Digital Last Mile Platform Market Size, Share and Trends 2025 to 2034

Digital Last Mile Platform Market Size and Forecast 2025 to 2034

The global digital last mile platform market size was calculated at USD 8.42 billion in 2024 and is predicted to reach around USD 32.67 billion by 2034, expanding at a CAGR of 14.52% from 2025 to 2034. The demand for efficient delivery services is driving the digital last-mile platform market. Rapidly grown e-commerce utilization is making rapid ways for digital last-mile platform services. The rowing consumer demand for delivery transparency is the key factor fueling digital last-mile platform manufacturing.

The development of sustainable delivery solutions and location-based tracking are transforming the global digital last-mile platform market.

Digital Last Mile Platform Market Key Takeaways

• North America led the global market with the largest market share in 2024.
• Asia Pacific is anticipated to grow at the fastest CAGR in the market during the forecast period.
• By component, the software/platform segment has held the largest market share in 2024.
• By component, the services segment is expected to grow at a remarkable CAGR during the forecast period.
• By deployment, the cloud segment held a significant share of the market in 2024.
• By application, the route optimization segment led the market in 2024.
• By application, the tracking segment is expected to expand at the fastest CAGR over the projected period.
• By end-user, the retail and e-commerce segment accounted for the biggest market share in 2024.
• By end-user, the logistics segment is projected to grow in the forecast period.

Rising Surge to Boost Last-Mile Delivery Services: Rapid Adoption of Artificial Intelligence (AI)

Artificial intelligence has become the primary technology in business, including in the digital last mile platform market. Several factors, including the determination of sustainable delivery, quick and efficient delivery, customer-centric and authentic delivery of goods, and transportation to provide a location and the ability to track delivery processes, are lubricating the AI leverage in digital last-mile solutions. Moreover, e-commerce adoption has increased the need to leverage automation to improve optimization mechanisms.

The massively expanding business requires automated technology to manage, optimize, and handle its logistics. Businesses are facing challenges to comply with customers' unique demands and preferences, where AI is seen as the customization to be used to boost consumer experiences, trust, and interest in their company as well as in their brand. The surge of organizations adopting cutting-edge technologies like AI to improve their last-mile platform is rapidly transforming the market.

• In January 2024, a Gartner, Inc. survey study report presented that 50% of supply chain leaders decided to implement generative AI (GenAI) till the end of 2024, of which 14% of organizations were already at the implementation stage in January. According to this survey data, chief supply chain officers (CSCOs) announced 5.8% of their function’s budget, on average, to GenAI.

Market Overview

The last mile performance is the definition of delivery of consumer goods (CPG), retail, or e-commerce businesses. The rising consumer awareness of delivery transparency is the factor involved in the innovation of the digital last mile platform market. The adoption of digital solutions, including electronic proof of delivery software (e-POD) and online payments, is transforming the last-mile delivery platform market. The digital last mile platform is a software-based system that helps to manage and optimize the final delivery process, including the selection and tracking of packaging, route of delivery, coordinator of delivery, and time outlook of the consumer goods.

Growing concern for continuous delivery solutions, along with improving safety standards, is shaking the market. Technological advancements in retail omnichannel and the utilization of predictive logistics are drawing opportunities for the platform to be enhanced. Furthermore, the digital last-mile platform is rapidly transforming due to rising demands for fast, efficient, last-mile delivery services. The increased demand for faster deliveries has surged due to the adoption of e-commerce gains to improve logistics and transportation settings.

• In September 2024, a Mobility-as-a-Service (MaaS) platform designed for last-mile EV fleet operators in India was launched by myTVS, a digital automotive aftermarket platform and part of the USD 3 billion TVS Mobility Group. This platform helps myTVS bring all its partners, including OEMs, to deliver a service range for the entire EV fleet life cycle under one roof.

Digital Last Mile Platform Market Growth Factors

• Demand for efficient delivery services: Increased online shopping has led to a rise in consumer demands for efficient delivery services that maintain transparency and location-based tracking.
• Government initiatives: Government investment in the development of smart cities and the scaling up of business enterprises is helping the adoption of cutting-edge services, including digital last-mile platforms.
• Technology advancements: The development of innovative technologies, including IoT technology, real-time delivery tracking, AI, and ML, are helping digital last-mile platforms enhance consumer experiences.
• Companies invest: The rising companies' focus on improving customer experiences and providing efficient delivery services has surged their investments in the development of novel solutions to support last-mile platforms, such as mobile apps, to promote customer-centric delivery of goods.

Market Scope

Market Dynamics

Drivers

Expanding e-commerce platform

The booming e-commerce use has led to online shopping and consumer demands for fast and reliable deliveries. To comply with consumer expectations, companies are developing efficient digital last mile platform market solutions. The rising need for transportation in deliveries due to increased complexity in omnichannel is surging due to the adoption of digital last-mile platforms.

E-commerce has offered platforms to ask for customized options and efficient services; the demands for personalized delivery options and real-time tracking are driving the need for digital last-mile platforms. Moreover, delivery last-mile platform provider companies are collaborating with e-commerce platforms to improve delivery capabilities and contribute to innovations. The utilization of e-commerce platforms has attributed to the need for personalized, efficient, and affordable last-mile delivery services, boosting the adoption of digital last-mile platforms.

Restraint

High logistics cost

The high cost of operations and expenses related to the adoption of modern technologies is hampering the digital last mile platform market. Operation cost-related fuel and labor causes significant costs to the business. High logistics costs further restrain the adoption of cutting-edge technologies, infrastructure, and growth initiatives. The limited access to modern technologies and investments in infrastructure development challenges the growth of digital last-mile platforms. However, government support and investments in businesses and companies can help overcome such hindrances and help them invest in cost-saving technologies and optimize operations.

Opportunity

Rising demand for sustainable delivery

The awareness of environmental impacts and reduction of carbon emissions has surged for the adoption of sustainable and eco-friendly delivery options, including drones, robotic deliveries, and electric vehicles. The increased adoption of mobile phones and e-commerce activities has fueled online delivery demands in every possible area, including resource-limited or hard-to-reach areas where robotic delivery helps to deliver small packages along with full transparency of the delivery process.

In the digital last mile platform market, drones have emerged with the advantage of reducing time and cost. Similarly, electronic vehicles provide an excellent consumer experience by providing delivery transparency. Electronic vehicles are experts in fast delivery services. Furthermore, major companies intend to invest in eco-friendly delivery solutions to promote sustainability and improve business outcomes.

• In November 2024, India’s homegrown e-commerce marketplace, Flipkart, launched more than 10,000 electric vehicles (EVs) in its delivery fleet.  This launch reflects Flipkart's determination to reach a fully electric last-mile logistics fleet by 2030 with the Climate Group’s EV100 initiative.

Components Insights

The software/platform segment has held the largest digital last mile platform market share in 2024. The segment growth is attributed to software, as it is pivotal for providing efficient optimization and management of last-mile delivery operations. Software/platform components can conduct a broad, streamlined delivery process. Software helps to reduce costs and improve efficiency by providing optimization of last-mile delivery operations. The software further helps to improve customer experiences by providing tracking access and real-time visibility to businesses to improve their delivery operations and conduct data-based and quick decisions.

Additionally, the services segment is expected to grow at a remarkable CAGR during the forecast period. The service segment is further divided into Business-to-Consumer (B2C), Business-to-Business (B2B), and Consumer-to-Consumer (C2C). Several services, including consulting services, managed services, support services, and implementation & integration services, are contributing to improving last-mile platform operations and consumer experiences. Managed services provide delivery and logistics management. On the other hand, consulting and support services provide development strategies to enhance operations and support customers to solve their inquiries and issues. Similarly, implementation and integration services allow access to cutting-edge technologies and systems to existing business systems.

Deployment Insights

The cloud segment held a significant share of the digital last mile platform market in 2024 due to the increased adoption of cloud-based platforms and services. Startups and small-scale businesses have surged in focus on the adoption of cloud-based solutions to improve route optimization and efficiency of last-mile delivery. The segment growth is further accounted for by the rising collaboration between startup businesses and end consumers to provide efficient real-time tracking and enhance consumer experiences. The ability of cloud-based solutions to provide real-time updates helps to improve delivery time and customize deliveries.

Application Insights

The route optimization segment led the digital last mile platform market in 2024. Business extremes include the adoption of route optimization software to enhance last-mile delivery efficiency, reduce cost, improve speed and sustainability, and reduce errors. Route optimization helps to understand fuel consumption and find simple and accurate routes, which further helps to improve customer experiences. Access to route optimization for delivery operators and end consumers helps enhance route efficiency. The surge of businesses to reduce carbon footprints also plays a crucial role in the adoption of route optimization software.

On the other hand, the tracking segment is expected to expand at the fastest CAGR over the projected period due to increased consumer demand for delivery transparency. Tracking software allows real-time tracking of consumer goods by providing tracking of the packaged location, shipping location, and end delivery route locations. Tracking helps to provide accurate delivery updates and makes it convenient for the customers. The rising consumer requirement for control of the delivery process makes tracking applications more popular.

End-User Insights

The retail and e-commerce segment accounted for the biggest digital last mile platform market share in 2024. This growth is accounted for by the increased utilization of e-commerce platforms and online shopping. The determination of retail and e-commerce platforms to deliver timely and efficient transportation of products makes them significant for market expansion. Retail & e-commerce platforms use advanced technologies such as route optimization algorithms, real-time tracking systems, and predictive analytics to enhance last-mile delivery operations and improve consumer satisfaction. The increased consumer demands for fast, flexible deliveries are driving the adoption of digital last-mile platforms in retail and e-commerce solutions.

On the other hand, the logistics segment is projected to grow in the forecast period due to increased demand for fast and reliable delivery services. Growing utilization of e-commerce led to demand for speedy deliveries. Furthermore, consumer demands for real-time tracking and route optimizations to improve their convenience are fueling the segment expansion. The demand for same-day and next-day deliveries has enhanced, making it more essential for logistics companies to adopt digital last-mile platforms. Moreover, companies' determination to increase consumer experience and delivery services is leading to the utilization of digital last-mile platforms.

• In April 2024, FarEye launched the 'Last-Mile Innovation Nexus' at the Last-Mile Leaders event to support startups in raising funds and receiving mentoring from global experts in the logistics sector.
  Regional Insights

North America led the global market with the largest market share in 2024 due to the extensive use of e-commerce and the presence of major businesses in the region. The increased demand for faster and more efficient deliveries is driving the market in North America. Moreover, the integration of cutting-edge technologies, including AI, Machine Learning, big data, and the Internet of Things (IoT) is fueling this growth. North American companies are raising collaborations and investments for the development of innovative delivery solutions to meet consumer expectations and enhance brand popularity.

• In September 2024, Uber Freight collaborated with Uber Direct, the company’s on-demand delivery-as-a-service platform, to build one of the largest logistics networks with one of the largest same-day delivery courier networks in North America.

The United States is leading the North American digital last mile platform market due to increased demand for same-day and next-day delivery services. The early adoption of digitalization has slowed this growth of the market. Additionally, the growing shift toward sustainability is encouraging the development of creative and eco-friendly delivery solutions in the country, which raises the need for digital last-mile platforms. Canada accounted for the second-least country leading the North American market due to increased government investments in digital infrastructure.

Asia Pacific is anticipated to grow at the fastest CAGR in the digital last mile platform market during the forecast period due to increased government support for digitalization and the utilization of e-commerce platforms. Competitive landscapes are steadily adapting cutting-edge technologies, including AI, ML, and IoT technologies. The advancing logistic and transportation infrastructure is allowing the region to contribute to the development of efficient and fast delivery services, which requires a digital last-mile platform.

China is leading the Asia Pacific digital last mile platform market due to the growing population of countries and the adoption of advanced technologies, the utilization of e-commerce platforms, and advanced logistics networks. However, India is expected to lead the Asian digital last-mile platform market in the forecast period due to rising government initiatives and investments in the development of digital infrastructure in the country. This investment further allows key Indian companies to collaborate and develop innovative digital last-mile platform solutions. The surge of companies providing delivery services in remote and rural areas is contributing to this growth.

• In January 2025, Bharti Airtel, one of India's largest telecom services providers, collaborated with Bajaj Finance, the country's largest private-sector non-banking financial company (NBFC), to develop one of India's largest digital platforms for financial services and transform last-mile delivery.

Digital Last Mile Platform Market Companies

• FarEye Technologies, Inc.
• The Descartes Systems Group Inc.
• Shipwell, Inc.
• Shipsy. io
• Onfleet
• Scurri Ltd.
• Bringg Delivery Technologies Ltd
• Loginext Solutions Private Limited
• Zebra Technologies Corporation
• Click Labs Inc.
• WorkWave LLC

Latest Announcements by Industry Leaders

• In January 2024, Noha Tohamy, Distinguished VP Analyst in Gartner’s Supply Chain Practice, stated that "chief supply chain officers (CSCOs) are looking at GenAI as the supportive technology to scale their pilot projects of broader digital transformation goods.”
• In January 2025, Rajeev Jain, managing director of Bajaj Finance, announced that “companies’ partnership with Bharti Airtel will not only enhance Indian digital infrastructure but will also generate the expertise and reach of two of India's leading and most trusted brands.” “This partnership is aimed at reaching last-mile delivery services even in remote areas,” he added.

Recent Developments

• In October 2024, DHL Express and its partner Toshi, an on-demand and hyper-local delivery service provider, introduced premium last-mile delivery options for the UK’s M25 area. DHL Express is a determinant for improving last-mile delivery services globally.
• In October 2023, Amazon introduced its new robotic system called Sequoia, which is designed to identify and store 75% faster inventory and reduce 25% time to process orders at a warehouse. This system significantly helps workplace safety and helps Amazon deliver to customers faster.

Segments Covered in the Report

By Components 

• Services
• Software

By Deployments 

• Cloud
• On-Premise

By Applications 

• Customer Communication 
• Route Optimization 
• Tracking 
• Analytics and Reporting
• Other Applications

By End Users

• Healthcare 
• Logistics 
• Retail and E-commerce 
• Food and Beverage 
• Other End Users 

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa