Chinese e-commerce market’s growth is estimated to register an increase of 17.2% in 2021, according to GlobalData, a leading data and analytics company. This booming growth will require a parallel development of the country’s last-mile delivery fleet industry, the largest in the world.

China’s e-commerce market value is expected to grow at a strong compound annual growth rate of 11.6% between 2021 and 2025 to reach $3.3 trillion (21.4 trillion Chinese Yuan)) in 2025, says GlobalData.

The rise of new methods of retailing, such as omni-channel retailing, and technological developments, plus an increase in domestic consumption are factors boosting the market growth, according to market intelligence and advisory firm Mordor Intelligence.

China’s vast rural area, and its higher costs of delivery, poses a challenge for the country’s last-mile delivery fleets. The rural and mountain areas account for almost two-thirds of China’s land and the number of rural residents in China stands at 590 million, as of 2016, according to Mordor Intelligence figures.

Similar e-commerce market growth is also impacting last-minute delivery in Japan. Global Data estimates the market will see a 10.5% gain in 2021. According to market and consumer data provider Statista, in the fiscal year 2020, the last-mile delivery logistics market size amounted to approximately 2.54 trillion Japanese yen and is expected reach almost three trillion yen by 2023.