U.S. Last Mile Delivery Market

U.S. Last-Mile Delivery Market Global Size, Trends, Competitive, and Historical & Forecast Analysis, 2024-2030: The U.S. last-mile delivery market is anticipated to intensifying population pool and e-commerce purchasing platform in U.S. thrives, flourishing number of major logistic hubs in U.S. are also supplementing the market growth.

The USA demand for Last Mile Delivery market, in terms of revenue, was worth US$ 42.3 Billion in 2023 and is expected to reach US$ 93.5 Billion in 2030, growing at a CAGR of 10.5% from 2024 to 2030.

The USA Last Mile Delivery market is expected to grow at significant growth rate due to number of driving factor.

The last mile delivery market in United States started to gain traction in the early 2000s with the rise of e-commerce. Traditional logistics companies, such as UPS and FedEx, began to offer same-day and next-day delivery options to compete with the convenience of online shopping. Startups, such as Postmates and Instacart, also entered the market to provide on-demand delivery services for food, groceries, and other goods. Later with increase in demand for fast and reliable deliveries the last mile delivery market in United States is began to grow rapidly. Online retailers, such as Amazon, began to offer same-day and two-day delivery options for their products, which set the standard for the industry. Traditional logistics companies expanded their services to include faster delivery options, while on-demand delivery services continued to grow in popularity.

In addition, last mile delivery market in the United States is currently in the maturity stage. The market is highly competitive, with a wide range of players offering various delivery options to meet customer demands. Logistics companies and startups are investing in technology to improve delivery efficiency and reduce costs. However, the cost of delivery remains a challenge for retailers and logistics companies, and there is increasing pressure to provide sustainable and environmentally friendly delivery options.

Furthermore, last mile delivery market in United States has undergone significant changes in recent years, driven by the growing demand for fast and efficient delivery of goods to customers. The last mile delivery segment of the supply chain has become increasingly important as e-commerce continues to grow, and brick-and-mortar retailers expand their online presence. The market includes a range of players, from traditional logistics companies to on-demand delivery services and technology-driven startups.

One of the key drivers of the last mile delivery market in the United States is the increasing demand for same-day and next-day delivery. Customers expect faster and more reliable delivery of their online purchases, which has led to the rise of on-demand delivery services and the expansion of existing logistics companies to offer faster delivery options. 

The last mile delivery market in the United States is highly competitive, with a diverse range of players vying for market share. The market is characterized by a mix of traditional logistics companies, on-demand delivery services, and technology-driven startups.

The growth of e-commerce has had a significant impact on the last-mile and middle-mile delivery market. E-commerce has changed the way people shop, and as a result, it has changed the way goods are transported and delivered. One of the primary ways in which e-commerce has impacted the last mile and middle mile market in U.S. is by increasing the number of small, individual orders that need to be delivered.

E-commerce has made it easier for consumers to order goods online from anywhere in the world, and as a result, retailers and logistics companies are dealing with a much larger number of smaller orders that need to be delivered to individual customers. This has led to a significant increase in the volume of last-mile deliveries that need to be made.

The United States is the major revenue-generating country for Amazon. This has put pressure on logistics companies to improve their last-mile delivery services and reduce delivery times. Additionally, according to the Census Bureau of the Department of Commerce, e-commerce sales in the U.S. was USD 262 Billion in the year 2022 and are expected to grow 2X times over the coming years. This will ultimately spur the last mile and middle mile market expansion in the country.

Furthermore, according to Brand Essence analysis, the number of packages shipped in the United States increased from 13.4 billion in 2016 to 20.7 billion in 2020. This is expected to increase over the coming years and will accelerate the demand for fast delivery and will eventually fuel market growth.

Finally, e-commerce has created a need for efficient and cost-effective delivery services. With the increase in small, individual orders and faster delivery times, logistics companies are under pressure to deliver goods quickly and efficiently while keeping costs low. This has led to the adoption of new technologies and delivery methods, such as automated sorting and delivery robots, to improve the efficiency and cost-effectiveness of last-mile and middle-mile deliveries.

Covid Impact on U.S. Last Mile Delivery Market:

The Covid-19 pandemic had a significant impact on the United States last mile delivery market in 2020. As people began to shelter in place, e-commerce sales skyrocketed, leading to an increased demand for last mile delivery services. As per World Economic Forum Report on Pandemic, Parcels and Public Vaccination; The pandemic has caused an increase in last-mile deliveries that are likely to persist. In 2020, business-to-consumer parcel deliveries have risen by about 25%. The report suggests that part of this increased demand will be durable, with at least 10%-20% of the growth remaining post-pandemic.

