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Last-Mile Delivery Software Market

Market Study on Last-Mile Delivery Software: With Rising Significance of Optimized Operational Efficiency and Timely Delivery, PMR Identifies Lucrative Prospects for Last-mile delivery software Vendors in the Coming Years.

A Detailed Analysis of the Last-Mile Delivery Software Market Based on Technological Advancements, Growing Boom Around Smart Solutions, and Enhanced Efficiency of Logistics Operations

Last-Mile Delivery Software Market

The global last-mile delivery software market is forecast to expand at a CAGR of 4.7% and thereby increase from a value of US$7.1 Bn in 2023, to US$9.8 Bn the end of 2030.


Key Insights

Last-mile delivery software Market Size (2023E)

US$7.1 Bn

Projected Market Value (2030F)

US$9.8 Bn

Global Market Growth Rate (CAGR 2023 to 2030)


Historical Market Growth Rate (CAGR 2018 to 2022)


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Market Introduction and Definition

Last-mile delivery software comprises a collection of technological solutions that are specifically engineered to optimize and expedite the last leg of the delivery procedure. Its primary objective is to guarantee the most optimal transportation of products from distribution centers to end-users. Softwaresolutions of this nature frequently integrate communication tools, route optimization algorithms, and real-time tracking functionalities to augment the overall delivery experience. Last-mile delivery software endeavors to optimize delivery speed and accuracy, diminish operational expenses, and elevate customer satisfaction by tackling obstacles including route planning, monitoring, and communication.

Demand for e-commerce and the proliferation of on-demand delivery services are propelling the last-mile delivery software market to expand at a rapid rate. The market comprises an extensive array of solutions, such as communication platforms, delivery monitoring systems, and softwarefor route planning. In response to the increasing demand from customers for dependable and prompt deliveries, the market for last-mile delivery software is transforming to offer comprehensive and inventive solutions that accommodate the ever-changing requirements of the logistics sector.

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Market Growth Drivers

E-commerce Boom, and Increasing Consumer Expectations

The substantial expansion of the e-commerce industry has become a notable catalyst for the development of last-mile delivery software. The advent of e-commerce has led to an increased anticipation among consumers for prompt and dependable delivery services. Last-mile delivery software is of the utmost importance in fulfilling these elevated expectations through the optimization of routes, improvement of tracking functionalities, and facilitation of streamlined communication among all parties involved.

The increasing pressure on e-commerce businesses to distinguish themselves by providing exceptional customer experiences has resulted in a heightened need for sophisticated last-mile delivery software. By providing the capability to manage the intricacies of last-mile logistics, the software assists organizations in guaranteeing punctual deliveries and enhancing customer contentment, a critical factor in distinguishing themselves in the fiercely competitive e-commerce industry.

A further significant factor propelling the market for last-mile delivery software is the industry-wide emphasis on cost reduction and operational efficiency. Organizations operating in the logistics and transportation industry face ongoing demands to optimize their operational procedures and reduce expenditures. Last-mile delivery software mitigates these obstacles through the provision of functionalities including automated communication, route optimization, and vehicle tracking-all of which contribute to the streamlining of operations and the reduction of operational expenses.

By implementing these software solutions, organizations can enhance resource allocation, reduce fuel consumption, and optimize delivery routes, all of which contribute to heightened operational efficiency. To strike a balance between cost-effectiveness and expediency in deliveries, organizations are increasingly turning to last-mile delivery software as a strategic instrument to accomplish these goals and maintain competitiveness in a dynamic market.

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Market Restraints

Challenges in Last-Mile Infrastructure, and Regulatory Hurdles

The market for Last-mile delivery software is significantly constrained by regulatory and pre-existing infrastructure challenges. The presence of insufficient or congested urban infrastructure presents a substantial barrier, impeding the smooth implementation of effective last-mile deliveries. Furthermore, the presence of diverse and occasionally rigorous regulations in different regions introduces intricacies for providers of last-mile delivery software to ensure adherence and flexibility.

