×
  • Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor
    Hero Background

    First Mile Logistics Delivery Software Market

    ID: MRFR/AT/31398-HCR
    128 Pages
    Swapnil Palwe
    October 2025

    First Mile Logistics Delivery Software Market Research Report By Software Type (Order Management, Transportation Management, Warehouse Management, Fleet Management), By Deployment Type (Cloud-Based, On-Premises), By End User (Retail, E-commerce, Food and Beverage, Pharmaceuticals), By Functionality (Route Optimization, Real-Time Tracking, Inventory Management, Customer Communication) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    First Mile Logistics Delivery Software Market Infographic
    Purchase Options

    First Mile Logistics Delivery Software Market Summary

    As per MRFR analysis, the First Mile Logistics Delivery Software Market Size was estimated at 6.946 USD Billion in 2024. The First Mile Logistics Delivery Software industry is projected to grow from 7.553 USD Billion in 2025 to 17.48 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.75 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The First Mile Logistics Delivery Software Market is experiencing robust growth driven by technological advancements and evolving consumer demands.

    • The integration of advanced technologies is reshaping operational efficiencies in the First Mile Logistics Delivery Software Market.
    • Sustainability initiatives are increasingly influencing software development and logistics practices, particularly in North America.
    • E-commerce innovations are propelling demand for Order Management solutions, which remain the largest segment in the market.
    • Rising consumer expectations and increased investment in logistics technology are key drivers fueling growth in the Asia-Pacific region.

    Market Size & Forecast

    2024 Market Size 6.946 (USD Billion)
    2035 Market Size 17.48 (USD Billion)
    CAGR (2025 - 2035) 8.75%

    Major Players

    Project44 (US), FourKites (US), Shipwell (US), LogisticsNow (US), Onfleet (US), Bringg (IL), Transporeon (DE), Cargomatic (US)

    First Mile Logistics Delivery Software Market Trends

    The First Mile Logistics Delivery Software Market is currently experiencing a transformative phase, driven by the increasing demand for efficient supply chain solutions. As businesses strive to enhance their operational efficiency, the integration of advanced technologies such as artificial intelligence and machine learning into logistics software is becoming more prevalent. This trend appears to be reshaping the landscape, enabling companies to optimize their delivery processes and reduce costs. Furthermore, the growing emphasis on sustainability is prompting organizations to seek software solutions that facilitate eco-friendly practices, thereby aligning with global environmental goals. In addition, the rise of e-commerce continues to exert pressure on logistics providers to improve their first mile delivery capabilities. This shift is likely to encourage the development of innovative software solutions that cater to the unique challenges posed by online retail. As customer expectations evolve, the First Mile Logistics Delivery Software Market seems poised for further growth, with an increasing focus on real-time tracking, enhanced visibility, and seamless integration with existing systems. Overall, the market is on a trajectory that suggests a robust future, characterized by continuous advancements and a commitment to meeting the dynamic needs of businesses and consumers alike.

    Integration of Advanced Technologies

    The First Mile Logistics Delivery Software Market is witnessing a notable trend towards the incorporation of advanced technologies. Solutions utilizing artificial intelligence and machine learning are becoming more common, allowing for improved decision-making and operational efficiency. This integration is likely to enhance predictive analytics, enabling companies to anticipate demand and optimize their logistics processes.

    Focus on Sustainability

    Sustainability is emerging as a critical consideration within the First Mile Logistics Delivery Software Market. Organizations are increasingly seeking software solutions that support eco-friendly practices, such as reducing carbon footprints and optimizing resource usage. This trend indicates a shift towards environmentally responsible logistics, aligning with broader global sustainability initiatives.

    E-commerce Driven Innovations

    The growth of e-commerce is significantly influencing the First Mile Logistics Delivery Software Market. As online shopping continues to expand, logistics providers are compelled to enhance their first mile delivery capabilities. This demand is fostering the development of innovative software solutions tailored to address the complexities of e-commerce logistics, including real-time tracking and improved customer communication.

    First Mile Logistics Delivery Software Market Drivers

    Focus on Sustainability

    Sustainability has emerged as a pivotal concern within the First Mile Logistics Delivery Software Market. Companies are increasingly adopting eco-friendly practices to meet regulatory requirements and consumer expectations. This shift is reflected in the growing demand for software solutions that facilitate sustainable logistics operations, such as optimizing delivery routes to minimize fuel consumption and carbon emissions. According to recent data, businesses that implement sustainable logistics practices can reduce operational costs by up to 20%. As environmental awareness continues to rise, the emphasis on sustainability is likely to drive innovation and investment in the First Mile Logistics Delivery Software Market, encouraging the development of solutions that align with green logistics principles.

