On-demand logistics market seen hitting $80.6 billion by 2031

A new Allied Market Research report projects the global on-demand logistics market will grow from $12.4 billion in 2021 to $80.6 billion by 2031, driven by e-commerce, faster delivery demand and rising smartphone use. Asia-Pacific is expected to lead the market, while healthcare and B2C delivery are among the fastest-growing segments.

Why it matters: - The on-demand logistics market is expanding as retailers and logistics providers race to meet consumer demand for faster delivery. - Allied Market Research projects the global market will more than sextuple by 2031, signaling continued investment in same-day and last-mile delivery infrastructure. - Growth in e-commerce, online shopping and urban delivery needs is reshaping retail, healthcare and B2C logistics.

What happened: - Allied Market Research said the global on-demand logistics market was valued at $12.4 billion in 2021. - The firm projects the market will reach $80.6 billion by 2031. - The report forecasts a 20.8% compound annual growth rate from 2022 to 2031. - The report is titled “On-demand Logistics Market Size, Share, Competitive Landscape and Trend Analysis Report, by Service Type, by End User, by Application: Global Opportunity Analysis and Industry Forecast, 2021-2031.” - Asia-Pacific is expected to dominate the market during the forecast period. - The report says North America is anticipated to post the highest CAGR during the forecast period.

The details: - The report links Asia-Pacific growth to rising online shopping and demand for shorter delivery times. - Same-day on-demand delivery services for local customers are helping lift regional growth. - Rising consumer income is also increasing demand for product availability in the region. - Multimodal transportation and international retailing are supporting growth in the retail segment. - Higher disposable income and stronger purchasing power are expected to increase demand for retail on-demand logistics services. - E-commerce growth, smartphone adoption and faster internet penetration are further market drivers. - The market is also being pushed by global e-commerce expansion and higher demand for fast package delivery. - Poor infrastructure and high logistics costs are limiting growth. - Aerial delivery drones designed for difficult terrain are expected to create new opportunities during the forecast period. - By service type, value-added services are expected to show significant growth. - By application, healthcare is expected to show significant growth. - By end user, B2C is expected to show significant growth.

Between the lines: - COVID-19 exposed how dependent logistics networks are on cross-border transport, labor availability and uninterrupted movement of goods. - The pandemic shifted demand toward B2C logistics as online retail overtook offline shopping in many markets. - Allied Market Research cited a 20% rise in online shopping in 2019 and a 30% rise during lockdown. - The report says companies restructured warehouses to handle e-commerce logistics. - The forecast also reflects a broader urban delivery shift, with more consumers buying online and more goods moving through last-mile networks. - The report cites expectations that urban last-mile and on-demand deliveries could grow 75% to 80% by 2030. - It also projects delivery vehicles could increase 36% to 7.2 million by 2030 from 5.3 million in 2019.

What's next: - The report expects post-pandemic e-commerce growth to keep supporting demand for on-demand logistics services. - Faster vaccination and the revival of trade are expected to help the market expand during the forecast period. - The report points to stronger demand for cost-effective, fast delivery as a continuing growth driver. - Companies in the market include Amazon.com, Deutsche Post DHL Group, FedEx, Uber Technologies, United Parcel Service and XPO Logistics. - More information is available in the sample report and purchase options.