Last Mile Delivery Commercial Vehicle Market Trends, Size, Segment and Growth by Forecast to (2021-2031)

 Executive Summary and Global Market Analysis

The global last-mile delivery commercial vehicles market is poised for remarkable expansion, projected to grow from USD 77,982.14 million in 2024 to USD 132,587.38 million by 2031, at a robust CAGR of 26.9% from 2025 to 2031. This market has become a fundamental pillar of modern logistics, driven by the explosive rise of e-commerce, increasing consumer expectations for rapid and reliable deliveries, and accelerated urbanization.

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Commercial vehicles such as vans and light-duty trucks dominate the segment, valued for their operational flexibility, cargo capacity, and ability to navigate congested urban environments. As online retail continues to transform global commerce, logistics providers and retailers are making significant investments in digital technologies, infrastructure, and sustainable mobility solutions to streamline last-mile operations and enhance customer satisfaction.

North America and Europe currently lead in market share, underpinned by mature logistics networks and high online retail penetration. However, Asia-Pacific is emerging as the fastest-growing region, fueled by rapid urban expansion, increasing internet accessibility, and evolving consumer behavior.

The competitive landscape is marked by the presence of both long-established logistics companies and agile startups, all vying to optimize delivery efficiency, lower operational costs, and meet sustainability goals. In response to mounting environmental concerns and regulatory pressure, the adoption of electric and low-emission commercial vehicles is gaining momentum, reshaping the future of last-mile delivery worldwide.

Last Mile Delivery Commercial Vehicle Market – Segmentation Analysis

The last-mile delivery commercial vehicles market is segmented based on drive type, propulsion, sales channel, and geography. Key contributing factors to the market analysis include:

By Vehicle Type

The market is categorized into cars, vans, and trucks. In 2024, vans dominated the segment due to their adaptability, cargo capacity, and maneuverability, making them ideal for urban logistics. Vans serve a broad spectrum of delivery requirements—from small packages to bulk shipments—while efficiently navigating congested city streets and tight spaces.

By Propulsion Type

This segment includes Internal Combustion Engine (ICE) vehicles and electric vehicles. ICE vehicles led the market in 2024, primarily due to their compatibility with the existing global fuel infrastructure. They offer unmatched operational convenience, particularly in regions like Asia-Pacific and Latin America, where EV charging networks are still developing. Their ability to refuel quickly ensures minimal delivery downtime, which is essential for time-sensitive services.

By End-User

The market serves various sectors, including e-commerce, food delivery, courier services, and others. The e-commerce sector emerged as the dominant end-user in 2024, driven by the global boom in online shopping. Platforms like Amazon, Alibaba, and Flipkart have drastically increased delivery volumes, creating high demand for agile delivery vehicles. Urban centers, especially in Asia-Pacific, rely heavily on vehicles like vans, cars, and even scooters to meet growing consumer expectations for fast and reliable service.

By Geography

Geographically, the market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South & Central America. In 2024, North America led the global market, supported by established e-commerce infrastructure, advanced logistics networks, and strong demand for sustainable delivery solutions. However, Asia-Pacific is the fastest-growing region, fueled by rapid urbanization, rising disposable incomes, and increasing internet penetration across countries like China, India, Japan, Indonesia, and Vietnam.

Market Drivers and Opportunities

1. Transition to Sustainable and Electric Delivery Fleets

Growing environmental awareness and stricter emissions regulations are accelerating the shift toward electric and alternative-fuel commercial vehicles. Companies such as Amazon and FedEx are investing in electric vans and trucks to reduce emissions and align with global sustainability goals. Battery technology advancements and the expansion of charging infrastructure are making electric last-mile delivery increasingly viable and cost-effective.

2. Emergence of Smart Technologies and Innovative Delivery Models

The integration of emerging technologies offers vast potential for market expansion. Autonomous delivery vehicles, drones, and delivery robots are poised to revolutionize last-mile logistics by enhancing efficiency and reducing operational costs. Crowdsourced delivery networks and micro-fulfillment centers also offer agility in meeting fluctuating demand. Moreover, predictive analytics and real-time data usage allow logistics providers to optimize routes, improve resource allocation, and elevate the customer experience.

Market leaders and 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

Geographical Scope of the Last-mile Delivery Commercial Vehicles Market

The Last-mile delivery commercial vehicles market report spans five major regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Among these, Asia Pacific is projected to witness the fastest growth in the forecast period, driven by rising e-commerce adoption and digital transformation across developing economies.

Regional Insights

North America: Market Leader in 2024

North America currently dominates the global last-mile delivery commercial vehicles market, accounting for over 35% of the global market share in 2024. This leadership is underpinned by:

• A highly developed transportation infrastructure, including extensive road networks, distribution centers, and fulfillment hubs.
• The presence of major e-commerce giants like Amazon, Walmart, and Target, which have set the bar for rapid, efficient deliveries.
• Growing consumer expectations for same-day or next-day delivery, leading to increased demand for sophisticated logistics solutions.

North American companies are also leading in the adoption of cutting-edge logistics technologies, such as:

• Real-time tracking systems
• Route optimization software
• Automation and robotics
• Electric vehicle (EV) and autonomous delivery integrations, boosting operational efficiency and sustainability.

Asia Pacific: Fastest-Growing Region

While North America leads in size, Asia Pacific is the fastest-growing region for last-mile delivery services, including the commercial vehicle segment. Key growth drivers include:

• The rise of a burgeoning middle class
• Rapid smartphone and internet penetration
• Expansion of online shopping platforms like Alibaba, Flipkart, and various quick-commerce startups

These platforms are investing heavily in enhancing their last-mile delivery infrastructure to meet increasing consumer demand for convenience and speed.

Market Report Structure and Guidance

The market report delivers comprehensive qualitative and quantitative insights, segmented by drive type, propulsion, sales channel, and geography. Below is an outline of the report structure:

• Chapter 2 – Key Takeaways: Highlights major trends and future outlooks.
• Chapter 3 – Research Methodology: Details the approach and data sources.
• Chapter 4 – Ecosystem & Porter’s Analysis: Examines market forces and stakeholder dynamics.
• Chapter 5 – Market Dynamics: Covers key drivers, restraints, opportunities, and trends with impact analysis.
• Chapter 6 – Market Overview: Provides historical revenue data and forecasts through 2031.
• Chapters 7–10 – Market Segmentation: Includes analysis by vehicle type, propulsion, end-user, and regional breakdowns.
• Chapter 11 – Competitive Landscape: Includes heatmap analysis of major market players.
• Chapter 12 – Industry Landscape: Explores company strategies, developments, and global partnerships.
• Chapter 13 – Company Profiles: Provides in-depth profiles of key players, including business overviews, product portfolios, financials, SWOT analysis, and recent developments.
• Appendix – Contains company listings, abbreviations, and disclaimers.

Market News & Key Developments

Recent strategic moves in the last-mile delivery commercial vehicles market reflect the sector's growing commitment to sustainability and innovation:

• February 2025: Eicher Motors partnered with Amazon to introduce 1,000 zero-emission electric trucks across multiple payload categories over the next five years. These vehicles will support Amazon’s sustainability goals and will be operated by Amazon's transport service partners. Eicher also signed an agreement with ITC to provide 100 EVs for mid-mile logistics.
• February 2025: FedEx expanded its electric fleet in India by deploying 13 additional Tata Ace EVs in Mumbai, raising its total EV count in Indian cities to 59. This initiative aligns with FedEx’s objective to achieve carbon-neutral operations by 2040, reinforcing its commitment to sustainable last-mile logistics in urban environments.

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