ASIA LAST MILE DELIVERY MARKET

KEY FINDINGS

• Last mile delivery market in the Asia Pacific is expected to grow from US$ 500.3 Mn in 2018 to US$ 2,292.6 Mn by the year 2027 with a CAGR of 19.0% from the year 2019 to 2027.
• The rapid growth of online shopping has created a surge in demand for last-mile delivery services.
• Increasing urbanization and rising disposable incomes have led to a growing middle class, which is a key driver of e-commerce and last-mile delivery.
• New technologies, such as drones, robots, and artificial intelligence, are improving efficiency and reducing costs.
• Competition among delivery providers is intensifying, leading to price wars and a focus on improving service quality.
• In many parts of Asia, infrastructure limitations, such as inadequate roads and warehouses, can hinder efficient delivery operations.
• Growing emphasis on sustainable delivery practices, including the use of electric vehicles and eco-friendly packaging.

ASIA LAST MILE DELIVERY MARKET DYNAMICS

Much attention is currently focused on the Asia last mile delivery industry with the rise of e-commerce and online shopping platforms.

Last-mile delivery is the last stage of delivery, where any product is being moved from a distribution center to an end customer. Its prime objective is to fast-track the sent products from every receiving service hub in the package within the logistics industry.

Delivery, being part of logistics management, becomes very important in the supply chain process since it makes or breaks the shopping experience. It is a need that has to be noted that the last mile delivery market in Asia has been growing lately; therefore, some businesses adapt and try to optimize their delivery process with new technologies and innovative delivery models.

ASIA LAST MILE DELIVERY MARKET SEGMENTATION

By Technology

• Drones
• Autonomous and Semi-autonomous Vehicles
• Droids
• Others

By Type

• B2B
• B2C

By Application

• 3C Products
• Fresh Products
• Others

By Country

• China
• India
• Japan
• South Korea
• Rest of Asia

KEY PLAYER IN ASIA LAST MILE DELIVERY MARKET

Traditional Logistics Companies:

• DHL:A global logistics company with a strong presence in Asia.
• FedEx:Another global logistics company offering last-mile delivery services in Asia.
• UPS:A major player in the global logistics industry, providing last-mile delivery solutions in Asia.
• SF Express:A Chinese logistics company specializing in express delivery and last-mile services.
• Blue Dart Express:An Indian logistics company offering domestic and international express delivery services.

Technology Startups:

• Gojek (Indonesia):A ride-hailing and on-demand services platform that also offers last-mile delivery.
• Grab (Singapore):A similar platform to Gojek, providing ride-hailing, food delivery, and other on-demand services.
• Rapido (India):An Indian ride-hailing and delivery platform.
• Lalamove (Hong Kong):A delivery platform that connects users with drivers for on-demand deliveries.
• Deliveroo (UK):A food delivery platform with a presence in several Asian countries.

E-commerce Giants:

• Alibaba (China):One of the world's largest e-commerce companies, with its own logistics arm, Cainiao.
• Amazon (US):A global e-commerce giant with a growing presence in Asia, offering last-mile delivery services.
• Lazada (Singapore):A leading e-commerce platform in Southeast Asia with its own logistics network.
• Flipkart (India):A major e-commerce player in India with its own logistics subsidiary, Ekart.

UTILIZATION OF TECHNOLOGY IN ASIA LAST MILE DELIVERY MARKET

New Technologies play significant roles in changing every last mile delivery service in Asia. Using drones, vehicles, and robotics is becoming more common, especially in countries with advanced infrastructure.

For example, Alibaba’s Cainiao Smart Logistics Network has robots. They transport every package delivery box in China. On the other hand, Singapore’s H3 Dynamics Holdings is using drones to deliver medical supplies to remote areas.These technologies can reduce delivery times, lower costs, and improve the efficiency of last mile delivery tracking services. However, their usage is still limited byhigh costs and regulations. Among these are safety concerns, privacy issues, and the need to create proper must-do’s and infrastructure.

In Singapore, for example, they did autonomous vehicle trials. However, the usage of these vehicles is still subject to regulatory approvals and safety assessments. Singapore’s Land Transport Authority (LTA) requires companies to show that their vehicles can safely go around the city’s traffic conditions and comply with traffic rules before they can operate on public roads.

