United Parcel Service Holds a Leading Position in the Fragmented First and Last Mile Delivery Market with a 1% Market

First and Last Mile Delivery Market

First and Last Mile Delivery Market research

First and Last Mile Delivery Market segments

The Business Research Company’s First and Last Mile Delivery Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, October 16, 2026 /EINPresswire.com/ -- The first and last mile delivery sector is rapidly evolving as businesses strive to meet increasing consumer demands for speed and convenience. This market is characterized by a diverse range of players, each leveraging cutting-edge technology and innovative logistics solutions to optimize delivery services in an increasingly complex supply chain environment.

Market Size and Growth Trajectory in the First and Last Mile Delivery Market
The first and last mile delivery market is on track to surpass $388 billion by 2030. It represents a significant portion of the broader Couriers And Messengers market, which itself is projected to hit approximately $1,662 billion by 2030. This segment will account for nearly 23% of that total, equating to close to 3% of the overarching Transport Services industry anticipated to reach $12,477 billion. The sector is expected to sustain a healthy growth rate with a compound annual growth rate (CAGR) of 10% through 2030.

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Asia Pacific Leads Regional Expansion in First and Last Mile Delivery
Asia Pacific is forecast to become the largest regional market by 2030, valued at $126 billion, up from $71 billion in 2025, growing at a robust 12% CAGR. This growth is powered by the rapid expansion of e-commerce and quick-commerce platforms, the dense urban populations demanding efficient delivery systems, extensive investments in warehousing and fulfillment infrastructure, and an increasing number of on-demand delivery services catering to customer expectations for faster order fulfillment.

The United States is expected to hold the largest national market share by 2030, reaching $105 billion from $69 billion in 2025 at a steady 9% CAGR. This growth is supported by an increase in online retail transactions, omni-channel distribution networks, the rise of micro-fulfillment centers located near densely populated areas, advanced delivery tracking technologies, and ongoing enhancements in delivery networks designed to boost efficiency and customer satisfaction.

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Main Drivers Behind Rapid Market Expansion
The global first and last mile delivery industry is accelerating due to several critical factors. First, the continuous rise of e-commerce generates large parcel volumes that require efficient delivery infrastructure. Retailers expanding their direct-to-consumer channels, along with growth in digital payments and mobile commerce, further fuel this trend, contributing roughly 2.0% annual growth.

Another significant driver is the growing demand for quick commerce and same-day delivery. Consumers increasingly expect rapid fulfillment of groceries, household essentials, and other goods. To meet these demands, businesses are establishing localized distribution centers and dark stores, while retailers invest heavily in faster delivery models and expanded coverage. This factor adds around 1.7% annual growth to the market.

Technological innovations in logistics and automation also play a vital role in propelling growth. Companies are adopting artificial intelligence, advanced route optimization software, automated sorting, and real-time parcel tracking. These tools help reduce costs, improve accuracy, maximize fleet use, and handle higher shipment volumes without compromising service quality. This driver is estimated to contribute about 1.5% annual growth.

Product Segments Offering Significant Growth Opportunities
Dry goods, postal items, and liquid goods are the main categories driving the first and last mile delivery market’s expansion, collectively expected to add over $148 billion in value between 2025 and 2030. Specifically, dry goods will contribute $81 billion, postal items $41 billion, and liquid goods $26 billion. Growth is driven by increasing online retail order volumes, time-sensitive parcel delivery demands, digital delivery platforms, expanding urban logistics networks, and ongoing investments in fulfillment and transport infrastructure focused on speed and convenience.

Dominance of Dry Goods Within Market Revenue
Among product types, dry goods will command the largest share of revenue, representing 55% of the total market or $213 billion by 2030. This is driven by the growing volume of online shipments for consumer products, the demand for reliable parcel transport, the expansion of retail and direct-to-consumer channels, increased digital commerce in both developed and emerging markets, and improvements in warehousing and fulfillment enabling high-volume delivery.

Detailed Market Segmentation by Vehicle and Industry
The first and last mile delivery market is further segmented by vehicle type into light duty, medium duty, and heavy duty vehicles. Additionally, the market is categorized by end use sectors including chemical, pharmaceutical and healthcare, fast-moving consumer goods, hi-tech products, food and beverage, and other industries.

Hyperlocal Logistics as a Catalyst for Speed and Efficiency
Cutting-edge hyperlocal logistics solutions are revolutionizing the first and last mile delivery market by accelerating delivery speeds, enabling real-time order fulfillment, and enhancing overall supply chain efficiency. For example, in December 2025, Grojet introduced Grojet Express in Mangalore, a round-the-clock hyperlocal pickup and delivery service tailored for both consumers and businesses. This service leverages an optimized network, real-time tracking, and technology-driven operations to improve pickup efficiency, reduce turnaround times, and strengthen doorstep delivery across the city.

