Last-Mile Delivery Commercial Vehicles Market Overview

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

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With the continued surge in online retail, logistics providers and businesses are investing in advanced technologies, sustainable vehicle solutions, and optimized delivery networks to enhance efficiency and meet evolving customer expectations.

Market Growth and Projections

• Market Size (2024): USD 77,982.14 million
• Projected Market Size (2031): USD 1,32,587.38 million
• CAGR (2025–2031): 26.9%

Regional Insights

• North America & Europe: Leading markets due to well-established logistics infrastructure and high e-commerce adoption.
• Asia-Pacific: Fastest-growing region, fueled by rapid digital transformation, urbanization, and expanding middle-class consumer bases.

Competitive Landscape

The market is highly competitive, with established logistics players and agile startups vying for dominance through innovations in automation, route optimization, and fleet electrification. Sustainability concerns are accelerating the shift toward electric and low-emission commercial vehicles, reshaping the future of last-mile delivery.

This dynamic growth underscores the increasing importance of efficient, cost-effective, and eco-friendly last-mile logistics solutions in the global supply chain.

Last-Mile Delivery Commercial Vehicle Market Segmentation Analysis

The last-mile delivery commercial vehicle market is segmented by vehicle type, propulsion type, end-user, and geography, providing a comprehensive understanding of industry dynamics.

By Vehicle Type

• Cars, Vans, and Trucks
• Vans dominated the market in 2024, owing to their versatility, optimal cargo capacity, and superior maneuverability in urban environments. They strike a balance between larger trucks (which struggle in congested areas) and smaller vehicles (which have limited load capacity), making them ideal for e-commerce and parcel delivery services.

By Propulsion Type

• Internal Combustion Engine (ICE) and Electric Vehicles (EVs)
• ICE vehicles led the market in 2024, primarily due to their widespread fuel infrastructure, reliability, and ease of refueling. In regions with underdeveloped EV charging networks—such as parts of Asia-Pacific and Latin America—ICE vehicles remain the preferred choice for logistics providers. However, increasing sustainability mandates and corporate electrification initiatives are accelerating the shift toward EVs.

By End-User

• E-commerce, Food Delivery, Courier Services, and Others
• E-commerce emerged as the dominant segment, driven by the exponential growth of online retail and consumer demand for rapid, efficient deliveries. Companies like Amazon, Alibaba, and Flipkart rely heavily on last-mile fleets, utilizing vans, cars, and scooters to meet delivery demands, particularly in densely populated urban centers.

By Geography

• North America, Europe, Asia-Pacific, Middle East & Africa, and South & Central America
• North America held the largest market share in 2024, supported by advanced logistics infrastructure, high e-commerce penetration, and strong corporate investments in fleet electrification.
• Asia-Pacific is the fastest-growing region, fueled by rapid urbanization, rising disposable incomes, and booming online retail markets in China, India, Japan, and Southeast Asia.

Market Drivers and Opportunities

1. Sustainability and the Shift Toward Electric Commercial Vehicles

• Stricter emissions regulations and corporate sustainability goals are accelerating the adoption of electric and alternative-fuel commercial vehicles.
• Major logistics players (Amazon, FedEx, UPS) are investing heavily in electric vans and trucks to reduce carbon footprints.
• Advances in battery technology and charging infrastructure are making EVs more viable for last-mile logistics.

2. Adoption of Advanced Technologies and Innovative Delivery Models

• Autonomous vehicles, drones, and delivery robots are transforming last-mile logistics by enhancing efficiency and reducing costs.
• Crowdsourced delivery and micro-fulfillment centers enable faster, more flexible services.
• Data analytics and AI-driven route optimization improve demand forecasting and fleet utilization.

Market Size and Share Insights

• Vans led the market by vehicle type due to their optimal balance of cargo space and urban agility.
• ICE vehicles maintained dominance in 2024, supported by global fuel infrastructure and operational reliability, though EV adoption is rising.
• E-commerce remains the largest end-user, driven by skyrocketing online shopping demand and expectations for same-day/next-day delivery.
• Asia-Pacific is the fastest-growing market, with China, India, and Southeast Asia fueling expansion due to urbanization and digital commerce growth.

This analysis highlights key trends shaping the last-mile delivery commercial vehicle market, emphasizing electrification, technological innovation, and regional growth dynamics as critical factors for future expansion.

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

Last-Mile Delivery Commercial Vehicles Market Overview

The global last-mile delivery commercial vehicles market is segmented 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 highest growth during the forecast period.

Market Leadership: North America

As of 2024, North America dominates the last-mile delivery commercial vehicles market, accounting for over 35% of the global market share. The region’s leadership is driven by:

• Advanced logistics infrastructure, including extensive road networks, distribution centers, and fulfillment hubs, enabling efficient multi-stop deliveries.
• Strong e-commerce presence, with giants like Amazon, Walmart, and Target setting high standards for fast and reliable deliveries, including same-day and next-day services.
• Early adoption of cutting-edge technologies, such as real-time tracking, route optimization, and automation, along with the rapid integration of electric vehicles (EVs) and autonomous delivery solutions to enhance sustainability and efficiency.

Fastest-Growing Region: Asia Pacific

While North America leads in market size, Asia Pacific is the fastest-growing region for last-mile delivery commercial vehicles, fueled by:

• Rising middle-class population, increased smartphone penetration, and expanding internet access, driving a surge in online shopping.
• Major e-commerce platforms like Alibaba, Flipkart, and quick-commerce apps heavily investing in last-mile logistics to meet escalating consumer expectations.

Market Research Report Structure

The Last-Mile Delivery Commercial Vehicles Market Research Report provides a comprehensive analysis, including:

1. Key Takeaways (Chapter 2) – Highlights market trends and outlook.
2. Research Methodology (Chapter 3) – Details the study’s approach.
3. Ecosystem & Porter’s Analysis (Chapter 4) – Examines industry dynamics.
4. Market Drivers, Restraints, and Opportunities (Chapter 5) – Identifies growth factors and challenges.
5. Historical & Forecast Market Data (Chapter 6) – Covers revenue trends up to 2031.
6. Segmentation Analysis (Chapters 7-10) – Breaks down the market by vehicle type, propulsion, end-user, and region.
7. Competitive Landscape (Chapters 11-12) – Features heat maps, key developments, mergers, and joint ventures.
8. Company Profiles (Chapter 13) – In-depth analysis of major players, including business strategies, financials, and SWOT analysis.

Recent Market Developments

• February 2025: Eicher Motors partnered with Amazon to deploy 1,000 zero-emission electric trucks over five years, supporting Amazon’s carbon-neutral goals. 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 aligns with FedEx’s global carbon-neutral target by 2040.
  
  About Us:
  Business Market Insights is a market research platform that provides subscription service for industry and company reports. Our research team has extensive professional expertise in domains such as Electronics & Semiconductor; Aerospace & Défense; Automotive & Transportation; Energy & Power; Healthcare; Manufacturing & Construction; Food & Beverages; Chemicals & Materials; and Technology, Media, & Telecommunications
  
  Author's Bio
  Akshay
  Senior Market Research Expert at Business Market Insights

Conclusion

The last-mile delivery commercial vehicles market is evolving rapidly, with North America leading in adoption and Asia Pacific emerging as the fastest-growing region. Technological advancements, sustainability initiatives, and booming e-commerce demand are key drivers shaping the industry’s future.

About Us:
Business Market Insights is a market research platform that provides subscription service for industry and company reports. Our research team has extensive professional expertise in domains such as Electronics & Semiconductor; Aerospace & Défense; Automotive & Transportation; Energy & Power; Healthcare; Manufacturing & Construction; Food & Beverages; Chemicals & Materials; and Technology, Media, & Telecommunications

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