Industry Analysis of Last-mile Delivery Software in Japan

Analytical Study of Last-mile Delivery Software in Japan (2023 to 2033)

Deployment of last-mile delivery software in Japan is predicted to record a CAGR of 9.9% through 2033.

The last-mile delivery technology solutions in Japan are predicted to experience substantial opportunities with an estimated revenue generation of USD USD 86.3 million in 2023. Low productivity issues and labor shortages in Japan’s transportation sector are predicted to induce last-mile delivery stakeholders to prioritize initiatives by experimenting with developing technologies.

With the supportive policies issued by the Japanese government, last-mile logistics platforms turning to sustainable and efficient modes of operation can expect a bright future. The last-mile delivery software is estimated to record sales worth USD 225.4 million by 2033.

Key Insights - Highlights to Understand Emerging Trends

• Japanese fleets seek modernization of their delivery operations to maximize efficiency and fleet utilization in parallel to customer experience. Key players adopting new technologies like Machine Learning, Artificial Intelligence, Bluetooth Low Energy (BLE), Speech Recognition, Internet of Things (IoT), or others to enhance the user experience are expected to move past the competition.
• Last-mile delivery operators are shattering barriers by focusing on meeting fast delivery requirements. Gen Z and millennials, in particular, prefer fast deliveries to meet their last-minute or other needs. Tracking this trend, operators are pooling resources for a speedier delivery timeline.
• Japan has recently rolled out traffic laws for autonomous robots to navigate its streets. The new regulations are predicted to assist older adults living in remote areas in meeting their basic shopping requirements and put rest to ongoing labor shortage issues.

Attributes	Details
Industry Size of Last-mile Delivery Software in Japan	USD 86.3 million
Expected Industry Size of Last-mile Delivery Software in Japan in 2033	USD 225.4 million
Forecasted CAGR between 2023 to 2033	9.9%

Key Trends Influencing Sales of Last-mile Delivery Software in Japan

Japanese show an acute inclination toward online shopping. Consumers opt for online deliveries while virtually tracking orders from the warehouse to the sorting center to the doorstep.

Some of the adoption patterns impacting the last-mile delivery software businesses in Japan are listed below:

• Connecting eCommerce with Consumers! The popularity of eCommerce puts immense pressure on last-mile delivery platforms. eCommerce sales have grown multifold during the historical period, with the COVID-19 pandemic only catapulting this trend as consumers began demanding contactless shopping experiences for safety purposes.
• Putting Societal Issues at Bay! The elderly populace in Japan is highly dependent on last-mile delivery platforms. Due to this challenge-posing demographics, last-mile delivery software operators are turning to efficiency levers and better technologies to reach Japan’s population at scale.
• Delivery Robots are the Best Bet! Compact delivery robots and personal delivery devices, delivering 100 kg or less weighing packages at a maximum speed of 5 km/h or less, are the best bet to cope with issues like labor shortages. This technology also reduces GHG emissions and overall costs.

Category-wise insights

Cloud-based Deployment Model to Attract Wider Adoption in Japan

The cloud-based delivery software is deployed at a greater rate and enjoys maximum market share in Japan. Several businesses in Japan prioritize flexibility and cost-effectiveness while opting for last-mile delivery software for their operations.

End users of last-mile delivery solutions in Japan are focusing on scaling their services and products and adjusting resources and capacity to the demand, which is made possible by cloud-based delivery software. Their use is also higher due to cost-efficiency, as users do not need to invest in on-premise servers, thus incurring hardware as well as infrastructure expenses.

Last-mile Delivery Software in Japan based on Deployment	Forecast CAGR (2023 to 2033)
Cloud-based	11%
On-premise	9.2%
Web-based	8%

eCommerce to Outperform Other Applications

A spike in eCommerce sales in Japan is significantly contributing to the last-mile delivery software businesses’ revenue in the country. The FMCG category in the eCommerce sector is predicted to witness significant prospects as consumers in Japan are inclining toward packaged products and consumables.

Adoption of Last-mile Delivery Software in Japan	Market Value (2033)
eCommerce	USD 67.70 million
Courier, Express & Parcel	USD 56.3 million

The courier, express, and parcel segment follows behind the eCommerce segment. The robustly expanding pace of this segment suggests higher use of this service in Japan to transfer products.

