Western Europe Last Mile Delivery Market Outlook (2021-2031)

The size of the Western Europe Last Mile Delivery Market is projected to reach approximately $64,017.40 million by 2031, growing from $36,792.80 million in 2024. The market is expected to achieve a compound annual growth rate (CAGR) of 8.2% from 2025 to 2031.

Western Europe Last Mile Delivery Market Overview

Western Europe comprises major markets, including Germany, France, the UK, Italy, Spain, the Netherlands, and the Nordic countries. The growth of the last mile delivery market in this region is driven by rapid e-commerce expansion, urbanization, and an increasing demand from consumers for faster and more flexible delivery solutions. The market is evolving to meet the needs of both businesses and consumers. With high rates of urbanization, advanced infrastructure, and a digitally savvy consumer base, Western Europe is a prime area for innovations in last mile delivery.

The emergence of digital platforms such as Amazon, Zalando, and ASOS has established high expectations for delivery speed and reliability. Consequently, last mile delivery providers must offer same-day, next-day, and flexible delivery services to remain competitive. The shift toward omnichannel retail, where consumers expect a consistent level of service across both online and in-store shopping, has intensified the demand for advanced last mile solutions.

Market 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 B2B (Business-to-Business) and B2C (Business-to-Consumer), with the B2C segment holding a larger market share in 2024.
In terms of vehicle type, the market is divided into motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others. The commercial vehicle segment held the largest market share in 2024.
By end use, the market is segmented into groceries, home essentials and 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 held the largest share in 2024.

Market Outlook:

Consumers in Western Europe increasingly expect fast, flexible, and convenient delivery options, prompting a transformation in last mile logistics. The so-called Amazon effect has raised consumer expectations, with many individuals now seeking same-day or next-day delivery options, particularly in urban areas. A study by PwC found that about 80% of consumers in Europe expect their orders to arrive within 48 hours. Additionally, consumers are prioritizing flexibility in delivery methods. This growing demand for scheduled delivery windows, delivery lockers, and the capability to change delivery locations or times in real-time is driving the popularity of solutions like pickup points, automated lockers, and parcel shops, all aimed at giving customers more control over the delivery process.

The last mile delivery market in Western Europe is expected to continue growing due to the expansion of e-commerce, advancements in technology, and rising consumer expectations. The demand for fast, flexible, and sustainable delivery options will shape the market, leading logistics providers to invest in automation, electric vehicles, and innovative delivery methods such as drones and robots.

Country Insights:

Geographically, the Western Europe Last Mile Delivery Market comprises Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, with Germany holding the largest share in 2024.

In Germany, last mile delivery services are essential to the e-commerce supply chain, significantly impacting customer satisfaction and operational efficiency. Logistics providers need to understand consumer behavior and preferences in this sector to tailor their services effectively. German consumers show a strong preference for home or doorstep delivery, with approximately 80% favoring this method. There is also a growing interest in alternative delivery options like parcel lockers and pickup points. However, despite the availability of parcel lockers, only 12% of global e-shoppers utilize them, indicating a significant preference for direct home delivery.

Consumers in Germany are increasingly demanding faster delivery options, including same-day and next-day services. This demand places pressure on logistics providers to improve their delivery speed and flexibility. This demand has spurred the rise of express and same-day delivery services, catering to consumers who prioritize quick access to their purchases.

Key Players

Some 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 last mile delivery solutions. Show more