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The North America Last Mile Delivery Market Size is estimated to grow at a CAGR of 14.85% between 2022 and 2027. The size of the market is forecast to increase by USD 62.71 million. The growth of the market depends on several factors, including the growing B2C e-commerce industry in the US, the premiumization of goods and merchandise delivery, and the growing incidence of pandemic
This report extensively covers market segmentation by service (B2C and B2B) and vehicle type (large OEMs and custom vehicle OEMs). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing B2C e-commerce industry in the US is notably driving market growth, although factors such as operational challenges for last-mile delivery companies may impede the market growth. Our researchers analyzed the data with 2022 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.
The growing B2C e-commerce industry in the US is the key factor driving growth for last mile delivery market in North America. In 2022, the B2C e-commerce industry in the US contributed significantly to overall retail sales. The increasing penetration of the Internet and online shopping has significantly contributed to the growth of the B2C e-commerce industry in the US. The B2C e-commerce industry in the US is expected to grow significantly during the forecast period.
Moreover, Online retailing has changed the way customers and retailers interact with each other. Nowadays, instead of visiting brick-and-mortar stores to make purchases, a large number of people prefer to shop online due to the ease of making purchases and the convenience of at-home shopping. Online shopping also saves time. The online retailing market in North American countries is expected to witness further expansion and investments during the forecast period, driving the demand for last mile delivery services during the forecast period.
The strong focus on technological advances is the primary trend in the North America last mile delivery market . A major trend in the market in North America is the growing adoption of technological advances for real-time tracking, which allows consumers to manage and modify retail deliveries with the help of easily accessible online tools. Such tools provide greater transparency to customers while offering them complete control over package delivery. Moreover, Large packages or goods need to be collected directly by the customer during the delivery due to their high value. These packages cannot be delivered outside homes, which poses a challenge for delivery services companies.
Therefore, delivery providers are providing their customers with web and mobile-based last mile delivery management applications for managing the delivery schedule of large or heavy cargoes. These applications allow the real-time management of package delivery and electronic rescheduling and alert the customer in case of delays due to weather or traffic through email, electronic messages, or voice calls. Such factors will increase the market growth during the forecast period
The operational challenges for last-mile delivery companies are a major challenge to the North America last mile delivery market growth. A major challenge associated with last mile delivery operations is to maintain profitability while ensuring transparency and improving delivery efficiency. Long-distance transportation (logistics) is carried out through the means of bulk shipping through sea, railway lines, or roads, due to which its delivery cost is low. However, in the case of last mile delivery, individual deliveries need to be made to numerous locations in a region, which drives the logistics costs. The major costs associated with last mile delivery include labor and fuel costs.
Moreover, Online shoppers prefer to track the goods being transported, which requires further investments by service providers. Real-time tracking requires additional geolocation-related infrastructure and technologies, such as radio frequency identification (RFID) sensors and the generation of tracking codes at each delivery station. These technologies are expensive, which leads to the further escalation of delivery charges. Thus, the operational challenges for last mile delivery companies are expected to hamper the growth of last mile delivery market in North America during the forecast period.
The 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.
North America Last Mile Delivery Market Customer Landscape
Vendors 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.
Arcb - The company offers last mile delivery services such as ArcBest final mile services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the B2C segment will be significant during the forecast period. B2C last mile delivery poses a major challenge to delivery operators when compared to B2B deliveries, as most of the packages delivered to household customers are standard single purchases, which have to be delivered to individual locations. The lack of large-volume deliveries and low-priced products indicates that the margin for delivery operators on each delivery is very low. Moreover, the competition intensifies with the entry of new competitors and service providers in the market. It has been reported that over the past 1.5 years in the US, profit margins for about 83% of the companies in the last mile business have either decreased or remained the same, whereas only a small segment of players witnessed a rise in their margins.
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The B2C segment was valued at USD 23.34 billion in 2017 and continue to grow by 2021. Despite the challenges, the B2C market has grown rapidly over the past few years, with most of the growth coming from the B2C segment. The growth of B2C services has also encouraged last mile service delivery operators to introduce new services that are specifically designed for household customers. Such services include next-day delivery, same-day delivery, and package returns. The option for real-time shipment tracking and package delivery status updates has also been made available for B2C customers. It has also been noticed that many prominent players in the market are increasingly focusing on enhancing the consumer experience. They are focusing on improving last mile delivery services through faster deliveries and easy returns. Such factors will increase the market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Service (B2C and B2B) and Vehicle Type (Large OEMs and Custom vehicle OEMs).
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Last Mile Delivery Market Scope In North America |
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Report Coverage |
Details |
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Page number |
151 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.85% |
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Market growth 2023-2027 |
USD 62.71 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
13.11 |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ArcBest Corp., Averitt Express Inc., AxleHire, C H Robinson Worldwide Inc., CMA CGM Group, CRST The Transportation Solution Inc., DDC Logistics Inc., Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., GEODIS SA, J.B. Hunt Transport Services Inc., Ryder System Inc., SEKO Logistics, SF Express Co. Ltd., United States Postal Service, Washington Express LLC, Werner Enterprises Inc., and XPO Logistics Inc. |
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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, Market condition analysis for the forecast period. |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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