First Mile Delivery Market Size

First Mile Delivery Market Size

First Mile Delivery Market size was valued at USD 79.6 billion in 2024 and is estimated to register a CAGR of over 7.5% between 2024 and 2032. The rising initiatives and regional partnerships focused on enhancing logistics and transportation capabilities are driving the market growth. The need for efficient and cost-effective first-mile delivery solutions is increasing due to the rising volume and complexity of international trade.

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The increase in demand is accompanied by an attempt to improve collaboration and professionalism amongst supply chain and logistics companies, highlighting the significance of efficiency, standards, and safety in the delivery community. For instance, in June 2023, SpiceXpress announced a partnership with Ekart to enhance their first and last-mile delivery services. Under this collaboration, Ekart will handle the initial pickup of cargo shipments and ensure their delivery through last-mile connectivity across all serviceable pin codes in the country.
 

To support the growing e-commerce industry and improve supply chain efficiency, businesses and governments throughout the world are increasing financing for first mile delivery fleets and other logistical resources. The first mile delivery sector is undergoing substantial change due to rapid improvements in technology. Logistics operations are becoming more productive, safe, and efficient owing to developments in telematics, autonomous driving systems, and networking. These technologies are encouraging an innovative and adaptable culture inside the sector and increasing demand for newer distribution models.
 

The first mile delivery market faces significant hurdles. Logistics becomes more difficult when organizations have to navigate several regulatory requirements. The regulatory scenario includes diverse trade tariffs, customs procedures, and environmental restrictions. If not managed appropriately, these requirements can cause delays and higher costs. Inadequate or underdeveloped warehousing and transportation infrastructure makes logistics even more difficult by leading to delays, raising transportation costs, and increasing the possibility of product damage. In the end, this limits operational efficiency and the ability to expand, especially in emerging markets and rural areas.