Executive Summary and Global Market Analysis:

The last-mile delivery commercial vehicles market is a critical component of modern logistics, driven by the rapid expansion of e-commerce, increasing consumer demand for fast and convenient deliveries, and ongoing urbanization trends. In 2024, the global market is valued at approximately USD 77.98 billion, with commercial vehicles—including vans and light trucks—dominating the sector due to their payload capacity and operational flexibility.

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As e-commerce continues to revolutionize retail, logistics providers and businesses are investing in advanced technologies, sustainable solutions, and optimized delivery networks to meet rising customer expectations. North America and Europe currently hold the largest market shares, supported by well-established logistics infrastructure and high e-commerce adoption. Meanwhile, Asia-Pacific is emerging as the fastest-growing region, fueled by rapid digital transformation, expanding urban populations, and increasing online retail penetration.

The market is highly competitive, with traditional logistics players and agile startups vying for dominance through innovations in efficiency, cost reduction, and customer experience. Additionally, growing environmental concerns are accelerating the shift toward electric and low-emission commercial vehicles, reshaping the future of last-mile delivery. With a projected CAGR of 26.9%, the market is expected to reach USD 132.59 billion by 2031, reflecting strong growth opportunities in the evolving logistics landscape.

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.

 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 Guide

Report Overview

This comprehensive report provides qualitative and quantitative analysis of the last-mile delivery commercial vehicle market, segmented by drive type, propulsion, sales channel, and geography.

Report Structure

Chapter 1: Introduction

• Overview of the last-mile delivery commercial vehicle market.

Chapter 2: Key Takeaways

• Highlights major market trends, insights, and future outlook.

Chapter 3: Research Methodology

• Details the research approach, data collection methods, and analytical frameworks used.

Chapter 4: Market Ecosystem & Porter’s Analysis

• Examines the industry ecosystem, key stakeholders, and competitive forces shaping the market.

Chapter 5: Market Dynamics

• Drivers: Factors fueling market growth.
• Restraints: Challenges hindering expansion.
• Opportunities: Emerging prospects for stakeholders.
• Future Trends: Projected developments in the industry.
• Includes an impact analysis of key drivers and restraints.

Chapter 6: Market Revenue Analysis & Forecast (2024–2031)

• Historical revenue trends and future market projections.

Chapters 7–10: Market Segmentation Analysis

• By Type (e.g., light commercial vehicles, cargo vans, e-bikes)
• By Propulsion Type (electric, ICE, hybrid, fuel cell)
• By End User (e-commerce, logistics, retail, FMCG)
• By Geography (North America, Europe, Asia Pacific, Middle East & Africa, South & Central America)
• Each section includes revenue forecasts and growth drivers.

Chapter 11: Competitive Analysis & Heat Map

• Evaluates key market players and their competitive positioning.

Chapter 12: Industry Landscape & Developments

• Covers market initiatives, mergers, acquisitions, partnerships, and joint ventures.
• Provides a competitive landscape overview.

Chapter 13: Company Profiles

• In-depth analysis of leading companies, including:
• Business overview
• Product & service offerings
• Financial performance
• SWOT analysis
• Recent developments

Appendix

• Company snapshots
• List of abbreviations
• Disclaimer

Latest Market News & Key Developments

The last-mile delivery commercial vehicle market is assessed through primary and secondary research, incorporating corporate publications, industry associations, and databases. Recent developments include:

• February 2025: Eicher Motors partnered with Amazon to deploy 1,000 zero-emission electric trucks across Amazon’s delivery network over the next five years. These vehicles will support Amazon’s sustainability goals and carbon-neutral operations. Eicher also secured a deal with ITC to supply 100 EVs for mid-mile logistics.
• February 2025: FedEx expanded its EV fleet in India with 13 additional Tata Ace electric vehicles in Mumbai, bringing its total to 59 EVs in the country. This initiative aligns with FedEx’s global 2040 carbon-neutral target and enhances sustainable last-mile delivery in urban centers.

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