Middle Mile Delivery Market Size - By Service Type (Warehousing & Distribution, Freight Forwarding, Transportation Management), By Transportation Mode (Roadways, Railways, Airways, Maritime), By End-User Industry & Forecast, 2024 - 2032

Middle Mile Delivery Market Size

Middle Mile Delivery Market size was valued at USD 96.7 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032. The growing popularity of e-commerce and an increase in online orders are some of the major drivers of market. In addition, the growing demand for goods to be shipped from warehouses and distribution centers to stores or directly to consumers has fueled the adoption of these services. Additionally, middle mile logistics ensure the speedy movement of goods to meet customers’ expectations for fast and efficient deliveries.
 

Moreover, it has necessitated improvements in logistics and supply chain efficiency which involves transporting goods from warehouses to retail locations. Various companies are focused on investments in this technology to ensure timely deliveries and maintain competitiveness. For instance, in September 2023, Amazon announced the expansion of its middle-mile logistics network in the U.S. The company invested in new distribution centers and advanced logistics technology to enhance its middle-mile delivery capabilities. It aims to meet the growing demands of its e-commerce platform.
 

Moreover, increased urbanization and the development of infrastructures in both developed and developing regions have enhanced the connectivity between distribution centers and retail locations, thus facilitating smoother middle-mile deliveries. Further, urbanization creates a concentrated demand for goods, while infrastructure development facilitates the efficient movement of goods through the middle mile. This collaboration among growing cities and improved transportation networks fuels the expansion of the middle mile delivery market.
 

Strategies involving planning optimal routes for middle-mile deliveries are considered quite complex. Factors such as traffic congestion, frequent stops, and unexpected delays can disrupt schedules, resulting in fuel as well as time wastage. Outdated maps and malfunctioning GPS systems further add to inefficiencies.
 

Additionally, inconsistent data from different carriers and fragmented logistics systems make it difficult to pinpoint the location of shipments. Further, inefficiencies within hubs, such as slow picking and packing processes or delays in loading and unloading trucks, can cause bottlenecks and slow down the entire delivery process. Fuel prices, driver wages, and the maintenance of a fleet of vehicles collectively contribute to the cost of middle mile delivery.
 

Middle Mile Delivery Market Trends

Ongoing innovations in logistics technology significantly drive the growth of the middle mile delivery industry. These advancements enhance the efficiency, reliability, and transparency of the transportation process between distribution centers and retail locations or other distribution points. Automated systems in warehouses and distribution centers enhance the speed and accuracy of order processing. In addition, blockchain technology ensures secure and transparent transactions in the logistics chain.
 

Further, advanced algorithms and artificial intelligence (AI) enable logistics companies to determine the most efficient routes for delivery trucks. Internet of Things (IoT) devices and GPS technology provide real-time tracking of shipments. For Instance, in April 2023, FedEx announced a significant upgrade to its middle mile delivery operations through the integration of AI and IoT technologies. These advancements enable the company to improve efficiency, reduce costs, and enhance customer satisfaction. This initiative has been aimed at enhancing route optimization, real-time tracking, and overall operational efficiency.
 

Moreover, the ongoing shift towards eco-friendly transportation solutions is a significant growth driver in the middle mile delivery market. This trend is being driven by increasing environmental awareness, regulatory pressures, and the economic benefits of sustainable practices. Various companies in the logistics industry are increasingly adopting green technologies and practices to reduce their carbon footprint and meet the growing demand for environmentally responsible operations. They are adopting green logistics practices, such as the use of electric vehicles (EVs) and alternative fuels.
 

For instance, In January 2024, UPS announced a significant investment in its middle mile delivery fleet by adding 1,000 electric vehicles to its delivery operations. This move is part of UPS's broader sustainability strategy to reduce its carbon emissions and promote eco-friendly transportation solutions. 
 

Middle Mile Delivery Market Analysis

Based on service type, the market is divided into warehousing & distribution, freight forwarding, and transportation management. In 2023, warehousing & distribution accounted for a market share of over 41%. The efficiency and effectiveness of warehousing and distribution services significantly influence the performance of middle mile delivery operations. Businesses are focused on investments in large distribution centers near urban areas to reduce transit times. In addition, the adoption of automation and robotics is transforming warehousing operations.
 

Automated storage and retrieval systems (AS/RS), robotic pickers, and conveyors increase operational efficiency, reduce labor costs, and minimize errors. Further, the integration of advanced technologies such as IoT, AI, and blockchain in warehousing and distribution enhances inventory management, real-time tracking, and transparency in the supply chain. Moreover, there is a growing emphasis on sustainability, with companies adopting green building practices, energy-efficient lighting, and solar power to reduce the environmental impact of their warehouses.
 

For instance, in May 2024, DHL launched a comprehensive sustainability program, including the deployment of electric delivery vehicles and the usage of solar power in its warehouses. These initiatives support their goals of reducing carbon footprint and enhancing the efficiency of its middle mile delivery services.
 

