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The North America - last mile delivery market size is estimated to grow at a CAGR of 4.93% between 2023 and 2028. The market size is forecast to increase by USD 18.78 billion.
The report includes a comprehensive outlook on the Market, offering forecasts for the industry segmented by Product, which comprises B2C, and B2B. Additionally, it categorizes Vehicle Type into large OEMs and custom vehicle OEMs. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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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.
Premiumization of goods and merchandise delivery is the key factor driving market growth. Premiumization in the logistic services refers to the premium price paid by the customer for faster deliveries. The focus on premiumization is evident from the increase in the number of last-mile/same-day delivery startups, such as Dropoff, in the US over the past few years. It has been identified that about one-fourth of online retail customers are willing to pay a considerable premium over the standard delivery charges for the same-day or instant delivery of purchased goods.
Moreover, the trend is witnessed more among younger customers and millennials. The key product segments that are currently witnessing the fastest growth rate for last-mile deliveries include medical/pharmaceutical products and agricultural produce, which require immediate consumption or are perishable goods. In the case of medical products, the time window for delivery can be extremely short during emergencies. As a result, consumers pay a higher price services. All of these factors make the market lucrative and are expected to drive the growth of the market during the forecast period.
A strong focus on offering services to specific end-user segments is the primary trend shaping market growth. Logistics services companies have started operating new logistics supply models for the medical and pharmaceutical sectors as a response to the growing challenges in the healthcare industry. These include the rising cost pressures on medical devices due to the growing demand from the aging and active population. For instance, DHLs supply chain arm has introduced advanced logistics solutions for the medical industry, which bring together field inventory, valuable medical devices, and quality management systems at a single location for maintaining better traceability and control.
In addition, this model reduces the need to actively maintain and operate a large stock of medical devices. All critical devices are provided on the last mile and same-day delivery bases. This supply chain model is already being utilized by major medical device players across North America and is expected to drive the growth of the market during the forecast period.
The introduction of alternate delivery services is a challenge that affects market growth. Some of the upcoming alternatives services are locker services and click-and-collect services, which are being introduced by major online retailers. Amazon offers the Amazon Locker service, which offers convenient alternative delivery points. These lockers can be accessed by customers by means of an unlock code. This enables companies to eliminate issues related to packaging drop timings and product safety. The Amazon Locker service has been expanded to several major US cities and is accessible to customers throughout the day for added convenience.
Furthermore, online retailers and logistics companies have introduced the concept of click-and-collect, wherein the merchandise is dropped in an offline store, post office, gas station, or convenience store located in the vicinity of the customer. This allows the retailer to easily ship multiple packages to a single location, reducing operational costs and challenges. Thus, these alternate delivery methods will pose a threat to the growth of the market during the forecast period.
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 in Customer Landscape
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The B2C segment is estimated to witness significant growth during the forecast period. The B2C transactions involves transporting goods from a distribution center or retail store directly to the end-consumer's location. Consumers expect faster and more convenient delivery options. Same-day or next-day deliveries, along with options for specific delivery windows or locations, are increasingly popular to meet these expectations.
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The B2C segment was the largest segment and was valued at USD 35.93 billion in 2018. The market players are investing in big data and consumer analytics to improve delivery times and improve the consumer experience. Companies such as DHL are utilizing big data along with real-time road, weather, and traffic information to optimize delivery routes for faster deliveries. Using big data analytics, operators can provide better customer service at lower costs because of the use of the most efficient delivery routes, resulting in less fuel wastage. All these factors are expected to drive the growth of the B2C segment of the market during the forecast period.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
North America Last Mile Delivery Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.93% |
Market Growth 2024-2028 |
USD 18.78 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.53 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcBest Corp., Averitt Express Inc., AxleHire, C H Robinson Worldwide Inc., CMA CGM SA Group, CRST The Transportation Solution Inc., DDC Logistics Inc., Deutsche Bahn AG, DSV AS, FarEye Technologies Inc., FedEx Corp., GEODIS, J B Hunt Transport Services Inc., Llama Logisol Pvt. Ltd., Ryder System Inc., SEKO Logistics, SF Express Co. Ltd., Washington Express LLC, Werner Enterprises Inc., XPO Inc., and JungleWorks Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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