Last Mile Delivery Commercial Vehicle Market, Size, Segment and Growth by Forecast Period: (2021-2031)

Last Mile Delivery Commercial Vehicle Market

Last-Mile Delivery Commercial Vehicles Market Overview

The last-mile delivery commercial vehicles market is a critical component of modern logistics, driven by the rapid expansion of e-commerce, increasing consumer demand for faster deliveries, and ongoing urbanization. In 2024, the global market is valued at approximately USD 77.98 billion, with commercial vehicles—including vans and light trucks—dominating the sector due to their efficiency and cargo capacity.

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With the continued surge in online shopping, logistics providers and businesses are investing in advanced technologies, sustainable solutions, and optimized delivery networks to enhance operational efficiency and meet evolving customer expectations.

Market Growth and Projections

• Market Size (2024): USD 77,982.14 million
• Projected Market Size (2031): USD 132,587.38 million
• CAGR (2025-2031): 26.9%

Regional Insights

• North America & Europe: Leading markets due to well-established logistics infrastructure and high e-commerce adoption.
• Asia-Pacific: Fastest-growing region, fueled by rapid digital transformation, urbanization, and expanding online retail.

Key Market Trends

• Electrification & Sustainability: Growing environmental concerns are accelerating the shift toward electric and low-emission commercial vehicles.
• Technological Advancements: Integration of automation, AI-driven route optimization, and smart logistics solutions to improve efficiency.
• Competitive Landscape: Intense competition between established logistics players and agile startups, all striving to enhance delivery speed, reduce costs, and improve customer satisfaction.

As last-mile delivery becomes increasingly vital to global supply chains, the market is poised for significant transformation, with sustainability and innovation at its core.

Last Mile Delivery Commercial Vehicle Market Segmentation Analysis

Key segments that contributed to the derivation of the Last-mile delivery commercial vehicles market analysis are drive type, propulsion, sales channel, and geography.

• By vehicle type, the Last-mile delivery commercial vehicles market is segmented into cars, vans and trucks. The Vans segment dominated the market in 2024.
• By propulsion type, the Last-mile delivery commercial vehicles market is segmented into ICE, Electric. ICE segment dominated the market in 2024.
• By end-user, the Last-mile delivery commercial vehicles market is segmented into e-commerce, food delivery, courier services, others. 
• By geography, the Last-mile delivery commercial vehicles market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa and South & Central America. North American region dominated the market in 2024.

Sustainability and the Rise of Electric Commercial Vehicles

Growing environmental concerns and stricter emissions regulations are accelerating the adoption of electric and alternative-fuel commercial vehicles in last-mile delivery. Governments and businesses are prioritizing green logistics to meet sustainability targets and reduce carbon footprints. Major players like Amazon and FedEx are investing heavily in electric vans and trucks to modernize their fleets. This shift not only ensures compliance with regulations but also resonates with eco-conscious consumers, enhancing brand reputation. Advances in battery technology and expanding charging infrastructure are further enabling cost-effective and sustainable last-mile delivery solutions.

Technology and Innovation Reshaping Delivery Models

The integration of cutting-edge technologies and innovative delivery models is unlocking new growth opportunities in last-mile logistics. Autonomous vehicles, drones, and delivery robots are revolutionizing efficiency and reducing operational costs. Crowdsourced delivery networks and micro-fulfillment centers enable faster, more flexible services, while data analytics and predictive modeling optimize demand forecasting and resource allocation. Companies that embrace these advancements will gain a competitive edge by meeting rising customer expectations for speed and convenience.

Last-Mile Delivery Commercial Vehicle Market: Key Insights

By Vehicle Type: Vans Dominate the Market

In 2024, vans led the last-mile delivery commercial vehicle market due to their versatility, efficiency, and adaptability. Their optimal balance of cargo capacity and maneuverability makes them ideal for navigating dense urban areas while handling diverse delivery needs—from small parcels to bulk shipments—more effectively than larger trucks or two-wheelers.

By Propulsion Type: ICE Vehicles Maintain an Edge

Internal combustion engine (ICE) commercial vehicles remain dominant, supported by a well-established fuel infrastructure that ensures seamless operations. Unlike electric vehicles (EVs), which depend on limited charging networks, ICE vehicles benefit from widespread petrol stations, minimizing downtime—a critical factor for time-sensitive deliveries. In regions like Asia-Pacific and Latin America, where charging infrastructure is still developing, ICE vehicles remain the preferred choice for logistics providers.

