Europe Last Mile Delivery Market Outlook (2021-2031)

The Europe Last Mile Delivery Market is projected to grow from USD 42,269.20 million in 2024 to USD 74,684.00 million by 2031, with an estimated compound annual growth rate (CAGR) of 8.6% from 2025 to 2031.

Europe Last Mile Delivery Market Analysis

The last mile delivery market in Europe is experiencing rapid expansion, fueled by the booming e-commerce industry, increasing consumer demand for fast and flexible delivery options, and advancements in logistics technologies. The primary driver of this growth is the significant rise in online shopping, which greatly contributes to last mile delivery demand. Countries such as the United Kingdom, Germany, and France are leading this e-commerce surge.

Europe's high population density and urbanization rates make it an ideal market for last mile delivery solutions. Cities like London, Paris, and Berlin serve as hubs of online retail where consumers expect quick and seamless delivery experiences. The emergence of urban micro-fulfillment centers and dark stores has facilitated faster deliveries in these densely populated areas.

Segmentation Analysis

The Last Mile Delivery Market is segmented based on type, vehicle type, and end use:

By Type: The market is divided into Business-to-Business (B2B) and Business-to-Consumer (B2C) segments. The B2C segment held a larger market share in 2024.

By Vehicle Type: The market includes motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others. In 2024, the commercial vehicle segment held the largest market share.

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

Market Outlook

The last mile delivery market is undergoing a rapid transformation driven by e-commerce growth, technological advancements, and changing consumer expectations. While the industry faces challenges related to operational costs, urban complexities, and regulatory barriers, there are significant opportunities for innovation. As technologies such as electric vehicles, autonomous delivery systems, and AI-powered analytics continue to advance, the market is poised for substantial growth, shaping the future of logistics and enhancing consumer satisfaction in Europe.

The last mile delivery market in Europe is dynamic and evolving. With ongoing e-commerce growth, increasing urbanization, and advancing technologies, the sector offers immense opportunities for companies ready to innovate and adapt. However, businesses must also address challenges such as high costs, regulatory complexities, and environmental concerns to seize the potential of this market. The future of last mile delivery in Europe is expected to focus on balancing efficiency, sustainability, and customer-centricity.

Country Insights

Geographically, the Europe Last Mile Delivery Market includes Germany, the UK, France, Italy, Russia, Spain, Poland, Switzerland, Sweden, Norway, Denmark, Belgium, Finland, Portugal, Greece, the Netherlands, Ukraine, Luxembourg, Austria, Romania, and the Rest of Europe. Germany held the largest market share in 2024.

In Germany, last mile delivery services are vital to the e-commerce supply chain, directly influencing customer satisfaction and operational efficiency. Understanding consumer behavior and preferences in the last mile delivery sector is crucial for logistics providers to tailor their services effectively. Approximately 80% of German consumers prefer home or doorstep delivery, while there is also growing interest in alternative delivery options like parcel lockers and pickup points. Despite the availability of these parcel lockers, only 12% of global e-shoppers utilize them, indicating a strong preference for direct home delivery.

Furthermore, German consumers increasingly demand faster delivery options, including same-day and next-day services, placing pressure on logistics providers to enhance their speed and flexibility. The rise of express and same-day delivery services reflects this trend, catering to consumers who prioritize quick access to their purchases. Additionally, there is a notable willingness among German consumers to consider alternative delivery methods, particularly those that are environmentally friendly.

Key PlayersKey players operating in the market include Amazon.com Inc., United Parcel Service Inc., FedEx Corp., Deutsche Post AG, XPO Inc., and 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. Show more