Explore the Ways Last-mile Delivery Software Providers are Covering Miles

Japan is experiencing an incoming of startups presenting an innovative offering, thus keeping established players on their toes. The combination of startups and established players in Japan makes Japan a fragmented landscape. Given below are some strategic moves followed by last-mile delivery software participants:

• Increasing emphasis on partnership and collaboration with other technology providers to elevate business and product portfolio, thus helping the company serve the market requirement.
• Zeroing in on research and development to develop a new or updated version of a product. Following this strategy, players can adapt to the evolving demands of consumers and help them bring process efficiencies.
• Expanding its business via collaboration and partnership with other industry players, thus increasing its customer base and sales footprint.

Recent Developments Observed in Last-mile Delivery Services in Japan

• In December 2022, Japan Post Co. announced the launch of a new logistics drone to make drone delivery operations a reality in Japan. The new drone, made in collaboration with ACSL Ltd., a Tokyo-based company, can transport 5 kg, which is 3X the old model capacity. It can travel 35 kilometers. The new model is projected to be used by Japan Post for its Yu-Pack parcel delivery service and parcel transportation between post offices.
• In July 2022, Higashikawa Town and certain companies formed a partnership to sponsor projects that promote new social values. Under this official partnership agreement, Seino HD, Aeronext, Higashikawa Town, and Dentsu Hokkaido aim to execute a last-mile logistics trial using a logistics drone.
• In July 2021, Wise Systems, a prominent provider of AI-driven routing and dispatching platforms, announced its expansion in Japan with Wise Systems Japan.

Some Key Companies Offering Last-mile Delivery Software in Japan

• Sagawa Express
• Yamato Transport (Kuroneko)
• Rakuten Super Logistics
• Sagawa Global Logistics
• Nippon Express
• Parcel Live Japan
• OpenLogi
• Delight Ventures
• AnyMind Group
• QUOQUS
• Others

Scope of the Report

Attribute	Details
Estimated Industry Size in 2023	USD 86.3 million
Projected Industry Size in 2033	USD 225.4 million
Anticipated CAGR between 2023 to 2033	9.9% CAGR
Historical Analysis of Demand for Last-mile Delivery Software in Japan	2018 to 2022
Demand Forecast for Last-mile Delivery Software in Japan	2023 to 2033
Report Coverage	Industry Size, Industry Trends, Analysis of Key Factors Influencing Last mile Delivery Adoption in Japan, Insights on Japan Players and their Industry Strategy in Japan, Ecosystem Analysis of Local and Regional Japan Providers
Key Companies Profiled	Sagawa Express; Yamato Transport (Kuroneko); Rakuten Super Logistics; Sagawa Global Logistics; Nippon Express; Parcel Live Japan; OpenLogi; Delight Ventures; AnyMind Group; QUOQUS; Others

Key Segments

Deployment:

• Cloud-based Last-Mile Delivery Software
• On-Premises Last-Mile Delivery Software
• Web-based Last-Mile Delivery Software

Enterprise Size:

• Small and Mid-sized Enterprises (SMEs)
• Large Enterprises

Industry:

• Courier, Express & Parcel
• Retail & FMCG
• Transportation
• BFSI
• eCommerce
• Manufacturing
• Pharmaceutical
• Others

Key Cities:

• Kanto
• Chubu
• Kinki
• Kyushu & Okinawa
• Tohoku
• Rest of Japan

Frequently Asked Questions

At What Rate is the Last-mile Delivery Software Ecosystem Growing in Japan?

The anticipated CAGR through 2033 is 9.9%.

How Big Will the Last-mile Delivery Market Be in Japan?

Demand for last-mile delivery software in Japan is expected to be USD 225.4 million by 2033.

What are the Key Strategies Providers in Japan are Adopting for the Last-mile Delivery Software?

Focus on innovation and long-term sustainability to drive players’ moves.

Which is the Preferred Deployment Model for Last-mile Delivery Software in Japan?

Cloud-based deployment model is predicted to retain its maximum share in the forecast period.

Which Application Area Contributes Significantly?

eCommerce is likely to remain a key contributor to last-mile delivery operations in Japan.