North America Last Mile Delivery Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The Last Mile Delivery Market size is expected to reach US$  79693.31 million by 2031 from US$  44462.83  million in 2024. The market is estimated to record a CAGR of 8.7% from 2025 to 2031. 

Executive Summary and North America Last Mile Delivery Market Analysis:

The last-mile delivery market in North America is expanding rapidly, driven by technological advancements, consumer demand for faster and more flexible delivery options, and the growth of e-commerce. Key players such as Amazon, UPS, FedEx, and Instacart are leveraging innovation to meet these demands, while new entrants and third-party logistics providers are reshaping the competitive landscape. With the ongoing focus on automation, sustainability, and consumer satisfaction, the market is expected to evolve rapidly, presenting both challenges and significant growth opportunities during the forecast period. 

North America Last Mile Delivery Market Strategic Insights

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North America Last Mile Delivery Market Segmentation Analysis

Key segments that contributed to the derivation of the Last Mile Delivery market analysis are type and application.

• By type, the Last Mile Delivery market is segmented into B2B, B2C. The B2C segment held a larger share of the market in 2024.
• In terms of vehicle type, the market is segmented into motorcycle, commercial vehicle, drones, autonomous ground vehicle, others. The commercial vehicle segment held the largest share of the market in 2024.
• By End User, the market is segmented into groceries, home essential/houseware and home furnishing, restaurant meals, clothing and apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty, automotive parts and accessories, others. Mass merchant segment held the largest share of the market in 2024.

North America Last Mile Delivery Market Outlook

Traffic congestion, particularly in urban areas, continues to impact delivery efficiency and create market challenges. Labor shortages in the delivery workforce, rising fuel costs, and environmental concerns are also creating obstacles for last-mile delivery providers. However, these challenges are creating opportunities for innovation, with companies investing in EVs, drones, and other technologies to streamline operations.

The future of last-mile delivery in North America is likely to be shaped by sustainability, automation, and consumer-driven innovations. As e-commerce continues to grow, the competition in the market is anticipated to intensify, pushing companies to improve their delivery capabilities. For players in the space, leveraging new technologies and offering flexible, sustainable solutions will be key to success in the evolving market. The regional market has experienced substantial growth owing to the rapid expansion of e-commerce, consumer demand for faster delivery, and advances in logistics technologies. The market in North America is critical due to the diverse geography, high population density in urban areas, and increasing consumer expectations for quick and reliable service.

North America Last Mile Delivery Market Country Insights

Based on Geography, the North America Last Mile Delivery market comprises of US, Canada, and Mexico. The US held the largest share in 2023.

The last mile delivery market in the US is a vital component of the logistics and supply chain sector, representing the final step of the product journey from a distribution center to the consumer's doorstep. The last mile delivery market in the US has expanded significantly, driven by changing consumer expectations, technological advancements, and an increasingly complex logistical environment. The US consumer market has become accustomed to rapid and flexible delivery options. Companies such as Amazon Prime have set the bar for fast, next-day delivery in the country, and now many customers expect similar services across all sectors. This demand has led to an increased emphasis on last mile delivery, which must be both efficient and adaptable to meet customer expectations. In addition to speed, customers are also seeking flexible delivery options such as evening or weekend delivery and the ability to change or reschedule delivery windows in real time. The US last mile delivery market is experiencing rapid growth, driven by the expansion of e-commerce, rising consumer expectations, and technological advancements. Companies are adopting innovative solutions such as electric vehicles, drones, and crowdsourced delivery models to improve efficiency and meet the elevating demand for fast and flexible delivery options. With increasing competition and a rapidly evolving landscape, businesses that can leverage technology and sustainability while maintaining cost efficiency would be well-positioned for success in the US last mile delivery market.

North America Last Mile Delivery Market Report Highlights

North America Last Mile Delivery Market Company Profiles

Some of the key players operating in the market includes Amazon Logistics, UPS, FedEx, DHL, Postmates (Uber Eats), XPO Logistics, Instacart, Geodis, Gati Ltd, and Deliveroo among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisition to provide innovative products to their consumers and increase their market share.

North America Last Mile Delivery Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

• Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.
• Industry trade journals and other relevant publications.
• Government documents, statistical databases, and market reports.
• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

• Primary Research

The Insight Partners’ conduct a significant number of primary interviews each year with industry stakeholders and experts to validate its data, analysis, and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.
• Enhance the expertise and market understanding of the analysis team.
• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers
• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise

North America Last Mile Delivery Market Country and Regional Insights

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North America Last Mile Delivery Key Sources Referred:

• National Home Delivery Association
• Express Carriers Association
• American Trucking Associations
• Express Delivery and Logistics Association