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 Outlook

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, registering a robust CAGR of 26.9% from 2025 to 2031.

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Executive Summary and Global Market Insights:

The last-mile delivery commercial vehicles market has become a vital component of the modern logistics ecosystem, driven by the explosive growth of e-commerce, increasing consumer demand for faster and more convenient delivery options, and rapid urbanization. In 2024, the market is valued at approximately USD 77 billion, with vans, light trucks, and other commercial vehicles dominating due to their operational flexibility and load capacity.

As online retail continues to disrupt traditional commerce, logistics providers are making significant investments in advanced technologies, green transportation solutions, and delivery infrastructure to improve speed, efficiency, and customer satisfaction.

North America and Europe currently dominate the market, thanks to well-developed logistics networks and high e-commerce adoption. However, Asia-Pacific is emerging as the fastest-growing region, fueled by urban expansion, rising digital penetration, and growing demand for on-demand delivery services.

The competitive landscape is marked by intense rivalry between established logistics players and agile startups. Both are actively pursuing innovations in electric vehicles (EVs), autonomous delivery solutions, and data-driven route optimization to gain a competitive edge. Moreover, the global push toward sustainability is accelerating the adoption of electric and low-emission commercial vehicles, reshaping the future of last-mile logistics.

Last Mile Delivery Commercial Vehicle Market: Segmentation Analysis

The last-mile delivery commercial vehicles market has been analyzed based on four key segments: vehicle type, propulsion type, end-user, and geography.

By Vehicle Type:

The market is categorized into cars, vans, and trucks.
Vans dominated the segment in 2024, owing to their superior versatility and adaptability. Their optimal balance between cargo capacity and maneuverability makes them the ideal choice for urban logistics. Vans can handle a broad spectrum of delivery tasks—from small parcel deliveries to bulk shipments—while navigating congested cityscapes more efficiently than trucks and carrying significantly more cargo than two-wheelers.

By Propulsion Type:

The propulsion segment is divided into Internal Combustion Engine (ICE) and Electric vehicles.
ICE vehicles led the market in 2024, primarily due to the global ubiquity of fueling infrastructure. In both urban and rural areas, petrol and diesel refueling stations are readily available, reducing operational downtime for delivery fleets. This is especially advantageous in regions like Asia-Pacific and Latin America, where electric vehicle charging infrastructure remains underdeveloped. For now, ICE vehicles offer unmatched reliability and convenience for logistics operations.

By End-User:

The end-user segment includes e-commerce, food delivery, courier services, and others.
E-commerce emerged as the dominant end-user segment, driven by the rapid expansion of online retail and high-volume delivery demands. Giants such as Amazon, Alibaba, and Flipkart have revolutionized the sector, delivering millions of packages daily. The demand for agile and efficient delivery vehicles is especially pronounced in urban centers, where consumer expectations for same-day or next-day delivery are reshaping logistics strategies. In high-growth regions like Asia-Pacific, two-wheelers and small vans are extensively deployed for fast-paced e-commerce deliveries.

By Geography:

Geographically, the market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South & Central America.
North America led the market in 2024, owing to its mature e-commerce ecosystem, robust logistics infrastructure, and early adoption of technological innovations.
However, Asia-Pacific is the fastest-growing region, propelled by rapid urbanization, rising disposable incomes, and digital transformation. Markets in China, India, and Japan are leading the surge, while emerging economies like Indonesia, Vietnam, and the Philippines are witnessing significant growth due to increasing demand for efficient last-mile delivery solutions.

Market Drivers and Opportunities

1. Sustainability and the Transition to Electric Vehicles:

Growing environmental concerns and stricter emissions regulations are accelerating the shift toward electric commercial vehicles. Governments and corporations are adopting green logistics strategies to minimize carbon footprints and meet sustainability goals. Industry leaders such as Amazon and FedEx are making substantial investments in electric delivery vans and trucks. This transition is supported by advancements in battery technologies and expanding EV charging networks, making electric last-mile delivery increasingly viable and cost-effective.