    Rising Consumer Expectations

    Consumer expectations regarding delivery speed and reliability are at an all-time high, significantly impacting the First Mile Logistics Delivery Software Market. Customers now demand faster delivery times, often expecting same-day or next-day service. This shift in consumer behavior compels logistics companies to enhance their operational capabilities through advanced software solutions. Data suggests that companies that meet or exceed customer delivery expectations can achieve higher customer satisfaction and retention rates. As a result, logistics providers are investing in software that enables real-time tracking, automated notifications, and efficient route planning. The rising consumer expectations thus act as a powerful driver for innovation and investment in the First Mile Logistics Delivery Software Market.

    E-commerce Driven Innovations

    The rapid expansion of e-commerce has significantly influenced the First Mile Logistics Delivery Software Market. As online shopping continues to gain traction, the demand for efficient logistics solutions has surged. Companies are increasingly seeking software that can streamline the first mile of delivery, ensuring timely and accurate order fulfillment. Recent statistics indicate that e-commerce sales are expected to reach trillions of dollars, further intensifying the need for robust logistics software. This trend is prompting logistics providers to innovate and adapt their services, leading to the development of specialized software that caters to the unique challenges posed by e-commerce. Consequently, the e-commerce boom serves as a critical driver for growth in the First Mile Logistics Delivery Software Market.

    Integration of Advanced Technologies

    The First Mile Logistics Delivery Software Market is experiencing a notable shift due to the integration of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things. These technologies enhance operational efficiency by optimizing route planning, improving inventory management, and facilitating real-time tracking. As a result, companies can reduce delivery times and costs, which is crucial in a competitive landscape. The market for logistics software is projected to grow significantly, with estimates suggesting a compound annual growth rate of over 10% in the coming years. This growth is driven by the increasing demand for automation and data-driven decision-making in logistics operations, making the integration of advanced technologies a key driver in the First Mile Logistics Delivery Software Market.

    Increased Investment in Logistics Technology

    Investment in logistics technology is witnessing a significant uptick, serving as a crucial driver for the First Mile Logistics Delivery Software Market. Companies are recognizing the importance of technology in enhancing operational efficiency and customer satisfaction. Recent reports indicate that investments in logistics technology are projected to reach billions of dollars in the next few years. This influx of capital is likely to spur the development of innovative software solutions that address the complexities of first mile logistics. As businesses seek to improve their supply chain resilience and adaptability, the focus on technology-driven solutions is expected to accelerate growth in the First Mile Logistics Delivery Software Market.

    Market Segment Insights

    By Type: Order Management (Largest) vs. Transportation Management (Fastest-Growing)

    In the First Mile Logistics Delivery Software Market, the order management segment holds the largest market share, driven by its essential role in streamlining order processing and enhancing customer satisfaction. Transportation management, while smaller in share, is rapidly gaining traction as businesses focus on optimizing their logistics to improve delivery efficiency. Warehouse and fleet management technologies are also integral, but currently take a back seat to these two major players in terms of market dominance.

    Order Management (Dominant) vs. Transportation Management (Emerging)

    Order management systems serve as the backbone of the First Mile Logistics Delivery Software Market, facilitating efficient order tracking and improving operational workflows. They dominate due to their ability to integrate various logistics functions, ensuring a seamless process from order placement to final delivery. Conversely, transportation management systems are emerging as a critical solution for enhancing route efficiency, reducing costs, and increasing visibility across supply chains. This segment is driven by technological advancements such as AI and machine learning, which enhance delivery forecasting and optimize transportation routes.

    By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

    In the First Mile Logistics Delivery Software Market, the deployment type segment is prominently led by cloud-based solutions owing to their flexibility, scalability, and cost-effectiveness. These solutions dominate the market, accounting for a substantial majority share, facilitating seamless integration with various logistics operations. On-premises software, while holding a smaller market share, is gaining traction due to organizations' need for enhanced data security and control over their logistics processes. The growth trends indicate a shift towards hybrid models, where businesses are recognizing the advantages of both cloud-based and on-premises solutions. This trend is driven by the increasing demand for real-time data access and the necessity for robust data protection. As the sector evolves, on-premises solutions are anticipated to grow faster as more companies seek tailored systems that align with specific operational demands.

    Cloud-Based (Dominant) vs. On-Premises (Emerging)

    Cloud-based deployment is the dominant choice in the First Mile Logistics Delivery Software Market due to its inherent advantages, such as reduced upfront costs and greater flexibility in operations. These solutions offer easy scalability and support collaboration through cloud networks, enabling logistics firms to quickly adapt to changing market demands. Conversely, on-premises software solutions are emerging as vital alternatives, especially for industries prioritizing data security and compliance. These systems enable firms to maintain total control over their logistics data and minimize risks related to cloud storage. As businesses grapple with evolving regulations and cybersecurity threats, on-premises solutions are expected to flourish, catering to organizations that seek reliability and accountability in their delivery operations.

    By End User: E-commerce (Largest) vs. Pharmaceuticals (Fastest-Growing)

    In the First Mile Logistics Delivery Software Market, the distribution of market share predominantly favors the E-commerce sector, which has emerged as the largest end user due to the increasing demand for online shopping and quick delivery services. Retail also holds a significant portion of the market, driven by the constant innovation in delivery processes and the desire for enhanced customer experiences. Food and Beverage, while an essential segment, captures a smaller share, primarily focused on timely and safe deliveries. Pharmaceuticals represent a growing niche, benefiting from niche software solutions that facilitate temperature-controlled and secure logistics operations. Growth trends in this market are largely spurred by the expanding reach of technology and changing consumer preferences. The E-commerce sector continues to dominate as more customers shift towards online shopping, thus driving advanced logistics solutions. Meanwhile, the Pharmaceuticals sector is rapidly gaining traction, fueled by a heightened emphasis on healthcare and timely delivery of medical supplies and medicines. As regulatory requirements increase, a tailored approach to logistics software in this sector ensures operational efficiency and compliance, positioning it as the fastest-growing segment.

    Retail (Dominant) vs. Food and Beverage (Emerging)

    In the First Mile Logistics Delivery Software Market, Retail stands out as the dominant sector, largely due to its established infrastructure and extensive market presence. Retailers are increasingly adopting advanced logistics solutions to streamline operations and meet consumer demands for faster delivery times. The continuous evolution of consumer shopping habits and the push for omnichannel logistics strategies further solidify Retail's position. On the other hand, the Food and Beverage sector is emerging, characterized by its unique logistics challenges such as maintaining product freshness and ensuring compliance with food safety regulations. As consumer interest in gourmet and ready-to-eat meal deliveries rises, companies in this segment are beginning to leverage innovative software solutions to enhance delivery efficiency and traceability, marking its growth potential in the logistics landscape.

    By Functionality: Route Optimization (Largest) vs. Real-Time Tracking (Fastest-Growing)

    In the First Mile Logistics Delivery Software Market, Route Optimization leads with the largest market share. It is critical for increasing operational efficiency, reducing transit times, and lowering transportation costs. Following closely is Real-Time Tracking, which is rapidly gaining traction as businesses increasingly seek transparency and visibility in their logistics processes. Alongside Route Optimization, these functionalities form the core of delivery software, providing competitive advantages in a crowded market. The growth trends within this segment are driven by the increasing need for efficiency and effectiveness in logistics operations. As online shopping continues to rise, businesses prioritize services like Real-Time Tracking to meet customer expectations for timely deliveries. Additionally, the demand for seamless integration of technologies within logistics operations stimulates continuous improvement and innovation in these functionalities, driving their adoption rates higher across various industry verticals.

    Route Optimization (Dominant) vs. Inventory Management (Emerging)

    Route Optimization is recognized as the dominant functionality within the First Mile Logistics Delivery Software Market, providing significant advantages through the streamlining of delivery processes. This technology focuses on determining the most efficient delivery routes considering factors such as traffic, distance, and delivery windows. On the other hand, Inventory Management is an emerging functionality, gaining attention as businesses realize the importance of synchronized operations. While Inventory Management supports real-time stock visibility and minimizes delays, Route Optimization remains crucial for enhancing overall pack-and-ship efficiency. Together, these functionalities reflect the evolving landscape of logistics software where operational excellence and inventory accuracy are paramount for businesses aiming to thrive in competitive environments.

    Get more detailed insights about First Mile Logistics Delivery Software Market

    Regional Insights

    North America : Logistics Innovation Leader

    North America is the largest market for First Mile Logistics Delivery Software Market, holding approximately 45% of the global market share. The region's growth is driven by the increasing demand for efficient supply chain solutions, technological advancements, and supportive regulatory frameworks. The rise of e-commerce and the need for real-time tracking are significant catalysts for market expansion, with companies investing heavily in logistics technology to enhance operational efficiency. The United States is the leading country in this sector, followed by Canada. Major players like Project44, FourKites, and Shipwell are headquartered in the U.S., contributing to a competitive landscape characterized by innovation and rapid technological adoption. The presence of these key players fosters a robust ecosystem, driving further advancements in logistics software solutions.

