Last Mile Delivery Commercial Vehicle Market, Size, Segment and Growth by Forecast Period: (2021-2031)

Last Mile Delivery Commercial Vehicle Market

Last-Mile Delivery Commercial Vehicles Market Overview

The global last-mile delivery commercial vehicles market is projected to grow from US$ 77,982.14 million in 2024 to US$ 132,587.38 million by 2031, expanding at a robust CAGR of 26.9% from 2025 to 2031.

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Executive Summary and Global Market Dynamics:

As a vital component of the modern logistics chain, the last-mile delivery commercial vehicles market is being rapidly reshaped by the surge in e-commerce, rising consumer demand for faster deliveries, and accelerating urbanization. In 2024, the market stands at approximately US$ 77 billion, with vehicles such as light trucks and delivery vans dominating due to their flexibility, cargo capacity, and urban adaptability.

The shift toward online retail has prompted businesses and logistics providers to invest in advanced technologies, smart routing systems, and sustainable delivery models to streamline operations and meet customer expectations. This has led to a wave of innovation and infrastructure development across the sector.

Regional Insights:

• North America and Europe currently dominate the market, backed by mature logistics frameworks and high e-commerce penetration.
• Asia-Pacific emerges as the fastest-growing region, fueled by widespread digital transformation, expanding urban centers, and increasing consumer connectivity.

Key Market Trends:

• Intense competition between global logistics leaders and agile startups is driving innovation, cost efficiency, and service enhancements.
• Growing environmental concerns and regulatory pressures are accelerating the transition toward electric and low-emission commercial vehicles, signaling a major shift in fleet composition and operational strategies.

As the last-mile delivery landscape evolves, the market is poised for significant growth and technological transformation, with sustainability and customer-centric delivery models at its core.

Last Mile Delivery Commercial Vehicle Market Segmentation Analysis

Key segments that contributed to the derivation of the Last-mile delivery commercial vehicles market analysis are drive type, propulsion, sales channel, and geography.

• By vehicle type, the Last-mile delivery commercial vehicles market is segmented into cars, vans and trucks. The Vans segment dominated the market in 2024.
• By propulsion type, the Last-mile delivery commercial vehicles market is segmented into ICE, Electric. ICE segment dominated the market in 2024.
• By end-user, the Last-mile delivery commercial vehicles market is segmented into e-commerce, food delivery, courier services, others. 
• By geography, the Last-mile delivery commercial vehicles market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa and South & Central America. North American region dominated the market in 2024.

Last Mile Delivery Commercial Vehicle Market Drivers and Opportunities:

Sustainability and the Shift Toward Electric Commercial Vehicles

Growing environmental concerns and stricter emission regulations are driving the adoption of electric and alternative fuel-powered commercial vehicles in last-mile delivery. Governments and businesses are increasingly prioritizing green logistics to reduce carbon footprints and comply with sustainability goals. For example, major logistics players like Amazon and FedEx are investing heavily in electric vans and trucks for their delivery fleets. This shift not only addresses regulatory requirements but also appeals to eco-conscious consumers and helps companies build a positive brand image. The transition to electric vehicles is further supported by advances in battery technology and the expansion of charging infrastructure, making sustainable last-mile delivery more feasible and cost-effective.

Adoption of Advanced Technologies and Innovative Delivery Models

The integration of advanced technologies and innovative delivery models offers significant opportunities for differentiation and growth. The rise of autonomous commercial vehicles, drones, and delivery robots promises to transform last-mile logistics by reducing costs and increasing efficiency. The adoption of crowdsourced delivery models and micro-fulfillment centers enables logistics providers to offer faster and more flexible services. Additionally, the use of data analytics and predictive modeling allows for better demand forecasting and resource allocation. Companies that invest in these technologies and embrace innovative delivery solutions will be well-positioned to meet evolving customer expectations and gain a competitive edge in the market.

Last Mile Delivery Commercial Vehicle Market Size and Share Analysis

By vehicle type, the vans segment led the market in 2024 – The vans segment led the last-mile delivery commercial vehicle market by vehicle type due to a combination of versatility, efficiency, and adaptability that make them indispensable for urban logistics and modern delivery needs. Vans are uniquely suited for a wide range of delivery tasks, from small parcel deliveries to bulk shipments. They offer a balance between cargo capacity and maneuverability, allowing them to navigate congested city streets and tight urban spaces more easily than larger trucks while carrying significantly more goods than two-wheelers or cargo bikes.

By propulsion type, the ICE commercial vehicles benefit from an extensive and well-established fuel infrastructure, making them highly practical for last mile delivery. Petrol stations are ubiquitous globally, ensuring easy refuelling in urban and rural areas alike, unlike electric vehicles (EVs) which rely on limited charging networks. This accessibility minimizes downtime for delivery riders, critical for time-sensitive services like e-commerce and food delivery. In regions like Asia-Pacific and Latin America, where charging infrastructure is still developing, ICE comer vehicles offer unmatched convenience. The robust fuel supply chain supports continuous operations, making ICE vehicles the preferred choice for logistics companies and gig workers.

