Last-Mile Delivery Commercial Vehicles Market Size and Forecast (2024–2031)
The global last-mile delivery commercial vehicles market is projected to grow from US$ 77,982.14 million in 2024 to US$ 1,32,587.38 million by 2031, registering a robust CAGR of 26.9% from 2025 to 2031.

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Executive Summary and Global Market Outlook

The last-mile delivery commercial vehicles market plays a pivotal role in today’s fast-evolving logistics landscape, fueled by the rapid expansion of e-commerce, rising consumer demand for faster deliveries, and increasing urbanization. As of 2024, the market stands at approximately USD 77.98 billion, with light commercial vehicles—including vans and small trucks—dominating due to their operational flexibility and cargo capacity.

The surge in online shopping continues to reshape global retail, pushing businesses and logistics providers to adopt advanced technologies, develop sustainable mobility solutions, and invest in optimized delivery infrastructure. The shift toward real-time delivery, route optimization, and automation is driving innovation in vehicle design and fleet management.

Regional Insights

• North America and Europe remain the market frontrunners, underpinned by mature e-commerce ecosystems, well-developed transportation networks, and significant investments in last-mile logistics.
• Asia-Pacific is the fastest-growing region, powered by booming urban populations, increasing smartphone penetration, and the aggressive expansion of e-commerce platforms across emerging economies.

Key Market Trends

• Electrification and Sustainability: Stringent emission regulations and growing environmental awareness are accelerating the adoption of electric and hybrid commercial vehicles in last-mile delivery fleets.
• Technology Integration: Companies are leveraging AI, IoT, and data analytics to streamline delivery operations, enhance vehicle utilization, and improve customer experiences.
• Competitive Landscape: The market features intense competition between traditional logistics companies and agile tech-driven startups, all aiming to reduce costs, improve speed, and meet evolving customer expectations.

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.

Market leaders and key company profiles

  Amazon Logistics

  DHL

  FedEX

  UPS

  Alibaba

  JD.Com

  Kerry Logistics

  Zepto

  Blinkit

  and Grab

Last-Mile Delivery Commercial Vehicles Market Report Coverage and Deliverables

Report Title: Last-Mile Delivery Commercial Vehicles Market Outlook (2021–2031)

This comprehensive report offers an in-depth analysis of the global last-mile delivery commercial vehicles market, including the following key areas:

• Market Size and Forecast:
  Evaluation of market size and growth projections at global, regional, and country levels across all major segments.
• Market Dynamics:
  Insightful analysis of key market drivers, challenges, restraints, and emerging opportunities influencing the market landscape.
• Strategic Frameworks:
  Detailed Porter's Five Forces analysis and SWOT analysis to assess competitive intensity and strategic positioning.
• Market Trends and Insights:
  Examination of significant market trends, regulatory landscape, regional developments, and technological advancements shaping the industry.
• Competitive Landscape:
  Comprehensive overview of the competitive environment, including market concentration, heat map analysis, and profiles of leading players.
• Company Profiles:
  In-depth profiles of prominent companies operating in the last-mile delivery commercial vehicles market, highlighting business strategies, product offerings, financials, and recent developments.

Geographical Scope and Regional Insights: Last-Mile Delivery Commercial Vehicles Market

The Last-mile Delivery Commercial Vehicles Market report encompasses five key regions: North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. Among these, Asia Pacific is poised for significant growth during the forecast period, while North America currently dominates in terms of market share.

North America: The Leading Market

In 2024, North America is projected to hold over 35% of the global last-mile delivery commercial vehicles market share. This dominance is driven by the region's highly developed transportation infrastructure, including expansive road networks, advanced distribution centers, and strategically located fulfillment hubs. These elements enable cost-efficient, multi-stop delivery routes that reduce delivery times and improve service reliability.

The presence of leading e-commerce players such as Amazon, Walmart, and Target has also accelerated the demand for last-mile delivery solutions. These companies have set industry benchmarks for same-day and next-day delivery, reshaping consumer expectations and compelling logistics providers to enhance delivery capabilities.

Furthermore, North American companies are pioneering the adoption of advanced logistics technologies, including:

• Real-time delivery tracking
• Route optimization algorithms
• Fleet automation and management
• Deployment of electric and autonomous vehicles

The integration of electric vehicles (EVs) and autonomous delivery solutions is rapidly gaining momentum, improving both the efficiency and sustainability of last-mile operations.

Asia Pacific: Fastest Growing Region

While North America leads in market size, Asia Pacific is the fastest-growing region in the last-mile delivery commercial vehicles segment. Several macroeconomic and technological trends are fueling this growth, including:

• The emergence of a large middle-class population
• Widespread smartphone adoption
• Expanding internet connectivity

The rapid growth in e-commerce platforms such as Alibaba, Flipkart, and various quick-commerce startups has significantly increased the demand for efficient last-mile delivery services. These platforms are heavily investing in innovative logistics networks, including dedicated last-mile delivery fleets, to cater to the rising expectations of urban consumers.

Report Structure and Research Coverage

The report offers both qualitative and quantitative insights, analyzing the last-mile delivery commercial vehicles market across various parameters such as drive type, propulsion, sales channel, and geography.

• Chapter 2: Key takeaways highlighting major trends and market outlook.
• Chapter 3: Research methodology.
• Chapter 4: Ecosystem overview and Porter’s Five Forces analysis.
• Chapter 5: Market dynamics – drivers, restraints, opportunities, and future trends, along with impact analysis.
• Chapter 6: Market size and forecast from historical data through to 2031.
• Chapters 7–10: Segment-wise analysis by vehicle type, propulsion, end-user, and region (North America, Europe, Asia Pacific, MEA, South & Central America).
• Chapter 11: Competitive landscape and heat map analysis of key market players.
• Chapter 12: Industry landscape, featuring company strategies, partnerships, mergers, and developments.
• Chapter 13: Company profiles covering business overviews, product offerings, financial highlights, SWOT analysis, and recent developments.
• Appendix: Glossary, abbreviations, and disclaimers.

Key Developments and Market Updates

The market is shaped by continuous innovation and strategic collaborations aimed at enhancing sustainability and delivery efficiency. Notable developments include:

• February 2025 – Eicher Motors announced a partnership with Amazon to deploy up to 1,000 electric trucks across multiple payload segments over the next five years. These trucks will be integrated into Amazon’s delivery ecosystem through its logistics partners, aligning with the company's carbon-neutral goals. Eicher also entered a separate agreement with ITC to supply 100 electric vehicles for mid-mile operations.
• February 2025 – FedEx expanded its electric delivery fleet in India, adding 13 Tata Ace EVs in Mumbai, bringing its total Indian EV fleet to 59 vehicles. This move supports FedEx’s target of carbon-neutral operations by 2040, demonstrating its commitment to sustainable logistics in major Indian cities.

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