Singapore Last-mile Delivery Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Singapore Last-Mile Delivery Market Trends and Insights

E-commerce Penetration Surge Drives Structural Market Expansion

Close to 55% of online purchases in Singapore arrive from overseas merchants, straining last-mile capacity during shopping festivals. Social-commerce discovery channels—TikTok, Instagram, Facebook—now funnel 59% of all cross-border purchases, making micro-shipments the new normal. Shopee’s International Platform multiplied seller orders eightfold during pilots, proving that free cross-border shipping incentives permanently elevate parcel flows. Sustained volume growth pushes carriers to invest in multi-modal customs clearance nodes and advanced small-parcel sortation capable of regional reach beyond the city-state.

Rising Same-Day and Express Demand Reshapes Service Expectations

Same-day options have become baseline as 52% of shoppers now expect sub-24-hour fulfillment across more categories. Express services grow at 7.4% CAGR, fueled by premium electronics, B2B restocking, and temperature-sensitive pharma orders. Aging demographics and telemedicine lift healthcare & medical supplies deliveries by 9.6% CAGR. Automated storage and retrieval systems capable of –35 °C to ambient handling protect cold-chain integrity and cut labor exposure. Integrated cold-chain plus express capacity therefore commands premium yields within the Singapore last-mile delivery market.

Government-Backed Nationwide Locker Network Creates Infrastructure Foundation

The Pick Network’s 1,000 parcel lockers sit within a five-minute walk of most HDB households and plug into MRT stations and community clubs, slashing failed deliveries that historically consumed up to 40% of driver time. IMDA’s federated design lets multiple operators share infrastructure, lowering capex while raising network density. Panasonic’s 500 smart lockers anchor phase one, complete with biometric authentication and real-time monitoring^{[1]Panasonic Connect, “Panasonic Completes 500 Parcel Lockers Island-Wide in Singapore for Pick Network,” ap.connect.panasonic.com}. Urban Redevelopment Authority pilots extend the model with consolidated hubs in multi-storey carparks and autonomous robot tests, signaling long-term state commitment to last-mile optimisation.

Cross-Border Micro-Shipments Via Social Commerce Accelerate Regional Integration

TikTok Shop’s 135 million Southeast-Asian users generate impulse buys that rely on Singapore’s fast-clearance customs to hit three-day delivery targets. The city-state’s SGD 400 (USD 294) de minimis threshold keeps most parcels duty-free, cutting border dwell time to under 10 minutes^{[2]Janio Asia, “Singapore Markets,” janio.asia}. Multi-currency corporate cards like YouBiz offer zero FX fees and 1% cashback, easing seller adoption of cross-border campaigns. These platform-centric flows pressure carriers to master specialized customs declarations and real-time duty reconciliation, capabilities that traditional freight forwarders still lack.

Tight Labour Market and Rising Manpower Costs Accelerate Automation Adoption

Eighty-nine percent of logistics employers report recruitment difficulties as sector revenue outpaces workforce growth. Autonomous mobile robots, AI route optimizers, and digital dispatch engines such as A*STAR SIMTech’s Last-Mile Logistics Management allow carriers to scale parcel volumes without proportional headcount. Automation ROI shortens further when paired with mounting wage pressure and a 1.2% annual labor-supply increase against an 8.7% revenue rise.

Urban Curb-Space and Traffic Congestion Constrain Operational Efficiency

Limited loading bays and heightened enforcement in the CBD squeeze delivery windows. LTA’s new rules reducing personal-mobility-aid speed from 10 km/h to 6 km/h temper rider efficiency but improve pedestrian safety^{[3]Land Transport Authority, “New Rules on Personal Mobility Aids,” lta.gov.sg}. The ERP 2.0 virtual-gantry roadmap may introduce distance-based charging, nudging operators toward night deliveries and locker use to bypass peak congestion.

Segment Analysis

By Service: Express Delivery Gains Momentum Despite Standard Dominance

Standard delivery retained 53% of the Singapore last-mile delivery market share in 2024, reflecting entrenched cost-sensitive habits and optimized 1-to-3-day networks. Express services, however, post a 7.4% CAGR (2025-2030) as merchants weaponize speed for differentiation. Same-day courier apps deliver island-wide in 45 minutes, and GrabExpress leverages super-app driver pools for blended food-and-parcel dispatch. Cold-chain add-ons, secure handling, and white-glove furniture installation broaden express addressable revenue while cushioning margins against commoditized standard rates.

Asset-light micro-fulfilment nodes sited within retail estates compress lead times further. Yet escalating curb-space constraints trigger alternate modes: locker drop-offs, autonomous robots, or scheduled pick-ups. Compliance with GDP pharma standards and HACCP rules raises operational barriers, favoring incumbents with certified quality systems. The Singapore last-mile delivery market size for express services, therefore, rises faster than overall volume growth, signaling ongoing premiumization.

Note: Segment shares of all individual segments available upon report purchase

By Business Model: B2B Resilience Meets C2C Innovation

B2B deliveries captured 51% of the Singapore last-mile delivery market size in 2024, underpinned by free-trade-zone warehousing and predictable replenishment cycles. Duty-deferred inventory at Changi Air FTZ and Jurong Port lets wholesalers restock ASEAN stores within 48 hours, ensuring low stock-out risk for multinational retailers.

C2C shipments grow at 8.6% CAGR (2025-2030) as peer marketplaces like Carousell integrate on-demand couriers for bulky items. Individual sellers use time-slot booking and digital waybills, turning ad-hoc moves into trackable logistics events. B2C flows, while mature, now blur with C2C as social-commerce micro-brands ship directly from home inventories. This hybridization forces carriers to offer granular APIs and multi-wallet settlement so that one network seamlessly handles invoices, personal parcels, and platform orders within the Singapore last-mile delivery market.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Healthcare Acceleration Transforms Traditional Retail Dominance

E-commerce retail controlled 29% of the Singapore last-mile delivery market size in 2024, fueled by fashion, beauty, and consumer electronics. Marketplace campaigns and buy-now-pay-later adoption sustain this base.

Healthcare & medical supplies log a 9.6% CAGR (2025-2030), requiring GDP-compliant cold vans, tamper-evident packaging, and minute-level temperature telemetry. Telehealth prescriptions now demand two-hour home delivery, pushing carriers to deploy insulated totes inside express fleets. Furniture and large appliances still hinge on white-glove assembly and flexible scheduling; automation initiatives such as route-sequenced loading reduce dwell time at destination, raising daily drop counts. As vertical specialization deepens, multi-segment operators bundle sector-specific SLAs to maximize fleet utilization across the Singapore last-mile delivery market.

Geography Analysis

Singapore’s compact 728 km² footprint means every address sits within a 50 km radius, underpinning island-wide same-day capability. The western Tuas-Jurong cluster handles 39.01 million TEUs yearly, feeding maritime-origin parcels into micro-fulfilment nodes near HDB estates^{[4]Slovenia Times, “Singapore – A Trusted Global Supply Chain Management Hub,” sloveniatimes.com}. Eastern Changi logistics parks manage express air freight, aligning with healthcare and high-tech cargo that demands rapid clearance.

Cross-border corridors via Woodlands Causeway enable daily shuttles to Johor with 3-hour transit times, while ferry links to Batam serve electronics producers sourcing Singapore components. The forthcoming Johor–Singapore Special Economic Zone promises duty-free shuttle runs, expanding the regional relevance of the Singapore last-mile delivery market beyond its borders.