Last Mile Delivery Market in North America by Service and Geography - Forecast and Analysis 2021-2025

  • Published: Jan 2021
  • Pages: 120
  • SKU: IRTNTR46588
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The last mile delivery market share in North America is expected to increase by USD 59.81 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 16%.

This last mile delivery market in North America research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers last mile delivery market segmentation in North America by service (B2C and B2B) and geography (US and Canada). The last mile delivery market report in North America also offers information on several market vendors, including CRST International Inc. , Deutsche Bahn AG, Deutsche Post DHL Group, DSV Panalpina A/S, FedEx Corp., Werner Enterprises Inc., J.B. Hunt Transport Services Inc., United Parcel Service Inc., United States Postal Service, and XPO Logistics Inc. among others.

What will the Last Mile Delivery Market Size in North America be During the Forecast Period?

Download the Free Report Sample to Unlock the Last Mile Delivery Market Size in North America for the Forecast Period and Other Important Statistics

 

Last Mile Delivery Market in North America: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growing b2c e-commerce industry in us is notably driving the last mile delivery market growth in North America, although factors such as operational challenges for last mile delivery companies may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the last mile delivery industry in North America. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Last Mile Delivery Market Driver in North America

The e-retailing market in North America has recorded significant growth over the past few years. This is driving the last mile delivery market growth in the region. Major logistics providers such as XPO Logistics, UPS, and FedEx are offering last mile delivery services to small and large enterprises. Most of these vendors account for a dominant share of the business-to-customer (B2C) delivery market. The growing number of online stores has created significant business opportunities, attracting start-ups into the market. Many of these start-ups are focusing on gaining a competitive edge by innovating services to cater to the rising demand for fast and efficient last mile delivery services. These factors will contribute to the last mile delivery market growth in North America over the forecast period.

Key Last Mile Delivery Market Trend in North America

The strong focus on technological advances is one of the significant last mile delivery market trends in North America. Vendors are adopting big data analytics and AI to optimize operations. Technological advances, such as real-time tracking, allow consumers to manage and modify retail deliveries. Vendors are also offering last mile delivery management applications to customers to manage delivery schedules for large or heavy packages. Other technologies that have already witnessed wide-scale implementation in last mile logistics include online delivery status updates, real-time order tracking, and delivery time estimations. The above factors will increase the demand for advanced last mile delivery services, increasing revenue generation for vendors.

Key Last Mile Delivery Market Challenge in North America

The operational challenges for last mile delivery companies will be a major challenge for the last mile delivery market in North America during the forecast period. 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. 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 the last mile delivery market in North America.

This last mile delivery market in North America analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the last mile delivery market in North America as a part of the global trucking market.  Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the last mile delivery market in North America during the forecast period.

Who are the Major Last Mile Delivery Market Vendors in North America?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

  • CRST International Inc. 
  • Deutsche Bahn AG
  • Deutsche Post DHL Group
  • DSV Panalpina A/S
  • FedEx Corp.
  • Werner Enterprises Inc.
  • J.B. Hunt Transport Services Inc.
  • United Parcel Service Inc.
  • United States Postal Service
  • XPO Logistics Inc.

 

This statistical study of the last mile delivery market in North America encompasses successful business strategies deployed by the key vendors. The last mile delivery market in North America is fragmented and the vendors are deploying growth strategies such as focusing on product differentiation to compete in the market.

Product Insights and News

  • CRST International Inc - The company offers last mile delivery services through its subsidiary, North American Logistics Holdings (NAL Group).

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The last mile delivery market in North America forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Last Mile Delivery Market in North America Value Chain Analysis

Our report provides extensive information on the value chain analysis for the last mile delivery market in North America, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the trucking market includes the following core components:

  • Shippers
  • Truck operators
  • Trucking carriers
  • Consignees
  • Marketing and sales
  • Service
  • Support activities

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Last Mile Delivery Market in North America?

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82% of the market’s growth will originate from US during the forecast period. The US is the key market for last mile delivery in North America in US. Market growth in this region will be faster than the growth of the market in Canada.

Factors such as the large volume of e-retail purchases and the rise in the number of customers opting for fast and seamless delivery services will facilitate the last mile delivery market growth in the US over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of the COVID-19 pandemic has accelerated the growth of the last mile delivery market. The preference for purchasing products online is increasing. This trend has accelerated during the pandemic, as people have lost access to brick-and-mortar shopping. For instance, according to XPO Logistics Inc., the net revenue generated by its last mile network in North America increased by approximately 15% from July 2020 to September 2020 despite the subdued economy. Thus, the outbreak of the COVID-19 pandemic will have a positive impact on the market during the forecast period.

What are the Revenue-generating Service Segments in the Last Mile Delivery Market in North America?

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The last mile delivery market share growth in North America by the B2C segment will be significant during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the last mile delivery market size in North America and actionable market insights on post COVID-19 impact on each segment.

 

Last Mile Delivery Market Scope in North America

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 16%

Market growth 2021-2025

$ 59.81 billion

Market structure

Fragmented

YoY growth (%)

14.80

Regional analysis

North America

Performing market contribution

US at 82%

Key consumer countries

US and Canada

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

CRST International Inc. , Deutsche Bahn AG, Deutsche Post DHL Group, DSV Panalpina A/S, FedEx Corp., Werner Enterprises Inc., J.B. Hunt Transport Services Inc., United Parcel Service Inc., United States Postal Service, and XPO Logistics 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, 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 Last Mile Delivery Market Report in North America?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive last mile delivery market growth in North America during the next five years
  • Precise estimation of the last mile delivery market size in North America and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the last mile delivery industry in North America
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of last mile delivery market vendors in North America

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Executive Summary

    Market Landscape

    • Market ecosystem
    • Value chain analysis

    Market Sizing

    • Market definition
    • Market segment analysis
    • Market size 2020
    • Market outlook: Forecast for 2020 - 2025

    Five Forces Analysis

    • Five forces summary
    • Bargaining power of buyers
    • Bargaining power of suppliers
    • Threat of new entrants
    • Threat of substitutes
    • Threat of rivalry
    • Market condition

    Market Segmentation by Service

    • Market segments
    • Comparison by Service
    • B2C - Market size and forecast 2020-2025
    • B2B - Market size and forecast 2020-2025
    • Market opportunity by Service

    Customer landscape

      Geographic Landscape

      • Geographic segmentation
      • Geographic comparison
      • US - Market size and forecast 2020-2025
      • Canada - Market size and forecast 2020-2025
      • Market opportunity by geography
      • Market drivers – Demand-led growth
      • Market challenges
      • Market trends

      Vendor Landscape

      • Vendor landscape
      • Landscape disruption
      • Competitive scenario

      Vendor Analysis

      • Vendors covered
      • Market positioning of vendors
      • CRST International Inc. 
      • Deutsche Bahn AG
      • Deutsche Post DHL Group
      • DSV Panalpina A/S
      • FedEx Corp.
      • J.B. Hunt Transport Services Inc.
      • United Parcel Service Inc.
      • United States Postal Service
      • Werner Enterprises Inc.
      • XPO Logistics Inc.

      Appendix

      • Scope of the report
      • Currency conversion rates for US$
      • Research methodology
      • List of abbreviations

      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.

      TechnavioINFORMATION 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
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      TechnavioDATA 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
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      TechnavioREPORT WRITING

      Qualitative

      • Market drivers
      • Market challenges
      • Market trends
      • Five forces analysis

      Quantitative

      • Market size and forecast
      • Market segmentation
      • Geographical insights
      • Competitive landscape
      Interested in this report?
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      The last mile delivery market growth will increase by $59.81 billion during 2020-2025.
      The last mile delivery market is expected to grow at a CAGR of 15.99% during 2020-2025.
      Technavio has segmented the last mile delivery market by service (B2C and B2B) and geographic (US and Canada).
      CRST International Inc. , Deutsche Bahn AG, Deutsche Post DHL Group, DSV Panalpina A/S, FedEx Corp., J.B. Hunt Transport Services Inc., United Parcel Service Inc., United States Postal Service, Werner Enterprises Inc., XPO Logistics Inc. are a few of the key vendors in the last mile delivery market.
      US will register the highest growth rate of 82.38% among the other regions. Therefore, the last mile delivery market in US is expected to garner significant business opportunities for the vendors during the forecast period.
      The key factors driving the last mile delivery market growth are:
      • Growing B2C e-commerce industry in US
      The last mile delivery market vendors should focus on grabbing business opportunities from the b2c segment as it accounted for the largest market share in the base year.
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