Market Size of Germany Last Mile Delivery Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 28.72 Billion |
| Market Size (2029) | USD 36.16 Billion |
| CAGR (2024 - 2029) | 4.71 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Germany Last Mile Delivery Market Analysis
The Germany Last Mile Delivery Market size is estimated at USD 28.72 billion in 2024, and is expected to reach USD 36.16 billion by 2029, growing at a CAGR of 4.71% during the forecast period (2024-2029).
The mile delivery market is driven by several factors, including the development of the e-commerce sector and the rise in trading activities due to globalization, technological innovations in delivery vehicles, and the need for fast package delivery.
However, poor infrastructure, high logistics costs, a lack of control over logistics services by manufacturers and retailers, and an inaccurate postal address system will impede the market growth. Since the implementation of the directive to restrict social activities and non-essential commercial activities in Germany, freight transport by rail and road has decreased by approximately 20%.
The majority of online retailers were also affected by COVID-19. According to Deutsche Post, a daily average of 5.2 million parcels are usually delivered. Deutsche Post reported that during the lockdowns, more than 8 million packages and deliveries were transported daily. The coronavirus crisis has led to an increase in the demand for storage space in the country, which is not unexpected.
Germany has seen unprecedented growth in e-commerce, as has almost every country in the world. In parallel with the growth of e-commerce, nationwide out-of-the-home delivery options such as parcel lockers and parcel collection stations have become increasingly popular. Deutsche Post, for example, currently operates about 8500 automated parcel machines, with plans to increase that to 12,500 machines by 2023.
For instance, in June 2023, DODO, the same-day delivery service provider, expanded its operations into the German market, reinforcing the long-term viability of same-day, last-mile delivery. DODO has developed a comprehensive software and delivery ecosystem over the years to support players across a variety of industries. This ecosystem is further supported by the company's white-label solution, which allows direct integration into the company's IT structure. DODO currently employs more than 2500 couriers and 1,000 vehicles.