Based on transportation mode, the middle mile delivery market is categorized into roadways, railways, airways, and maritime. Roadways segment is expected to hold over USD 99.1 billion by 2032. It is experiencing substantial growth fueled by the rising demand for efficient transportation between warehouses, distribution centers, and retail locations. With the rapid expansion of online retailers, the need for efficient transportation between fulfillment centers and distribution points has grown in recent years. In addition, investments in road infrastructure and improvements in highway connectivity are facilitating faster and more reliable middle mile transportation.
 

Moreover, it is considered as a cost-effective solution for middle mile deliveries, offering flexibility and the ability to handle a wide range of shipment sizes and types. The use of advanced technologies such as GPS tracking, IoT devices, and AI-driven analytics is becoming more prevalent. It helps companies optimize routes, reduce fuel consumption, and improve delivery times?. Logistics providers are increasingly forming partnerships with technology firms to enhance their service offerings. This includes integrating logistics management software to streamline operations and improve visibility across the supply chain.
 

North America has a significant share of the middle mile delivery market with around 32% of the revenue share in 2023. The e-commerce sector in the region continues to expand, driving demand for efficient middle mile delivery solutions. In addition, companies are focused on investment in logistics infrastructure to meet the growing need for faster deliveries. The integration of advanced technologies such as automation, robotics, and AI has been transforming the logistics sector across nations. These technologies improve efficiency, reduce costs, and enhance the overall reliability of the delivery process.
 

Moreover, significant investments in transportation infrastructure from governments and private entities are enhancing connectivity and efficiency in the logistics network. For instance, in May 2023, the U.S. Department of Transportation announced a $500 million investment in logistics infrastructure, specifically aimed at improving connectivity between distribution centers and retail locations. This initiative is part of the government’s efforts to enhance the efficiency of the supply chain and support the growth of middle mile delivery market.
 

Moreover, rapid urbanization and robust economic growth in countries such as China, India, and Southeast Asia are driving demand for efficient middle mile delivery solutions to support expanding retail and e-commerce sectors. The Asia-Pacific region is witnessing significant investments in logistics technology, including AI, robotics, and IoT, to improve operational efficiency and transparency. Massive infrastructure projects, such as China's Belt and Road Initiative and India's Dedicated Freight Corridors, are enhancing logistics connectivity and efficiency in the region, thus driving the market growth.
 

Middle Mile Delivery Market Share

DHL Supply Chain, FedEx Corporation and United Parcel Service (UPS) dominate the market with around 7% market share. DHL Supply Chain is the world's leading contract logistics provider. They have a boasting presence in over 50 countries with a massive network of warehouses and transportation solutions. They offer a comprehensive suite of services including warehousing, transportation, real estate solutions, packaging, and industry-specific solutions such as clinical logistics and e-commerce fulfillment. Their global reach, diverse service portfolio, and focus on innovation solidify their position as a powerhouse in the logistics industry.
 

FedEx Corporation is a major player in the global transportation, e-commerce, and logistics services space. They operate a well-established network of companies under the FedEx umbrella, including FedEx Express, FedEx Ground, and FedEx Freight. The company leverages its extensive air cargo network and reliable ground transportation infrastructure to deliver exceptional service to businesses and consumers worldwide. Their focus on innovation and automation, coupled with their strong brand recognition, ensures their position as a frontrunner in the delivery and logistics landscape.
 

UPS is a leading provider of shipping and logistics services. It is widely recognized for its reliable and time-sensitive delivery services, offering a range of options from next-day air to ground transportation. The company’s expansive network of package processing facilities, delivery vehicles, and international shipping capabilities make them a go-to choice for businesses of all sizes. Further, UPS s actively invests in technology and automation to enhance efficiency and customer experience. 
 

Middle Mile Delivery Market Companies

Major players operating in the middle mile delivery industry are:

• DHL Supply Chain
• FedEx Corporation
• United Parcel Service (UPS)
• DB Schenker
• Kuehne + Nagel
• C.H. Robinson
• XPO Logistics
• Expeditors International
• J.B. Hunt Transport Services
• Nippon Express
   

Middle Mile Delivery Industry News

• In June 2024, DHL Supply Chain announced a strategic partnership with Locus Robotics, a leading provider of autonomous mobile robots (AMRs). This collaboration aims to integrate AMRs into DHL's warehouses and distribution centers across North America. The robots will handle repetitive tasks like picking and sorting goods, freeing up human workers for more complex activities. This investment in automation highlights DHL's commitment to improving efficiency and throughput in the middle mile, ultimately expediting deliveries for its clients.
   
• In April 2024, FedEx announced plans to expand its FedEx OnSite program, which offers dedicated on-site logistics solutions to large retailers and e-commerce companies. This expansion focuses on establishing new fulfillment centers strategically located within major metropolitan areas. By bringing inventory closer to customers, FedEx aims to reduce delivery times and enhance the overall customer experience in the crucial middle mile. 
   

The middle mile delivery market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Service Type

• Warehousing and distribution
• Freight forwarding
• Transportation management

Market, By Transportation Mode

• Roadways
• Railways
• Airways
• Maritime

Market, By End User Industry

• Retail and e-commerce
• Manufacturing
• Healthcare
• Automotive
• Food and beverage
• Energy and utilities
• Aerospace and defense
• Others

The above information is provided for the following regions and countries:

• Noth America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA