Asia Pacific Last Mile Delivery Market Outlook (2021-2031)

The Asia Pacific Last Mile Delivery Market size is expected to reach approximately US$ 70,130.10 million by 2031, up from US$ 36,110.20 million in 2024. The market is projected to record a compound annual growth rate (CAGR) of 10.1% from 2025 to 2031.

Asia Pacific Last Mile Delivery Market Analysis:

The Asia Pacific region encompasses countries such as China, India, Japan, South Korea, Australia, Southeast Asian nations, and other emerging economies. The last mile delivery market in Asia Pacific (APAC) is one of the fastest-growing and most dynamic segments within global logistics. This growth is driven by a combination of rapidly expanding e-commerce, urbanization, technological advancements, and shifting consumer preferences. With a population of over 4.7 billion, a diverse economic landscape, and increasing digital connectivity, APAC presents unique opportunities and challenges for last mile delivery providers.

As e-commerce continues to thrive, consumer expectations for delivery speed and convenience are evolving rapidly. Today’s consumers expect faster and more flexible delivery options, including same-day, next-day, or even two-hour delivery services, especially in metropolitan areas. The Amazon effect has significantly influenced expectations in APAC, leading consumers to anticipate rapid and affordable shipping. The rise of mobile shopping and omnichannel retailing has further amplified the demand for personalized, transparent, and convenient delivery services.

Segmentation Analysis:

Key segments contributing to the analysis of the Last Mile Delivery Market include type, vehicle type, and end use.

By Type: The market is segmented into Business-to-Business (B2B) and Business-to-Consumer (B2C). In 2024, the B2C segment held a larger share of the market.

By Vehicle Type: The market is classified into motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others. The commercial vehicle segment dominated the market in 2024.

By End Use: Segments include groceries, home essentials/houseware & home furnishings, restaurant meals, clothing & apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty items, automotive parts & assemblies, and others. The mass merchants segment held the largest market share in 2024.

Market Outlook:

The last mile delivery market in APAC is set for continued growth, driven by the expanding e-commerce sector, technological advancements, and rising consumer demand for faster and more convenient services. However, the region faces challenges such as traffic congestion, infrastructure gaps, and increasing operational costs that must be addressed. Investments in automation, electric vehicles (EVs), and drones are expected to shape the market. Furthermore, governments will play a critical role in establishing the regulatory and infrastructure landscape during the forecast period. There is a growing preference among consumers for eco-friendly and flexible delivery options, which is anticipated to encourage logistics providers to innovate and offer sustainable delivery models in the coming years.

Governments across APAC are significantly investing in infrastructure development, supporting the expansion of last mile delivery networks. Public sector initiatives in countries such as China, India, Japan, and Australia aim to improve road infrastructure, reduce congestion, and modernize logistics networks. China is focusing on building smart cities and enhancing urban infrastructure, which is expected to improve last mile delivery efficiency. Similarly, India's Smart Cities Mission aims to alleviate traffic congestion and improve the flow of goods and services, directly benefiting the logistics sector. Additionally, several governments in APAC are encouraging the adoption of EVs and green logistics to reduce carbon emissions, offering incentives for companies to transition to more sustainable delivery options.

Country Insights:

Geographically, the Asia Pacific Last Mile Delivery Market includes China, Japan, South Korea, India, Australia, Indonesia, Singapore, Malaysia, Taiwan, Thailand, Vietnam, New Zealand, the Philippines, Bangladesh, and the Rest of Asia Pacific. China held the largest market share in 2024.

The last mile delivery market in China has experienced significant growth in recent years, becoming a vital component of the country's extensive and evolving logistics infrastructure. The rapid rise of e-commerce, changes in consumer expectations, and advancements in technology have made last mile delivery essential in the logistics value chain, ensuring that products reach end consumers quickly and efficiently.

China boasts one of the largest e-commerce markets globally, with an estimated market value exceeding US$2.5 trillion. Key players such as Alibaba (Taobao, Tmall), JD.com, and Pinduoduo have significantly contributed to the growth of the last mile delivery sector. The increasing adoption of online shopping by Chinese consumers, fueled by widespread smartphone penetration, has led to a surge in demand for fast and efficient delivery services. Additionally, the ongoing growth of cross-border e-commerce and retail has further increased the demand for last mile services.

Key Players

Some key players in the market include Amazon.com Inc, United Parcel Service Inc, FedEx Corp, Deutsche Post AG, XPO Inc, GEODIS SA, DSV AS, DB Schenker, C.H. Robinson Worldwide Inc, J.B. Hunt Transport Services Inc, DHL Group, Japan Post Holdings, S.F. E-Commerce Co., Ltd., EZ Logistics India, and ZeNXL.in, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to offer innovative services to their consumers and increase their market share.