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

Last-Mile Delivery Commercial Vehicles Market Outlook (20242031)
The global last-mile delivery commercial vehicles market is projected to grow from US$ 77,982.14 million in 2024 to US$ 132,587.38 million by 2031, registering a strong CAGR of 26.9% from 2025 to 2031.

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Executive Summary and Global Market Insights:

Last-mile delivery commercial vehicles form a critical backbone of the modern logistics landscape, driven by the surging growth of e-commerce, increasing consumer expectations for rapid delivery, and expanding urban populations. In 2024, the market stands at approximately USD 77 billion, with light commercial vehiclessuch as vans and small trucksdominating due to their flexibility, load capacity, and suitability for urban logistics.

As online retail continues to redefine consumer behavior, logistics providers are investing in smart delivery systems, route optimization technologies, and green vehicle solutions to streamline last-mile operations and reduce environmental impact. Electrification and automation are rapidly gaining traction, with governments and companies alike focusing on sustainability and emissions reduction.

Regional Insights:

• North America and Europe lead the market, supported by advanced logistics infrastructure, established e-commerce ecosystems, and increasing adoption of electric delivery fleets.

• Asia-Pacific is emerging as the fastest-growing region, fueled by rapid digitalization, urban expansion, and the rising demand for efficient last-mile logistics in densely populated cities.

Competitive Landscape:
The market remains highly competitive, with global logistics leaders and tech-driven startups vying to improve delivery speed, cost-efficiency, and customer experience. The growing emphasis on eco-friendly vehicles and autonomous delivery technologies is reshaping the competitive dynamics and setting new industry benchmarks.

Last Mile Delivery Commercial Vehicle Market Segmentation Analysis

Key segments that contributed to the derivation of the Last-mile delivery commercial vehicles market analysis aredrive 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 intoICE, 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 Shift Toward Electric Commercial Vehicles

Growing environmental concerns and stricter emission regulations are driving the adoption of electric and alternative fuel-powered commercial vehicles in last-mile delivery. Governments and businesses are increasingly prioritizing green logistics to reduce carbon footprints and comply with sustainability goals. For example, major logistics players like Amazon and FedEx are investing heavily in electric vans and trucks for their delivery fleets. This shift not only addresses regulatory requirements but also appeals to eco-conscious consumers and helps companies build a positive brand image. The transition to electric vehicles is further supported by advances in battery technology and the expansion of charging infrastructure, making sustainable last-mile delivery more feasible and cost-effective.

Adoption of Advanced Technologies and Innovative Delivery Models

The integration of advanced technologies and innovative delivery models offers significant opportunities for differentiation and growth. The rise of autonomous commercial vehicles, drones, and delivery robots promises to transform last-mile logistics by reducing costs and increasing efficiency. The adoption of crowdsourced delivery models and micro-fulfillment centers enables logistics providers to offer faster and more flexible services. Additionally, the use of data analytics and predictive modeling allows for better demand forecasting and resource allocation. Companies that invest in these technologies and embrace innovative delivery solutions will be well-positioned to meet evolving customer expectations and gain a competitive edge in the market.

Last Mile Delivery Commercial Vehicle MarketSize and Share Analysis

By vehicle type, the vans segment led the market in 2024 The vans segment led the last-mile delivery commercial vehicle market by vehicle type due to a combination of versatility, efficiency, and adaptability that make them indispensable for urban logistics and modern delivery needs. Vans are uniquely suited for a wide range of delivery tasks, from small parcel deliveries to bulk shipments. They offer a balance between cargo capacity and maneuverability, allowing them to navigate congested city streets and tight urban spaces more easily than larger trucks while carrying significantly more goods than two-wheelers or cargo bikes.

By propulsion type, the ICE commercial vehicles benefit from an extensive and well-established fuel infrastructure, making them highly practical for last mile delivery. Petrol stations are ubiquitous globally, ensuring easy refuelling in urban and rural areas alike, unlike electric vehicles (EVs) which rely on limited charging networks. This accessibility minimizes downtime for delivery riders, critical for time-sensitive services like e-commerce and food delivery. In regions like Asia-Pacific and Latin America, where charging infrastructure is still developing, ICE comer vehicles offer unmatched convenience. The robust fuel supply chain supports continuous operations, making ICE vehicles the preferred choice for logistics companies and gig workers.

By end-user, thee-commerce channels the dominant end-user in the last mile delivery commercial vehicles market due to its explosive growth, high delivery volume, and alignment with consumer expectations for fast, efficient service. he global surge in online shopping has propelled e-commerce as the leading end-user in last mile delivery. Platforms like Amazon, Alibaba, and Flipkart have seen exponential growth, driven by convenience and wider product availability. This translates into millions of daily deliveries, requiring agile vehicles like cars and vans to navigate urban areas. In Asia-Pacific, where e-commerce penetration is high, companies rely on scooters for rapid parcel delivery. Consumer preference for quick turnaround, especially in urban centers, fuels the demand for vans and car fleets, making e-commerce the largest contributor to the last mile delivery markets growth.

By geography, the Last-mile delivery commercial vehicles are experiencing robust but regionally varied growth, shaped by economic development, urbanization, government policies, and evolving consumer preferences. Asia Pacific is the fastest-growing Last-mile delivery commercial vehicles, led by China, India, and Japan. Southeast Asian countries like Indonesia, Vietnam, and the Philippines are also witnessing surges in demand due to rising incomes and urbanization.

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 MarketReport Coverage and Deliverables

The "Last-mile delivery commercial vehicles Market Outlook (20212031)" 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

The geographical scope of the 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 witness the most rapid growth during the forecast period.

North America currently dominates the global last-mile delivery commercial vehicles market, accounting for over 35% of the market share in 2024. This dominance is supported by a well-established transportation infrastructure, including expansive road networks, advanced distribution centers, and strategically located fulfillment hubs. Such infrastructure enables cost-effective, multi-stop delivery routes with reduced transit times.

The presence of major e-commerce giants such as Amazon, Walmart, and Target has raised consumer expectations for fast, reliable delivery servicesoften same-day or next-day. To meet these demands, North American companies are leading the adoption of cutting-edge logistics technologies like real-time tracking, route optimization, and automated dispatch systems. The region is also at the forefront of integrating electric vehicles (EVs) and autonomous delivery solutions, enhancing both the efficiency and sustainability of last-mile operations.

While North America remains the largest market, the Asia Pacific region is emerging as the fastest-growing. The expansion of the middle class, rising smartphone usage, and increasing internet access are fueling a surge in online retail. Companies such as Alibaba, Flipkart, and numerous quick-commerce platforms are heavily investing in last-mile logistics to accommodate growing consumer expectations and accelerate delivery speeds across the region.

Last Mile Delivery Commercial Vehicle MarketNews and Key Development:

The Last-mile delivery commercial vehicles market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Last-mile delivery commercial vehicles market are:

• On February, 2025, Eicher Motors announced a partnership with Amazon to introduce up to 1,000 zero-emission electric trucks across various payload categories into Amazons delivery operations over the next five years. These vehicles will be deployed through Amazons transport service partners, supporting the e-commerce giants commitment to sustainability and carbon neutrality. Eicher also has a separate agreement with ITC to supply 100 electric vehicles for mid-mile transportation.
  
  

• In February, 2025, FedEx deployed an additional 13 Tata Ace electric vehicles in Mumbai, increasing its total EV fleet in Indian cities to 59. This move is part of FedExs strategy to achieve carbon-neutral operations globally by 2040 and supports sustainable last-mile delivery in Indias major urban centers.

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