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

Executive Summary and Global Market Analysis:

The global last-mile delivery commercial vehicles market is poised to grow from US$ 77,982.14 million in 2024 to US$ 1,32,587.38 million by 2031, expanding at a robust CAGR of 26.9% from 2025 to 2031. This market serves as a critical component of the modern logistics ecosystem, fueled by the rapid expansion of e-commerce, increasing consumer demand for fast and convenient delivery, and ongoing urbanization.

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In 2024, commercial vehicles—primarily vans and light-duty trucks—constitute the majority of last-mile deliveries due to their adaptability and load capacity. As online retail continues to reshape consumer behavior, logistics providers and businesses are investing in advanced technologies, sustainable vehicle solutions, and delivery infrastructure to optimize last-mile operations and enhance service quality.

North America and Europe currently dominate the market, backed by well-developed logistics frameworks and high e-commerce penetration. Meanwhile, Asia-Pacific is emerging as the fastest-growing region, driven by accelerating digitalization, growing urban populations, and increasing mobile commerce.

The market is highly competitive, with established logistics companies and tech-driven startups competing to improve delivery efficiency, lower operational costs, and elevate customer experience. Additionally, growing environmental concerns and stricter emissions regulations are prompting a significant shift toward electric and low-emission commercial vehicles, reshaping the future of last-mile delivery.

Last-Mile Delivery Commercial Vehicle Market – Segmentation Analysis

The last-mile delivery commercial vehicle market is segmented by vehicle type, propulsion type, end-user, sales channel, and geography. Each segment plays a vital role in shaping market dynamics and identifying growth opportunities.

By Vehicle Type

The market is segmented into cars, vans, and trucks, with the vans segment dominating in 2024. Vans are widely favored for last-mile delivery due to their balance between cargo capacity and urban maneuverability. They offer the flexibility to handle both small parcels and bulk goods while easily navigating congested city streets—making them an ideal choice for modern urban logistics.

By Propulsion Type

Based on propulsion, the market is divided into internal combustion engine (ICE) and electric vehicles (EVs). The ICE segment led the market in 2024, primarily due to the established global fuel infrastructure that supports seamless operations. In regions such as Asia-Pacific and Latin America, where EV charging infrastructure remains limited, ICE vehicles offer superior accessibility and minimal downtime—critical for time-sensitive deliveries in sectors like e-commerce and food services.

By End-User

The end-user segments include e-commerce, food delivery, courier services, and others. E-commerce emerged as the dominant segment in 2024, fueled by the rapid expansion of online retail. Companies like Amazon, Flipkart, and Alibaba are driving millions of daily deliveries, especially in urban centers. The demand for quick and reliable delivery services has led to widespread adoption of agile delivery fleets, including vans, cars, and in some cases, scooters—particularly in densely populated regions like Asia-Pacific.

By Geography

Geographically, the market is segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South & Central America. North America led the market in 2024, supported by a well-developed logistics infrastructure and early adoption of advanced delivery technologies. However, Asia-Pacific is the fastest-growing region, driven by rapid urbanization, growing disposable income, and the digital transformation of retail in countries such as China, India, and Japan. Emerging Southeast Asian markets like Indonesia, Vietnam, and the Philippines are also witnessing accelerated growth due to increasing demand for fast, last-mile delivery solutions.

Market Drivers and Opportunities

Sustainability and the Shift Toward Electric Commercial Vehicles

Environmental concerns and tightening emission regulations are accelerating the shift to electric and alternative-fuel commercial vehicles. Governments and enterprises are increasingly embracing green logistics strategies to meet carbon reduction goals and enhance brand sustainability. Major players like Amazon and FedEx are actively investing in electric delivery fleets. Advances in battery technology and the expansion of EV charging infrastructure are further making electric last-mile delivery a viable and cost-effective option.

Adoption of Advanced Technologies and Innovative Delivery Models

Technological innovation is creating new frontiers in last-mile logistics. The rise of autonomous delivery vehicles, drones, and delivery robots promises to streamline operations and reduce costs. Furthermore, the deployment of crowdsourced delivery models and micro-fulfillment centers is enabling more responsive and localized delivery networks. The integration of data analytics and predictive modeling is enhancing demand forecasting, route optimization, and resource allocation. Logistics providers that embrace these technologies are better equipped to meet evolving customer expectations and remain competitive.

Market Outlook
The last-mile delivery commercial vehicle market is undergoing a transformative phase, driven by a confluence of technological innovation, environmental imperatives, and evolving consumer behavior. As businesses adapt to these shifts, those investing in sustainable mobility and smart logistics solutions will be best positioned for long-term success.

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

The geographical scope of the Last-mile delivery commercial vehicles market report is divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The Last-mile delivery commercial vehicles market in Asia Pacific is expected to grow significantly during the forecast period.

North America is currently the dominant region in the last-mile delivery market, including the segment for commercial vehicles. In 2024, North America is expected to hold approximately over 35% of the global market share. North America benefits from a highly developed transportation network, including extensive road systems, distribution centers, and fulfillment hubs. This infrastructure supports efficient, multi-stop delivery routes that keep costs low and delivery times short.

The region is home to major e-commerce players such as Amazon, Walmart, and Target, which have set high standards for fast and reliable delivery. The surge in online shopping has led to increased demand for last-mile delivery services, with consumers expecting same-day or next-day delivery as the norm. North American companies are at the forefront of adopting advanced logistics technologies, including real-time monitoring, route optimization, and automation. The integration of electric vehicles (EVs) and autonomous delivery solutions is accelerating, further enhancing the efficiency and sustainability of last-mile operations.

While North America leads in market size, Asia-Pacific is the fastest-growing region for last-mile delivery services, including commercial vehicle deliveries. The rise of a middle class, increased smartphone penetration, and growing internet connectivity are driving a surge in online shopping. Platforms like Alibaba, Flipkart, and local quick-commerce apps are investing heavily in last-mile logistics to meet rising consumer expectations.

Last Mile Delivery Commercial Vehicle Market News and Key Development:

The Last-mile delivery commercial vehicles market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Last-mile delivery commercial vehicles market are:

• On February, 2025, Eicher Motors announced a partnership with Amazon to introduce up to 1,000 zero-emission electric trucks across various payload categories into Amazon’s delivery operations over the next five years. These vehicles will be deployed through Amazon’s transport service partners, supporting the e-commerce giant’s commitment to sustainability and carbon neutrality. Eicher also has a separate agreement with ITC to supply 100 electric vehicles for mid-mile transportation.

• In February, 2025, FedEx deployed an additional 13 Tata Ace electric vehicles in Mumbai, increasing its total EV fleet in Indian cities to 59. This move is part of FedEx’s strategy to achieve carbon-neutral operations globally by 2040 and supports sustainable last-mile delivery in India’s major urban centers.

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