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

The Middle East Last Mile Delivery Market is projected to reach USD 26,081.8 million by 2031, up from USD 14,671.3 million in 2024, representing a compound annual growth rate (CAGR) of 8.6% from 2025 to 2031.

Middle East Last Mile Delivery Market Analysis

The last mile delivery market in the Middle East is experiencing substantial growth due to the rapid expansion of e-commerce, increased consumer demand for faster and more convenient delivery services, and technological advancements transforming logistics operations. Covering countries such as the UAE, Saudi Arabia, Turkey, Qatar, Kuwait, Oman, Bahrain, and Egypt, the Middle East's last mile delivery sector is crucial to the broader 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 a growing focus on urbanization and infrastructure development.

Segmentation Analysis

The Last Mile Delivery Market analysis is derived from key segments, including type, vehicle type, and end use.

By Type: The market is segmented into B2B and B2C. In 2024, the B2C segment dominated the market.

By Vehicle Type: Segments include motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others. The commercial vehicle segment held the largest market share in 2024.By End-Use: This market is segmented into groceries, home essentials/houseware, home furnishings, restaurant meals, clothing and apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty items, automotive parts and accessories, and others. The mass merchant segment led the market in 2024.

Market Outlook

The rise of mobile-first and digital-native consumers has led to a significant shift in expectations for goods delivery. Faster delivery options—such as same-day, next-day, or two-hour services—are becoming standard rather than luxuries. This trend necessitates innovative last mile delivery strategies to meet consumer demands.

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

Country Insights

Geographically, the Middle East Last Mile Delivery Market consists of the UAE, Saudi Arabia, Qatar, Turkey, Kuwait, Oman, and Bahrain. The UAE had the largest market share in 2024.

In the UAE, the last mile delivery market is driven by e-commerce growth, technological innovations, rapid urbanization, and evolving consumer preferences. Stakeholders in this market must remain agile and forward-thinking to capitalize on changing dynamics and meet modern consumer expectations. The UAE's last mile delivery market is expected to continue growing due to the increasing adoption of AI, machine learning, and automation, enabling businesses to optimize operations and improve customer satisfaction. Companies that effectively integrate sustainability and technological innovations into their delivery models will have a competitive advantage in the coming years.

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 adopting various strategies, such as expansion, product innovation, and mergers and acquisitions, to provide innovative products to consumers and enhance their market share. Show more