By End-User: E-Commerce Drives Demand

E-commerce is the largest end-user segment in last-mile delivery, fueled by the global surge in online shopping. Platforms like Amazon, Alibaba, and Flipkart generate massive delivery volumes, requiring agile fleets of vans and scooters to meet consumer expectations for rapid, efficient service. In Asia-Pacific, where e-commerce penetration is high, compact vehicles like scooters are widely used for quick urban deliveries, reinforcing the segment’s dominance.

By Geography: Asia-Pacific Leads Growth

The last-mile delivery commercial vehicle market is experiencing strong but uneven growth across regions, influenced by economic development, urbanization, and government policies. Asia-Pacific, led by China, India, and Japan, is the fastest-growing market. Southeast Asian nations like Indonesia, Vietnam, and the Philippines are also seeing rising demand due to increasing urbanization and disposable incomes.

key company profiles

  Amazon Logistics

  DHL

  FedEX

  UPS

  Alibaba

  JD.Com

  Kerry Logistics

  Zepto

  Blinkit

  and Grab

Last Mile Delivery Commercial Vehicle Market Report Coverage and Deliverables

The "Last-mile delivery commercial vehicles Market Outlook (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Last-mile delivery commercial vehicles market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Last-mile delivery commercial vehicles market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed Porter's Five Forces and SWOT analysis
• Last-mile delivery commercial vehicles market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Last-mile delivery commercial vehicles market
• Detailed company profiles

Last-Mile Delivery Commercial Vehicles Market Overview

The global last-mile delivery commercial vehicles market is segmented into five key regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Among these, Asia Pacific is projected to experience the highest growth during the forecast period, driven by rapid e-commerce expansion and increasing urbanization.

Market Leadership: North America

As of 2024, North America dominates the last-mile delivery commercial vehicles market, accounting for over 35% of the global market share. The region’s leadership is attributed to:

• Advanced logistics infrastructure, including extensive road networks, distribution centers, and fulfillment hubs, enabling efficient multi-stop deliveries.
• Strong presence of major e-commerce players such as Amazon, Walmart, and Target, which have set high standards for fast and reliable deliveries.
• High consumer expectations, with same-day and next-day deliveries becoming the norm.
• Early adoption of cutting-edge technologies, including real-time tracking, route optimization, electric vehicles (EVs), and autonomous delivery solutions.

Fastest-Growing Region: Asia Pacific

While North America leads in market size, Asia Pacific is the fastest-growing region for last-mile delivery commercial vehicles, fueled by:

• Rising middle-class population, increasing smartphone penetration, and expanding internet access.
• Growth of e-commerce giants such as Alibaba, Flipkart, and quick-commerce platforms investing heavily in last-mile logistics.
• Government initiatives promoting EV adoption and sustainable urban logistics.

Market Research Report Structure

The Last-Mile Delivery Commercial Vehicles Market Research Report provides a comprehensive analysis, including:

1. Key Takeaways (Chapter 2) – Highlights major market trends and outlook.
2. Research Methodology (Chapter 3) – Details the study’s approach.
3. Ecosystem & Porter’s Analysis (Chapter 4) – Examines industry dynamics and competitive forces.
4. Market Dynamics (Chapter 5) – Covers drivers, restraints, opportunities, and future trends.
5. Historical & Forecasted Market Data (Chapters 6-10) – Analyzes revenue trends by vehicle type, propulsion, sales channel, and region (2024-2031).
6. Competitive Landscape (Chapters 11-13) – Includes heatmap analysis, key player profiles (SWOT, financials, developments), and recent industry activities (mergers, partnerships, innovations).

Recent Industry Developments

• February 2025: Eicher Motors partnered with Amazon to deploy 1,000 electric trucks over five years, supporting Amazon’s carbon-neutral goals. Eicher also secured a deal with ITC for 100 EVs in mid-mile logistics.
• February 2025: FedEx expanded its EV fleet in India with 13 Tata Ace EVs in Mumbai, bringing its total to 59 EVs in the country, aligning with its 2040 carbon-neutral target.

This report serves as a strategic guide for stakeholders, offering qualitative and quantitative insights into the evolving last-mile delivery commercial vehicles market.

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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights