On Demand Logistics Market By Vehicle Type (Medium/Heavy Commercial Vehicle (M/HCV), Light Commercial Vehicle (LCV)), Application (E-commerce, Industrial, Moving and Shifting), & Region for 2024-2031
Published on: 2024-08-07 | No of Pages : 320 | Industry : latest updates trending Report
Publisher : MIR | Format : PDF&Excel
On Demand Logistics Market By Vehicle Type (Medium/Heavy Commercial Vehicle (M/HCV), Light Commercial Vehicle (LCV)), Application (E-commerce, Industrial, Moving and Shifting), & Region for 2024-2031
On Demand Logistics Valuation – 2024-2031
The rise of e-commerce has transformed consumer expectations. Customers want rapid and convenient deliveries, and on-demand logistics perfectly meet this need. On-demand services address this desire for immediacy by providing same-day or even instant deliveries, resulting in a win-win situation for both businesses and customers. Thus, the growing e-commerce sector is surging the market size of USD 8.58 Billion in 2024 to reach a valuation of USD 10.01 Billion by 2031.
On-demand logistics relies on innovative technology. Advancements in artificial intelligence, route planning software, and real-time tracking enable logistics organizations to function more efficiently. This results in speedier deliveries, lower prices, and a more efficient overall experience for everyone involved. Thus, the technological innovation in artificial intelligence is enabling the market to grow at a CAGR of 1.95% from 2024 to 2031.
On Demand Logistics MarketDefinition/ Overview
On-demand logistics is a modern technique for completing shipments that prioritizes speed, agility, and exceeding consumer expectations. Essentially, it allows businesses to deliver orders quickly, often within the same day or the next day. In the ever-changing retail sector, the concept of on-demand logistics has emerged as a key actor, revolutionizing how firms handle shipping and delivery. This paradigm change is being driven by the growing demand for expedited services, with same-day or even faster delivery now the standard for pleasing local customers.
Key retail titans such as Amazon, Walmart, and Target are in the forefront, recognizing the need to match these higher expectations. They are spending heavily in on-demand logistics, hoping to discover breakthrough solutions that will transform the shipping and delivery experience. Amazon, for example, has made same-day delivery a common option in most large cities, establishing a high bar for the sector. Similarly, Target’s acquisition of Shipt in early 2018 laid the groundwork for the rapid expansion of same-day delivery services in major urban areas.
The on-demand logistics sector is thriving thanks to the match the needs of today’s consumers. E-commerce development needs ever-faster deliveries, and on-demand logistics bridges this gap by providing same-day or even instant possibilities. This convenience is not restricted to retail; on-demand services might include food, medicine, and other items, providing near-instant delivery within the local area.
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How the Increasing Gig Economy and Adaptive Workforce is Escalating the Growth of On Demand Logistics Market?
The rise of gig economy and adaptive workforce is escalating the growth of on-demand logistics. The gig economy’s dynamic nature enables on-demand logistics to thrive. Leveraging independent contractors and drivers allows businesses to quickly modify their workforce to meet changing demands. This agility translates into faster reaction times and more efficient fulfillment procedures, benefiting both businesses and consumers.
Increased focus on sustainability and environmental awareness are accelerating the demand of on-demand logistics. An increasing percentage of customers values environmental sustainability. On-demand logistics companies can capitalize on this trend by incorporating environmentally friendly methods into their operations. Optimizing delivery routes lowers emissions, while using sustainable packaging decreases trash. By promoting sustainability, on-demand logistics providers can attract environmentally concerned customers, giving them a competitive advantage in the market.
On-demand logistics is transforming local business competitiveness through hyperlocal deliveries. These services focus on certain geographic areas, ensuring quick deliveries of groceries, cooked meals, and other items. On-demand services improve the user experience by enabling near-instantaneous delivery, while also allowing small businesses to expand their customer reach and compete on convenience rather than price.
Subscription box surge and dependable recurring delivery in the on-demand logistics is fueling the growth of on demand logistics market. The subscription box movement, which includes everything from cosmetic products to pet supplies, is enjoying unprecedented development. On-demand logistics emerges as a reliable option for these subscription services, providing timely and consistent delivery of repeated shipments. On-demand shipping providers strengthen their position in the subscription box business model by establishing themselves as vital partners.
How the Outmoded Infrastructure and Insufficient Loading Zones are Hampering the Growth of On Demand Logistics Market?
