Buy the full study
Summary
The global last-mile delivery market is a rapidly expanding sector, fuelled by increasing urbanization and the explosive growth of e-commerce. The market is set to continue growing at a compound annual growth rate (CAGR) of 9.3% until 2024, when it is expected to reach a value of $47 billion, with particularly strong growth prospects in the Asia-Pacific region. Consumer demands for personalized deliveries, real-time tracking and sustainable solutions are driving innovation, including the use of electric vehicles, delivery drones and collaborative delivery models.
Logistics service providers are faced with challenges such as reducing costs, improving the punctuality and responding to last-minute changes, with last-mile delivery costs accounting for 41% of total logistics expenditure. Investment in start-ups specializing in last-mile delivery has soared, reflecting strong investor interest and a competitive landscape in which new entrants are challenging established players.
Despite profitability issues and the need to subsidize delivery costs to meet consumer expectations, the last-mile market is set for continued evolution and significant technological advances.
Market dynamicsof the last-mile delivery market in a changing landscape
In the heart of France, the logistics associated with last-mile delivery have moved to the forefront of industry considerations, reflecting a broader global trend catalyzed by the e-commerce renaissance. Looking at the French landscape, we see a robust progression where annual growth of 10% to 2025 anticipates an expansive market size reaching approximately between 2.3 and 2.9 billion euros. This escalation is closely linked to urbanization, consumer preferences and the relentless expansion of e-commerce.
With 80% of the French population living in urban areas, the logistics framework is increasingly forced to innovate within the confines of urban landscapes, where congestion and spatial limitations impose significant challenges for freight movement. This urban life reinforces the relevance of the last mile, requiring a reinvention of delivery strategies to bridge the gap between distribution centers and the consumer's doorstep.
Riding the digital wave, the e-commerce sector has grown 14-fold in the space of two decades. This colossal growth is driving demand for last-mile delivery services, underlining the need for efficiency and reliability in an environment where consumer satisfaction is paramount.
While the French market shows acute dissatisfaction among consumers with last-mile services, registering a net negative score indicating prevailing dissatisfaction, this sentiment echoes an opportunity for service providers to recalibrate and innovate. Consumers aspire to better delivery times, real-time updates and free services, aspirations which at the same time represent complex logistical efforts for retailers and logistics service providers.
Retailers are shifting their customers' demanding expectations onto the shoulders of logistics service providers, insisting on the need for fast, seamless and efficient delivery, which brings with it challenges in terms of cost reduction, punctuality and adaptability to last-minute changes. In practice, this translates into logistics costs accounting for a significant proportion of total delivery expenditure, with consumer affordability and willingness to pay contrasting sharply with the actual costs borne by businesses.
As the field of last-mile delivery evolves, we are witnessing the dynamic emergence of startups, injecting innovation and competition into the market. Investment has increased impressively, multiplying almost tenfold in just four years, reflecting investor confidence and pointing to a radical transformation in this field. In essence, urban expansion and the powerful push of e-commerce have become the central forces driving the sector.
Pioneers and innovators
The last-mile delivery market is a highly competitive and rapidly evolving sector, with a diverse set of key players specializing in getting products to the consumer's doorstep. These companies range from colossal e-commerce giants to specialized logistics service providers, each carving out a niche for themselves through unique operational strategies and technological innovations.
- amazon - The e-commerce behemoth that prepares the last mile Amazon is an undisputed e-commerce titan, whose mastery of last-mile delivery is an essential part of its formula for success. The company is at the forefront of the last-mile delivery revolution thanks to its vast distribution network, which includes fulfillment centers and delivery stations enabling fast, efficient delivery to customers. Amazon has also explored new solutions such as drone delivery and an army of delivery partners under the Amazon Flex program.
- Alibaba - Asia's global powerhouse The China-based Alibaba Group rivals Amazon in terms of scale in Asia, and has been steadily expanding its global reach. With a focus on technology and logistics, Alibaba's Cainiao network is an intelligent logistics platform that integrates a complex network of data, warehouses and delivery operators to streamline the last-mile process and improve customer satisfaction.
