Last Mile Delivery Software Market Overview
As per MRFR analysis, the Last Mile Delivery Software Market Size was estimated at 17.15 (USD Billion) in 2022.
The Last Mile Delivery Software Market Industry is expected to grow from 20.1(USD Billion) in 2023 to 83.88 (USD Billion) by 2032. The Last Mile Delivery Software Market CAGR (growth rate) is expected to be around 17.21% during the forecast period (2024 - 2032).
Key Last Mile Delivery Software Market Trends Highlighted
The Global Last Mile Delivery Software Market is expanding rapidly, driven by the surge in e-commerce and the need for efficient and cost-effective delivery solutions. Key market drivers include the rising volume of online orders, increasing consumer expectations for fast and convenient delivery, and the growing adoption of automation and data analytics in the logistics industry.
Opportunities for growth in the Last Mile Delivery Software Market lie in the exploration of emerging technologies such as artificial intelligence (AI) and machine learning (ML) for optimizing delivery routes and enhancing predictive analytics. Trends in recent times include the integration of last-mile delivery software with fleet management systems and the adoption of real-time tracking and customer notifications to improve transparency and customer satisfaction.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Last Mile Delivery Software Market Drivers
Rising Demand for E-commerce and Home Deliveries
The growth of e-commerce and the increasing preference for home deliveries have been major drivers of the Global Last Mile Delivery Software Market Industry. The convenience and time-saving benefits of online shopping have led to a surge in demand for last-mile delivery services. As a result, businesses are investing in last-mile delivery software to improve their efficiency and customer satisfaction. Last-mile delivery software streamlines the delivery process, optimizes routes, and provides real-time tracking, enhancing the overall delivery experience for customers.
The growing adoption of e-commerce and the increasing demand for home deliveries are expected to continue driving the growth of the Global Last Mile Delivery Software Market Industry in the coming years.
Advancements in Technology and Automation
Advancements in technology and automation are revolutionizing the Global Last Mile Delivery Software Market Industry. The integration of artificial intelligence (AI), machine learning (ML) and the Internet of Things (IoT) is enabling businesses to automate various aspects of the last-mile delivery process. For example, AI-powered route optimization algorithms can generate efficient delivery routes, reducing fuel consumption and delivery times. ML algorithms can analyze historical data to predict delivery demand and optimize inventory levels.
IoT devices can provide real-time visibility into the location and status of delivery vehicles and packages. These technological advancements are helping businesses improve their operational efficiency, reduce costs, and enhance customer satisfaction.
Growing Focus on Sustainability
The growing focus on sustainability is driving the adoption of eco-friendly last-mile delivery solutions. Consumers are becoming increasingly aware of the environmental impact of home deliveries, and businesses are responding by adopting sustainable practices. Last-mile delivery software can help businesses reduce their carbon footprint by optimizing routes, reducing fuel consumption and promoting sustainable packaging. Additionally, businesses are exploring alternative delivery methods, such as electric vehicles, cargo bikes, and micro-depots, to minimize their environmental impact. The growing focus on sustainability is expected to drive the demand for eco-friendly last-mile delivery software solutions in the coming years.
Last Mile Delivery Software Market Segment Insights
Last Mile Delivery Software Market Deployment Type Insights
Deployment Type Segment Insights and Overview The Global Last Mile Delivery Software Market can be segmented based on deployment type into cloud and on-premise. The cloud segment is projected to dominate the market in 2023, accounting for over 60% of the global revenue. The growing adoption of cloud-based solutions due to their flexibility, scalability, and cost-effectiveness is driving the growth of this segment. On-premise solutions, on the other hand, offer greater control and security, making them a preferred choice for enterprises with sensitive data or specific compliance requirements. This growth is attributed to the increasing demand for efficient and cost-effective last mile delivery solutions, driven by the rise of e-commerce and the growing adoption of omnichannel retailing. Cloud-based solutions are expected to continue to gain traction owing to their scalability, flexibility and cost-effectiveness. Additionally, the growing adoption of advanced technologies such as AI and machine learning is expected to further drive the growth of the last mile delivery software market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Last Mile Delivery Software Market Application Insights
The Global Last Mile Delivery Software Market is segmented on the basis of Application into Route Planning and Optimization, Fleet Management, Order Tracking, Proof of Delivery and Customer Communication. Among these, the Order Tracking segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for real-time visibility and transparency throughout the delivery process. The Route Planning and Optimization segment is also expected to witness significant growth during the forecast period, owing to the rising need for efficient and cost-effective delivery routes.
