Last Mile Delivery Commercial Vehicle Market Trends, Size, Segment and Growth by Forecast to (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 the global logistics sector, driven by the rapid expansion of e-commerce, increasing consumer demand for faster and more convenient deliveries, and ongoing urbanization trends. In 2024, the market is valued at approximately USD 77.98 billion, with commercial vehicles—including vans and light trucks—dominating the sector due to their cargo capacity and operational flexibility.

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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 efficiency and meet evolving customer expectations. North America and Europe currently hold the largest market shares, supported by well-established logistics infrastructure and high e-commerce adoption. Meanwhile, Asia-Pacific is emerging as the fastest-growing region, fueled by rapid digitalization, urbanization, and expanding middle-class populations.

The market is highly competitive, with established logistics players and innovative startups vying for dominance through cost-effective, efficient, and customer-centric delivery solutions. Additionally, growing environmental concerns are accelerating the shift toward electric and low-emission commercial vehicles, reshaping the future of last-mile logistics.

Market Projections (2025–2031)

• Market Size (2031): USD 132,587.38 million (up from USD 77,982.14 million in 2024)
• CAGR (2025–2031): 26.9%

Last-Mile Delivery Commercial Vehicle Market Segmentation Analysis

The last-mile delivery commercial vehicle market is segmented by vehicle type, propulsion type, end-user, and geography, providing a comprehensive view of industry dynamics.

Market Segmentation Overview

1. By Vehicle Type
• Cars, Vans, and Trucks
• The vans segment dominated the market in 2024, owing to their optimal balance of cargo capacity, maneuverability, and versatility in urban logistics.
2. By Propulsion Type
• Internal Combustion Engine (ICE) and Electric Vehicles (EVs)
• The ICE segment led the market in 2024, supported by widespread fuel infrastructure, reliability, and cost-effectiveness, particularly in regions with underdeveloped EV charging networks.
3. By End-User
• E-commerce, Food Delivery, Courier Services, and Others
• E-commerce emerged as the dominant segment, driven by exponential growth in online shopping and consumer demand for fast, efficient deliveries.
4. By Geography
• North America, Europe, Asia-Pacific, Middle East & Africa, and South & Central America
• North America held the largest market share in 2024, while Asia-Pacific is projected to be the fastest-growing region, fueled by rapid urbanization, expanding e-commerce, and government initiatives.

Key Market Drivers and Opportunities

1. Sustainability and the Shift Toward Electric Commercial Vehicles

Growing environmental concerns and stringent emission regulations are accelerating the adoption of electric and alternative fuel-powered vehicles in last-mile delivery. Major logistics players like Amazon, FedEx, and DHL are investing heavily in electric vans and trucks to reduce carbon footprints and meet sustainability targets.

• Government incentives and advancements in battery technology are further supporting this transition.
• The expansion of charging infrastructure is enhancing the feasibility of electric fleets, making them a viable long-term solution.

2. Adoption of Advanced Technologies and Innovative Delivery Models

The integration of autonomous vehicles, drones, and delivery robots is revolutionizing last-mile logistics by improving efficiency and reducing operational costs.

• Crowdsourced delivery and micro-fulfillment centers enable faster, more flexible services.
• Data analytics and AI-driven route optimization enhance demand forecasting and resource allocation.
• Companies leveraging these innovations gain a competitive edge in meeting evolving consumer expectations.

Market Size and Share Analysis

By Vehicle Type: Vans Lead the Market

• Vans dominate due to their ideal cargo capacity and urban maneuverability, making them essential for e-commerce and parcel deliveries.
• They outperform trucks in dense urban areas and offer greater efficiency than two-wheelers or cargo bikes for bulk shipments.

By Propulsion Type: ICE Vehicles Maintain Dominance

• ICE vehicles benefit from an established fuel infrastructure, ensuring minimal downtime and operational reliability.
• In regions like Asia-Pacific and Latin America, where EV charging networks are still developing, ICE remains the preferred choice for logistics providers.

By End-User: E-Commerce Drives Demand

• The explosive growth of online shopping (Amazon, Alibaba, Flipkart) has made e-commerce the largest end-user segment.
• Same-day and next-day delivery expectations fuel demand for vans, scooters, and compact trucks in urban logistics.

By Geography: North America Leads, Asia-Pacific Grows Fastest

• North America held the largest market share in 2024, supported by advanced logistics networks and high e-commerce penetration.
• Asia-Pacific is the fastest-growing region, driven by rising urbanization, digital commerce expansion, and government investments in smart mobility solutions.

Market leaders and 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 Dominates

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

• Advanced logistics infrastructure, including extensive road networks, distribution centers, and fulfillment hubs.
• Strong presence of e-commerce giants like Amazon, Walmart, and Target, which have set high standards for fast and reliable deliveries.
• Consumer expectations for same-day or next-day delivery, fueling demand for efficient last-mile solutions.
• Technological advancements, including real-time tracking, route optimization, and the adoption of 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, driven by:

• Rising middle-class population and increasing smartphone penetration.
• Expansion of e-commerce platforms such as Alibaba, Flipkart, and quick-commerce apps.
• Heavy investments in last-mile logistics to meet growing consumer demand for fast deliveries.

Market Research Report Structure

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

1. Key Takeaways – Highlights major trends and market outlook.
2. Research Methodology – Details the study’s approach.
3. Ecosystem & Porter’s Analysis – Examines market dynamics and competitive forces.
4. Industry Dynamics – Identifies market drivers, restraints, opportunities, and future trends.
5. Market Forecast (2024–2031) – Historical revenue analysis and future projections.
6. Segment Analysis – Breakdown by vehicle type, propulsion, end-user, and region.
7. Competitive Landscape – Heat map analysis of key players.
8. Industry Developments – Covers mergers, partnerships, and innovations.
9. Company Profiles – SWOT analysis and business overview of major market players.

Recent Market Developments

• February 2025: Eicher Motors partnered with Amazon to deploy 1,000 electric trucks over five years, supporting Amazon’s carbon-neutral goals.
• February 2025: FedEx expanded its EV fleet in India with 13 Tata Ace electric vehicles, reinforcing its commitment to carbon-neutral operations by 2040.

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