Constant modifications to software functionalities are necessary to navigate these regulatory landscapes, which can impede the pace of innovation and implementation. In the light of the infrastructural and regulatory limitations confronting the industry, providers of Last-mile delivery software must devise effective strategies to surmount these obstacles and guarantee the long-term expansion of the market.

Adoption Barriers, and Industry Fragmentation

The market for last-mile delivery software is confronted with obstacles associated with the fragmentation of the industry and barriers to adoption. Although the advantages of sophisticated Last-mile delivery software are apparent, certain businesses, especially smaller ones, might encounter barriers when attempting to implement it. These barriers may include concerns regarding the cost of implementation, the complexities of technological integration, and a lack of awareness regarding the potential benefits of the software.

Furthermore, the sector demonstrates fragmentation in line with the presence of multiple vendors presenting specialized solutions; this creates interoperability challenges and complicates the decision-making process for organizations seeking standardized and comprehensive Last-mile delivery software. It is imperative to tackle these obstacles to adoption and advocate for standardization throughout the industry to fully harness the capabilities of last-mile delivery software and guarantee smooth integration within varied logistics ecosystems.

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Integration of Advanced Technologies, and Sustainable Practices

The last-mile delivery software market is anticipated to experience significant expansion because of the incorporation of cutting-edge technologies. There are numerous prospects in integrating artificial intelligence (AI), and machine learning algorithms to optimize routes, improve the accuracy of delivery time predictions, and promptly respond to dynamic changes.

In addition, the integration of IoT devices into delivery vehicles can yield significant data that can be utilized to oversee conditions, verify the integrity of products, and optimize delivery routes through the analysis of traffic and weather patterns. By adopting these technological developments, providers of last-mile delivery software can furnish inventive resolutions that not only satisfy the present market requirements but also foresee and tackle forthcoming obstacles, thereby cultivating enduring pertinence and expansion in a swiftly changing environment.

The increasing focus on environmentally favorable practices and sustainability offers a substantial prospect for the market of last-mile delivery software. With the growing prominence of environmental issues, there is a corresponding surge in the need for solutions that optimize last-mile logistics delivery routes to minimize carbon emissions and fuel consumption.

Promoting environmentally sustainable practices can be significantly aided by last-mile delivery software, which facilitates route optimization with a focus on fuel efficiency and investigates alternative delivery methods like bike deliveries and electric vehicles. By adopting sustainable business practices, purveyors of last-mile delivery software can not only seize market opportunities but also make a positive impact on the delivery ecosystem by demonstrating environmental consciousness and accountability.

Analyst’s Viewpoint

The last-mile delivery software market is propelled by ongoing technological advancements and the dynamic nature of the logistics sector. The ongoing global expansion of e-commerce is anticipated to generate a greater need for last-mile delivery solutions that are characterized by efficiency, dependability, and technological sophistication.

A greater emphasis on the incorporation of artificial intelligence and machine learning is anticipated, which will enable more precise predictive analytics for delivery time estimations and route optimization. Moreover, there is a consensus that the market is ripe for an increase in environmentally conscious and sustainable methodologies, wherein Last-mile delivery software assumes a critical function in streamlining routes to minimize carbon emissions.

In the light of regulatory complexities and infrastructure limitations, the industry is anticipated to witness the emergence of inventive solutions that prioritize scalability and adaptability. With increasing demand for streamlined and customer-focused last-mile logistics, the market for Last-mile delivery software is expected to flourish, establishing itself as a pivotal participant in the forthcoming global supply chain ecosystem.

Supply-side Dynamics

The supply-side dynamics of the last-mile delivery software market are marked by a multitude of software providers vying for market share and a substantial influx of technological advancements. There has been a noticeable increase in research and development endeavors as organizations endeavor to improve their products by integrating state-of-the-art functionalities like AI algorithms, real-time monitoring capabilities, and seamless communication tools.

The ongoing competition is stimulating the perpetual development of software solutions, establishing a market environment in which service providers must distinguish themselves by delivering progressively intricate and all-encompassing products. There is a growing trend of strategic alliances and collaborations between providers of last-mile delivery software and critical stakeholders in the logistics and e-commerce sectors. These collaborations serve to enhance the functionalities of these solutions and extend their applicability to a wide array of industries. There is a noticeable shift occurring on the supply side towards cloud-based solutions, as numerous providers migrate away from conventional on-premises models.

Last-mile delivery software hosted in the cloud provides advantages such as scalability, flexibility, and seamless integration with other technologies. These qualities are in line with the increasing need for logistics solutions that are both agile and adaptable. This transition not only empowers service providers to serve a wider array of enterprises but also facilitates smooth updates and maintenance, guaranteeing that software functionalities maintain their competitiveness. In general, the supply-side dynamics of the last-mile delivery software market are marked by an ever-changing interaction between technological progress, market rivalry, and strategic partnerships. This interplay propels ongoing innovation to address the changing demands of the logistics sector.

Market Segmentation

Which Software Segment is Expected to Lead the Way?

The Software Category Set to Lead Through 2030, with Scalability, Flexibility, and SaaS Innovation

The software segment is segmented into on-premises, and cloud-based. With the largest market share, the cloud-based segment dominates the last-mile delivery software market. The expansion is driven by the cost-effectiveness, scalability, and flexibility provided by cloud-based solutions, which empower organizations to swiftly adjust to evolving needs.

On the contrary, the on-premises sector, despite its comparatively sluggish expansion, continues to hold importance for enterprises that have distinct security and control needs. The cloud-based sector is experiencing the most rapid expansion due to the growing acceptance of software as a service (SaaS) models. This trend promotes agility and innovation in last-mile logistics by enabling simpler updates, greater accessibility, and integration with emerging technologies.

Which is the Most Prominent Area of Application?

E-commerce Surges Ahead of All as Demand for Prompt and Efficient Delivery Soars

The application segment is bifurcated into courier, express and parcel, retail & FMCG, transportation, bfsi, e-commerce, manufacturing, and pharmaceutical. The market for last-mile delivery software is dominated by e-commerce, which is a significant sector driven by the expanding online retail industry. The segment's dominance can be attributed to the increasing demand for prompt and efficient deliveries as well as the proliferation of e-commerce platforms. The fastest-growing segment is Express & Parcel, which is propelled by the increasing demand for dependable and prompt delivery services, especially in urban regions. Elliptic customer demands expedited shipping and the increase in the volume of express deliveries are critical determinants driving the expansion of this sector within the Last-mile delivery software industry.

Top Regional Markets

North America’s Leadership Banks on Strong E-commerce, Advanced Infrastructure, and Tech Integration

The last-mile delivery software market is dominated by North America, owing to its well-established e-commerce sector, sophisticated logistics infrastructure, and widespread technological integration. In conjunction with the rising demand for dependable and expeditious last-mile deliveries, the region's robust economy contributes to North America's market dominance. Additionally, a robust focus on streamlining logistics operations and a technologically proficient clientele contribute to the increased utilization of last-mile delivery software in this geographical area.

South Asia, and Oceania to Take a Sprint on the Back of E-commerce Explosion

Geographically, South Asia, and Oceania are the most rapidly expanding areas in the last-mile delivery software industry. The expanding e-commerce sector, rising internet penetration, and a burgeoning middle-class population with rising purchasing power are all contributors to this rapid expansion.

Combined with initiatives to improve the efficacy of last-mile logistics, the region's ever-changing market conditions provide an opportune environment for the implementation of sophisticated last-mile delivery software solutions. This establishes South Asia, and Oceania as a significant driver of expansion in the worldwide market.

Competitive Intelligence and Business Strategy

The last-mile delivery software market is characterized by a wide range of competitors striving to gain a portion of the market. Each of these firms presents distinct strategies to tackle the intricate obstacles that arise within the last-mile logistics ecosystem. Prominent industry participants, such as major software corporations and providers of logistics solutions, utilize their extensive knowledge and resources to offer all-encompassing last-mile delivery software suites.

Concurrently, forward-thinking entrepreneurs concentrate on specialized solutions, frequently integrating nascent technologies to address facets of last-mile optimization. The presence of such diversity fosters a vibrant marketplace in which rivalries are predicated on the capacity to deliver innovative functionalities, smooth integration, and expandability to satisfy the requirements of various sectors, including retail, transportation, and e-commerce.

