Last Mile Delivery Market Report 2026

The last mile delivery market size has grown strongly in recent years. It will grow from $184.2 billion in 2025 to $199.68 billion in 2026 at a compound annual growth rate (CAGR) of 8.4%. The growth in the historic period can be attributed to growth of e-commerce platforms, rising consumer demand for fast deliveries, expansion of urban distribution networks, increasing use of mobile tracking solutions, growth of third-party logistics providers.

The last mile delivery market size is expected to see strong growth in the next few years. It will grow to $277.76 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to expansion of same-day and instant delivery services, rising investments in autonomous delivery technologies, growing adoption of electric last mile vehicles, increasing demand for sustainable delivery solutions, integration of ai-driven logistics platforms. Major trends in the forecast period include increasing deployment of autonomous delivery vehicles, rising adoption of real-time route optimization systems, growing use of micro-fulfillment centers, expansion of electric delivery fleets, enhanced focus on customer-centric delivery models.

The rapid growth of e-commerce is expected to propel the growth of the last mile delivery market going forward. E-commerce, short for electronic commerce, refers to the buying and selling of goods or services over the Internet or other electronic networks. The ongoing expansion of e-commerce adoption is due to several factors, including the combination of technological innovation, changing consumer behaviors, and evolving business models worldwide. Last mile delivery in e-commerce is used to ensure efficient, timely, and cost-effective delivery of products to customers' doorsteps, marking the final leg of the delivery process. It plays a vital role in the success of e-commerce businesses by enhancing customer satisfaction and fostering brand loyalty. For instance, in February 2024, according to the United States Census Bureau, a US-based government agency, e-commerce sales in the United States surged to approximately $1.11 trillion in 2023, marking a 7.6% increase compared to the preceding year. Therefore, the rapid growth of e-commerce is driving the growth of the last mile delivery market.

Major companies operating in the last-mile delivery market are concentrating on developing innovative solutions such as autonomous drone delivery systems to substantially shorten delivery times, enhance order fulfillment efficiency, and improve customer convenience. Autonomous drone delivery systems utilize unmanned aerial vehicles (UAVs) equipped with GPS navigation, automated flight controls, and precise drop-off technologies to transport lightweight retail orders directly from stores to customers within a short time frame. For instance, in December 2025, Walmart, a US-based multinational retailer, launched a pilot program for drone-based last-mile delivery in Atlanta, Georgia, in collaboration with Wing, Alphabet’s drone delivery subsidiary. As part of the trial, electric drones operate from selected Walmart Supercenters to deliver small grocery and household items at high speed, avoiding road congestion and enabling near-instant order fulfillment, while allowing customers to place and track orders digitally, underscoring Walmart’s strategy to integrate advanced automation into last-mile retail logistics.

In September 2025, ADL Final Mile, a US-based provider of final-mile delivery, parcel delivery, customized logistics, fleet replacement, and warehousing services, acquired DMC Logistics LLC for an undisclosed amount. Through this acquisition, ADL Final Mile seeks to expand its geographic presence across the Southwestern United States, extend its service network into additional states, and strengthen its ability to serve both new and existing customers with end-to-end last-mile logistics solutions. DMC Logistics LLC is a US-based logistics transportation company that specializes in providing last-mile delivery services.

Major companies operating in the last mile delivery market are Amazon.com Inc., United Parcel Service Inc., DHL International GmbH, FedEx Corporation, La Poste Group, SF Holding Co. Ltd., Uber Technologies Inc., DB Schenker, Poste Italiane S.p.A., DPD Group, DSV Panalpina AS, Royal Mail plc, Yamato Holdings Co. Ltd., Australia Post, DoorDash Inc., XPO Logistics Inc., Grubhub Inc., Deliveroo, Aramex PJSC, Zomato Pvt. Ltd., Postmates Inc., Correios, TNT Holdings B.V., Gopuff, Deliv Inc.

North America was the largest region in the last mile delivery market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the last mile delivery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the last mile delivery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The last mile delivery market includes revenues earned by entities by providing services such as last mile logistics consulting, route optimization, scheduled delivery, in-store pickup, and specialty item delivery. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.