Last-Mile Delivery Commercial Vehicles Market Sees Significant Growth Driven by E-commerce Boom

The global market for last-mile delivery commercial vehicles is projected to grow substantially, reaching an estimated US$ 132,587.38 million by 2031, up from US$ 77,982.14 million in 2024. This represents a robust Compound Annual Growth Rate (CAGR) of 26.9% from 2025 to 2031.

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Executive Summary and Global Market Analysis

The last-mile delivery commercial vehicles market is a vital component of today's logistics landscape. Its rapid expansion is primarily fueled by the explosive growth of e-commerce, increasing consumer demands for faster and more convenient deliveries, and the ongoing trend of urbanization.

In 2024, the market was valued at approximately US$ 77 billion. Vans and light trucks currently dominate this sector, prized for their capacity and adaptability in handling a wide range of deliveries. As online retail continues to transform the shopping experience, businesses and logistics providers are heavily investing in advanced technologies, sustainable solutions, and improved infrastructure to streamline delivery networks and satisfy evolving customer expectations.

Geographically, North America and Europe currently lead the market, benefiting from well-developed logistics infrastructure and high e-commerce adoption rates. However, Asia-Pacific is emerging as the fastest-growing region, propelled by rapid digital adoption and increasing urbanization. The market is highly competitive, with established logistics giants and innovative startups vying to improve efficiency, cut costs, and enhance customer satisfaction. A significant shift towards electric and low-emission commercial vehicles is also underway, driven by growing environmental concerns, further accelerating the market's evolution.

Market Segmentation

The market for last-mile delivery commercial vehicles is segmented across several key factors:

• Vehicle Type: Cars, Vans, and Trucks. Vans held the dominant market share in 2024 due to their versatility, efficiency, and maneuverability in urban environments.
• Propulsion Type: Internal Combustion Engine (ICE) and Electric. ICE vehicles dominated the market in 2024, primarily benefiting from a well-established and extensive fuel infrastructure.
• End-User: E-commerce, Food Delivery, Courier Services, and Others. E-commerce emerged as the leading end-user segment due to its explosive growth and high delivery volume.
• Geography: North America, Europe, Asia-Pacific, Middle East & Africa, and South & Central America. North America dominated the market in 2024.

Key Market Drivers and Opportunities

Sustainability and the Shift Toward Electric Commercial Vehicles

Growing environmental concerns and stricter emission regulations are accelerating the adoption of electric and alternative fuel-powered commercial vehicles. Governments and businesses are increasingly prioritizing green logistics to reduce carbon footprints and meet sustainability goals. Major logistics companies like Amazon and FedEx are heavily investing 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 build a positive brand image. Advances in battery technology and the expansion of charging infrastructure are 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 presents significant opportunities for market 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 allows logistics providers to offer faster and more flexible services. Additionally, the use of data analytics and predictive modeling enables 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.

Market Size and Share Analysis

• Vans Lead by Vehicle Type: The vans segment led the market in 2024 because of their ideal balance between cargo capacity and maneuverability, allowing them to navigate congested city streets more easily than larger trucks while carrying significantly more goods than two-wheelers.
• ICE Vehicles Dominate by Propulsion Type: ICE commercial vehicles currently benefit from an extensive and well-established fuel infrastructure, ensuring easy refueling globally. This accessibility minimizes downtime, which is crucial for time-sensitive services like e-commerce and food delivery. In regions where charging infrastructure is still developing, ICE vehicles offer unmatched convenience and support continuous operations.
• E-commerce is the Largest End-User: The e-commerce sector is the dominant end-user due to its explosive growth, high delivery volume, and the increasing consumer expectation for fast and efficient service. The global surge in online shopping translates into millions of daily deliveries, driving the demand for agile vehicles like cars and vans.
• Asia-Pacific is the Fastest-Growing Region: The Asia-Pacific region, particularly China, India, and Japan, is experiencing the fastest growth in the last-mile delivery commercial vehicles market. Southeast Asian countries are also witnessing surges in demand due to rising incomes and urbanization. This growth is regionally varied, shaped by economic development, urbanization, government policies, and evolving consumer preferences.

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

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 Research Report Guidance

• The report includes qualitative and quantitative data in the Last-mile delivery commercial vehicles market across drive type, propulsion, sales channel, and geography.
• The report starts with the key takeaways (chapter 2), highlighting the key trends and outlook of the Last-mile delivery commercial vehicles market.
• Chapter 3 includes the research methodology of the study.
• Chapter 4 further includes ecosystem analysis along with Porter’s analysis.
• Chapter 5 highlights the major industry dynamics in the Last-mile delivery commercial vehicles market, including factors that are driving the market, prevailing deterrents, potential opportunities as well as future trends. Impact analysis of these drivers and restraints is also covered in this section.
• Chapter 6 discusses the Last-mile delivery commercial vehicles market scenario, in terms of historical market revenues, and forecast till the year 2031.
• Chapters 7 to 10 cover Last-mile delivery commercial vehicles market segments by type, propulsion type, end user and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America. They cover market revenue forecast and factors driving the market.
• Chapter 11 describes the competitive analysis along with the heat map analysis for the key players operating in the market.
• Chapter 12 describes the industry landscape analysis. It provides detailed description of business activities such as market initiatives, new developments, mergers, and joint ventures globally, along with a competitive landscape.
• Chapter 13 provides detailed profiles of the major companies operating in the Last-mile delivery commercial vehicles market. The companies have been profiled on the basis of their key facts, business descriptions, products and services, financial overview, SWOT analysis, and key developments.
• Chapter 13, i.e., the appendix is inclusive of a brief overview of the company, list of abbreviations, and disclaimer.

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