North America last mile delivery market accounted for US$ 740.9 Mn in 2018 and is expected to grow at a CAGR of 15.7% over the forecast period 2019-2027, to account for US$ 2,648.7 Mn in 2027.
The incorporation of automated technologies and increasing demand for faster deliveries are the factors boosting the last mile delivery market growth. Moreover, the rapid growth of E-commerce industry is expected to boost the last mile delivery market. However, inadequate transportation technology in developing countries is expected to hinder the market growth. With the era of time, final mile delivery has become an essential and strategic part for maintaining customer service and brand image.
Both carriers and logistics providers are stepping into the final-mile delivery area to assist retailers in fulfilling consumer’s rising expectations. Nowadays, customers are becoming sophisticated related to what they expect or demand from last-mile deliveries. In addition to this, many customers opt for instant or same-day delivery if these are available at affordable prices.
With a rising demand for last mile delivery and fulfillment of the same business and consumer packages within a specified timeframe, excellence in final mile deliveries has become critical. Fortunately, shippers, logistics, and technology providers’ look ahead to fulfill all expected demand of customers timely through accepting innovative technologies designed for last mile deliveries.
The last mile delivery market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is anticipated to change during the coming years. In addition to this, various initiatives are undertaken by governmental bodies to accelerate the last mile delivery market further. The change in government leads to a change in regulatory policies. Many policies in this region are conducive to the growth of business, which is one of the reasons for the concentration of growth in e-commerce in several businesses. However, the decision for the setting of a regulatory framework may affect the configuration of transport and logistic networks.
North America last mile delivery market by application is dominated by the fresh products segment in the year 2018 and is anticipated to continue its dominance showcasing a substantial growth rate in the forecast period. The food industry is growing at a rapid pace year-on-year driven by rising demand for processed and perishable goods. The food industry’s potential is very high and gives ample opportunities to the logistics industries. Many logistic players are developing a series of centers devoted to the shipment of perishable items and products.
North America Last Mile Delivery Markets, 2018-2019 & 2027 – Technological Advancements to Transform the Outlook of Trade
