On-Demand Delivery Market Size, Share, Industry Analysis, Trends, Growth, 2032

On-Demand Delivery Industry Prospective:

The global On-Demand delivery market size was worth around USD 15.19 billion in 2023 and is predicted to grow to around USD 83.82 billion by 2032 with a compound annual growth rate (CAGR) of roughly 20.90% between 2024 and 2032.

Request Free Sample

On-Demand Delivery Market: Overview

On-demand delivery is a part of the larger e-commerce sector. It deals with the delivery of products demanded by customers in the shortest time possible. Companies offering products or services through On-demand delivery focus on adopting operational techniques that reduce delivery time. The traditional e-commerce industry offers quick delivery however, in most cases, the delivery time may extend beyond one day. On-demand delivery takes the conventional e-commerce sector one step ahead by offering delivery on the same date of order and in some cases, within one hour or 30 minutes.

The latter variant is mostly observed in companies selling food and other perishable items. The concept of On-demand delivery gained more traction during COVID-19 and since then has picked up an incredible pace. Several technical points such as operational efficiency when scaling and efficient use of resources are some of the critical aspects of the on-demand delivery industry. During the forecast period, the industry for real-time delivery is projected to grow at a rapid rate.

Key Insights:

• As per the analysis shared by our research analyst, the global On-Demand delivery market is estimated to grow annually at a CAGR of around 20.90% over the forecast period (2024-2032)
• In terms of revenue, the global On-demand delivery market size was valued at around USD 15.19 billion in 2023 and is projected to reach USD 83.82 billion by 2032.
• The market is projected to grow at a significant rate due to the increasing urbanization and access to smart technology
• Based on product segmentation, the mobile applications segment was predicted to show maximum market share in the year 2023
• Based on end-user segmentation, the food segment was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023 and is expected to dominate the global market during the forecast period.

Request Free Sample

On-Demand Delivery Market: Growth Drivers

Increasing urbanization and access to smart technology will drive market growth

The global On-demand delivery market is expected to grow due to the rising urbanization level across the globe. More people are migrating to urban regions due to higher and better job prospects and standard of living. In addition to this, access to smarter technologies such as mobile applications and programs has improved over the years. The rapid sale of smartphones and reduced prices of the internet are indications of higher adoption of smart technologies.

In 2020, as per official research, Africa’s urbanization rate was around 47.01%. Since 2000, there has been a steady rise in the number of people living in urban areas. On-demand delivery services are considered extremely consumer friendly for people living in the cosmopolitan areas. Quick delivery services respond within minutes and hence have proven extremely helpful to customers requiring products or services in a short time.

Rising demand for grocery delivery services will trigger higher growth in the industry

The use of On-demand delivery is likely to be impacted by the growing use of grocery delivery services across the globe. Real-time grocery delivery has eased the way of living for several people living in urban and rural areas. The rise in the employed workforce with limited time to spend on cooking and grocery shopping will lead to higher application of On-demand delivery. Moreover, the increase in collaborations between delivery partners and product providers has further aided the extension of On-Demand delivery.

In February 2024, DoorDash, a US-based food delivery and ordering platform, announced the launch of a new agreement while partnering with Ahold Delhaize which is a grocery group. The customers of the latter including Stop & Shop and Food Lion will now have access to improved On-demand delivery services.

On-Demand Delivery Market: Restraints

Lack of efficient scaling and the threat of poor use of resources will restrict market expansion

The global On-Demand delivery market is expected to face certain growth restrictions. One of the major limitations is the form of companies lacking efficient ways to scale delivery as per customer demands. For instance, when products are ordered in bulk, there is a risk of companies failing to deliver as expected leading to delays in product delivery.

In addition to this, lack of planning and resource planning is expected to further cause poor use of available resources. One such example is the time wasted by the driver waiting for the order to be packed especially in case of bulk orders. Businesses providing On-demand delivery must continuously focus on meeting customer expectations otherwise it may get difficult for On-demand delivery service providers to sustain in the long run.