In addition to the solution for handling physical goods, big data, and AI also can play a crucial role in route optimization and delivery times. This is often a challenge because the recipient may not be available to receive their goods. For that, in urban they determine when and where their package should go. Hence, any changes in areas in the Japanese, Korean, and Chinese regions, they use smart parcel lockers. Those schedules can be put into a plan.

ASIA LAST MILE DELIVERY MARKET CHALLENGES

Despite the rapid growth, there are a few significant challenges that the last mile delivery market of Asia faces.

Infrastructure Limitations:

• Inadequate roads: Most of the Asian cities have inadequate road infrastructure that causes huge traffic congestion and delays in deliveries.
• Inadequate warehousing: Insufficiency in warehousing facilities can retard the correct storage and dispersion of goods.

Traffic Congestion:

• Thoroughly Densely Packed Urban Centers: The cities across the Asian region have been facing acute congestion, which severely hinders the free flow of delivery vehicles.
• Peak Time: The worst congestion at peak time delays all and increases costs.

Geographical Diversity:

• Diverse Landscapes: Various geographical terrains of the region, which include mountainous, forest, and coastal areas, share some logistical delivery operation-challenging issues.
• Remote areas: Deliveries across far-flung or rural areas are time-consuming and costly due to a lack of infrastructure and connectivity.

Labour Shortfalls:

• Skill gaps: A lack of skilled labor, specially in specialized fields concerning technology and logistics, may bear upon the output of the delivery operations.
• High turnover rates: The delivery industry experiences quite a high rate of turnover that makes it hard to retain workers.

Environmental Concerns:

• Carbon emission: Increased fleet delivery vehicles can give rise to a considerable degree of emission of air and greenhouse gases.
• Waste management: The delivery process involves plenty of waste and packaging materials, therefore associated with some environmental issues.

Regulatory Barriers:

• Varying and stringent regulations: The regulations can be very different in some cases from country to country or even regional, making compliance—a hard task for delivery companies—due to the complex regulations.
• Permitting requirements: This is very time-consuming and also with plenty of red tape to get all the permits and licenses.

Sales Forecasts:

• Rising expectations: Asian consumers' expectations of speed, reliability, and convenience in delivery services are increasing such that the standards of expectation from a delivery company are pretty high.
• Returns and refunds:The increasing rate of returns and refunds not only boosts operational pressure but can also be a financial drain on any delivery company.

ASIA LAST MILE DELIVERY MARKET OPPORTUNITIES

• Growing online shopping: Increasing affluence of the middle class and improving internet access within the region form the backdrop of e-commerce growth.
• Diverse product categories: e-commerce platforms offer a wide spread of products, thereby establishing demand for effective last-mile delivery solutions.
• Densely populated cities: Fast-growing urban centers within the region are raising demand for last-mile delivery services.
• Automation and Robotics: Adapting Automation and Robotics technologies can improve efficiency, reduce costs, and raise customer experience.
• IOT and tracking: IOT devices and high-end tracking systems give real-time monitoring of deliveries with critical data to optimize this.
• Electric vehicles: More extensive adoption of electric vehicles will green the last-mile delivery operations and make them sustainable.
• Faster deliveries: It is faster delivery that consumers expect, at times within hours or days.
• Convenience and flexibility: Convenient delivery options, same-day delivery, flexible scheduling options, and a number of pickup points are some of the aspects customers look for in this regard.
• Transparency and traceability: Given the expectations of consumers in this regard, real-time tracking of the orders placed is a must, as are transparent communications.
• Eco-friendly initiatives: With the increasing emphasis on eco-friendly delivery operations, opportunities open up for companies that ensure the environment is taken care of.
• Integrated approach:Bringing together online and offline channels provides a frictionless customer experience, all within the omnichannel strategies.

ASIA LAST MILE DELIVERY MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What is the current market size?
2. What is the impact of environmental regulations on the Asia Last Mile Delivery Market?
3. What is the impact of technology on the Asia Last Mile Delivery Market? 
4. What factors are influencing the growth of the Last Mile Delivery Market during the forecast period?
5. What is the competitive landscape in Asia Last Mile Delivery Market?
6. What are the opportunities present in Asia Last Mile Delivery Market?
7. What are the best methods for entering the Asia Last Mile Delivery Market?
8. What are the challenges of Asia Last Mile Delivery Market?