Executive Summary and Global Market Analysis
The global last-mile delivery commercial vehicles market is poised for substantial growth, projected to rise from US$ 77,982.14 million in 2024 to US$ 1,32,587.38 million by 2031, registering a CAGR of 26.9% from 2025 to 2031.

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This market serves as a critical pillar in the modern logistics landscape, fueled by the rapid expansion of e-commerce, increasing consumer demand for fast and convenient deliveries, and accelerating urbanization. In 2024, commercial vehicles such as vans and light trucks dominate the segment due to their flexibility, cargo capacity, and suitability for urban environments.

As online retail continues to reshape global commerce, businesses and logistics providers are aggressively investing in technology, sustainable mobility, and smart infrastructure to streamline delivery operations and meet shifting customer expectations.

Regional Dynamics:

• North America and Europe lead the market, supported by mature logistics networks and high e-commerce adoption.
• Asia-Pacific emerges as the fastest-growing region, propelled by urban population growth, digital transformation, and evolving consumer behavior.

Market Trends:
The competitive landscape features both established logistics giants and agile startups, all aiming to boost operational efficiency, minimize delivery costs, and elevate customer satisfaction. Additionally, rising environmental concerns are driving a strong transition toward electric and low-emission commercial vehicles, shaping the future of last-mile logistics with sustainability at its core.

Last-Mile Delivery Commercial Vehicle Market – Segmentation Analysis

The segmentation of the last-mile delivery commercial vehicles market is based on drive type, propulsion, sales channel, and geography. The key segments contributing to the market analysis include:

• By Vehicle Type:
  The market is categorized into cars, vans, and trucks. In 2024, the vans segment led the market due to its optimal balance of cargo capacity, maneuverability, and cost-efficiency. Vans are particularly well-suited for urban logistics, capable of handling a broad spectrum of delivery tasks, from small parcels to bulk shipments, while easily navigating congested city environments.
• By Propulsion Type:
  The market is divided into Internal Combustion Engine (ICE) and Electric vehicles. The ICE segment dominated in 2024, owing to the widespread availability of fueling infrastructure. In regions with underdeveloped EV charging networks, such as parts of Asia-Pacific and Latin America, ICE vehicles continue to offer unmatched operational convenience and reliability for time-sensitive last-mile delivery.
• By End User:
  End users include e-commerce, food delivery, courier services, and others. E-commerce emerged as the dominant end-user segment in 2024, driven by the explosive growth in online retail and consumer expectations for fast, efficient delivery. High delivery volumes from platforms like Amazon, Flipkart, and Alibaba have accelerated demand for agile, versatile commercial vehicles—especially in densely populated urban areas.
• By Geography:
  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, benefiting from mature logistics infrastructure and advanced adoption of last-mile delivery solutions. However, Asia Pacific is the fastest-growing region, fueled by rapid urbanization, rising disposable incomes, and booming e-commerce sectors in countries such as China, India, Japan, Indonesia, and Vietnam.

Market Drivers and Growth Opportunities

1. Shift Toward Sustainable and Electric Delivery Fleets

Environmental regulations and rising awareness of climate change are accelerating the shift toward electric and alternative fuel-powered commercial vehicles. Governments and logistics companies alike are committing to sustainable delivery operations. Leading players such as Amazon and FedEx are actively deploying electric vans and trucks to meet sustainability targets, improve brand image, and reduce operational emissions. Ongoing advancements in battery technology and the expansion of EV charging infrastructure are making this transition increasingly viable and cost-effective.

2. Integration of Advanced Technologies and New Delivery Models

The adoption of autonomous vehicles, drones, and delivery robots is revolutionizing last-mile logistics by improving delivery efficiency and lowering costs. Innovative models such as crowdsourced delivery and micro-fulfillment centers are enabling faster, more flexible delivery services. Additionally, leveraging data analytics and predictive modeling allows for better route optimization, demand forecasting, and resource allocation. Companies embracing these innovations are gaining a competitive edge by enhancing customer satisfaction and operational scalability.

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

Geographical Scope and Market Overview: Last-Mile Delivery Commercial Vehicles

The last-mile delivery commercial vehicles market is geographically segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America. Among these, Asia Pacific is projected to witness the most rapid growth during the forecast period, driven by rising urbanization, growing e-commerce penetration, and increasing demand for efficient delivery solutions.

North America: Market Leader in 2024

As of 2024, North America dominates the global last-mile delivery market, accounting for over 35% of the total market share. This leadership is underpinned by a well-established transportation infrastructure, including a vast network of roads, distribution centers, and fulfillment hubs. These assets support highly efficient, multi-stop delivery routes, reducing both delivery times and operational costs.

The presence of major e-commerce giants such as Amazon, Walmart, and Target has accelerated the demand for fast and reliable delivery services. Consumers across the region increasingly expect same-day or next-day delivery, further fueling demand for last-mile delivery commercial vehicles.

North American logistics firms are also early adopters of advanced technologies, including real-time tracking, route optimization, and automated systems. In addition, electric vehicles (EVs) and autonomous delivery solutions are being rapidly integrated, enhancing both operational efficiency and environmental sustainability.

Asia Pacific: Fastest-Growing Region

While North America leads in market share, Asia Pacific is the fastest-growing region for last-mile delivery services. The expanding middle class, increased smartphone adoption, and improving internet connectivity are driving a surge in online shopping across the region.

E-commerce platforms such as Alibaba, Flipkart, and various quick-commerce startups are investing heavily in last-mile logistics infrastructure to meet evolving consumer expectations. These efforts are accelerating demand for commercial delivery vehicles throughout key markets including India, China, Southeast Asia, and Australia.

Last-Mile Delivery Commercial Vehicle Market Report Structure

The market research report offers both qualitative and quantitative insights, structured as follows:

• Chapter 2: Key Takeaways – Highlights major trends and strategic outlook.
• Chapter 3: Research Methodology – Outlines data sources and analytical approaches.
• Chapter 4: Ecosystem & Porter’s Analysis – Provides ecosystem mapping and competitive forces evaluation.
• Chapter 5: Market Dynamics – Discusses growth drivers, challenges, opportunities, and future trends, along with impact analysis.
• Chapter 6: Market Overview – Presents historical market data and projections up to 2031.
• Chapters 7–10: Market Segmentation – Analyzes the market by vehicle type, propulsion, end user, and geography, across all five regions.
• Chapter 11: Competitive Landscape – Features heat map and comparative analysis of key players.
• Chapter 12: Industry Landscape – Covers global market initiatives, product launches, mergers, and joint ventures.
• Chapter 13: Company Profiles – Detailed profiles of leading market players, including business overview, product/service offerings, financials, SWOT analysis, and recent developments.
• Appendix – Includes glossary, list of abbreviations, and disclaimers.

Recent Developments in the Last-Mile Delivery Commercial Vehicle Market

Key market advancements based on primary and secondary research:

• February 2025 – Eicher Motors and Amazon Partnership:
  Eicher Motors announced a major partnership with Amazon to deploy 1,000 electric trucks across various payload categories over five years. These zero-emission vehicles will be integrated into Amazon’s delivery ecosystem via its transport partners, reinforcing Amazon’s carbon neutrality goals. Eicher has also entered an agreement with ITC to supply 100 electric vehicles for mid-mile logistics.
• February 2025 – FedEx Expands EV Fleet in India:
  FedEx introduced 13 new Tata Ace electric vehicles in Mumbai, increasing its EV fleet in Indian cities to 59 vehicles. This deployment supports FedEx’s commitment to achieving global carbon neutrality by 2040 and enhances sustainable last-mile delivery across major Indian urban centers.

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