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Artificial Intelligence-Enabled Last Mile Delivery Market Forecast: What Market Value Is Expected By 2030?
The market for last mile delivery powered by artificial intelligence has seen substantial expansion in recent years. Its value is projected to rise from $1.56 billion in 2025 to $1.8 billion in 2026, achieving a compound annual growth rate (CAGR) of 15.4%. This historical growth has been fueled by factors such as the broadening of e-commerce, difficulties associated with urban delivery, the proliferation of logistics platforms, a push for cost efficiency, and the initial uptake of AI in logistics operations.
The market for artificial intelligence-powered last mile delivery is projected to experience significant expansion over the coming years. By 2030, its value is anticipated to reach $2.94 billion, reflecting a compound annual growth rate (CAGR) of 13.0%. This forecasted growth is largely driven by increasing deployment of autonomous delivery systems, smart city projects, efforts to reduce carbon emissions, real-time analysis of customer behavior, and the rising prevalence of on-demand delivery services. Among the key developments shaping this period are the widespread use of AI-driven route optimization, the emergence of unmanned delivery vehicles, advances in predictive analytics for logistics, the incorporation of live tracking capabilities, and growing consumer expectations for quicker order fulfillment.
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Artificial Intelligence-Enabled Last Mile Delivery Market Industry Drivers: What Is Driving Revenue Growth?
The surge in e-commerce activities is anticipated to significantly boost the artificial intelligence-enabled last-mile delivery market moving forward. E-commerce involves online transactions like buying, selling, and exchanging goods or services over the Internet. The expansion of e-commerce retail stems from various factors, including improvements in internet infrastructure, the convenience of online shopping, evolving consumer preferences, and a greater reliance on digital platforms. By leveraging AI, last-mile delivery becomes more efficient, reliable, and cost-effective, which enhances customer satisfaction and drives further growth. As an example, in February 2024, the United States Census Bureau—a federal statistical agency—reported that total e-commerce sales for 2023 reached an estimated $1,118.7 billion, reflecting a 7.6% increase compared to 2022. Consequently, the rise in e-commerce activities is fueling the expansion of the artificial intelligence-enabled last-mile delivery market.
Artificial Intelligence-Enabled Last Mile Delivery Market Segment Breakdown: Which Categories Generate The Most Revenue?
The artificial intelligence-enabled last mile delivery market covered in this report is segmented –
1) By Type: Hardware, Software, Services
2) By Business Model: On-Demand Delivery, Scheduled Delivery Model
3) By End-User Industry: E-Commerce, Logistics, Food And Beverage, Other End-User Industries
Subsegments:
1) By Hardware: Delivery Drones, Autonomous Delivery Vehicles, GPS And Tracking Devices
2) By Software: Route Optimization Software, Delivery Management Software, Fleet Management Software
3) By Services: AI-Aased Delivery Services, AI Integration Services, AI Consulting Services
Artificial Intelligence-Enabled Last Mile Delivery Market Innovation Trends: Which Developments Are Transforming The Industry?
Leading players within the artificial intelligence-powered last-mile delivery sector are investing in the development of supply chain AI assistants to enhance the movement of goods both inbound and outbound. Such assistants streamline logistics and improve decision-making capabilities through intelligent automation. As an example, One Network Enterprises, a U.S.-based firm specializing in supply chain management, unveiled in February 2024 its NEO Assistant—a creative supply chain AI assistant innovated by the same company. This tool facilitates improved decision-making by delivering real-time actionability, adaptive workflows, smart recommendations, and interactive visualizations. Built upon a unified digital supply chain network, it offers complete end-to-end visibility and control via a single data model and a single source of truth, covering the entire process from raw materials to the final leg of delivery. Moreover, NEO Assistant maintains continuous awareness of the user’s supply chain status in real time and dynamically updates its assumptions whenever that status shifts.
Artificial Intelligence-Enabled Last Mile Delivery Market Competitive Analysis Of Major Industry Participants
Major companies operating in the artificial intelligence-enabled last mile delivery market report include FarEye Technologies Inc., Bringg Delivery Technologies Ltd., LogiNext Solutions Private Limited, Onfleet Inc., Route4Me Inc., OptimoRoute Inc., Routific Inc., Wise Systems Inc., Circuit Logistics Inc., GetSwift Limited, Detrack Systems Pte. Ltd., WorkWave LLC, Transmetrics AD, ClearMetal Inc., Shipday Inc., Deliforce Technologies Pvt. Ltd., Shipsy Inc., Dropoff Inc., Stuart Delivery Ltd., Paack Logistics
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#Artificial Intelligence-Enabled Last Mile Delivery Market Largest Region: Which Geography Holds The Highest Market Share?
North America was the largest region in the artificial intelligence-enabled last mile delivery market in 2025. The regions covered in the artificial intelligence-enabled last mile delivery market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.