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$ 1,32,587.38 million by 2031, expanding at a robust CAGR of 26.9% from 2025 to 2031.
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Executive Summary and Global Market Insights
Last-mile delivery commercial vehicles have become a critical component of today’s logistics ecosystem, fueled by the surge in e-commerce, increasing consumer demand for fast and convenient deliveries, and continued urbanization. In 2024, the market is valued at approximately US$ 77 billion, with light commercial vehicles such as vans and light trucks dominating due to their operational flexibility and load capacity.
As online retail continues to redefine consumer behavior, logistics providers and retailers are making significant investments in advanced technologies, sustainable mobility solutions, and delivery infrastructure to optimize last-mile efficiency and meet rising expectations.
North America and Europe currently dominate the market, supported by advanced logistics networks and high e-commerce penetration rates. However, the Asia-Pacific region is witnessing the fastest growth, driven by rapid urban expansion, digital transformation, and increasing mobile commerce.
The competitive landscape is shaped by both established logistics companies and disruptive startups, all aiming to boost delivery efficiency, reduce operational costs, and enhance customer satisfaction. Environmental sustainability is also emerging as a key driver, encouraging a rapid transition toward electric and low-emission commercial vehicles, further propelling market evolution.
Last-Mile Delivery Commercial Vehicle Market – Segmentation Analysis
The last-mile delivery commercial vehicle market is segmented based on vehicle type, propulsion type, end-user, sales channel, and geography. These segments offer a comprehensive understanding of the market dynamics and growth patterns.
By Vehicle Type
- Cars
- Vans
- Trucks
The vans segment led the market in 2024, driven by their versatility, cargo capacity, and maneuverability—key attributes for navigating congested urban environments. Vans strike an optimal balance between size and utility, making them ideal for a broad range of delivery operations, from parcels to bulk items.
By Propulsion Type
- Internal Combustion Engine (ICE)
- Electric
ICE vehicles dominated in 2024, primarily due to the widespread availability of fuel infrastructure. Unlike electric vehicles, which depend on relatively nascent charging networks, ICE vehicles can refuel quickly at ubiquitous petrol stations. This is especially beneficial in developing regions like Asia-Pacific and Latin America, where charging infrastructure remains limited, ensuring uninterrupted and efficient operations for last-mile deliveries.
By End-User
- E-commerce
- Food Delivery
- Courier Services
- Others
The e-commerce segment emerged as the dominant end-user in 2024, propelled by the rapid expansion of online shopping platforms such as Amazon, Alibaba, and Flipkart. The demand for fast, reliable delivery services in densely populated urban centers has fueled the need for dedicated last-mile delivery fleets. Vehicles such as vans, cars, and two-wheelers are essential to meet the high volume and quick turnaround expectations of e-commerce consumers.
By Geography
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South & Central America
North America dominated the global market in 2024, supported by strong e-commerce infrastructure, high consumer demand, and early adoption of advanced delivery technologies. However, Asia Pacific is the fastest-growing region, driven by rapid urbanization, a burgeoning middle class, and rising demand for convenient online shopping in countries such as China, India, and Japan. Southeast Asian nations—including Vietnam, Indonesia, and the Philippines—are also experiencing rapid growth due to evolving logistics ecosystems and increasing digital penetration.
Market Drivers and Opportunities
Sustainability and the Transition to Electric Vehicles
Environmental sustainability and regulatory pressures are prompting a shift toward electric and alternative fuel-powered commercial vehicles. Governments and logistics companies are embracing green delivery practices to reduce emissions and enhance brand reputation. Key players like Amazon and FedEx are investing significantly in electric vans and trucks. Improvements in battery technology and the growth of charging infrastructure are making electric last-mile delivery more viable and cost-effective.
Emergence of Advanced Technologies and Innovative Delivery Models
The integration of emerging technologies such as autonomous vehicles, drones, and delivery robots presents new opportunities to streamline last-mile logistics. Additionally, the adoption of crowdsourced delivery platforms and micro-fulfillment centers enables faster, more flexible service models. Coupled with predictive analytics and AI-driven logistics optimization, these innovations empower businesses to meet growing consumer demands efficiently and competitively.
key company profiles
ď‚· Amazon Logistics
ď‚· DHL
ď‚· FedEX
ď‚· UPS
ď‚· Alibaba
ď‚· JD.Com
ď‚· Kerry Logistics
ď‚· Zepto
ď‚· Blinkit
ď‚· 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
The geographical scope of the Last-mile delivery commercial vehicles market report is divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The Last-mile delivery commercial vehicles market in Asia Pacific is expected to grow significantly during the forecast period.
North America is currently the dominant region in the last-mile delivery market, including the segment for commercial vehicles. In 2024, North America is expected to hold approximately over 35% of the global market share. North America benefits from a highly developed transportation network, including extensive road systems, distribution centers, and fulfillment hubs. This infrastructure supports efficient, multi-stop delivery routes that keep costs low and delivery times short.
The region is home to major e-commerce players such as Amazon, Walmart, and Target, which have set high standards for fast and reliable delivery. The surge in online shopping has led to increased demand for last-mile delivery services, with consumers expecting same-day or next-day delivery as the norm. North American companies are at the forefront of adopting advanced logistics technologies, including real-time monitoring, route optimization, and automation. The integration of electric vehicles (EVs) and autonomous delivery solutions is accelerating, further enhancing the efficiency and sustainability of last-mile operations.
While North America leads in market size, Asia-Pacific is the fastest-growing region for last-mile delivery services, including commercial vehicle deliveries. The rise of a middle class, increased smartphone penetration, and growing internet connectivity are driving a surge in online shopping. Platforms like Alibaba, Flipkart, and local quick-commerce apps are investing heavily in last-mile logistics to meet rising consumer expectations.
Last Mile Delivery Commercial Vehicle Market News and Key Development:
The Last-mile delivery commercial vehicles market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Last-mile delivery commercial vehicles market are:
- On February, 2025, Eicher Motors announced a partnership with Amazon to introduce up to 1,000 zero-emission electric trucks across various payload categories into Amazon’s delivery operations over the next five years. These vehicles will be deployed through Amazon’s transport service partners, supporting the e-commerce giant’s commitment to sustainability and carbon neutrality. Eicher also has a separate agreement with ITC to supply 100 electric vehicles for mid-mile transportation.
- In February, 2025, FedEx deployed an additional 13 Tata Ace electric vehicles in Mumbai, increasing its total EV fleet in Indian cities to 59. This move is part of FedEx’s strategy to achieve carbon-neutral operations globally by 2040 and supports sustainable last-mile delivery in India’s major urban centers.
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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights
