ASEAN Last Mile Delivery Market Outlook (2021-2031)

The ASEAN Last Mile Delivery Market is projected to grow significantly, reaching an estimated US$ 7,361.10 million by 2031, up from US$ 4,185.70 million in 2024. This growth reflects a compound annual growth rate (CAGR) of 8.4% from 2025 to 2031.

ASEAN Last Mile Delivery Market Analysis:

The last mile delivery market in the ASEAN (Association of Southeast Asian Nations) is a rapidly expanding segment of the logistics industry. This growth is fueled by the rise of e-commerce, urbanization, technological innovations, and changing consumer demands. ASEAN includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, each characterized by unique economic situations, infrastructure, and consumer behaviors. Together, these countries present a diverse and dynamic market with substantial growth potential.

Segmentation Analysis

The Last Mile Delivery Market can be analyzed through various key segments, including type, vehicle type, and end use. By type, the market is divided into B2B (business-to-business) and B2C (business-to-consumer) segments, with B2C holding a larger share in 2024. In terms of vehicle types, the market consists of motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others, with commercial vehicles having the largest market share in 2024. For end-users, the market is segmented into groceries, home essentials/houseware, restaurant meals, clothing and apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty items, automotive parts, and accessories, among others. The mass merchant segment also held the largest share in 2024.

Market Outlook:

The ASEAN last mile delivery market is poised for strong growth in the coming years, driven by increasing internet penetration, a young and digitally savvy population, and a burgeoning middle class. However, challenges remain, including infrastructure gaps, congestion in urban areas, and complex regulations throughout the region.

Rapid urbanization is significantly driving the demand for efficient last mile delivery services. The urban population in the region is expected to reach approximately 70% by 2030, with major cities like Jakarta, Bangkok, Ho Chi Minh City, Manila, and Kuala Lumpur undergoing substantial growth. High population density in these urban areas is contributing to a rising demand for quick, flexible, and cost-effective delivery solutions.

Country Insights:

The ASEAN Last Mile Delivery Market encompasses Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, with Singapore possessing the largest market share in 2024. As a global financial hub and one of the most developed nations in Southeast Asia, Singapore has been at the forefront of digital innovation and technological adoption. Over the past decade, the last mile delivery market in Singapore has experienced rapid evolution due to the surge in e-commerce, technological advancements, and a highly urbanized population. The last mile delivery sector is crucial to the logistics and supply chain industry, directly affecting customer satisfaction by ensuring that goods are delivered to consumers' doorsteps.

In Singapore, last mile delivery services are essential due to the dense population and high urbanization rates. However, service providers face challenges such as congestion, increasing consumer expectations for faster deliveries, and a growing emphasis on sustainability. With a rising middle class, tech-savvy consumers, and the rapid growth of e-commerce, the last mile delivery sector is undergoing significant transformation, driven by the need for efficiency and speed. As online shopping becomes increasingly common, customers' expectations for quicker delivery times have risen, with many now preferring same-day or next-day delivery.

Key Players

Key players in the market include Amazon Logistics, UPS, FedEx, DHL, Postmates (Uber Eats), XPO Logistics, Instacart, Geodis, Gati Ltd, and Deliveroo, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their offerings and increase their market share. Show more