Middle-East & Africa Last Mile Delivery Market Outlook (2021-2031)

The Middle East & Africa Last Mile Delivery Market is projected to grow significantly, reaching a size of approximately US$ 42,654.90 million by 2031, up from US$ 24,551.60 million in 2024. This market is estimated to experience a compound annual growth rate (CAGR) of 8.4% from 2025 to 2031.

Market Analysis:

The last mile delivery market in the Middle East is undergoing substantial growth, driven by the rapid expansion of e-commerce, increased consumer demand for faster and more convenient delivery options, and technological advancements that are transforming logistics operations. This sector encompasses countries such as the UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, and Egypt and plays a crucial role in the larger logistics and supply chain ecosystem. The market is evolving in response to changing consumer expectations, technological innovations such as artificial intelligence (AI) and drones, and an increased focus on urbanization and infrastructure development.

Segmentation Analysis

Key segments that have contributed to the last mile delivery market analysis include type, vehicle type, and end use.

By Type: The market is divided into B2B (business-to-business) and B2C (business-to-consumer) segments, with the B2C segment holding a larger share in 2024.

By Vehicle Type: The market is segmented into motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others, with commercial vehicles representing the largest share in 2024.

By End Use: This market is also segmented into groceries, home essentials/houseware and furnishings, restaurant meals, clothing and apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty items, automotive parts and accessories, and others, with the mass merchant segment holding the largest share in 2024.

Market Outlook:

The growth of e-commerce in the Middle East is significantly boosting the last mile delivery market. As more consumers turn to online shopping—especially in countries like the UAE, Saudi Arabia, and Egypt—the demand for efficient, fast, and reliable delivery services has surged. According to Statista, the Middle East's e-commerce market is expected to exceed $48 billion by 2025. The region's population, which is largely tech-savvy and younger, has driven the need for seamless digital shopping experiences, prompting companies to offer faster and more flexible last mile delivery solutions.

The emergence of mobile-first and digital-native consumers has also shifted expectations regarding delivery services. Options such as same-day, next-day, or two-hour deliveries are no longer considered luxuries; instead, they are becoming standard expectations. This trend necessitates innovative last mile delivery strategies to meet rising consumer demands.

Country Insights:

Geographically, the Middle East & Africa Last Mile Delivery Market includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Turkiye, South Africa, Egypt, Algeria, and Nigeria. As of 2024, the UAE held the largest market share.

Urbanization in the Middle East is further driving demand for last mile delivery solutions. Major cities like Dubai, Riyadh, Cairo, and Abu Dhabi are experiencing rapid growth, which creates challenges for efficiently moving goods through congested urban areas. The high concentration of businesses and consumers in urban environments calls for delivery networks that are efficient, agile, and capable of managing traffic and optimizing delivery times. Additionally, the growing middle class in countries such as Saudi Arabia and Egypt is increasing demand for consumer goods, creating further opportunities for last mile delivery service providers.

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 implementing various strategies, including expansion, product innovation, and mergers and acquisitions, to provide innovative services and increase their market share. Show more