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e-Commerce & Contactless Spur Last Mile Delivery Growth to a 15% Global CAGR from 2020-2025

Double-digit e-commerce growth and a continued desire for contactless delivery have fostered healthy growth of local delivery options, despite slower growth for other commercial transportation verticals. According to global tech market advisory firm, ABI Research, telematics connections for last mile delivery in North America alone are forecasted to more than double from .51 million to 1.03 million in 2025.

“These opportunities range from massive retailers like Amazon, Walmart, and Target, along with local grocers, beverage companies, and restaurants,” states Susan Beardslee, Principal Analyst, Freight Transportation & Logistics.  Some of these customer options began building customer loyalty prior to 2020, although in more limited locations and lesser penetration.  It is seen as a critical tool to address limited delivery capacity and safety of employees and customers.

2021 will continue to see additional form factors including Unmanned Ground Vehicles (UGV’s) to expand  the need for contactless delivery and the need to scale last mile and yard, with governments allowing multiple exemptions in urban and suburban areas as well as corporate and college campuses. “These options provide more affordable, sustainable, and efficient use of resources.  It can be a key lever in reducing the approximate 50% of the cost of goods sold associated with last mile delivery,” Beardslee concludes.

These findings are from ABI Research’s Commercial Telematics market data report. This report is part of the company’s Freight Transportation & Logistics research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.

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