- Rakuten - The diversified Japanese player with local strength Rakuten, which operates mainly in Japan, has diverse interests ranging from e-commerce to banking, mobile telephony and more. Its approach to last-mile delivery is integrated with its extensive ecosystem of members, where the company draws on its extensive customer base to offer fast, personalized delivery options, including Rakuten Super Logistics, which completes the e-commerce experience.
- DHL - The world leader in precision logistics The Deutsche Post DHL Group is a global leader in logistics and transport. Its expertise spans the globe and is synonymous with fast, accurate delivery services. DHL's investment in green logistics and high-tech solutions for last-mile delivery underlines its commitment to innovation and environmental sustainability.
- FedEx - The express delivery pioneer FedEx is known for its time-definite express delivery services and has been a pioneer in logistics services for decades. Thanks to its extensive air and ground network, FedEx ensures a seamless last-mile delivery service, constantly evolving with cutting-edge technologies such as real-time tracking and route optimization systems.
- Chronopost - France's national Speedster that guarantees on-time delivery As part of the DPD group, Chronopost is a major player in the French market, specializing in national and international express shipping. The emphasis is on fast delivery times.
to understand this market
Detailed content
Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 13/12/2021
Summary and extracts
1 Market overview
1.1 Definition and scope of the study
The term "last mile" refers to the last link in a distribution logistics chain, the last part of the journey before reaching the final consumer. The explosion of e-commerce and delivery services has brought new interest to this issue, which has become essential. In fact, it is estimated that the management of the last mile can account for up to 30% of the total delivery cost. The closer we get to the end consumer, the more diversified the delivery routes become, especially as express delivery is becoming the standard. Confronted with ever shorter lead times, growing volumes, and a real ecological challenge (it is estimated that one car in five in Paris delivers goods), the logistics industry in general and the last kilometre in particular is evolving very rapidly.
The global market for the last mile is therefore booming, with a projected compound annual growth rate (CAGR) of 9.3% until 2024. North America is the dominant region in the market, but it is in Asia-Pacific that the growth prospects are most significant. In France, the market is also very dynamic with strong growth of 10% per year until 2025.
The main drivers behind the rapid expansion of last-mile delivery are increasing urbanization and, above all, the explosion of online commerce.
Moreover, the last mile is no longer seen simply as a logistical challenge, but also as the final step in the customer experience. Mastering it is therefore essential and, in France, many new companies are struggling with traditional players to take a dominant position in this market by integrating new technologies into the service offered. The aim is therefore to minimise costs while improving the customer experience without losing efficiency.
The main players in this market are e-commerce distributors, primarily Amazon, Alibaba and Rakuten, and logistics providers such as DHL, FedEx or Chronopost. However, the market is not limited to these players alone and today all companies active in B2C (directly or indirectly) are concerned.
List of charts
- Chiffre d'affaires du transport du dernier kilomètre
- Etablissements, effectifs et employés par établissement des transports routiers de fret de proximité
- Evaluation des services de livraison du dernier kilomètre
- Quels sont les souhaits les plus importants de vos clients en ce qui concerne la livraison du dernier kilomètre ?
- Demandes les plus courantes des clients de services logistiques de livraison du dernier kilomètre
All our studies are available online in PDF format
Take a look at an example of our research on another market!
Latest news
DHL Express orders 9 Boeing B777-200LR freighters. - 24/04/2023
- DHL Express is looking to replace the oldest aircraft in its fleet as part of its sustainable development approach.
- Between 2018 and 2022, DHL acquired 28 B777-200F freighter aircraft from Boeing, 18 of which are currently in service.
- The remaining aircraft will be delivered between 2023 and 2025.
- DHL Express operates over 300 specialized aircraft with 18 partner airlines on more than 2,400 daily flights across 220 countries and territories.
