Last mile delivery market expected to almost double in Europe by 2030
Recent research shows that revenue generated by the last mile transportation sector in Europe (which accounts for the delivery from a distribution centre to a consumer's front door) is projected to nearly double between 2022 and 2030, going from $39.6 billion to $74.7 billion. This is an increase of 8.3 percent every year.
During this period the global market will also double, reaching $297billion by 2030 and growing at a rate of 9.6%, up from $142.9 billion in 2022.
The importance placed by businesses and consumers on last mile logistics is becoming increasingly clear.
New investments in this sector are also affected by shifting client purchasing habits, preferred distribution methods, and levels of integration and standardisation.
The research highlighted the various modes of transport and how each is expected to grow on a global scale:
- Food delivery has the fastest growth, rising from $27.7 billion in 2022 to $62.9 billion by 2030, a growth rate of 10.8%.
- Consumer goods are expected to rise at 9.8%, from $47billion now to $99.6 billion by 2030.
- Dry goods increase by $100billion to reach $193.3billion by 2030
- 3PL’s accounted for $142.9 billion of the market in 2022 expected to rise to $204.2 billion, a 10.2% growth rate.
- Two-wheel deliveries are also expected to increase, probably as consumers start to expect more sustainable deliveries, from $80.4 billion to $151.7 billion by 2030.
- While high tech drone deliveries were the fastest growing delivery method expected to rise from $2.7 billion in 2019 to reach $54.3 billion by 2030, a massive growth rate of 24.8%.
Last mile delivery market drivers
- Covid19 accelerated the growth in online shopping and home delivery and since then consumers have become accustomed to the convenience of online shopping for a wide range of goods. Delivery solutions, previously providing delivery in a week are now able to offer a range of costed delivery options at the point of sale.
- New delivery solutions for the urban towns and cities are springing up all the time, from two-wheel bike deliveries to unmanned drones.
- Consumers expectations have also changed, not just how fast they expect a delivery, but also the various delivery options they are able to choose from.
- Sustainability is also having an influence on buyer behaviour, read our latest white paper on what consumers now expect from Sustainable Home Deliveries
- Many ecommerce retailers are now improving and expanding their fulfilment networks in order to provide consumers with improved delivery options other than just next day.
The last mile logistics market is not only B2C deliveries for retail and ecommerce, although it is the largest segment, but also B2B. However, B2B goods tend to be larger and more valuable and has an expected growth rate of 12.4% to 2030 reaching $85,674.3 million US.
To keep up with the market growth and customer expectations for delivery and time frames, logistics companies need to continuously modernise in order to maintain an efficient fleet and operation. To understand how Descartes can help your organisation delivery more for less contact us to speak to an expert.
