GLOBAL LAST MILE DELIVERY MARKET
The last mile is final step of the package shipping process and also termed as the most time consuming part of the process. The continuous growth in the e-commerce sector is the major influencer on the last mile market. The last mile delivery is most expensive portion of goods shipping and they account to almost 50% overall cost of the process.
By Mode of Delivery
- Two & Three Wheelers
- LCVs and Vans
- Autonomous Vehicle
- Robots and Drones
By Delivery Destination
The global online buyers in 2019 was close to 2 billion i.e. 25% of the global population. The linear growth in the number of online buyers will directly affect the sector positively. The e-commerce accounts for the 15 % of the retail sales worldwide. The share is expected to go past 17% by 2021. The delivery vehicles in top 100 cities across the world are expected to increase by 36% by 2030. This will subsequently increase the pollution by 32% and congestion by 21%. US, Germany and China account for more than 40% of the market share.
BY DELIVERY DESTINATION
Undoubtedly urban areas hold the highest share in the segment. Last mile delivery is more efficient in the cities as they help to achieve higher deliveries per mile; this is possible due to increased delivery packages and well-defined population clusters. The traffic congestion and inaccessible destinations are the two major factors that are hampering the growth in the region. The increased real estate rate in highly urbanized cities is keeping the transportation hubs and warehouses out of the city.
In rural areas the delivery points could be several miles apart and the in case of failed delivery, second attempt to deliver the goods is has to go through the hardship again.
US LAST MILE DELIVERY MARKET
Amazon has introduced the “Amazon Hub” in the US region exclusively for apartment complexes which allows the customer to pick up the package anytime and eliminating the unattended packages.
Nuro delivery service provider is testing 2 of its driverless vehicles for its final segment of delivery in California.
EUROPE LAST MILE DELIVERY MARKET
European market is lead by Germany, UK and France. The implementation of General Data Protection Regulation from EU, this will act as a challenge for the logistics industry to manage the data.
Hubl a start-up in UK is the “green” last mile logistics system by including only low emission and EVs in its fleet. It also provides the collection points with lockers.
CHINA LAST MILE DELIVERY MARKET
China has more than 35,000 delivery companies. JD logistics in the country has been developing autonomous delivery robots and smart delivery stations in several cities and recently in February 2020 successfully delivered the medical kits using these robots in the Wuhan region.
INDIA LAST MILE DELIVERY MARKET
In India the warehousing cost is 9% which is lower compared to the global overall supply chain cost i.e. 13%. Ever since the lockdown in the country in March due to COVID-19, the demand for home delivery has spiked to 150% compared to last year. E-commerce in the country is growing at 30% every year. Bangalore, Delhi and Mumbai are the top 3 cities and account for 40% of the last mile delivery market.
MARKET SIZE AND FORECAST
The last mile freight has been the major contributor for greenhouse gas emissions and the several firms are making an effort to reduce this.
E-commerce giant Amazon has partnered with EV start-up Rivian to bring 100,000 electric vans on road by 2030. The vans will be on road by 2021.
In addition to this the online vendors are trying to set-up more and more distribution centres within the city to minimise the delivery time.
The unattended packages are the main concern of the logistics. The logistics industry is introducing the lockers facility in the urban areas and allowing the customer to pick up at their convenience.
RECENT MARKET TREND
- FedEx completed first commercial delivery in Virginia conducted by Wing aviation.
- In Novermber 2019, UPS by delivering essential pharmaceutical products in North Carolina region.
- Drone Delivery Canada has partnered with Air Canada Cargo to deliver goods through these drones.
- Voltia Slovakian urban delivery specialist and Nissan have together launched a LCV Nissan e-NV200 XL specialised for urbanised delivery for the Europe region.
- To counter the unattended packages problem Amazon in US has introduced locker facilities at commercial locations close to delivery point. The locker facility with the help of third party allows the customers to choose the desired delivery locker point. This shortens the last mile route taken and converges various customers under one roof.
- Amazon India has committed to induct 10,000 EVs to the delivery fleet by 2025 in India alone.
- In India to counter the COVID-19 pandemic several food delivery, cab service aggregators like Uber, Rapido, Domino’s, Swiggy and Zomato have tied up with retailers and e-grocers to support and boost the last mile delivery.
- Flipkart invests 40 million USD in last mile delivery start-up Shadowfax.
- Reliance is setting up stores to build a network to ramp up the last mile delivery of groceries in the Mumbai region.
Some of the top last mile delivery start-ups are Deliv (US), Nuro (US), Starship technologies (US), Roadie (US), Routific (Canada), Active Ants (Netherlands), Dunzo (India), Quiqup (UK), Hubl (UK) and Matternet (US).
Some of the delivery services giants been involved with the sector are FedEx (US), DHL (Germany), UPS (US),
|2||Scope of the report|
|7||Insights from Industry stakeholders|
|8||Cost breakdown of Product by sub-components and average profit margin|
|9||Disruptive innovation in the Industry|
|10||Technology trends in the Industry|
|11||Consumer trends in the industry|
|12||Recent Production Milestones|
|13||Component Manufacturing in US, EU and China|
|14||COVID-19 impact on overall market|
|15||COVID-19 impact on Production of components|
|16||COVID-19 impact on Point of sale|
|17||Market Segmentation, Dynamics and Forecast by Geography, 2020-2025|
|18||Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025|
|19||Market Segmentation, Dynamics and Forecast by Application, 2020-2025|
|20||Market Segmentation, Dynamics and Forecast by End use, 2020-2025|
|21||Product installation rate by OEM, 2020|
|22||Incline/Decline in Average B-2-B selling price in past 5 years|
|23||Competition from substitute products|
|24||Gross margin and average profitability of suppliers|
|25||New product development in past 12 months|
|26||M&A in past 12 months|
|27||Growth strategy of leading players|
|28||Market share of vendors, 2020|
|30||Unmet needs and opportunity for new suppliers|