On-Demand Delivery Market: Opportunities

Delivery customization and other unique features offered by delivery partners will generate high-growth opportunities

The global industry for On-demand delivery is expected to generate higher returns on investment during the projection period. The customers have become used to the new technology leading to service providers investing in new solutions that ease customer experience and offer user-friendly solutions. For instance, one of the leading and most significant new features offered includes delivery customizations. Companies offer delivery time slots as per customer preference.

Other options include aspects such as order notifications, direct contact with delivery personnel, and special requests. Leading food delivery applications provide options to choose payment options and additional services. Adapting to the expectations and demands of the target audience aids in sustainable growth.

Integration of new technologies such as blockchain, artificial intelligence (AI), and machine learning (ML) is the future of the industry

The global On-demand delivery market is projected to witness high growth as companies can be seen integrating new technologies such as blockchain, AI, and ML. The integration of the new tools is expected to improve application and service performance. For instance, AI can be used for predictive analysis based on weather conditions and real-time traffic situations. Furthermore, blockchain technology will provide greater customer security and transparency thus reducing the number of frauds.

In September 2023, India’s leading food delivery and rating application, Zomato, launched Zomato AI. It is a customized chatbot and as per company claims, will help the customers decide their food order. Similarly, during the same time, Uber Eats announced its plans to roll out new AI features along with novel payment options. The growing proliferation of the Internet of Things (IoT) will generate more adoption opportunities for the market players.

On-Demand Delivery Market: Challenges

Growing inflation rate and high cost of resources will pose critical challenges

The growth rate in the global industry for On-demand delivery will be challenged by the rising inflation rate worldwide and the increasing cost of resources. The sharp rise in fuel prices along with an increment in the need to improve profit margins may discourage companies from investing in new solutions, especially On-demand delivery since it is a cost-intensive industry.

On-Demand Delivery Market: Segmentation

The global On-demand delivery market is segmented based on product, end-user, and region.

Based on product, the global market is divided into websites, mobile applications, and others. In 2022, the highest growth was witnessed in the mobile applications segment due to the presence of an extensive consumer base heavily reliant on mobile software programs for food, grocery, and apparel shopping. The rise in urban population along with an increase in marketing investments to raise consumer awareness have been crucial in influencing segmental growth. Mobile applications offer easy accessibility and excellent user experience. As per March 2024 reports, in 2022, UberEats was downloaded 3.5 million times in the UK.

Based on end-user, the global market is divided into apparel, food, grocery, and others. The highest revenue-generating segment in 2022 was food. The rapid rise in the number of customers preferring pre-cooked meals and the incredible delivery strategies adopted by food delivery partners are the main growth drivers. Zomato is currently available in 24 countries. The grocery segment is the fastest-growing segment since it offers ease to customers in terms of buying everyday essentials.

On-Demand Delivery Market: Report Scope

On-Demand Delivery Market: Regional Analysis

Asia-Pacific to lead the way during the forecast period

The global On-demand delivery market is projected to be led by Asia-Pacific during the forecast period. Regions such as China and India form the largest consumer base globally with the massive presence of more than 30% of the world’s population. An additional factor that assists in aiding regional dominance is the growing income rate and changing lifestyle of the domestic population. China’s market size in terms of food delivery in 2022 was close to USD 43 billion as per official reports. China and India boast of the presence of robust supply chain systems with the logistics sector ranking among the world’s quickest and customer-oriented services.

The increase in government expenditure to improve the delivery period will further impact the regional market. More than 92.9% of China’s population currently prefers Meituan Waimai as the most prominent food delivery application in the country. North America is an influential market. The US has been pivotal in introducing On-demand delivery across the globe. The regional players are highly competitive and continue to experiment with new technologies such as AI and ML. In January 2024, DoorDash announced its plan to invest large quantities in its core business which is related to restaurant food delivery.

On-Demand Delivery Market: Competitive Analysis

The global On-demand delivery market is led by players like:

• DoorDash
• Uber Eats
• Instacart
• Grubhub
• Just Eat
• Postmates
• Swiggy
• Deliveroo
• Shipt
• Glovo
• Caviar
• EatStreet
• Zomato
• Rappi
• GoPuff

The global on-demand delivery market is segmented as follows:

By Product

• Websites
• Mobile Applications
• Others

By End-User

• Apparel
• Food
• Grocery
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa