U.S. Last Mile Delivery Transportation Market Expansion Fueled by E-commerce Boom

The U.S. last mile delivery transportation market size was evaluated at USD 32.61 billion in 2024 and is expected to grow around USD 76.88 billion by 2034, registering a CAGR of 8.95% from 2025 to 2034.

Highlights of the U.S. Last Mile Delivery Transportation Market

• By vehicle type, the two wheelers segment held a dominant presence in the market in 2024.
• By vehicle type, the robots/AGVs segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By cargo type, the dry goods segment accounted for a considerable share of the market in 2024.
• By cargo type, the liquid goods segment is projected to experience the highest growth rate in the market between 2025 and 2034.
• By delivery speed, the within 2 days segment led the market.
• By delivery speed, the 2-5 days segment is set to experience the fastest rate of market growth from 2025 to 2034.
• By end-use, the FMCG products segment registered its dominance over the market in 2024.
• By end-use, the food delivery segment is anticipated to grow with the highest CAGR in the market during the studied years.
• By ownership, the third-party logistics (3PL) segment dominated the market.
• By ownership, the in-house segment is projected to expand rapidly in the market in the coming years.

Industry Valuation and Growth Rate Projection

The U.S. last mile delivery transportation market is a rapidly growing market. Last mile delivery refers to how goods are moved from a local hub to a consumer's doorstep; this is the last mile, which is the most critical step in delivery. As people are shopping increasingly online, fast and reliable delivery is becoming extremely important to consumers. Major carriers like FedEx, UPS, and Amazon are using sophisticated technologies, such as electric vehicles and smart tracking systems, to provide consumers with the options and services they require. Demand for lots of last mile delivery options is in cities where consumers are demanding same-day or next-day deliveries. Growth in e-commerce, on-demand food delivery, and grocery apps has helped the U.S. last mile delivery transportation market grow, and the market is expected to become even larger over time due to changing shopper habits and optimized logistics.

What Are the Market Trends in the U.S. Last Mile Delivery Transportation Market?

• The market trends in the U.S. Last mile delivery transportation market are increased e-commerce, same-day and next-day delivery, electric delivery vans, and smart tracking and routing.
• More people are shopping online, and that means more packages need to be delivered quickly.
• Companies like Amazon and Walmart have decades-long experience, and fast delivery now includes same-day or next-day delivery if customers require it.
• Delivery companies are switching from petroleum-based delivery vans to electric delivery vans to reduce fuel consumption and pollution.
• Some tracking technology will allow drivers to identify the smartest, fastest routes, and we often provide customers with real-time updates when tracking a delivery.

What are the Restraints in the U.S. Last Mile Delivery Transportation Market?

• The market restraints in the U.S. last mile delivery transportation market are high delivery costs, traffic congestion in cities, and limited delivery access.
• Fuel, labor, and vehicle maintenance make last mile delivery expensive and increase the cost for the company.
• Busy roads make it hard to deliver on time, especially in big cities with large buildings and an increasing number of deliveries, with a shortage of skilled drivers and delivery partners.
• Some areas, like rural places or gated buildings, are harder to reach, delaying delivery time and increasing the cost for the companies.

What are the Opportunities in the U.S. Last Mile Delivery Transportation Market?

• The opportunities in the U.S. last mile delivery transportation market lie in the delivery with drones and robots, sustainable delivery models, partnerships with small businesses, and subscription delivery services.
• New technology, such as drones and robots, can reduce costs and help with delivery speed.
• Eco-friendly delivery options such as bicycles and electric vans are becoming more widespread.
• Offering delivery services to local retail stores can generate new service areas and new profits.
• Monthly plans for groceries or other essentials are becoming more common and could expand into the delivery market.

Recent Developments in the U.S. Last Mile Delivery Transportation Market:

• In April 2025, Amazon announced a $4 billion investment to grow its rural U.S. delivery network by 2026. The company tripled its rural delivery stations to over 200, improving delivery speeds in 13,000 zip codes and creating 100,000 jobs, aiming to better serve small-town and remote areas across the country.