Reasons Behind Market Fragmentation
Despite the rapid growth, the first and last mile delivery market remains fragmented, with the top 10 companies accounting for only 5% of total revenue in 2024. Complexities such as intricate last-mile networks, substantial infrastructure requirements, integration of real-time tracking systems, route optimization challenges, and the need for speed, reliability, and cost control in urgent deliveries act as operational and technological barriers. Leading firms maintain their market share by offering diversified logistics services, global transport networks, advanced supply chain solutions, and ongoing innovation in last-mile delivery and fulfillment technologies. As demand for faster delivery, real-time visibility, automated warehousing, and efficient urban logistics rises, collaborations, technology adoption, and regional expansion are expected to reinforce their positions.

Market Leaders and Their Shares in 2024
In 2024, United Parcel Service Inc. led with a 1% market share, followed closely by DHL Global Forwarding, DB Schenker, Kuehne + Nagel International AG, and DSV A/S, each also holding approximately 1%. Other notable players include FedEx Corporation, CEVA Logistics, Nippon Express Co. Ltd., Kerry Logistics Network Limited, and XPO Logistics, each with market shares ranging from 0.3% to 0.4%.

Strategic Moves for Industry Leadership
Companies are focusing on several key strategies to stay competitive, including enhancing hyperlocal logistics to speed up deliveries and improve accuracy, utilizing real-time tracking technologies to boost visibility and customer experience, expanding distributed warehousing networks to improve coverage, and integrating artificial intelligence for better planning and delivery precision.

United Parcel Service’s Leading Role
United Parcel Service Inc. emerged as the top global sales leader in 2024 with a 1% share of the market. Its logistics and parcel delivery division serves the first and last mile delivery sector extensively by offering parcel delivery, last-mile solutions, route optimization, and supply chain logistics aimed at e-commerce fulfillment, retail distribution, and time-sensitive shipments.

Key Players in the First and Last Mile Delivery Industry
Besides United Parcel Service Inc., prominent companies shaping the market include DHL Global Forwarding, DB Schenker, Kuehne + Nagel International AG, DSV A/S, FedEx Corporation, CEVA Logistics, Nippon Express Co. Ltd., Kerry Logistics Network Limited, XPO Logistics, Dachser Group SE & Co. KG, China Post Group Corporation, STO Express, C.H. Robinson, The Toll Group, SNCF Group, J.B. Hunt Transport Inc., Swift Transportation Company, Transtech Logistics Pvt Ltd., TNT Holdings B.V., and Concargo Private Limited.

Influence of Raw Material Suppliers, Wholesalers, and End Users
Leading raw material suppliers supporting the first and last mile delivery market include Michelin Group, Bridgestone Corporation, The Goodyear Tire & Rubber Company, International Paper Company, Smurfit Westrock plc, DS Smith plc, Sealed Air Corporation, Berry Global Group Inc., BASF SE, Exxon Mobil Corporation, Shell plc, Contemporary Amperex Technology Co. Limited, BYD Company Limited, Robert Bosch GmbH, Zebra Technologies Corporation, Honeywell International Inc., Siemens AG, Toyota Motor Corporation, Ford Motor Company, Tata Motors Limited, Rivian Automotive Inc., Mercedes-Benz Group AG, and Volvo Group.

Major wholesalers and distributors in this space include Sysco Corporation, US Foods Holding Corp., Performance Food Group Company, Gordon Food Service, McLane Company Inc., United Natural Foods Inc., KeHE Distributors LLC, Core-Mark Holding Company Inc., SpartanNash Company, C&S Wholesale Grocers Inc., Lineage Logistics Holdings LLC, Americold Realty Trust Inc., Martin Brower Company LLC, Reinhart Foodservice LLC, Bidfood Group, Brakes Group, PFG Customized Distribution LLC, FreshPoint Inc., MBM Corporation, Ben E. Keith Company, Restaurant Depot LLC, Jetro Cash and Carry Enterprises LLC, Metro Supply Chain Group, Bunzl Distribution USA LLC, and Imperial Dade.

Significant end users driving market demand include Amazon.com Inc., Walmart Inc., Uber Technologies Inc., Lyft Inc., DoorDash Inc., Deliveroo plc, Just Eat Takeaway.com N.V., Instacart Inc., Glovoapp23 S.L., Grab Holdings Limited, GoTo Group, Swiggy Limited, Eternal Limited (Zomato), Dunzo Digital Private Limited, Meituan, Rappi Inc., JD.com Inc., Coupang Inc., MercadoLibre Inc., Reliance Retail Limited, Flipkart Internet Private Limited, and Alibaba Group Holding Limited.

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• Total addressable market (TAM) analysis
• Company scoring matrix graphics and tables
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• Market hotspots infographics
• Key technologies and future trend analysis
• Updated graphics and tables

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