- The company employs over 395,000 people in more than 220 countries and territories.
- The Deutsche Post DHL Group generated sales of over €94 billion in 2022.
Leclerc to grow strongly in 2022, driven by inflation - 17/04/2023
- E.Leclerc sales up 8.5% including fuel in 2022.
- E.Leclerc sales in 2022: 43.9 billion euros excluding fuel and 55.6 billion euros including fuel.
- E.Leclerc is France's leading food retailer
- E.Leclerc has 544 members and 734 stores.
Saône et Loire: a new Mail Boxes Etc. center opens in Mâcon - 02/01/2023
- Mail Boxes enables companies and individuals to visit an MBE center to access services at reduced rates, such as professional packaging, shipping in France and abroad, printing in all formats, company domiciliation and mailbox rental
- 3.100 MBE centers in 52 countries
- Creation of 90 MBE centers in France
- 4 million € generated by MBE France
Groupe Distri: Cogepart continues to break new ground - 24/10/2022
- Cogepart specializes in precision logistics for automotive and marine parts
- Acquisition of Groupe Distri, leader in personalized delivery in the Alpes-de-Haute-Provence and Hautes-Alpes regions
- 220 vehicles
- 240 employees
- sales of 18 million euros
- Previous acquisitions: Léman Courses, Etcheverry Hariscain ,Courses@Dom
Getir, the Turkish unicorn that has revolutionized delivery, arrives in Paris. - 22/06/2021
- After founding BiTaksi, a local VTC company that delivers a driver to your doorstep in three minutes, Nazim Salur has set himself a new challenge: to deliver groceries in ten minutes flat.
- The company, which specializes in home delivery of groceries in just a few minutes, is valued at $7.5 billion after three huge financing rounds in 2021, and has raised $1 billion in six months.
- The brand is playing the dairy card at a time when Coca-Cola sales are collapsing.
- Since the start of 2021, the start-up has completed three "giga" fund-raisings: $128 million in January, $300 million in March and $555 million in June.
Companies quoted in this study
This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :
Choosing this study means :
Access to more than 35 hours of work
Our studies are the result of over 35 hours of research and analysis. Using our studies allows you to devote more time and added value to your projects.
Benefit from 6 years' experience and over 1,500 industry reports already produced
Our expertise enables us to produce comprehensive studies in all sectors, including niche and emerging markets.
Our know-how and methodology enable us to produce reports that offer unique value for money.
Access to several thousand articles and paid-for data
Businesscoot has access to all the paid economic press as well as exclusive databases to carry out its market research (over 30,000 articles and private sources).
To enhance our research, our analysts also use web indicators (semrush, trends, etc.) to identify market trends and company strategies. (Consult our paying sources)
Guaranteed support after your purchase
A team dedicated to after-sales service, to guarantee you a high level of satisfaction. +44 238 097 0676
A digital format designed for our users
Not only do you have access to a PDF, but also to a digital version designed for our customers. This version gives you access to sources, data in Excel format and graphics. The content of the study can therefore be easily retrieved and adapted for your specific needs.
Our offers :
the last-mile market | France
- What are the figures on the size and growth of the market?
- What is driving the growth of the market and its evolution?
- What is the positioning of companies in the value chain?
- Data from several dozen databases
Pack 5 études (-15%) France
- 5 études au prix de 75,6€HT par étude à choisir parmi nos 800 titres sur le catalogue France pendant 12 mois
- Conservez -15% sur les études supplémentaires achetées
- Choisissez le remboursement des crédits non consommés au terme des 12 mois (durée du pack)
Consultez les conditions du pack et de remboursement des crédits non consommés.
Our customer references
They have consulted our studies
Discover the opinions (+500)
Malcolm Vincent
Astoria Finance
Gregoire de Castelnau
Stags Participations
Timothé Huignard
PWC
Paul-Alexis Kebabtchieff
BCG
Aymeric Granet
Publicis Consultant
interviews & case studies
All interviews and case studies (45)
