The Last-mile delivery commercial vehicles market size is expected to reach US$ 1,32,587.38 million by 2031 from US$ 77,982.14 million in 2024. The market is estimated to record a CAGR of 26.9% from 2025 to 2031.

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Executive Summary and Global Market Analysis:

The last-mile delivery commercial vehicles market is a cornerstone of the modern logistics ecosystem, propelled by the exponential growth of e-commerce, rising consumer expectations for speed and convenience, and ongoing urbanization. In 2024, the global last-mile delivery commercial vehicles market is estimated at approximately USD 77 billion, with commercial vehicles—such as vans and light trucks—accounting for the largest share of deliveries due to their capacity and versatility. As online shopping continues to reshape retail, businesses and logistics providers are investing heavily in advanced technologies, sustainable solutions, and infrastructure to optimize delivery networks and meet evolving customer demands.

North America and Europe currently lead the market, supported by robust logistics infrastructure and high e-commerce penetration, while Asia-Pacific is the fastest-growing region, driven by rapid digital adoption and urbanization. The market is characterized by fierce competition among established logistics giants and innovative startups, all striving to enhance efficiency, reduce costs, and improve customer satisfaction. Environmental concerns are prompting a shift toward electric and low-emission commercial vehicles, further accelerating market transformation.

Last-Mile Delivery Commercial Vehicle Market: Segmentation Analysis

The last-mile delivery commercial vehicle market is segmented by vehicle type, propulsion type, end-user, and geography, providing a comprehensive analysis of industry trends and growth drivers.

Market Segmentation Overview

1. By Vehicle Type
• Cars, Vans, and Trucks
• Vans dominated the market in 2024, owing to their versatility, optimal cargo capacity, and ability to navigate urban environments efficiently.
2. By Propulsion Type
• Internal Combustion Engine (ICE) and Electric Vehicles
• ICE vehicles led the market in 2024, supported by widespread fuel infrastructure, reliability, and operational convenience, particularly in regions with underdeveloped EV charging networks.
3. By End-User
• E-commerce, Food Delivery, Courier Services, and Others
• E-commerce emerged as the dominant segment, driven by the exponential growth of online shopping and consumer demand for fast, reliable deliveries.
4. By Geography
• North America, Europe, Asia-Pacific, Middle East & Africa, and South & Central America
• North America held the largest market share in 2024, while Asia-Pacific is projected to be the fastest-growing region, fueled by rapid urbanization, expanding e-commerce, and increasing investments in logistics infrastructure.

Key Market Drivers and Opportunities

1. Sustainability and the Shift Toward Electric Commercial Vehicles

Growing environmental concerns and stringent emission regulations are accelerating the adoption of electric and alternative fuel-powered commercial vehicles in last-mile delivery. Major logistics players, including Amazon and FedEx, are investing heavily in electric vans and trucks to meet sustainability goals and reduce carbon footprints.

Advancements in battery technology and the expansion of charging infrastructure are further enhancing the feasibility of electric vehicles (EVs), making them a viable long-term solution for eco-conscious logistics operations.

2. Adoption of Advanced Technologies and Innovative Delivery Models

The integration of autonomous vehicles, drones, and delivery robots is revolutionizing last-mile logistics by improving efficiency and reducing operational costs. Additionally, crowdsourced delivery models and micro-fulfillment centers enable faster, more flexible services.

The use of data analytics and predictive modeling optimizes demand forecasting and resource allocation, helping companies enhance delivery performance and customer satisfaction. Businesses that leverage these innovations will gain a competitive edge in the evolving last-mile delivery landscape.

Market Size and Share Analysis

By Vehicle Type: Vans Lead the Market

Vans dominate due to their ideal balance of cargo capacity and urban maneuverability, making them essential for parcel deliveries, e-commerce logistics, and food distribution.

By Propulsion Type: ICE Vehicles Maintain Dominance

Despite the rise of EVs, ICE vehicles remain the preferred choice due to their extensive refueling infrastructure, lower upfront costs, and operational reliability, particularly in developing regions.

By End-User: E-commerce Drives Demand

The explosive growth of online shopping has made e-commerce the largest end-user segment. Companies like Amazon, Alibaba, and Flipkart rely on a mix of vans, scooters, and compact trucks to meet rising consumer expectations for fast, efficient deliveries.

By Geography: Asia-Pacific Emerges as the Fastest-Growing Market

While North America leads in market share, Asia-Pacific (led by China, India, and Japan) is experiencing rapid growth due to increasing urbanization, rising disposable incomes, and expanding e-commerce penetration. Southeast Asian markets, including Indonesia and Vietnam, are also witnessing significant demand surges.

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

Last-Mile Delivery Commercial Vehicles Market Overview

The global last-mile delivery commercial vehicles market is segmented into five key regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Among these, Asia Pacific is projected to witness the highest growth during the forecast period, driven by rapid e-commerce expansion and increasing urbanization.

Market Leadership: North America Dominates

As of 2024, North America holds the largest market share, accounting for over 35% of global last-mile delivery commercial vehicle sales. This leadership is attributed to:

• Advanced logistics infrastructure, including extensive road networks, distribution centers, and fulfillment hubs, enabling efficient multi-stop deliveries.
• Strong presence of e-commerce giants like Amazon, Walmart, and Target, which have set high standards for fast and reliable deliveries, including same-day and next-day services.
• Early adoption of cutting-edge technologies, such as real-time tracking, route optimization, and automation, enhancing operational efficiency.
• Growing integration of electric vehicles (EVs) and autonomous delivery solutions, supporting sustainability and cost-effective last-mile logistics.

Fastest-Growing Region: Asia Pacific

While North America leads in market size, Asia Pacific is the fastest-growing region, fueled by:

• Rising middle-class population, increasing smartphone penetration, and expanding internet access, driving e-commerce demand.
• Heavy investments by major platforms like Alibaba, Flipkart, and quick-commerce apps in last-mile logistics to meet consumer expectations for speed and convenience.

Market Research Report Structure

The Last-Mile Delivery Commercial Vehicles Market Research Report provides a comprehensive analysis, structured as follows:

1. Key Takeaways (Chapter 2) – Highlights major market trends and future outlook.
2. Research Methodology (Chapter 3) – Details the study’s approach.
3. Ecosystem & Porter’s Analysis (Chapter 4) – Examines industry dynamics and competitive forces.
4. Market Dynamics (Chapter 5) – Covers growth drivers, challenges, opportunities, and emerging trends, supported by impact analysis.
5. Historical & Forecast Data (Chapter 6) – Analyzes past revenues and projections up to 2031.
6. Segment-wise Analysis (Chapters 7-10) – Breaks down the market by vehicle type, propulsion, sales channel, and region, including revenue forecasts.
7. Competitive Landscape (Chapters 11-12) – Features heatmap analysis, key player strategies, mergers, joint ventures, and industry developments.
8. Company Profiles (Chapter 13) – Profiles major players with business overviews, financials, SWOT analysis, and recent developments.
9. Appendix – Includes abbreviations, disclaimer, and additional company insights.

Recent Market Developments

• February 2025: Eicher Motors partnered with Amazon to deploy 1,000 electric trucks over five years, supporting Amazon’s carbon-neutral goals. Eicher also secured a deal with ITC to supply 100 EVs for mid-mile logistics.
• February 2025: FedEx expanded its EV fleet in India with 13 Tata Ace electric vehicles in Mumbai, bringing its total to 59 EVs in the country. This aligns with FedEx’s global 2040 carbon-neutral target.

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