Malaysia Last Mile Delivery Market Size, Share, Trends and Forecast by Service Type, Technology, Application, and State, 2025-2033

Malaysia Last Mile Delivery Market Overview:

The Malaysia last mile delivery market size reached USD 483.60 Million in 2024. The market is projected to reach USD 1,255.47 Million by 2033, exhibiting a growth rate (CAGR) of 10.01% during 2025-2033. The market is fueled by the fast growth of the digital economy and e-commerce, with Malaysia's e-commerce industry achieving steady double-digit growth. Moreover, the mass adoption of electric vehicles and environmentally friendly logistics practices by large courier companies is revamping the efficiency of operations. Additionally, the inclusion of sophisticated technologies is improving delivery speed and customer satisfaction in the Malaysia last mile delivery market share.

Malaysia Last Mile Delivery Market Trends:

E-Commerce Expansion and Digital Economy Growth Driving Demand

The market is experiencing robust growth driven by the rapid expansion of e-commerce and the digital economy. According to an industry report, the e-commerce income in the country reached RM307.9 billion in the third quarter of 2024, representing a 3.8 per cent year-on-year growth, primarily driven by the Manufacturing and Services sectors. This economic transformation is being supported by strategic government initiatives, including the National e-Commerce Strategic Roadmap and the Malaysia Digital Economy Blueprint, which focus on enhancing digital adoption, particularly among small and medium enterprises. Moreover, the rise of online shopping platforms, coupled with consumer expectations for faster delivery services, is creating unprecedented demand for efficient last mile delivery solutions. The increasing internet penetration rate has further accelerated online commerce adoption, creating a robust foundation for sustained last-mile delivery market expansion. Apart from this, major e-commerce platforms are reinvesting in growth strategies, including same-day and next-day delivery services, to meet evolving consumer expectations.

Electric Vehicle Adoption and Sustainability Initiatives Transforming Logistics

A significant transformation in the sector is made through the widespread adoption of electric vehicles and sustainable logistics practices. In September 2025, Pos Malaysia Berhad ("Pos Malaysia"), the nation's primary postal and parcel delivery provider, strengthened its delivery capabilities with the official addition of 136 all-electric Maxus eDeliver 3 vans, supplied by Weststar Maxus in collaboration with leasing partner Yinson GreenTech. This initiative marks more than just a fleet expansion—it represents a significant step toward sustainable logistics. The transition underscores Pos Malaysia's dedication to advancing its Environmental, Social, and Governance (ESG) commitments, while supporting Malaysia's broader vision of building a low-carbon, energy-efficient future. This industry-wide shift toward electrification aligns with Malaysia's Low Carbon Mobility Blueprint and the Twelfth Malaysia Plan, which prioritizes green growth as a pathway to economic progress. The government's target of having 50 percent of new government cars as electric vehicles by 2025 further reinforces the national commitment to sustainable transportation.

Technology Integration and Digital Transformation

The Malaysia last mile delivery market growth is significantly propelled by the integration of advanced technologies and digital transformation initiatives across the logistics sector. Several last-mile delivery solutions in Malaysia now incorporate advanced technologies such as real-time tracking systems, artificial intelligence-powered route optimization, and data analytics platforms. These technological innovations are addressing critical operational challenges, including traffic congestion, delivery route optimization, and varying delivery windows, resulting in improved efficiency and reduced operational costs. Real-time tracking capabilities have become a standard expectation among Malaysian consumers, with companies implementing GPS-based systems and mobile applications that provide customers with live updates on their deliveries. The adoption of automated delivery management platforms is enabling logistics companies to handle increasing parcel volumes more efficiently while maintaining service quality. Route optimization software is being deployed to minimize fuel consumption, reduce delivery times, and optimize fleet utilization across urban and rural areas. Government initiatives supporting infrastructure development and digital transformation, including investments in smart cities and enhanced transportation networks, are creating favorable conditions for technology adoption in the logistics sector.

Malaysia Last Mile Delivery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and state levels for 2025-2033. Our report has categorized the market based on service type, technology, and application.

Service Type Insights:

• B2C
• B2B
• C2C

The report has provided a detailed breakup and analysis of the market based on the service type. This includes B2C, B2B, and C2C.

Technology Insights:

• Autonomous
• Non-autonomous

A detailed breakup and analysis of the market based on the technology have also been provided in the report. This includes autonomous and non-autonomous.

Application Insights:

• Food and Beverages
• Retail and E-commerce
• Healthcare
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes food and beverages, retail and e-commerce, healthcare, and others.

State Insights:

• Selangor
• W.P. Kuala Lumpur
• Johor
• Sarawak
• Others

The report has also provided a comprehensive analysis of all the major states markets, which include Selangor, W.P. Kuala Lumpur, Johor, Sarawak, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Malaysia Last Mile Delivery Market News:

• In September 2025, FedEx introduced 41 Maxus e-Deliver 3 electric vans into its Malaysian fleet to enhance parcel collection and delivery services in major urban areas. The shift from diesel to electric vehicles is expected to cut approximately 305 metric tonnes of CO₂ emissions each year. This deployment reflects FedEx’s long-term objective of reaching carbon-neutral operations by 2040 and is aligned with Malaysia’s Low Carbon Mobility Blueprint (2021–2030) and the country’s wider sustainability agenda.

Malaysia Last Mile Delivery Market Report Coverage:

Key Questions Answered in This Report:

• How has the Malaysia last mile delivery market performed so far and how will it perform in the coming years?
• What is the breakup of the Malaysia last mile delivery market on the basis of service type?
• What is the breakup of the Malaysia last mile delivery market on the basis of technology?
• What is the breakup of the Malaysia last mile delivery market on the basis of application?
• What is the breakup of the Malaysia last mile delivery market on the basis of state?
• What are the various stages in the value chain of the Malaysia last mile delivery market?
• What are the key driving factors and challenges in the Malaysia last mile delivery market?
• What is the structure of the Malaysia last mile delivery market and who are the key players?
• What is the degree of competition in the Malaysia last mile delivery market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Malaysia last mile delivery market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Malaysia last mile delivery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Malaysia last mile delivery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.