What is the present valuation and projected CAGR of the middle mile delivery market?
The middle mile delivery market size has grown rapidly in recent years. It will grow from $113.42 $ billion in 2024 to $125.1 $ billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to increased focus on supply chain optimization, the expansion of warehouses and distribution centers, consumer expectations for real-time tracking and transparency, increased investment in infrastructure and logistics networks, and the expansion of third-party logistics (3PL) providers.
The middle mile delivery market size is expected to see rapid growth in the next few years. It will grow to $183.62 $ billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to the growth of e-commerce and online retail, increasing consumer demand for faster delivery times, the expansion of global and cross-border trade, rising urbanization, and rising demand for perishable goods. Major trends in the forecast period include advanced algorithms and artificial intelligence (AI), increasing technological advancements, the emergence of drones and autonomous vehicles, the integration of internet of things (IoT) devices, and advancements in route optimization software.
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What key drivers have fueled the middle mile delivery market’s development over the years?
The rapid growth of e-commerce is expected to propel the growth of the middle mile delivery market going forward. E-commerce, or electronic commerce, refers to the buying and selling of goods and services online, using digital platforms and electronic payment systems. E-commerce is growing rapidly due to the convenience of online shopping, a broader product selection, and the increasing adoption of mobile shopping and digital payments. Middle-mile delivery supports e-commerce by efficiently moving goods from warehouses to local hubs, reducing delivery times and costs, and ensuring products are quickly positioned for last-mile delivery to customers. For instance, in May 2024, according to the United States Census Bureau, a US-based government agency, the estimated U.S. retail e-commerce sales for the first quarter of 2024 reached $289.2 billion, marking a 2.1 percent (±0.7%) increase from the fourth quarter of 2023. Therefore, the rapid growth of e-commerce is driving the growth of the middle mile delivery market.
What is the segmentation for the middle mile delivery market?
The middle mile deliverymarket covered in this report is segmented –
1) By Service Type: Warehousing And Distribution, Freight Forwarding, Transportation Management
2) By Transportation Mode: Roadways, Railways, Airways, Maritime
3) By End User Industry: Retail And E-Commerce, Manufacturing, Healthcare, Automotive, Food And Beverage, Energy And Utilities, Aerospace And Defense, Other End User Industries
Subsegments:
1) Warehousing And Distribution: Storage Services, Inventory Management, Order Fulfillment Services, Cross-Docking Services, Pick And Pack Services
2) Freight Forwarding: Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding, Customs Brokerage Services
3) Transportation Management: Route Optimization Services, Fleet Management Solutions, Shipment Tracking and Visibility, Load Planning And Consolidation, Carrier Management Services.
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Who are the most influential companies in the middle mile delivery market?
Major companies operating in the middle mile delivery market are United Parcel Service Inc. (UPS), DHL Supply Chain, FedEx Corporation, Blue Dart Express, Kuehne + Nagel International AG, DSV Panalpina A/S, DB Schenker, C.H. Robinson Worldwide Inc., Nippon Express, CEVA Logistics, Expeditors International, J.B. Hunt Transport Services, Geodis, Ryder System Inc., XPO Logistics, Toll Group, TForce Logistics, Hub Group, Werner Enterprises, Americold Logistics LLC, Agility Logistics, GEFCO Group, NFI Industries, Penske Logistics, Uber Freight, Cardinal Logistics Management, Lineage Logistics LLC, Rhenus Group
What are the top industry trends projected to impact the middle mile delivery market?
Major companies operating in the middle mile delivery market are increasing their focus on investing in technologically advanced solutions, such as middle-mile logistics services, to enhance operational efficiency and streamline the delivery process. Middle-mile logistics service refers to the segment of the supply chain that involves the transportation of goods between a company’s distribution centers and the final delivery hubs or retail locations. For instance, in November 2024, AIT Worldwide Logistics, Inc., a US-based freight forwarder company, launched its expedited Middle Mile Network service, which aims to provide a faster, more secure, and cost-effective alternative to traditional expedited less-than-truckload (LTL) shipping. The service connects over 90% of major U.S. metropolitan areas through strategic hubs in cities like Atlanta, Chicago, Columbus, Dallas, and Los Angeles. The network operates on more than 160 shipping lanes, facilitating expedited door-to-door deliveries. This model allows for consolidated pickups and transfers, significantly improving transit times compared to standard LTL shipping. Targeted primarily at importers and large enterprises shipping heavy freight, the service is designed to enhance logistics efficiency ahead of the peak holiday season, with plans for future expansion into Canada and Mexico.
What are the major regional insights for the middle mile delivery market, and which region holds the top position?
North America was the largest region in the middle mile delivery market in 2024. The regions covered in the middle mile delivery market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Middle Mile Delivery Market Report 2025 Offer?
The middle mile delivery market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Middle-mile delivery refers to the logistics process of moving goods from a warehouse or distribution center to a fulfillment center or retail location, crucially linking initial transportation from the manufacturer to the final delivery to consumers. It is essential in logistics, linking warehouses to fulfillment centers and ensuring the smooth transition of goods within the supply chain.
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