The outmoded infrastructure, such as deteriorated roads or insufficient loading zones, can dramatically reduce delivery efficiency are limiting growth of the on-demand logistics. The effectiveness of on-demand logistics is strongly reliant on efficient transportation networks. Furthermore, urban traffic congestion is a continuous issue, delaying delivery timetables and increasing operational expenses, especially in highly populated areas.
The recruitment and retention of skilled drivers is critical to the success of on-demand logistics companies. Rising labor costs and increased competition for drivers put pressure on profit margins. Furthermore, a scarcity of skilled drivers can limit a company’s ability to scale operations and meet rising demand.
Profitability challenges and minimum order requirements maintaining profitability amidst severe competition is a hard challenge for on-demand logistics companies. While quick deliveries are appealing, completing modest purchases, particularly across vast distances, can be financially expensive. To mitigate this, corporations frequently implement minimum order requirements to ensure profitability, even if they may deter some customers.
The on-demand logistics business operates in a relatively new regulatory context, and legislation may not be entirely aligned with industry practices. Driver licenses, insurance restrictions, and data privacy regulations all provide compliance challenges, especially for businesses that operate in many jurisdictions.
How the Adaptivity and Convenient Delivery Options are Contributing to the Growth of E-commerce Segment in the On Demand Logistics Market?
E-commerce segment is significantly dominating the on demand logistics market owing to the rising consumer demand for quick, adaptive, and convenient delivery options, which are efficiently supplied by on-demand logistics services. In the area of e-commerce, the attractiveness of on-demand logistics rests in its ability to meet the growing need for quick and flexible delivery alternatives. Consumers want same-day or immediate delivery, which on-demand logistics suppliers may easily meet. This feature improves the whole purchasing experience by seamlessly aligning with developing consumer preferences.
Furthermore, integrating real-time tracking mechanisms and optimal route planning improves delivery precision and transparency. On-demand logistics is a crucial tool for retailers and e-commerce companies to manage inventory and respond quickly to changing consumer demands inclinations. As a result, client happiness increases, as does the possibility of repeat business.
In addition, the burgeoning e-commerce industry is a primary catalyst propelling the On Demand Logistics Market forward, with major players such as Walmart Inc., Amazon.com Inc., and Flipkart Online Services Pvt. Ltd. adopting on-demand logistics to meet the increasing volume of online orders across diverse product categories.
How the Versatility and Efficiency in Transversing is Augmenting the Growth of Light Commercial Vehicle (LCVs) in On Demand Logistics Market?
Light commercial vehicle (LCVs) is substantially dominating the growth of on demand logistics market owing to the preferred mode of last-mile delivery, particularly for lighter products. The popularity of LCVs originates from their versatility and efficiency in traversing urban surroundings, where heavy products are not the major mode of transportation. This significance can be linked to e-commerce companies’ increasing desire for last-mile delivery, which do not involve the carriage of big or bulky products. Also, their agility, versatility, and ability to navigate urban environments quickly is enabling LCVs emerge as the favored solution for meeting these last-mile delivery needs. As e-commerce grows and consumers want faster delivery times, the reliance on LCVs for on-demand logistics is projected to increase the market growth during the forecast period.
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Country/Region-wise Acumens
What are the Transportation and Logistics Industries Role in Fueling On Demand Logistics Market in North America?
North America is fostering significant growth in the on demand logistics market owing to the transportation and logistics industry’s solid revenue streams, notably in overland freight transit, which is largely aided by trucking services in the United States. The region’s dominance in income production can be traced back to trucking services, which account for more than 70% of overland freight movement in the United States alone. However, the spike in demand for trucking services has resulted in issues such as freight and driver shortages, causing operational challenges for the logistics industry.
In response to these issues, there is an increasing need to develop more effective logistics solutions to close the demand-supply gap. This necessity creates an opportunity for the region to adopt more on-demand logistics solutions. Businesses may manage changing market demands and successfully offset freight and driver shortages by exploiting the flexibility and reactivity inherent in on-demand logistics.
The on-demand logistics sector in the United States is growing as a result of a combination of market factors and technological advances. The increase in e-commerce activity has spurred the demand for quick and efficient last-mile delivery services, which are driven by consumers’ expectations for quick and flexible delivery alternatives. Furthermore, advances like real-time tracking, route optimization, and data analytics have transformed logistics operations by increasing efficiency and consumer satisfaction. The rise of gig economy platforms and crowdsourcing delivery networks has provided on-demand logistics businesses with a more adaptable and scalable workforce, allowing for quick expansion. Furthermore, innovative partnerships and investments in cutting-edge technology have fueled the industry’s expansion and success.
How the Rapid Expansion in China and India are Projected to Grow in the Asia Pacific On Demand Logistics Market During the Forecast Period?
Asia Pacific is expected to be the fastest growing region throughout the forecast period driven by astounding feat can be credited to the rapid expansion of e-commerce, particularly in powerhouse economies such as China and India. The developing e-commerce landscape has fueled an increase in demand for quick and efficient delivery services, matching the changing expectations of consumers who value convenience and promptness in their purchasing experiences.
Furthermore, the region’s young and technologically savvy population has fueled extensive adoption of mobile apps and digital platforms for logistical services. This digitally literate populace rapidly adopts technology breakthroughs, facilitating the rapid spread of on-demand logistics solutions throughout Asia Pacific.
How the Intricate Urban Environment is Expected to show Lucrative Opportunities in the Europe On Demand Logistics Market During the Forecast Period?
Europe is anticipated to show lucrative growth during the forecast period in the on demand logistics market owing to the, France, big cities such as Paris, Marseille, and Lyon have dense populations and intricate urban environments. On-demand logistics firms play a critical role in solving the obstacles of last-mile delivery in these highly populated areas, where traffic congestion and limited parking are common.
The United Arab Emirates, notably cities like Dubai and Abu Dhabi, have seen tremendous urbanization and economic growth in recent years. This economic boom has resulted in increased consumer spending, a surge in demand for goods and services, and a thriving e-commerce sector. As one of the world’s leaders in internet and smartphone penetration, the UAE has a tech-savvy population that is accustomed to digital services and mobile applications. On-demand logistics firms in the UAE rely on digital channels.
Competitive Landscape
The on demand logistics market is expected to witness significant consolidation as competition intensifies. Mergers and acquisitions are likely as companies strive to expand their reach and service offerings. Collaboration between different players in the ecosystem, such as logistics companies and retailers, could also become more prevalent. The focus on innovation and sustainability will remain paramount for companies to thrive in this dynamic market.
The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the on demand logistics market include
- Shadowfax Technologies Pvt. Ltd
- Deliveree (Thailand) Co. Ltd
- Lalamove EasyVan (Thailand) Co. Ltd
- Uber Freight LLC
- Deliv, Inc.
- Bringg Delivery Technologies Ltd.
- Shippify, Inc.
- Stuart Delivery Ltd. (STUART)
- GoGo Tech Ltd. (GoGoVan)
- MENA 360 DWC-LLC (Fetchr)
On-Demand Logistics Latest Developments
- In October 2023, Dunzo asked board approval to raise up to $35 million through a rights offering. According to The Economic Times (ET), some investors suggest decreasing the struggling startup’s worth to USD 200 million in this important investment round.
- In March 2023, Dunzo, a fast commerce firm, and Loadshare, a logistics start-up, approached the Open Network for Digital Commerce (ONDC), a government-backed program, to expand their two-wheeler fleets for bike taxi services. According to sources, the move aims to increase delivery capacity and meet the growing need for affordable, on-demand transportation in urban areas.
Report Scope
REPORT ATTRIBUTES | DETAILS |
---|---|
STUDY PERIOD | 2021-2031 |
Growth Rate | CAGR of ~1.95% from 2024 to 2031 |
Base Year for Valuation | 2024 |
Historical Period | 2021-2023 |
Forecast Period | 2024-2031 |
Quantitative Units | Value in USD Billion |
Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
Segments Covered |
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Regions Covered |
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Key Players | Shadowfax Technologies Pvt. Ltd, Deliveree (Thailand) Co. Ltd, Lalamove EasyVan (Thailand) Co. Ltd, Uber Freight LLC, Deliv, Inc., Bringg Delivery Technologies Ltd., Shippify, Inc., Stuart Delivery Ltd. (STUART), GoGo Tech Ltd. (GoGoVan), MENA 360 DWC-LLC (Fetchr) |
Customization | Report customization along with purchase available upon request |
On Demand Logistics Market, By Category
Vehicle Type
- Medium/Heavy Commercial Vehicle (M/HCV)
- Light Commercial Vehicle (LCV)
Application
- E-commerce
- Industrial
- Moving and Shifting
Region
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Research Methodology of Market Research
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Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support
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