2. Technological Innovation and New Delivery Models:

The integration of emerging technologies and innovative logistics models is unlocking new growth avenues. Autonomous delivery vehicles, drones, and robots are poised to revolutionize last-mile logistics by enhancing efficiency and reducing labor costs. Additionally, models like crowdsourced delivery and micro-fulfillment centers are enabling faster, more localized delivery services. Data analytics and AI-driven forecasting tools further enhance route optimization and resource management. Companies that adopt these innovations are likely to gain a competitive advantage by meeting evolving consumer expectations and streamlining operations.

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

The geographical scope of the Last-mile Delivery Commercial Vehicles Market report is segmented into five major regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. Among these, Asia Pacific is projected to experience the fastest growth during the forecast period.

North America: Market Leader in 2024

North America currently dominates the global last-mile delivery market, including the commercial vehicles segment. In 2024, the region is estimated to hold over 35% of the global market share. This leadership is attributed to its well-developed transportation infrastructure, encompassing extensive road networks, modern distribution centers, and advanced fulfillment hubs. These elements collectively support highly efficient multi-stop delivery operations, enabling lower costs and shorter delivery times.

The region is also home to leading e-commerce giants such as Amazon, Walmart, and Target, which have set benchmarks for rapid, reliable delivery services. The surge in online shopping has amplified consumer expectations for same-day or next-day delivery, driving greater demand for last-mile delivery solutions.

North American logistics companies are pioneering the adoption of advanced technologies, including real-time tracking, route optimization, and automation. Furthermore, the integration of electric vehicles (EVs) and autonomous delivery systems is gaining momentum, reinforcing both the efficiency and sustainability of last-mile operations.

Asia Pacific: Fastest-Growing Region

While North America leads in terms of market share, Asia Pacific is emerging as the fastest-growing region for last-mile delivery services, including commercial vehicle deployment. This growth is fueled by a rapidly expanding middle class, increased smartphone penetration, and enhanced internet connectivity across the region.

Major e-commerce platforms such as Alibaba, Flipkart, and several quick-commerce startups are heavily investing in last-mile logistics to meet evolving consumer demands. These companies are enhancing delivery speed, reliability, and coverage—factors that are critical to customer satisfaction in the competitive e-commerce landscape.

Report Overview: Last-Mile Delivery Commercial Vehicles Market

The market research report provides both qualitative and quantitative insights, segmented by drive type, propulsion type, sales channel, and geography.

Chapter Highlights:

• Chapter 2: Key takeaways summarizing critical trends and future outlook.
• Chapter 3: Research methodology.
• Chapter 4: Ecosystem analysis and Porter’s Five Forces Analysis.
• Chapter 5: Industry dynamics covering key drivers, restraints, opportunities, and emerging trends, along with their impact.
• Chapter 6: Market scenario with historical revenue data and forecasts up to 2031.
• Chapters 7–10: Market segmentation by vehicle type, propulsion type, end user, and region, covering revenue forecasts and growth drivers across 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, detailing market initiatives, product innovations, mergers, partnerships, and joint ventures.
• Chapter 13: Company profiles highlighting key facts, business overviews, offerings, financials, SWOT analysis, and recent developments.
• Appendix: Glossary, list of abbreviations, and disclaimer.

Recent Developments in the Last-Mile Delivery Commercial Vehicle Market

The market assessment is based on comprehensive primary and secondary research, including corporate publications, industry association data, and reputable databases. Notable recent developments include:

• February 2025 – Eicher Motors announced a strategic partnership with Amazon to deploy up to 1,000 zero-emission electric trucks across various payload segments over five years. These trucks will be integrated into Amazon’s delivery network via its transport service partners, aligning with the company’s commitment to carbon neutrality. Eicher also signed a separate deal with ITC to provide 100 electric vehicles for mid-mile delivery.
• February 2025 – FedEx expanded its electric fleet in India by adding 13 Tata Ace EVs in Mumbai, bringing its total electric vehicles in Indian cities to 59. This initiative supports FedEx’s global goal of achieving carbon-neutral operations by 2040, while promoting sustainable last-mile logistics in densely populated urban areas.

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