North America - Last Mile Delivery Market by Product and Vehicle Type - Forecast and Analysis 2024-2028

Published: Dec 2023

Pages: 147

SKU: IRTNTR46588

Snapshot

North America - Last Mile Delivery Market 2024-2028

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.

What will be the size of the North America Last Mile Delivery Market During the Forecast Period?

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Key Drivers, Trends and Challenges

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.

Market Driver

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.

Market Trends

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.

Market Challenge

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.

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 in Customer Landscape

Market Key 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.

AxleHire: The company provides services such as same and next-day delivery.

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.

Last Mile Delivery Market Segmentation

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.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

Product Outlook
- B2C
- B2B

Vehicle Type Outlook
- Large OEMs
- Custom vehicle OEMs

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.

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What are the Key Data Covered in this Market Research Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the market between 2024 and 2028
Precise estimation of the market size and its contribution to the market in focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the market across North America
Thorough analysis of the market’s competitive landscape and detailed information about companies
Comprehensive analysis of factors that will challenge the growth of market companies

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Vehicle Type
- Exhibit 07: Executive Summary – Chart on Incremental Growth
- Exhibit 08: Executive Summary – Data Table on Incremental Growth
- Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 10: Parent market
- Exhibit 11: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 12: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 13: Market segments

3.3 Market size 2023

3.4 Market outlook: Forecast for 2023-2028
- Exhibit 14: Chart on North America - Market size and forecast 2023-2028 ($ billion)
- Exhibit 15: Data Table on Regional - Market size and forecast 2023-2028 ($ billion)
- Exhibit 16: Chart on North America: Year-over-year growth 2023-2028 (%)
- Exhibit 17: Data Table on Regional - Market size and forecast 2023-2028 ($ billion)

4 Historic Market Size

4.1 Last mile delivery market in North America 2018 - 2022
- Exhibit 18: Historic Market Size – Data Table on last mile delivery market in north America 2018 - 2022 ($ billion)

4.2 Product Segment Analysis 2018 - 2022
- Exhibit 19: Historic Market Size – Product Segment 2018 - 2022 ($ billion)

4.3 Vehicle Type Segment Analysis 2018 - 2022
- Exhibit 20: Historic Market Size – Vehicle Type Segment 2018 - 2022 ($ billion)

4.4 Geography Segment Analysis 2018 - 2022
- Exhibit 21: Historic Market Size – Geography Segment 2018 - 2022 ($ billion)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 22: Five forces analysis - Comparison between 2023 and 2028

5.2 Bargaining power of buyers
- Exhibit 23: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028

5.3 Bargaining power of suppliers
- Exhibit 24: Bargaining power of suppliers – Impact of key factors in 2023 and 2028

5.4 Threat of new entrants
- Exhibit 25: Threat of new entrants – Impact of key factors in 2023 and 2028

5.5 Threat of substitutes
- Exhibit 26: Threat of substitutes – Impact of key factors in 2023 and 2028

5.6 Threat of rivalry
- Exhibit 27: Threat of rivalry – Impact of key factors in 2023 and 2028

5.7 Market condition
- Exhibit 28: Chart on Market condition - Five forces 2023 and 2028

6 Market Segmentation by Product

6.1 Market segments
- Exhibit 29: Chart on Product - Market share 2023-2028 (%)
- Exhibit 30: Data Table on Product - Market share 2023-2028 (%)

6.2 Comparison by Product
- Exhibit 31: Chart on Comparison by Product
- Exhibit 32: Data Table on Comparison by Product

6.3 B2C - Market size and forecast 2023-2028
- Exhibit 33: Chart on B2C - Market size and forecast 2023-2028 ($ billion)
- Exhibit 34: Data Table on B2C - Market size and forecast 2023-2028 ($ billion)
- Exhibit 35: Chart on B2C - Year-over-year growth 2023-2028 (%)
- Exhibit 36: Data Table on B2C - Year-over-year growth 2023-2028 (%)

6.4 B2B - Market size and forecast 2023-2028
- Exhibit 37: Chart on B2B - Market size and forecast 2023-2028 ($ billion)
- Exhibit 38: Data Table on B2B - Market size and forecast 2023-2028 ($ billion)
- Exhibit 39: Chart on B2B - Year-over-year growth 2023-2028 (%)
- Exhibit 40: Data Table on B2B - Year-over-year growth 2023-2028 (%)

6.5 Market opportunity by Product
- Exhibit 41: Market opportunity by Product ($ billion)
- Exhibit 42: Data Table on Market opportunity by Product ($ billion)

