Delivery-as-a-Service (DaaS) Market Size, By Delivery Type (On-Demand Delivery, Point-To-Point Delivery, Multi-Stop Delivery), By Service Type, By Delivery Model, By End-User, By Industry Vertical, Growth Prospects, Regional Outlook & Forecast, 2024 – 2032

Delivery-as-a-Service (DaaS) Market Size, By Delivery Type (On-Demand Delivery, Point-To-Point Delivery, Multi-Stop Delivery), By Service Type, By Delivery Model, By End-User, By Industry Vertical, Growth Prospects, Regional Outlook & Forecast, 2024 – 2032

Delivery-as-a-Service Market Size

Delivery-as-a-Service (DaaS) Market size was valued at USD 500 billion in 2023 and is estimated to register a CAGR of over 18.5% between 2024 and 2032. The rising e-commerce demand is significantly propelling the growth of the market. As consumer preferences continue to shift toward online shopping, fueled by factors, such as convenience, variety, and competitive pricing, businesses are increasingly relying on effective delivery solutions to meet customer expectations.

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The unprecedented surge in online retail activities, particularly during the COVID-19 pandemic, has underscored the importance of efficient & reliable delivery services. Businesses across various industries, from retail giants to small businesses, are compelled to adapt and expand their delivery capabilities to cater to the growing demand for e-commerce. This trend is further intensified by changing consumer behaviors including the preference for same-day or next-day delivery options. Consequently, there is a pressing need for DaaS providers to offer scalable, flexible, and technologically advanced delivery solutions to support the burgeoning e-commerce landscape.

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The rising e-commerce demand fuels the growth of the DaaS market while fostering innovation and competition among delivery service providers, ultimately benefiting consumers with improved delivery experiences and services. In February 2021, DHL Express made two additions to its roster of contract carriers offering extra aircraft to help the parcel carrier meet escalating growth in e-commerce shipments. The express delivery arm of postal and logistics giant, Deutsche Post DHL Group, arranged for Condor, a German leisure airline, and SmartLynx, a start-up cargo division of Latvian Carrier, to fly packages in its European air network.

Maintaining high-quality customer service and experience presents a significant challenge for Delivery-as-a-Service (DaaS) providers. Issues, such as delivery delays, damaged goods, and poor communication, can result in customer dissatisfaction and damage brand reputation. Meeting rising customer expectations for fast, reliable, and personalized delivery experiences requires these providers to invest in efficient logistics operations, real-time tracking systems, and responsive customer support services. Failure to address these challenges can lead to customer churn and loss of market share in the competitive Delivery-as-a-Service (DaaS) landscape.

Delivery-as-a-Service Market Trends

The integration of advanced technologies is a prominent trend boosting the evolution of the Delivery-as-a-Service (DaaS) industry. Delivery-as-a-Service (DaaS) providers are increasingly leveraging technologies, such as Artificial Intelligence (AI), Machine Learning (ML), the Internet of Things (IoT), and robotics, to optimize delivery operations and enhance customer experiences. AI and ML algorithms are utilized for route optimization, demand forecasting, and dynamic pricing, enabling these providers to streamline transportation routes, reduce delivery times, and optimize resource utilization. IoT-enabled sensors and devices facilitate real-time tracking of deliveries, providing customers with visibility into the status and location of their orders.

Robotics and automation technologies are employed in sorting centers and warehouses to automate order picking, packing, and loading processes, improving efficiency and accuracy while reducing labor costs. These advanced technologies enhance operational efficiency and enable DaaS providers to offer innovative delivery solutions, such as drone delivery, autonomous vehicles, and contactless delivery options, catering to evolving customer preferences and market demands. In September 2023, FedEx announced plans to open its first Advanced Capability Community (ACC) in Hyderabad, India, in 2023, to strengthen the recruitment and development of the company’s workforce and improve delivery services to customers.

Another significant trend shaping the delivery-as-a-service market is the increasing focus on sustainability and environmental responsibility. With growing concerns about climate change and environmental degradation, delivery-as-a-service (DaaS) providers are under pressure to minimize their carbon footprint and adopt eco-friendly delivery practices. One notable aspect of this trend is the transition toward vehicles powered by electricity and alternative fuel for delivery fleets, reducing Greenhouse Gas (GHG) emissions and air pollution associated with traditional fossil fuel-powered vehicles.

Additionally, Delivery-as-a-Service (DaaS) providers are exploring other sustainable delivery solutions, such as bicycle couriers, electric cargo bikes, and low-emission delivery zones, in urban areas to reduce congestion and pollution. Furthermore, there is a growing emphasis on eco-friendly packaging materials and packaging optimization techniques to minimize waste and reduce environmental impact. By embracing sustainability and environmental responsibility, Delivery-as-a-Service (DaaS) providers contribute to environmental conservation while enhancing their brand image and appealing to environmentally conscious consumers.

Delivery-as-a-Service Market Analysis

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Based on service type, the market is divided into temperature-controlled, real-time tracking, signature confirmation, contactless delivery, express delivery, insurance, and returns & exchanges. The express delivery segment is expected to grow at 21% CAGR during the forecast period.

• Express delivery refers to the provision of expedited delivery services that guarantee fast and timely shipment of goods to customers. This segment caters to customers who prioritize speed and urgency in receiving their orders, often opting for same-day or next-day delivery options. Delivery-as-a-Service (DaaS) providers offering express services leverage efficient logistics networks, optimized route planning, and advanced tracking systems to ensure rapid order fulfillment.
• The express delivery segment is particularly prevalent in industries, such as e-commerce, retail, food delivery, and logistics, where prompt delivery is essential for meeting customer expectations and maintaining a competitive edge. A key feature of express delivery services may include flexibility.

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Based on industry vertical, the market is divided into e-commerce & retail, healthcare, automotive, consumer goods, food & beverage, manufacturing, pharmaceuticals, and others. The e-commerce & retail segment accounted for 19.5% of the delivery-as-a-service market share in 2023.

• The rapid growth of the e-commerce industry has driven the demand for Delivery-as-a-Service (DaaS) solutions in online purchases. As more consumers turn to online shopping, e-commerce retailers require efficient and reliable delivery services to fulfill orders and meet customer expectations.
• With increasing competition, e-commerce & retail businesses are prioritizing customer experience and satisfaction. Delivery-as-a-Service (DaaS) providers enhance the delivery experience by offering features, such as real-time tracking, delivery notifications, and easy returns, contributing to customer loyalty and repeat business.

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North America delivery-as-a-service market held over 33% of the revenue share in 2023. The region houses one of the largest and most mature e-commerce markets globally. The increasing consumer preference for online shopping, coupled with the convenience of doorstep delivery, is fueling the demand for Delivery-as-a-Service (DaaS) solutions. As e-commerce continues to thrive, Delivery-as-a-Service (DaaS) providers are leveraging this growth by offering efficient and reliable delivery services to meet the evolving needs of online retailers and consumers.

North America is at the forefront of technological innovation, with advancements in areas, such as AI, ML, and automation, transforming the delivery landscape. Delivery-as-a-Service (DaaS) providers in the region are utilizing these technologies to optimize delivery routes, enhance tracking capabilities, and improve overall efficiency in last-mile delivery.

Delivery-as-a-Service Market Share

Amazon Inc. and Uber Technologies Inc. hold a significant market share in the Delivery-as-a-Service (DaaS) industry. Amazon, Inc. offers various delivery services such as Amazon Prime, Amazon Fresh, Amazon Flex, and Amazon Logistics.

Uber Eats has emerged as a major player in the food delivery segment, offering on-demand food delivery services from a wide range of restaurants to customers in various cities worldwide. Uber Technologies Inc., through its Uber Eats platform, holds a significant position in the DaaS market.

Delivery-as-a-Service Market Companies

Major companies operating in the delivery-as-a-service (DaaS) industry are

• Amazon Inc.
• Deliveroo Holdings plc
• DoorDash Inc.
• Rappi, Inc.
• Swiggy (Bundl Technologies Pvt. Ltd.)
• Uber Technologies Inc. (Uber Eats)
• Zomato Media Pvt. Ltd.

Delivery-as-a-Service Industry News

• In November 2021, Amazon merged its grocery stores, Fresh and Pantry, into a single unified store, Amazon Fresh. This integrated store is accessible to customers in over 300 cities across India. By consolidating these services, Amazon provides an all-in-one online destination, offering unbeatable savings, diverse products, and fast, convenient delivery options.
• In January 2021, Walmart collaborated with four delivery companies to expand its Online Grocery Delivery service. Point Pickup, Skipcart, AxleHire, and Roadie were added to Walmart's team to enhance online grocery deliveries in metropolitan areas across four states. This strategic move was accompanied by expansion plans to serve even more customers in various locations.

The delivery-as-a-service (DaaS) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Delivery Type

• On-demand delivery
• Point-to-point delivery
• Multi-stop delivery

Market, By Service Type

• Temperature-controlled
• Real-time tracking
• Signature confirmation
• Contactless delivery
• Express delivery
• Insurance
• Returns & exchanges

Market, By Delivery Model

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)
• Consumer-to-Consumer (C2C)

Market, By End User

• E-commerce retailers
• Third-party Logistics (3PL) providers
• Local delivery fleets
• Shipping partners
• Restaurants and food delivery services
• Manufacturers and distributors
• Individual consumers 

Market, By Industry Vertical

• E-commerce & retail
• Healthcare
• Automotive
• Consumer goods
• Food & beverage
• Manufacturing           
• Pharmaceuticals
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA

Frequently Asked Questions (FAQ)

How big is the delivery-as-a-service market?

The market size of delivery-as-a-service (DaaS) exceeded USD 500 billion in 2023 and is set to witness over 18.5% CAGR between 2024 and 2032, due to the rising e-commerce demand across the globe.

Why is the demand for e-commerce & retail DaaS expanding?

The e-commerce & retail industry vertical segment recorded over 19.5% of the market share in 2023, with more consumers turning to online shopping.

What is the value of the North America delivery-as-a-service industry?

North America market held more than 33% of the revenue share in 2023, owing to the increasing consumer preference for online shopping coupled with the convenience of doorstep delivery across the region.

Who are the leading DaaS market players?