The Asia Pacific last mile delivery market accounted for US$ 500.3 Mn in 2018 and is expected to grow at a CAGR of 19.0% over the forecast period 2019-2027, to account for US$ 2,292.6 Mn in 2027.
The rising demand of customers for faster deliveries and integration of automated technologies into logistics services are the factors boosting the last mile delivery market growth. Moreover, the growing e-commerce sector demands effective supply chain and logistics services, which in turn is expected to boost the last mile delivery market. The e-commerce industry has matured immensely over the years in the developed economies as well as the developing nations.
The major driver for the growth in the e-commerce industry is that the customers are able to purchase from and receive the goods at the most convenient location. Owing to this, the entire e-commerce market is gaining a great deal of attraction. However, the time taken to deliver goods and parcels was longer in earlier days. With the emergence of advanced technologies and faster parcel delivery options such as through drones are making the e-commerce industry players simplify the delivery process and at a much lesser time.
In the current market scenario, advanced solutions are majorly deployed by e-commerce companies, several governments, and private organizations to deliver time-sensitive goods, medicines, and emergency response goods. E-commerce companies are majorly opting for these solutions in order to revolutionize the last mile delivery services in a commercial scenario. This factor has attracted several e-commerce players, and parcel delivery partners such as Amazon, DHL, Walmart, Google, and UPS, among others.
The last mile delivery market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is anticipated to change during the coming years. In addition to this, various initiatives are undertaken by governmental bodies to accelerate the last mile delivery market further.
For instance, in Asia-Pacific, relevant regulations and initiatives in order to improve professional standard by industry & government play an important role in logistics operations. The range of logistics services is subject to logistic industry regulations and policies. Moreover, the expansion of such services is also driven by government policies.
The APAC last mile delivery market by technology is dominated by the drones segment in the year 2018 and is anticipated to continue its dominance showcasing a substantial growth rate in the forecast period. About the fact, parcel delivery plays a vital role in e-commerce and retail industries.
As the scope of parcel delivery is widening, the use of drones is rising as they overcome the challenges caused due to cars. The drones are capable of fulfilling ample of needs as they are designed in such a way that evade delays and surface congestion while enabling customized delivery at affordable prices. Thus, this technology is contributing significantly to the growth of last mile delivery market.