Canada Electric Last Mile Delivery Vehicle Market

Canada Electric Last Mile Delivery Vehicle Market Insights Forecasts to 2035

• The Canada Electric Last Mile Delivery Vehicle Market Was Estimated at USD 1475.9 Million in 2024.
• The Market Size is Growing at a CAGR of 18.82% between 2025 and 2035.
• The Canada Electric Last Mile Delivery Vehicle market is Anticipated to Reach USD 9839.3 Million by 2035.

According To a Research Report Published By Decisions Advisors & Consulting, The Canada Electric Last Mile Delivery Vehicle Market Size Anticipated To Hold USD 9839.3 Million By 2035, Growing At a CAGR Of 18.82% From 2025 to 2035. Future opportunities in the Canada electric last mile delivery vehicle market include rising e-commerce demand, government incentives, urban emission reduction goals, fleet electrification, technological advancements, and growth in sustainable, cost-efficient last-mile logistics solutions.

Market Overview

The Canada electric last mile delivery vehicle market focuses on electric vehicles (EVs) designed for the final leg of logistics, delivering goods from distribution centers to end customers. These vehicles are increasingly adopted in urban areas to reduce emissions, noise pollution, and operational costs associated with traditional internal combustion engine (ICE) vehicles. Market growth is driven by the rapid expansion of e-commerce, government incentives for electric mobility, and increasing environmental awareness among businesses and consumers. Technological advancements, including improved battery efficiency, telematics, and route optimization systems, enhance operational efficiency and vehicle performance. Additionally, the growing adoption of sustainable logistics solutions by retailers, logistics providers, and municipalities supports the expansion of electric last mile delivery vehicles across Canada.

Report Coverage

This research report categorizes the market for the Canada electric last mile delivery vehicle market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada electric last mile delivery vehicle market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada electric last mile delivery vehicle market.

Driving Factors

E-commerce growth and sustainability drive electric last mile adoption.

The Canada electric last mile delivery vehicle market is driven by the rapid growth of e-commerce, increasing demand for sustainable and low-emission transportation, and supportive government policies and incentives for electric vehicle adoption. Rising fuel costs, urban emission reduction targets, and consumer preference for environmentally friendly delivery solutions further accelerate market growth. Technological advancements in battery efficiency, telematics, and vehicle design enhance performance, range, and cost-effectiveness, encouraging logistics companies and retailers to transition to electric last mile delivery vehicles across Canada.

Restraining Factors

High costs and limited infrastructure restrain market growth.

High upfront costs, limited charging infrastructure, range anxiety, long battery charging times, and technological limitations restrain the adoption of electric last mile delivery vehicles in Canada, slowing market growth.

Opportunities

E-commerce growth and battery innovations drive market opportunities.

Opportunities in the Canada electric last mile delivery vehicle market include expanding e-commerce and urban logistics, fleet electrification by retailers and delivery companies, and government incentives promoting clean transportation. Advancements in battery technology, fast-charging infrastructure, and telematics can improve efficiency and reduce operational costs. Collaborations between automakers, logistics providers, and municipalities for sustainable last-mile solutions present additional growth potential. Additionally, rising consumer demand for eco-friendly delivery services and stricter urban emission regulations create favorable conditions for market expansion.

Market Segmentation

The Canada electric last mile delivery vehicle market share is classified into vehicle type and payload capacity.

• The 4 wheeler segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Canada electric last mile delivery vehicle market is segmented by vehicle type into 2 wheeler, 3 wheeler, and 4 wheeler. Among these, the 4 wheeler segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The 4-wheeler segment dominates due to higher payload capacity, longer range, suitability for urban and suburban deliveries, growing adoption by logistics and e-commerce companies, and increasing demand for efficient, reliable, and environmentally friendly last-mile delivery solutions in Canada.

• The 50 to 500 Kg segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Canada electric last mile delivery vehicle market is segmented by payload capacity into less than 50 Kg, 50 to 500 Kg, and above 500 Kg. Among these, the 50 to 500 Kg segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The 50 to 500 Kg segment dominates due to its optimal balance of payload capacity and efficiency, making it ideal for urban and suburban deliveries, accommodating most e-commerce and retail logistics needs across Canada.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada electric last mile delivery vehicle market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• STAR EV
• Rivian
• Bob Pulte Chevrolet
• Tata Motors
• Workhorse Group Inc
• GreenPower Motor Company Inc
• Mahindra & Mahindra Ltd DR
• Gogoro Inc

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Europe, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the Canada electric last mile delivery vehicle market based on the following segments:

Canada Electric Last Mile Delivery Vehicle Market, By Vehicle Type

• 2 Wheeler
• 3 Wheeler
• 4 Wheeler

Canada Electric Last Mile Delivery Vehicle Market, By Payload Capacity

• Less than 50 Kg
• 50 to 500 Kg
• Above 500 Kg

FAQ’s

Q: What is the Canada electric last mile delivery vehicle market size?

A: Canada electric last mile delivery vehicle market size is expected to grow from USD 1475.9 Million in 2024 to USD 9839.3 Million by 2035, growing at a CAGR of 18.82% during the forecast period 2025-2035. 

Q: What are the key growth drivers of the market?

A: The Canada electric last mile delivery vehicle market is driven by the rapid growth of e-commerce, increasing demand for sustainable and low-emission transportation, and supportive government policies and incentives for electric vehicle adoption.

Q: What factors restrain the Canada electric last mile delivery vehicle market?

A: High upfront costs, limited charging infrastructure, range anxiety, long battery charging times, and technological limitations restrain the adoption of electric last mile delivery vehicles in Canada, slowing market growth.

Q: How is the market segmented by Vehicle type?

A: The market is segmented into vehicle type into 2 wheeler, 3 wheeler, and 4 wheeler.

Q: Who are the key players in the Canada electric last mile delivery vehicle market?

A: Key companies include STAR EV, Rivian, Bob Pulte Chevrolet, Tata Motors, Workhorse Group Inc, GreenPower Motor Company Inc, Mahindra & Mahindra Ltd DR, and Gogoro Inc.

Q: Who are the target audiences for this market report?

A: The report targets market players, investors, end-users, government authorities, consulting and research firms, venture capitalists, and value-added resellers (VARs)