By end-user, the e-commerce channels the dominant end-user in the last mile delivery commercial vehicles market due to its explosive growth, high delivery volume, and alignment with consumer expectations for fast, efficient service. he global surge in online shopping has propelled e-commerce as the leading end-user in last mile delivery. Platforms like Amazon, Alibaba, and Flipkart have seen exponential growth, driven by convenience and wider product availability. This translates into millions of daily deliveries, requiring agile vehicles like cars and vans to navigate urban areas. In Asia-Pacific, where e-commerce penetration is high, companies rely on scooters for rapid parcel delivery. Consumer preference for quick turnaround, especially in urban centers, fuels the demand for vans and car fleets, making e-commerce the largest contributor to the last mile delivery market’s growth.

By geography, the Last-mile delivery commercial vehicles are experiencing robust but regionally varied growth, shaped by economic development, urbanization, government policies, and evolving consumer preferences. Asia Pacific is the fastest-growing Last-mile delivery commercial vehicles, led by China, India, and Japan. Southeast Asian countries like Indonesia, Vietnam, and the Philippines are also witnessing surges in demand due to rising incomes and urbanization.

Market leaders and key company profiles

  Amazon Logistics

  DHL

  FedEX

  UPS

  Alibaba

  JD.Com

  Kerry Logistics

  Zepto

  Blinkit

  and Grab

Last Mile Delivery Commercial Vehicle Market Report Coverage and Deliverables

The "Last-mile delivery commercial vehicles Market Outlook (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Last-mile delivery commercial vehicles market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Last-mile delivery commercial vehicles market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed Porter's Five Forces and SWOT analysis
• Last-mile delivery commercial vehicles market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Last-mile delivery commercial vehicles market
• Detailed company profiles

Geographical Scope and Market Overview: Last-Mile Delivery Commercial Vehicles Market

The last-mile delivery commercial vehicles market is segmented geographically into five key regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Among these, Asia Pacific is projected to witness the fastest growth during the forecast period, driven by rising e-commerce activity and technological advancements.

North America currently holds the largest market share, accounting for over 35% of the global market in 2024. This dominance is supported by a well-established transportation infrastructure, including vast road networks, advanced distribution centers, and highly efficient fulfillment hubs. These assets enable cost-effective, multi-stop delivery routes and rapid delivery times.

The region is home to leading e-commerce giants such as Amazon, Walmart, and Target, which have set industry benchmarks for fast and reliable delivery services. The boom in online shopping has significantly increased demand for last-mile delivery, where same-day and next-day deliveries have become standard consumer expectations. North American companies are also leaders in adopting cutting-edge logistics technologies like real-time tracking, route optimization, and automation. Additionally, the integration of electric and autonomous delivery vehicles is accelerating, further improving the sustainability and efficiency of last-mile operations.

While North America leads in size, Asia Pacific is the fastest-growing region, fueled by a rising middle-class population, increased smartphone penetration, and expanding internet access. Prominent e-commerce platforms like Alibaba, Flipkart, and local quick-commerce startups are investing significantly in last-mile logistics to meet the increasing demand for faster deliveries.

Report Structure and Key Components

The Last-mile Delivery Commercial Vehicles Market Research Report offers in-depth qualitative and quantitative insights based on drive type, propulsion, sales channel, and regional analysis. It comprises the following chapters:

• Chapter 2: Key takeaways, including market trends and future outlook.
• Chapter 3: Research methodology.
• Chapter 4: Ecosystem and Porter’s Five Forces analysis.
• Chapter 5: Market dynamics—covering growth drivers, challenges, opportunities, and future trends, along with impact analysis.
• Chapter 6: Historical and forecast market revenue data through 2031.
• Chapters 7–10: Market segmentation by type, propulsion, end user, and geography (with detailed regional insights for North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America).
• Chapter 11: Competitive landscape and heat map analysis of key players.
• Chapter 12: Industry landscape, including global market initiatives, new product developments, mergers, and strategic collaborations.
• Chapter 13: Company profiles—covering business overviews, product/service offerings, financial summaries, SWOT analysis, and major developments.
• Appendix: Abbreviations, disclaimers, and company overview.

Market News and Key Developments

The report is built on robust primary and secondary research, incorporating data from corporate reports, industry associations, and key databases. Notable recent developments in the market include:

• February 2025: Eicher Motors announced a strategic partnership with Amazon to deploy 1,000 zero-emission electric trucks across multiple payload segments over the next five years. These vehicles will be integrated into Amazon’s logistics through its transport service partners, reinforcing Amazon's sustainability commitments. Eicher also entered into a separate agreement with ITC to supply 100 electric vehicles for mid-mile logistics.
• February 2025: FedEx expanded its electric vehicle fleet in India, deploying 13 additional Tata Ace EVs in Mumbai, increasing its total fleet in Indian cities to 59. This initiative is aligned with FedEx’s global objective of achieving carbon-neutral operations by 2040 and supporting eco-friendly last-mile delivery in urban India.

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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights