Global First Mile Delivery Market to Reach US$110.9 Billion by 2030

The global market for First Mile Delivery estimated at US$77.2 Billion in the year 2024, is expected to reach US$110.9 Billion by 2030, growing at a CAGR of 6.2% over the analysis period 2024-2030. Truck, one of the segments analyzed in the report, is expected to record a 4.7% CAGR and reach US$48.0 Billion by the end of the analysis period. Growth in the Ship segment is estimated at 8.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$21.0 Billion While China is Forecast to Grow at 9.5% CAGR

The First Mile Delivery market in the U.S. is estimated at US$21.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$22.4 Billion by the year 2030 trailing a CAGR of 9.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.2% and 6.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.0% CAGR.

Global First Mile Delivery Market – Key Trends & Drivers Summarized

Why Is First Mile Delivery Evolving Into a Strategic Pillar of Supply Chain Efficiency?

In today’s rapidly shifting global commerce landscape, first mile delivery—the process of moving goods from the point of origin, such as a manufacturing facility or supplier warehouse, to a central distribution center or fulfillment hub—has emerged as a vital link in the end-to-end logistics chain. Traditionally overlooked in favor of last mile logistics, the first mile is now garnering strategic focus due to its influence on delivery timelines, cost efficiency, and inventory accuracy. As retailers transition to omnichannel fulfillment models and consumers demand faster, traceable delivery, pressure is mounting on upstream logistics to perform flawlessly. In sectors such as e-commerce, food and beverage, fast fashion, and pharmaceuticals, the speed and accuracy of first mile operations are critical in determining whether stock arrives on time, intact, and ready for downstream processing. Delays, damage, or disorganization at this stage can cause ripple effects across the supply chain, leading to missed delivery windows and dissatisfied customers. As such, businesses are increasingly investing in integrated first mile strategies, using data-driven insights and advanced logistics coordination to reduce hand-off friction, increase visibility, and streamline product flow from source to fulfillment.

How Are Digital Technologies and Automation Transforming First Mile Logistics?

Technological disruption is reshaping the traditional structure of first mile logistics, bringing automation, intelligence, and real-time control into what was once a largely manual and opaque process. The implementation of IoT sensors, RFID tags, and GPS tracking is enabling precise, real-time monitoring of goods as they leave the production site, enhancing traceability and accountability throughout the journey to the warehouse or distribution center. Warehouse management systems (WMS), transportation management systems (TMS), and API-integrated freight platforms are being deployed to automate route planning, vehicle allocation, and load optimization, which significantly reduces delivery delays and cost inefficiencies. Robotics and automated conveyor systems are also gaining ground within the warehouse and during loading operations, minimizing human error and improving throughput. Artificial intelligence and machine learning algorithms are being applied to forecast first mile demand, anticipate supply chain bottlenecks, and optimize vehicle dispatching based on historical data and predictive modeling. Additionally, cloud-based platforms are facilitating seamless communication between suppliers, carriers, and logistics managers, promoting agile decision-making. These innovations are transforming first mile delivery into a highly responsive, intelligent operation that supports the increasingly complex and customer-driven nature of global supply chains.

What Role Do Regulation and Sustainability Play in Shaping First Mile Strategy?

The evolution of first mile delivery is being strongly influenced by a growing matrix of regulatory mandates, environmental goals, and evolving expectations around ethical supply chain practices. As governments tighten regulations on emissions, labor conditions, and transportation safety, companies must ensure that their first mile operations are fully compliant across geographies. Emissions standards, such as Euro 6 and Clean Truck Programs, are driving the adoption of electric and low-emission vehicles for short-haul transportation from manufacturing units to regional hubs. In addition, the pressure to reduce carbon footprints and achieve sustainability targets is pushing companies to implement more fuel-efficient routing, consolidate shipments, and utilize eco-friendly packaging from the point of origin. Regulations around data privacy and trade compliance are also reshaping how first mile data is captured, stored, and shared—especially in cross-border logistics. Moreover, consumer and investor interest in transparent, responsible sourcing has led to the demand for first mile visibility tools that can verify product origins, working conditions, and environmental impact. This intersection of compliance and conscience is not only reshaping first mile logistics infrastructure but also reinforcing its importance as a foundation of ethical, sustainable, and future-proof supply chain operations.

What’s Driving Market Growth and Innovation in First Mile Delivery Worldwide?

The growth in the first mile delivery market is driven by several factors related to e-commerce expansion, evolving fulfillment models, regional logistics investments, and the increasing importance of speed and reliability in global supply chains. The surge in online retail—particularly from small businesses and third-party sellers—has drastically increased the number of shipments originating from decentralized locations, thereby amplifying the need for efficient first mile pickup and transfer systems. The rise of dark stores, urban fulfillment centers, and distributed warehousing is prompting companies to reconfigure their first mile networks for speed, proximity, and cost control. In emerging markets, infrastructure development, digitization of logistics, and increased penetration of online commerce are creating new demand for localized, scalable first mile solutions. At the same time, the growing adoption of direct-to-consumer (D2C) models by manufacturers and brands is compressing traditional supply chains and increasing the reliance on agile first mile logistics. The proliferation of cross-border e-commerce is also driving the need for integrated first mile strategies that align with international shipping and customs protocols. In parallel, the demand for full-chain visibility, faster inventory turnover, and enhanced service levels is pushing logistics providers to innovate continuously in first mile execution. As businesses aim to create frictionless, responsive, and resilient supply chains, the first mile is becoming a core battleground for operational excellence and customer satisfaction.