Home > Automotive > Automotive Logistics > Middle Mile Delivery Market

Middle Mile Delivery Market Trends

Report ID: GMI10376
Published Date: Jul 2024
Report Format: PDF

Download Free Sample

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.

Authors: Preeti Wadhwani, Aishwarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of middle mile delivery reached USD 96.7 billion in 2023 and is set to witness over 7% CAGR from 2024-2032, owing to the growing popularity of e-commerce and an increase in online orders worldwide.

Middle mile delivery industry from the warehousing & distribution segment held over 41% share in 2023, due to the efficiency and effectiveness of warehousing and distribution services shaping middle mile delivery operations.

North America market accounted for 32% share in 2023, attributed to the e-commerce sector in the region continuing to expand, driving demand for efficient middle mile delivery solutions.

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, and Nippon Express, are some of the major middle mile delivery companies worldwide.