Last mile delivery in North America expected to grow 16% per year between 2021 and 2025
After nearly 15% growth in 2020, market is expected to accelerate growth over the next five years as consumers continue to turn to home delivery
The last-mile delivery market in North America is expected to post a Year-over-Year (YoY) growth rate of 16% between 2021 and 2025 according to a new research study from Technavio.
This will result in the market growing by USD 58.91 billion between 2021 and 2025.
Despite the unusual circumstances of 2020, this is in fact an estimated acceleration from that year, where growth was 14.8% YoY.
Eighty-two percent of this growth is due to originate from the US region, after the growing e-retailing sector in North America has significantly created the demand for business-to-consumer last mile delivery services. Factors such as the large volume of e-retail purchases and the rise in the number of customers opting for fast and seamless delivery services will propel the last mile delivery market growth in the US over the forecast period. Canada is also a key market for last mile delivery, but market growth in the US will be faster than the growth of the market in Canada.
"One of the primary growth drivers for this market is the growing B2C e-commerce industry in the US,” says a senior analyst for the industrials industry at Technavio.