One of the major impacts of the pandemic on the last mile delivery market was a surge in demand for home delivery services in the U.S. As people began to avoid physical stores, e-commerce sales grew significantly, leading to a corresponding increase in demand for last mile delivery services. Companies that had previously focused on business-to-business deliveries had to quickly pivot to meet the demand for residential deliveries. For example, UPS had to quickly reconfigure their operations to handle a surge in residential deliveries, which accounted for over 70% of their deliveries by the end of 2020.

Key Players of U.S. Last Mile Delivery Market:

The U.S. Last Mile Delivery market includes key players such as ArcBest Corporation, DHL International GmbH, SEKO Worldwide LLC (SEKO Logistics), FedEx Corporation, Schneider National Inc., United Parcel Service of America, Inc., Ryder System Inc. / MXD Group, USPS (United States Postal Service), XPO Logistics Inc. and others.

Flourishing Number of Major Logistic Hubs in U.S. are also Supplementing the Market Growth

The flourishing number of major logistic hubs in the U.S. are also fostering the market growth in U.S. in several ways. Logistic hubs are central locations that act as the primary point of entry or departure for goods and services. These hubs are strategically located near major transportation infrastructures, such as highways, airports, and railroads.

The U.S. has seen a significant increase in the number of these hubs in recent years due to the growing demand for e-commerce and the need for the more efficient supply chain management.

One way that logistic hubs can accelerate market growth is by increasing the speed and efficiency of transportation and delivery of goods. With more logistic hubs strategically placed throughout the U.S., companies can quickly transport goods to their intended destinations, reducing the time and cost of shipping. This speed and efficiency can result in increased customer satisfaction and improved business productivity, which can lead to increased revenue and market growth.

Another way that logistic hubs can spur market growth is by creating new business opportunities. The presence of logistic hubs can attract new businesses to the area, including retailers, wholesalers, and manufacturers. This can lead to increased competition, lower prices, and more product offerings for consumers, which can stimulate market growth.

Finally, the increased number of logistic hubs can lead to innovation in supply chain management technology and processes. With more hubs, companies may invest in new technologies to improve their logistics, such as automation, artificial intelligence, and blockchain. This innovation can increase efficiency and reduce costs, ultimately leading to market growth.

Overall, the flourishing number of major logistic hubs in the U.S., accelerates the market growth by improving transportation and delivery efficiency, creating new business opportunities, and spurring innovation in supply chain management.

Increasing Technological Advancements in the U.S. are also Fostering the Market Growth in the U.S.

Technological advancements have played a crucial role in the growth of the U.S. last-mile and middle-mile delivery market in recent years. One of the most significant technological advancements in the delivery industry is the adoption of automation. Automation technologies such as robotics, drones, and autonomous vehicles have enabled companies to streamline their delivery processes and reduce delivery times. For example, drones can deliver packages to remote locations, while autonomous vehicles can deliver goods to specific locations without the need for human drivers. Another important technological advancement in the delivery industry is the use of data analytics. Data analytics can be used to analyze delivery routes, customer preferences, and other factors that can affect the delivery process. This can help companies optimize their delivery processes, reduce costs, and improve customer satisfaction.

Furthermore, the use of mobile technology has also played a significant role in the growth of the last-mile and middle-mile delivery market. Mobile apps allow customers to track their deliveries in real time, providing them with greater visibility into the delivery process. Mobile technology also enables delivery drivers to communicate with customers, manage their schedules, and optimize their delivery routes.

Additionally, cloud computing has enabled companies to store and process large amounts of data, allowing them to analyze and optimize their delivery processes more efficiently. Cloud-based logistics platforms provide real-time data on delivery status, inventory levels, and other important metrics, allowing companies to make more informed decisions. Overall, technological advancements have helped to increase the efficiency, speed, and accuracy of the last-mile and middle-mile delivery market in the U.S. This has enabled companies to provide faster, more reliable delivery services to their customers, driving the growth of the market.

In conclusion, the U.S. last mile and middle mile delivery market is being driven by a variety of factors, including the rising U.S. population and E-commerce platforms for shopping, increasing technological advancements, and number of logistic hubs across the United States. These factors are interconnected and have created a path for market expansion and opportunities for new players.

Segmentation of U.S. Last Mile Delivery Market:

By Market Type:

• B2B (Business to Business)
• B2C (Business to Consumer)

ByDelivery Time:

• Same-Day
• Next Day
• 2+ Day

By Services:

• In-House Services
• Third-Party Logistics (3PL) Services

By Operation Mode:

• Non-Autonomous
• Autonomous
• Drones & Droids
• Automatic Riding Vehicle

By Industry Vertical:

• Apparel & Footwear
• Home & Furniture
• Toys and Hobby
• Consumer Electronics
• Healthcare & Personal Care
• Auto & Parts
• Food & Beverage Delivery
• Others