The Proof of Delivery segment is expected to hold a significant market share, driven by the increasing need for proof of delivery to reduce fraud and disputes. The Fleet Management segment is also expected to witness steady growth, owing to the need for effective management and tracking of delivery fleets. The Customer Communication segment is expected to grow at a steady pace, driven by the increasing need for effective communication with customers throughout the delivery process.
Last Mile Delivery Software Market End User Industry Insights
The Global Last Mile Delivery Software Market Segmentation by End User Industry offers insights into the adoption and usage of last mile delivery software across various industries. In 2023, the E-commerce segment held the largest market share, driven by the surge in online shopping and the need for efficient last-mile delivery solutions. The Retail industry is also a significant contributor, with retailers seeking to enhance their omnichannel capabilities and provide seamless delivery experiences. The Food and Beverage sector is leveraging last mile delivery software to optimize food delivery and ensure freshness and quality.
The Pharmaceuticals industry utilizes this software to ensure timely and temperature-controlled delivery of critical medical supplies. Lastly, the Manufacturing industry employs last mile delivery software to streamline the delivery of raw materials and finished goods, improving operational efficiency and reducing costs.
Last Mile Delivery Software Market Business Size Insights
The Global Last Mile Delivery Software Market is segmented by business size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The SME segment is expected to account for a larger share of the market in 2023, owing to the increasing adoption of last-mile delivery software by SMEs to improve their operational efficiency and customer satisfaction. The large enterprise segment, on the other hand, is expected to grow at a CAGR of 17.1% during the same period, reaching a valuation of USD 47.73 billion by 2032. This growth can be attributed to the increasing demand for advanced last-mile delivery solutions from large enterprises to optimize their supply chains and enhance their competitive advantage.
Last Mile Delivery Software Market Vertical Insights
The Global Last Mile Delivery Software Market segmentation by Vertical into Business-to-Business (B2B), Business-to-Consumer (B2C), and Last-Mile Delivery Services provides valuable insights into the industry's dynamics. The B2B segment held the largest market share in 2023, accounting for around 60% of the Global Last Mile Delivery Software Market revenue. This dominance is attributed to the increasing adoption of e-commerce platforms by businesses for B2B transactions. The B2C segment is projected to witness significant growth during the forecast period, driven by the rising popularity of online shopping and home deliveries. Furthermore, the Last-Mile Delivery Services segment is expected to gain traction owing to the growing demand for efficient and cost-effective last-mile delivery solutions.
Last Mile Delivery Software Market Regional Insights
North America held the largest market share in 2023, accounting for over 35% of the global revenue. The growing e-commerce industry, increasing demand for faster and more efficient delivery services, and the adoption of advanced technologies are key factors driving the growth of the last mile delivery software market in this region. Europe is another significant market, with a market share of around 28% in 2023. The presence of major e-commerce players and the increasing adoption of last mile delivery software solutions by logistics providers are contributing to the market growth in Europe.
The APAC region is expected to witness the highest growth rate during the forecast period, owing to the rapidly growing e-commerce market and the increasing adoption of mobile technologies in this region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Last Mile Delivery Software Market Key Players And Competitive Insights
Major players in Last-Mile Delivery Software Market are focusing on expanding their product portfolio and strengthening their market presence through strategic partnerships and acquisitions. For instance, in June 2023, OneRoute, a leading provider of last-mile delivery management software, acquired Optimove, a route optimization platform, to enhance its delivery management capabilities. This acquisition enables OneRoute to provide a comprehensive solution that includes route optimization, real-time tracking, and advanced analytics. Leading Last-Mile Delivery Software Market players are also investing in research and development (R&D) to develop innovative solutions that address the evolving needs of businesses. For example, Bringg, a provider of cloud-based last-mile delivery solutions, recently launched its predictive analytics platform that leverages machine learning algorithms to improve delivery efficiency and customer satisfaction.
One of the leading companies in the Global Last Mile Delivery Software Market is Tookan. The company offers a cloud-based last-mile delivery management platform that helps businesses streamline their delivery operations. Tookan's platform provides features such as route optimization, real-time tracking, proof of delivery, and customer notifications. The company has a strong presence in North America, Europe, and Asia-Pacific regions and serves various industries, including retail, food and beverage, and healthcare. Tookan has a robust partnership network with logistics providers and leading e-commerce platforms, which enables it to provide a comprehensive last-mile delivery solution to its customers.
