competition in the last-mile delivery market for the e-commerce sector in China, which is often based on pricing and delivery time. Hence, such factors are negatively impacting the market. Therefore, such factors will hinder the market growth during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alibaba Group Holding Ltd: The company offers last mile delivery for e-commerce sector through its subsidiary Cainiao uses Alibaba Cloud IaaS platform and logistics cloud that tracks packages at every stage of the supply chain

The research report also includes detailed analyses of the competitive landscape of the market and information about 11 market companies, including:

• Amazon.com Inc.
• Debon Logistics Co. Ltd.
• Deutsche Post AG
• DTDC Express Ltd.
• FedEx Corp.
• GOGOX Holdings Ltd.
• JD.com Inc.
• SF Express Co. Ltd.
• YTO International Express and Supply Chain Technology Ltd.
• ZTO Express Cayman Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Delivery Mode 

The regular delivery segment is estimated to witness significant growth during the forecast period. In this segment, packages and parcels are dispatched to business and residential customers within 1-3 business days. In addition, the growth of the e-commerce industry has provided customers with direct access to manufacturers. Furthermore, manufacturers are engaged in strategic tie-ups with key e-commerce players.

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The regular delivery segment was the largest segment and was valued at USD 7.60 billion in 2018. The e-commerce industry is growing at a significant rate of around 20% per year and is projected to outpace the growth of the last-mile delivery market for the e-commerce sector in China during the forecast period. In addition, this also increased the share and growth rate of the automated parcel delivery terminals market, which will help to fuel the growth of the market. Furthermore, the growing rate of Internet penetration in China is expected to fuel the growth of the regular delivery segment of the China last-mile delivery market for the e-commerce sector during the forecast period. 

By Service 

Based on service, the segment is classified into B2C and B2B. The B2C segment of last-mile delivery for the e-commerce sector refers to the delivery of various parcels and goods from adjacent transportation hubs to consumers. In most cases, last-mile delivery for the e-commerce sector involves the direct delivery of goods to consumers' homes Moreover, with the increasing volume of products ordered through e-commerce sales channels, the importance of efficient last-mile delivery for the e-commerce sector has grown gradually. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the China last mile delivery market for the e-commerce sector growth during the forecast period. 

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Delivery Mode Outlook 
  • Regular delivery
  • Same day delivery or express delivery
• Service Outlook
  • B2C
  • B2B
• Type Outlook
  • Domestic
  • International

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Market Analyst Overview

In China, the market for the e-commerce sector is rapidly adapting to online shopping trends with a focus on instant delivery and enhanced service quality. Unmanned Aerial Vehicles and EVs are emerging solutions to tackle traffic congestion and reduce the carbon footprint, despite regulatory hurdles. Smart logistics and real-time tracking improve visibility and communication across distribution centers and warehouses. Shippers and the shipping department must balance e-commerce profit margins with the environmental impact of their operations. The rise of digital business models and smartphone penetration supports consumer-to-consumer segment transactions and small businesses, while non-autonomous vehicles continue to play a role. For online shopping portals, maintaining customer retention and reputation is crucial for competing in this dynamic market.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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