Strategic collaborations and partnerships are of utmost importance in influencing the competitive environment. Last-mile delivery software providers establish alliances with critical stakeholders throughout the supply chain to achieve this. The objective of these collaborations is to augment the capabilities and scope of software solutions, thereby providing businesses with comprehensive last-mile optimization.

In pursuit of technological advancements and the consolidation of expertise, mergers and acquisitions are proliferating as the market reaches maturity. The result is the establishment of all-encompassing, comprehensive Last-mile delivery software platforms. As providers continuously innovate to maintain their relevance and competitiveness in a swiftly developing market and navigate the ever-changing demands of the logistics sector, the competitive landscape is positioned to undergo additional changes.

Key Recent Developments

New Product Launch

FORTNA, a market leader in softwareand automation for the complete logistics value chain, declared the launch of the FORTNA Last-Mile Solution Center in September 2023. The Last-Mile Solution Center will assist parcel and distribution companies in automating Last-Mile operations to increase productivity, decrease expenses, and streamline processes by utilizing the expertise of a team of industry professionals.

Market Impact: The introduction of FORTNA's Last-Mile Solution Center has significant ramifications for the market for Last-mile delivery software. It is anticipated that the establishment of a specialized center by FORTNA, which aims to automate last-mile operations, will raise benchmarks in the industry and stimulate greater acceptance of sophisticated softwaresolutions that optimize productivity and minimize expenses.

(Source: FORTNA)

DispatchTrack, the worldwide frontrunner in last-mile delivery solutions, unveiled six significant trends that will revolutionize last-mile logistics in 2023. This comes as delivery gains greater significance in business success and attracts increased scrutiny from the C-suite and boardroom.

Market Impact: Six key trends identified by DispatchTrack that will reshape Last-Mile logistics in 2023 underscore the increasing awareness of delivery's critical importance to the success of an organization. The disclosure is expected to heighten the emphasis on sophisticated Last-mile delivery software solutions, resulting in greater implementation to meet the changing needs of the industry.

(Source: DispatchTrack)


Established in April, the Santa Monica-based venture of Locate2u conducts business in the greater Los Angeles area of the US. By the end of the year, it intends to have expanded to Northern and Southern California at an accelerated rate. By 2024, expansion into key US cities is intended.

Market Impact: The aggressive growth strategies of Locate2u, which encompass key cities in the United States by 2024 and commence in the greater Los Angeles area before spreading to Northern and Southern California, suggest an increasing need for Last-mile delivery software solutions. The significance of effective last-mile logistics is heightened by this expansion, which is expected to stimulate the implementation of pertinent software solutions in conjunction with the organization's international development.

Last-mile delivery software Market Report Scope



Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Software
  • Application
  • Region

Key Companies Profiled

  • Oracle Corporation
  • Kahuna
  • FarEye
  • Track-POD
  • LogiNext
  • Zippykind
  • Gloat
  • Skillnet
  • YTO Express Group
  • Jet Delivery

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Last-mile delivery software Market Research Segmentation

By Software:

  • On-Premise
  • Cloud-Based

By Application:

  • Courier
  • Express & Parcel
  • Retail & FMCG
  • Transportation
  • BFSI
  • E-Commerce
  • Manufacturing
  • Pharmaceutical

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

- Companies Covered in This Report -

  • Oracle Corporation
  • Kahuna
  • FarEye
  • Track-POD
  • LogiNext
  • Zippykind
  • Gloat
  • Skillnet
  • YTO Express Group
  • Jet Delivery

- Frequently Asked Questions -

The market is anticipated to grow at a CAGR of 4.7% during the projected period.

The last-mile delivery software market was valued at US$70.8 Bn in 2023.

The US held the largest market share in terms of value, as of 2023.

Some of the prominent players in the market are Oracle Corporation, Kahuna, DESCARTES, FarEye, Track-POD, LogiNext, Zippykind, and Gloat.

Offline sales of the last-mile delivery software market are expected to grow at the fastest rate during the forecast period.

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