Sales of last mile delivery (LMD) tyres will reach 215 million units in 2025, generating global sales revenue of $21.2 billion, according to research by Smithers, the worldwide authority on tyre markets.
Its new market report – The Future of Last Mile Fleet Tires to 2030 – shows that by 2030 this total will increase to 365 million units. This will yield sales of $38.0 billion, at constant pricing, equivalent to a 12.4% compound annual growth rate (CAGR) for 2025-2030.
The proliferation of e-commerce shopping and online meal delivery services is shaping a new market in specialised light commercial vehicle tyres to equip last mile delivery fleets. These serve an increasing number of destinations, many of which are smaller urban businesses (B2B) and residences (B2C), and account for a large part of overall global supply chain costs, as much as 50% in some instances.
LMD fleet operators are increasingly demanding tyres that act like a conventional commercial vehicle tire, but in smaller sizes. Consequently, the greatest demand increases across the Smithers forecast period will come from the smaller tyre sizes (<16 inch).>
Tyres for LMD fleets need to be highly durable to manage heavy loads, congestion, multiple stops and starts, curb parking, and less-experienced drivers that can all put extra stress on a tyre and jeopardise its service life.
More LMD fleets are switching to light four-wheel vehicles, motorcycles and scooters to navigate city spaces, in place of vans and box trucks.
Urban fleets are well positioned to capitalise on the arrival of new low-cost electric vehicles (EVs), and better charging infrastructure. In 2025, tyres for EV fitments will account for just over 25% of sales value in last mile delivery fleets. This will rise rapidly through to 2030. Greater adoption of small, commercial EVs and the supply of specifically engineered tyres will push their market share, by value, to over 40% by the end of the decade.
At the same time LMD fleets provide a new forum for sales of smart tyres, including tyre pressure monitoring systems (TPMS), and other sensors that allow owners to better manage maintenance and cost.