7 Market Segmentation by Vehicle Type

7.1 Market segments
- Exhibit 43: Chart on Vehicle Type - Market share 2023-2028 (%)
- Exhibit 44: Data Table on Vehicle Type - Market share 2023-2028 (%)

7.2 Comparison by Vehicle Type
- Exhibit 45: Chart on Comparison by Vehicle Type
- Exhibit 46: Data Table on Comparison by Vehicle Type

7.3 Large OEMs - Market size and forecast 2023-2028
- Exhibit 47: Chart on Large OEMs - Market size and forecast 2023-2028 ($ billion)
- Exhibit 48: Data Table on Large OEMs - Market size and forecast 2023-2028 ($ billion)
- Exhibit 49: Chart on Large OEMs - Year-over-year growth 2023-2028 (%)
- Exhibit 50: Data Table on Large OEMs - Year-over-year growth 2023-2028 (%)

7.4 Custom vehicle OEMs - Market size and forecast 2023-2028
- Exhibit 51: Chart on Custom vehicle OEMs - Market size and forecast 2023-2028 ($ billion)
- Exhibit 52: Data Table on Custom vehicle OEMs - Market size and forecast 2023-2028 ($ billion)
- Exhibit 53: Chart on Custom vehicle OEMs - Year-over-year growth 2023-2028 (%)
- Exhibit 54: Data Table on Custom vehicle OEMs - Year-over-year growth 2023-2028 (%)

7.5 Market opportunity by Vehicle Type
- Exhibit 55: Market opportunity by Vehicle Type ($ billion)
- Exhibit 56: Data Table on Market opportunity by Vehicle Type ($ billion)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 57: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

9.1 Geographic segmentation
- Exhibit 58: Chart on Market share by geography - 2023-2028 (%)
- Exhibit 59: Data Table on Market share by geography - 2023-2028 (%)

9.2 Geographic comparison
- Exhibit 60: Chart on Geographic comparison
- Exhibit 61: Data Table on Geographic comparison

9.3 US - Market size and forecast 2023-2028
- Exhibit 62: Chart on US - Market size and forecast 2023-2028 ($ billion)
- Exhibit 63: Data Table on US - Market size and forecast 2023-2028 ($ billion)
- Exhibit 64: Chart on US - Year-over-year growth 2023-2028 (%)
- Exhibit 65: Data Table on US - Year-over-year growth 2023-2028 (%)

9.4 Canada - Market size and forecast 2023-2028
- Exhibit 66: Chart on Canada - Market size and forecast 2023-2028 ($ billion)
- Exhibit 67: Data Table on Canada - Market size and forecast 2023-2028 ($ billion)
- Exhibit 68: Chart on Canada - Year-over-year growth 2023-2028 (%)
- Exhibit 69: Data Table on Canada - Year-over-year growth 2023-2028 (%)

9.5 Mexico - Market size and forecast 2023-2028
- Exhibit 70: Chart on Mexico - Market size and forecast 2023-2028 ($ billion)
- Exhibit 71: Data Table on Mexico - Market size and forecast 2023-2028 ($ billion)
- Exhibit 72: Chart on Mexico - Year-over-year growth 2023-2028 (%)
- Exhibit 73: Data Table on Mexico - Year-over-year growth 2023-2028 (%)

9.6 Market opportunity by geography
- Exhibit 74: Market opportunity by geography ($ billion)
- Exhibit 75: Data Table on Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

10.1 Market drivers

10.2 Market challenges

10.3 Impact of drivers and challenges
- Exhibit 76: Impact of drivers and challenges in 2023 and 2028

10.4 Market trends

11 Vendor Landscape

11.1 Overview

11.2 Vendor landscape
- Exhibit 77: Overview on Criticality of inputs and Factors of differentiation

11.3 Landscape disruption
- Exhibit 78: Overview on factors of disruption

11.4 Industry risks
- Exhibit 79: Impact of key risks on business

12 Vendor Analysis

12.1 Vendors covered
- Exhibit 80: Vendors covered

12.2 Market positioning of vendors
- Exhibit 81: Matrix on vendor position and classification

12.3 ArcBest Corp.
- Exhibit 82: ArcBest Corp. - Overview
- Exhibit 83: ArcBest Corp. - Business segments
- Exhibit 84: ArcBest Corp. - Key offerings
- Exhibit 85: ArcBest Corp. - Segment focus

12.4 AxleHire
- Exhibit 86: AxleHire - Overview
- Exhibit 87: AxleHire - Product / Service
- Exhibit 88: AxleHire - Key offerings

