Last-Mile Delivery Commercial Vehicles Market: Executive Summary & Global Market Analysis

The last-mile delivery commercial vehicles market is a critical component of today’s logistics landscape, driven by the rapid expansion of e-commerce, increasing consumer demand for faster and more convenient deliveries, and ongoing urbanization trends. In 2024, the global market is valued at approximately USD 77.98 billion, with commercial vehicles—including vans and light trucks—dominating the sector due to their payload capacity and operational flexibility.

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With online retail continuing to revolutionize consumer behavior, logistics providers and businesses are prioritizing investments in advanced technologies, sustainable solutions, and optimized delivery networks to meet rising expectations. North America and Europe remain the leading markets, benefiting from mature e-commerce ecosystems and well-developed logistics infrastructure. Meanwhile, Asia-Pacific is emerging as the fastest-growing region, fueled by accelerating digital adoption, expanding urban populations, and a booming online retail sector.

The competitive landscape is intensifying, with established logistics players and agile startups vying for market share through innovations in efficiency, cost reduction, and customer experience. Additionally, growing environmental concerns are accelerating the adoption of electric and low-emission commercial vehicles, reshaping the future of last-mile delivery.

Key Market Insights:

• Market Size (2024): USD 77.98 billion
• Projected Market Size (2031): USD 132.59 billion
• CAGR (2025-2031): 26.9%
• Dominant Segments: Light commercial vehicles (LCVs), electric delivery vans
• Leading Regions: North America, Europe (Asia-Pacific fastest-growing)
• Key Drivers: E-commerce growth, urbanization, demand for sustainable logistics

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

1. By Vehicle Type
• Cars, Vans, and Trucks
• The vans segment 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 (EVs)
• The ICE segment 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 rapid expansion of online retail, increasing consumer demand for fast deliveries, and the need for agile delivery solutions.
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 the fastest-growing region, fueled by rising e-commerce penetration, urbanization, and economic development in countries like China, India, and Japan.

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 vehicles in last-mile delivery. Major logistics players, including Amazon and FedEx, are investing heavily in electric vans and trucks to meet sustainability targets. Advances in battery technology and charging infrastructure further enhance the feasibility of green logistics, helping companies reduce carbon footprints and strengthen brand reputation.

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 costs. Additionally, crowdsourced delivery and micro-fulfillment centers enable faster, more flexible services. The use of data analytics and predictive modeling optimizes demand forecasting and resource allocation, allowing companies to stay competitive in an evolving market.

Market Size and Share Analysis

• Vans Lead by Vehicle Type – Their ideal balance of cargo space and urban maneuverability makes them indispensable for last-mile logistics, outperforming both larger trucks and smaller two-wheelers.
• ICE Dominates Propulsion Segment – The widespread availability of fuel stations ensures minimal downtime, making ICE vehicles a practical choice, especially in regions with limited EV infrastructure.
• E-Commerce Drives End-User Demand – The explosive growth of online shopping has made e-commerce the largest end-user, with companies relying on vans and scooters to meet rising delivery expectations.
• Asia-Pacific Emerges as Fastest-Growing Region – Rapid urbanization, increasing disposable incomes, and booming e-commerce markets in China, India, and Southeast Asia are key growth catalysts.

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 Research Report Guidance

• The report includes qualitative and quantitative data in the Last-mile delivery commercial vehicles market across drive type, propulsion, sales channel, and geography.
• The report starts with the key takeaways (chapter 2), highlighting the key trends and outlook of the Last-mile delivery commercial vehicles market.
• Chapter 3 includes the research methodology of the study.
• Chapter 4 further includes ecosystem analysis along with Porter’s analysis.
• Chapter 5 highlights the major industry dynamics in the Last-mile delivery commercial vehicles market, including factors that are driving the market, prevailing deterrents, potential opportunities as well as future trends. Impact analysis of these drivers and restraints is also covered in this section.
• Chapter 6 discusses the Last-mile delivery commercial vehicles market scenario, in terms of historical market revenues, and forecast till the year 2031.
• Chapters 7 to 10 cover Last-mile delivery commercial vehicles market segments by type, propulsion type, end user and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America. They cover market revenue forecast and factors driving the market.
• Chapter 11 describes the competitive analysis along with the heat map analysis for the key players operating in the market.
• Chapter 12 describes the industry landscape analysis. It provides detailed description of business activities such as market initiatives, new developments, mergers, and joint ventures globally, along with a competitive landscape.
• Chapter 13 provides detailed profiles of the major companies operating in the Last-mile delivery commercial vehicles market. The companies have been profiled on the basis of their key facts, business descriptions, products and services, financial overview, SWOT analysis, and key developments.
• Chapter 13, i.e., the appendix is inclusive of a brief overview of the company, list of abbreviations, and disclaimer.

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