A notable competitor in the Global Last Mile Delivery Software Market is Locus. The company provides a SaaS-based last-mile delivery management platform that helps businesses optimize their delivery operations and improve customer experience. Locus's platform offers features such as real-time visibility, route optimization, and predictive analytics. The company has a strong presence in India and the Middle East and serves various industries, including e-commerce, retail and manufacturing. Locus has a team of experienced professionals and a strong focus on innovation, which enables it to develop cutting-edge solutions that meet the evolving needs of businesses.
Key Companies in the Last Mile Delivery Software Market Include
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Oracle Corporation
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BRINGG Delivery Technologies
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Amazon.com, Inc.
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Descartes Systems Group Inc.
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RAAS
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Locus Robotics Corp
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Google LLC
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Final Mile
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GRID SMART TECHNOLOGIES INC.
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Onfleet Inc.
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Uber Technologies Inc.
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last-mile API GmbH
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Microsoft Corporation
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SAP SE
Last Mile Delivery Software Market Industry Developments
The global last-mile delivery software market is projected to reach USD 83.88 billion by 2032, exhibiting a CAGR of 17.21% during the forecast period (2024-2032). Key factors driving market growth include the surge in e-commerce sales, increasing demand for same-day and next-day delivery, and the need for efficient and cost-effective last-mile delivery solutions. Additionally, the adoption of advanced technologies such as AI, machine learning, and IoT is further fueling market growth.
Recent developments in the market include the launch of new last-mile delivery software solutions by major players such as Uber, Lyft, and DoorDash, as well as partnerships between logistics companies and technology providers to enhance last-mile delivery capabilities.
Last Mile Delivery Software Market Segmentation Insights
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Last Mile Delivery Software Market Deployment Type Outlook
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Last Mile Delivery Software Market Application Outlook
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Last Mile Delivery Software Market End User Industry Outlook
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E-commerce
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Retail
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Food and Beverage
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Pharmaceuticals
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Manufacturing
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Last Mile Delivery Software Market Business Size Outlook
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Last Mile Delivery Software Market Vertical Outlook
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Business-to-Business (B2B)
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Business-to-Consumer (B2C)
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Last-Mile Delivery Services
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Last Mile Delivery Software Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.15(USD Billion) |
| Market Size 2023 |
20.1(USD Billion) |
| Market Size 2032 |
83.88(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
17.21% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Oracle Corporation, BRINGG Delivery Technologies, Amazon.com, Inc., Descartes Systems Group Inc., RAAS, Locus Robotics Corp, Google LLC, Final Mile, GRID SMART TECHNOLOGIES INC., Onfleet Inc., Uber Technologies Inc., last mile API GmbH, Microsoft Corporation, SAP SE |
| Segments Covered |
Deployment Type, Application, End User Industry, Business Size, Vertical, Regional |
| Key Market Opportunities |
1 Optimization of delivery routes2 Enhance customer experience3 Predictive analytics4 Integration with IoT devices 5 Adoption of AI and ML |
| Key Market Dynamics |
E-commerce growth urbanization demand for faster deliveries AI and automation adoption last mile optimization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Last Mile Delivery Software Market was valued at approximately USD 20.1 billion in 2023.
The Global Last Mile Delivery Software Market is projected to grow at a CAGR of 17.21% from 2024 to 2032.
North America is expected to hold the largest market share in the Global Last Mile Delivery Software Market in 2023.
The e-commerce segment is expected to dominate the Global Last Mile Delivery Software Market in 2023.
Some of the key competitors in the Global Last Mile Delivery Software Market include Oracle, SAP, Manhattan Associates, and Blue Yonder.
The growth of the Global Last Mile Delivery Software Market is driven by factors such as the increasing adoption of e-commerce, the need for efficient and cost-effective last-mile delivery solutions, and the growing demand for real-time visibility and tracking of shipments.
Some of the challenges faced by the Global Last Mile Delivery Software Market include traffic congestion, parking issues, and the need for specialized vehicles and equipment.
Some of the key trends in the Global Last Mile Delivery Software Market include the adoption of artificial intelligence (AI) and machine learning (ML), the use of drones and robots for last-mile delivery, and the development of sustainable and environmentally friendly last-mile delivery solutions.
The Global Last Mile Delivery Software Market is expected to reach a valuation of approximately USD 83.88 billion by 2032.
The Asia-Pacific region is expected to witness the highest growth in the Global Last Mile Delivery Software Market from 2023 to 2032.