12.5 C H Robinson Worldwide Inc.
- Exhibit 89: C H Robinson Worldwide Inc. - Overview
- Exhibit 90: C H Robinson Worldwide Inc. - Business segments
- Exhibit 91: C H Robinson Worldwide Inc. - Key news
- Exhibit 92: C H Robinson Worldwide Inc. - Key offerings
- Exhibit 93: C H Robinson Worldwide Inc. - Segment focus

12.6 CRST The Transportation Solution Inc.
- Exhibit 94: CRST The Transportation Solution Inc. - Overview
- Exhibit 95: CRST The Transportation Solution Inc. - Product / Service
- Exhibit 96: CRST The Transportation Solution Inc. - Key offerings

12.7 Deutsche Bahn AG
- Exhibit 97: Deutsche Bahn AG - Overview
- Exhibit 98: Deutsche Bahn AG - Business segments
- Exhibit 99: Deutsche Bahn AG - Key offerings
- Exhibit 100: Deutsche Bahn AG - Segment focus

12.8 DSV AS
- Exhibit 101: DSV AS - Overview
- Exhibit 102: DSV AS - Business segments
- Exhibit 103: DSV AS - Key offerings
- Exhibit 104: DSV AS - Segment focus

12.9 FedEx Corp.
- Exhibit 105: FedEx Corp. - Overview
- Exhibit 106: FedEx Corp. - Business segments
- Exhibit 107: FedEx Corp. - Key offerings
- Exhibit 108: FedEx Corp. - Segment focus

12.10 GEODIS
- Exhibit 109: GEODIS - Overview
- Exhibit 110: GEODIS - Product / Service
- Exhibit 111: GEODIS - Key offerings

12.11 J B Hunt Transport Services Inc.
- Exhibit 112: J B Hunt Transport Services Inc. - Overview
- Exhibit 113: J B Hunt Transport Services Inc. - Business segments
- Exhibit 114: J B Hunt Transport Services Inc. - Key offerings
- Exhibit 115: J B Hunt Transport Services Inc. - Segment focus

12.12 JungleWorks Inc.
- Exhibit 116: JungleWorks Inc. - Overview
- Exhibit 117: JungleWorks Inc. - Product / Service
- Exhibit 118: JungleWorks Inc. - Key offerings

12.13 Llama Logisol Pvt. Ltd.
- Exhibit 119: Llama Logisol Pvt. Ltd. - Overview
- Exhibit 120: Llama Logisol Pvt. Ltd. - Product / Service
- Exhibit 121: Llama Logisol Pvt. Ltd. - Key offerings

12.14 Ryder System Inc.
- Exhibit 122: Ryder System Inc. - Overview
- Exhibit 123: Ryder System Inc. - Business segments
- Exhibit 124: Ryder System Inc. - Key news
- Exhibit 125: Ryder System Inc. - Key offerings
- Exhibit 126: Ryder System Inc. - Segment focus

12.15 SF Express Co. Ltd.
- Exhibit 127: SF Express Co. Ltd. - Overview
- Exhibit 128: SF Express Co. Ltd. - Business segments
- Exhibit 129: SF Express Co. Ltd. - Key offerings
- Exhibit 130: SF Express Co. Ltd. - Segment focus

12.16 Werner Enterprises Inc.
- Exhibit 131: Werner Enterprises Inc. - Overview
- Exhibit 132: Werner Enterprises Inc. - Business segments
- Exhibit 133: Werner Enterprises Inc. - Key offerings
- Exhibit 134: Werner Enterprises Inc. - Segment focus

12.17 XPO Inc.
- Exhibit 135: XPO Inc. - Overview
- Exhibit 136: XPO Inc. - Business segments
- Exhibit 137: XPO Inc. - Key offerings
- Exhibit 138: XPO Inc. - Segment focus

13 Appendix

13.1 Scope of the report

13.2 Inclusions and exclusions checklist
- Exhibit 139: Inclusions checklist
- Exhibit 140: Exclusions checklist

13.3 Currency conversion rates for US$
- Exhibit 141: Currency conversion rates for US$

13.4 Research methodology
- Exhibit 142: Research methodology
- Exhibit 143: Validation techniques employed for market sizing
- Exhibit 144: Information sources

13.5 List of abbreviations
- Exhibit 145: List of abbreviations

Methodology

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

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

What are the key global market and the regional market share?
What are the revenue-generating key market segments?
What are the key factors driving and challenging this market’s growth?
Who are the key market vendors and their growth strategies?
What are the latest trends influencing the growth of this market?
What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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