Technological advancements over the past few years have raised customer expectations and influenced the purchasing patterns of consumers, along with how these products are delivered to them. Apart from evolving consumer preferences, consumers are increasingly demanding cost-effective and convenient last mile delivery due to which, last mile delivery transportation services have gained noteworthy popularity in recent years. Stakeholders operating in the current last mile delivery transportation market are of the opinion that the autonomous delivery vehicle technology is likely to open up new avenues in last mile delivery transportation. As delivery autonomous vehicles are likely to address the consumer demands for efficient delivery at lower costs, the adoption is likely to gain considerable traction during the forecast period.
At present, players operating in the last mile delivery transportation market are seeking different ways to minimize the delivery costs across the last leg of the journey i.e. from the transportation hub to the last point of delivery. In addition, retail outlets and restaurants who have incorporated a lean operational model are increasingly challenged with problems such as efficient logistics and supply chain management. At the back of these factors, along with the flourishing e-Commerce sector, the global last mile delivery transportation market is expected to attain a market value of ~US$ 400 Bn by the end of 2030.
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While developed regions of the world, including North America and Europe, are likely to establish reliable and robust last mile delivery transportations models, developing countries are currently focusing on addressing some key challenges within the last mile delivery transportation market, including ambiguity in commodity & program portfolio, sub-standard execution of storage guidelines, lack of efficient information systems, and inventory management systems. Moreover, technological developments within the last mile delivery sphere is redefining last mile delivery transportation. Some of the advancements that are likely to make inroads within the last mile delivery transportation market include uptake of electric vehicles amid mounting environmental concerns, entry of semiautonomous vehicles, and autonomous delivery vehicles. These innovations are expected to minimize delivery costs and comply with stringent emission-related guidelines due to which, the entry of these technologies within the current market landscape could be sooner than expected.
Last Mile Delivery Transportation Strategies under Review amid COVID-19 Pandemic
The COVID-19 pandemic has put forward a spectrum of challenges for stakeholders operating in an array of industrial sectors. As governments across the world continue to curb the novel COVID-19 infection, trade restrictions coupled with stringent lockdowns have led to severe disruptions across the supply chains worldwide due to which, participants in the last mile delivery transportation market processes are likely to face the heat. The last mile delivery transportation across the healthcare sector in these testing times will remain a critical aspect in the fight against novel COVID-19 disease. As government supply chains across the world continue to be burdened with soaring demands for medical supplies and personal protective equipment, companies are expected to formulate an efficient model to address these demands.
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Challenges for Last Mile Delivery Transportation Market
- Freight trucks are bigger, heavier, and bulkier vehicles, which makes road freight transportation comparatively slower and hence, hampers the last mile delivery transportation market. Additionally, massive backlog in proper maintenance is also a major factor that is likely to hinder the last mile delivery transportation market during the forecast period. Furthermore, toll roads or booths lead to massive time loss, which results in slow transportation.
- Improper road infrastructure coupled with a lack of intent to improve transport facilities in developing and developed countries is expected to restrain the last mile delivery transportation market during the forecast period. Furthermore, several areas of Asia Pacific, Latin America, and Africa require investments in order to develop and upgrade their infrastructure facilities.
Last Mile Delivery Transportation Market Segmentation
- Based on cargo type, the dry goods segment dominated the global last mile delivery transportation market due to the rise in volume of import of industry and manufacturing raw materials and export and import of food and pharmaceuticals
- Based on end use, the FMCG segment dominated the market, as demand for quality goods and services has been rising in rural areas, owing to improved distribution channels of FMCG companies. Rising volume of transport of oil & gas over the years has been boosting the demand for freight trucks. Moreover, increase in export of oil and diesel over the years is anticipated to propel the last mile delivery transportation market.
Last Mile Delivery Transportation Market: Regional Analysis
- Based on region, the global last mile delivery transportation market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Asia Pacific and North America are projected to be highly lucrative markets during the forecast period. This is primarily due to the improvement in road network transport, and inclination toward development of industries over the years in these regions.
Last Mile Delivery Transportation Market: Competition Landscape
- Key players operating in the global last mile delivery transportation market include
- Cargo Carriers Limited
- CJ Logistics Corporation
- CEVA Logistics
- Concargo Private Ltd
- DB SCHENKER
- Interlogix Pty Ltd.
- DHL Paket GmbH
- Estes Express Lines
- FedEx Corporation
- Kuehne + Nagel
- Nippon Express Co., Ltd.
- J&J Global Limited
- SNCF Geodis
- Swift Transportation
- TNT Holding B.V.
- Procet Freight
- Tuma Transport
- Yamato Holdings Co., Ltd.
- United Parcel Service Inc.
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