    Europe : Emerging Market Dynamics

    Europe is witnessing significant growth in the First Mile Logistics Delivery Software Market, accounting for approximately 30% of the global share. The region's expansion is fueled by increasing regulatory support for digital transformation in logistics, sustainability initiatives, and the rising demand for efficient delivery solutions. Countries are investing in infrastructure improvements and technology adoption to enhance supply chain resilience, particularly in the wake of recent disruptions. Germany and the United Kingdom are the leading countries in this market, with a strong presence of key players like Transporeon and Bringg. The competitive landscape is marked by a mix of established firms and innovative startups, all striving to meet the evolving needs of the logistics sector. The focus on sustainability and efficiency is driving companies to adopt advanced software solutions, further propelling market growth.

    Asia-Pacific : Rapidly Growing Market

    Asia-Pacific is emerging as a significant player in the First Mile Logistics Delivery Software Market, holding around 20% of the global market share. The region's growth is driven by rapid urbanization, increasing e-commerce activities, and government initiatives aimed at improving logistics infrastructure. Countries are focusing on enhancing supply chain efficiency and reducing delivery times, which are critical for meeting consumer expectations in a competitive market. China and India are the leading countries in this sector, with a growing number of logistics technology firms entering the market. The competitive landscape is characterized by both local startups and international players, creating a dynamic environment for innovation. Key players are increasingly investing in technology to streamline operations and improve customer service, contributing to the overall growth of the market.

    Middle East and Africa : Emerging Logistics Hub

    The Middle East and Africa region is gradually developing its First Mile Logistics Delivery Software Market, currently holding about 5% of the global share. The growth is driven by increasing investments in logistics infrastructure, a burgeoning e-commerce sector, and government initiatives aimed at enhancing trade efficiency. Countries in this region are recognizing the importance of technology in logistics, leading to a gradual shift towards digital solutions. South Africa and the UAE are the leading countries in this market, with a growing number of logistics firms adopting advanced software solutions. The competitive landscape is evolving, with both local and international players vying for market share. As the region continues to invest in logistics technology, the demand for innovative delivery software solutions is expected to rise, fostering a more efficient logistics environment.

    First Mile Logistics Delivery Software Market Regional Image

    Key Players and Competitive Insights

    The  First Mile Logistics Delivery Software Market is experiencing significant evolution driven by the increasing demand for efficient supply chain management and the optimization of delivery processes. As businesses aim to enhance customer satisfaction and streamline operations, the focus on first-mile logistics has gained pivotal importance. The competitive landscape in this market is characterized by a mix of established players and new entrants, each vying to create innovative software solutions that cater to the unique needs of businesses across various industries.

    The market is shaped by trends such as the integration of advanced technology, including artificial intelligence, machine learning and real-time data analytics, all contributing to improved logistics visibility, route optimization and cost-effective delivery mechanisms.Oracle has established a strong foothold in the  First Mile Logistics Delivery Software Market, leveraging its robust technological infrastructure and comprehensive suite of logistics solutions. The company's strengths lie in its ability to integrate seamlessly with existing systems, providing businesses with enhanced visibility and control over their supply chains. 

    Oracle's software is designed to optimize first-mile delivery processes by offering advanced analytics and reporting features, enabling organizations to make data-driven decisions that drive efficiency. Additionally, the company's focus on cloud-based solutions allows for scalability and flexibility, meeting the diverse needs of various clients, ranging from small enterprises to large corporations. Oracle's commitment to innovation, combined with its extensive industry experience, positions it as a formidable player in this competitive market.Infor, on the other hand, has garnered a reputation for providing specialized solutions tailored to the needs of specific industries within the  First Mile Logistics Delivery Software Market.

    The company excels in delivering user-friendly software that emphasizes ease of implementation and operation, making it an attractive choice for businesses seeking to improve their first-mile logistics capabilities. Infor's strengths lie in its advanced planning tools and mobility solutions, which allow for real-time tracking of shipments and enhanced collaboration across the supply chain. 

    Furthermore, Infor's dedication to industry-specific functionalities ensures that its software addresses the unique challenges faced by different sectors, thereby increasing its market relevance and appeal. This specialization, combined with a strong emphasis on customer support, positions Infor favorably within this competitive landscape, catering effectively to the evolving demands of the logistics industry.

    Key Companies in the First Mile Logistics Delivery Software Market market include

    Industry Developments

    The  First Mile Logistics Delivery Software Market has seen significant developments recently. Companies such as Oracle, SAP, and Microsoft are investing heavily in advanced technologies like artificial intelligence and machine learning to optimize logistics and improve delivery efficiencies. In a notable trend, project44 has enhanced their visibility capabilities through integrations with major shipping carriers, fostering real-time tracking solutions that are becoming a standard expectation in the market. Concurrently, FourKites has made strides in expanding its platform to provide seamless end-to-end supply chain visibility, merging software capabilities with deep industry insights.

    Additionally, notable merger and acquisition activities include IBM's acquisition of a logistics technology firm to bolster its cloud solutions for supply chains. As companies continue to focus on enhancing their logistics with sophisticated software solutions, the market valuation is projected to grow substantially, driven by the rising demand for faster and more reliable delivery services. Kinaxis and Blue Yonder are also making advancements that contribute to improved demand forecasting and inventory management, which are crucial for efficient first-mile logistics. Overall, the market is gearing up for transformation as businesses seek competitive advantages through technological enhancements.

    Future Outlook

    First Mile Logistics Delivery Software Market Future Outlook

    The First Mile Logistics Delivery Software Market is projected to grow at an 8.75% CAGR from 2024 to 2035, driven by technological advancements, increasing e-commerce demand, and enhanced supply chain efficiencies.

    New opportunities lie in:

    • Integration of AI-driven route optimization tools
    • Development of real-time tracking and analytics platforms
    • Expansion into emerging markets with tailored software solutions

    By 2035, the market is expected to achieve robust growth, solidifying its position as a critical component of logistics.

    Market Segmentation

    First Mile Logistics Delivery Software Market Type Outlook

    • Order Management
    • Transportation Management
    • Warehouse Management
    • Fleet Management

    First Mile Logistics Delivery Software Market End User Outlook

    • Retail
    • E-commerce
    • Food and Beverage
    • Pharmaceuticals

    First Mile Logistics Delivery Software Market Functionality Outlook

    • Route Optimization
    • Real-Time Tracking
    • Inventory Management
    • Customer Communication

    First Mile Logistics Delivery Software Market Deployment Type Outlook

    • Cloud-Based
    • On-Premises

    Report Scope

    MARKET SIZE 20246.946(USD Billion)
    MARKET SIZE 20257.553(USD Billion)
    MARKET SIZE 203517.48(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)8.75% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesIntegration of artificial intelligence for enhanced route optimization in the First Mile Logistics Delivery Software Market.
    Key Market DynamicsRising demand for efficient delivery solutions drives innovation in First Mile Logistics Delivery Software.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Leave a Comment

    FAQs

    What is the projected market valuation of the First Mile Logistics Delivery Software Market by 2035?

    The market is projected to reach a valuation of 17.48 USD Billion by 2035.

    What was the market valuation of the First Mile Logistics Delivery Software Market in 2024?

    The overall market valuation was 6.946 USD Billion in 2024.

    What is the expected CAGR for the First Mile Logistics Delivery Software Market during the forecast period 2025 - 2035?

    The expected CAGR for the market during this period is 8.75%.

    Which segment is anticipated to have the highest growth in the First Mile Logistics Delivery Software Market?

    The Transportation Management segment is expected to grow from 2.0 USD Billion to 5.0 USD Billion.

    What are the key functionalities driving the First Mile Logistics Delivery Software Market?

    Key functionalities include Route Optimization, Real-Time Tracking, Inventory Management, and Customer Communication.

    How does the deployment type affect the market valuation of First Mile Logistics Delivery Software?

    Cloud-Based deployment is projected to grow from 4.165 USD Billion to 10.99 USD Billion, indicating a strong preference for this model.

    Which end-user segment is expected to see significant growth in the First Mile Logistics Delivery Software Market?

    The E-commerce segment is anticipated to grow from 2.5 USD Billion to 6.0 USD Billion.

    Who are the leading players in the First Mile Logistics Delivery Software Market?

    Key players include Project44, FourKites, Shipwell, and Onfleet, among others.

    Download Free Sample

    Kindly complete the form below to receive a free sample of this Report

    Compare Licence

    ×
    Features License Type
    Single User Multiuser License Enterprise User
    Price $4,950 $5,950 $7,250
    Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
    Free Customization
    Direct Access to Analyst
    Deliverable Format
    Platform Access
    Discount on Next Purchase 10% 15% 15%
    Printable Versions