Profit Opportunities in Last-Mile Delivery Tires
Tire manufacturers and suppliers agree that opportunities in the last-mile delivery (LMD) tire segment will continue to abound, with a representative from one tire manufacturer reporting that demand for last-mile delivery tires in North America will have reached more than $450 million in 2025.
In addition, LMD fleet managers "are now laser-focused on getting more out of every vehicle in their operation,” says a representative from another tiremaker, making after-sale service even more essential.
In this article, suppliers discuss demand for LMD tires and more.
MTD: Is there still a big opportunity in last-mile-delivery tires?
Brandon Stotsenburg, vice president of the automotive division, American Kenda Rubber Co. Ltd.: The opportunity for last-mile delivery remains significant and will reflect the consumer demand for products in the market. As long as the economy remains robust, the demand for shipments will be strong. With current conditions, fleets are even more focused on their cost structure and pressure to reduce unnecessary expenses. Smart fleets are looking for dealers that can help them manage cost/mile, better wear and balance the initial cost of products with the long-term costs of ownership. For light truck (tire) products, they want products that can adapt to the seasonal needs while providing reliable, consistent performance that meets their cost needs and limits any downtime.
Keith Calcagno, chief sales officer, American Tire Distributors Inc. (ATD): Continued expansion of e-commerce and home delivery services means that last-mile delivery will continue to be a significant opportunity. Increased demand for specialized tires that can handle the unique stresses of last-mile delivery — frequent stops, curb impacts, heavy loads — means this segment will continue to improve.
Michael Mathis, president, Atturo Tire Corp.: This continues to be a rapidly growing segment. The OE sizes in commercial van (C-Class) tires have become some of the top 10 in the market.
Brian Cunningham, vice president of fleet solutions, Bridgestone America Inc.’s commercial truck group: There is still a significant opportunity in the last-mile delivery tire segment. As fleets continue to prioritize value and uptime, tires that support efficiency and wear life are in demand — particularly in high-frequency, urban delivery routes.
Doug Martin, product manager of specialty tires, Continental Tire the Americas LLC: E-commerce is a big driver for this segment and as time moves forward, the types of delivery vehicles evolve, which present new challenges and opportunities.
Jonathan Thomas, director of category strategy and planning, Goodyear Tire & Rubber Co.: The last-mile delivery segment remains a strong and growing opportunity. The continued rise of e-commerce and consumer expectations for fast, reliable delivery have driven demand for vehicles like Sprinter vans, Ford Transits and similar platforms. These vehicles require tires that can handle frequent stops, urban driving conditions and high load capacities.
Jin Han, product manager, Hankook Tire America Corp.: There continues to be ample opportunity for last-mile delivery tires. Consumers' ongoing reliance on e-commerce is driving that demand. When looking at shopping trends, same-day or next-day shipping continues to be a priority for many shoppers. That puts a greater demand on the last-mile delivery services and their vehicles, all the way down to the tires. Last-mile delivery vehicles frequently stop and go, which is very hard on tire mileage. They are also vulnerable to external damage from contact with curbs during city driving. This environment naturally increases the demand for tires and from this perspective, we anticipate an expansion of the overall tire market.
Additionally, we expect the demand for EVs for short-distance delivery in the last-mile delivery segment to continue to grow. The high torque and heavy load of EVs are damaging to tire life, which will have a more positive effect on the tire market size. From this perspective, the growth of the last-mile delivery market could be a new opportunity for tire manufacturers.
Daniel Neal, product category manager, urban, Michelin North America Inc.: The rise of e-commerce and growing consumer expectations around rapid delivery continue to accelerate demand in the last-mile segment. These fleets operate in some of the most punishing environments - navigating tight city streets, dealing with frequent stops and managing strict delivery windows. Tires built for durability, all-weather traction and urban resilience have become critical tools in ensuring uptime and fleet efficiency. As the backbone of modern logistics, last-mile operations present an ongoing opportunity for tire manufacturers who can deliver the performance these businesses rely on daily.
Jay Lee, product planning director, Nexen Tire America Inc.: There’s still meaningful opportunity in last-mile delivery tires. Even though growth rates have slowed from the pandemic spike, parcel volumes — Amazon, UPS, FedEx, USPS and regional carriers — continue to climb. More packages lead to more vans on the road, which leads to steady tire demand. Delivery vans average two to three times the mileage per year of personal vehicles — 60,000 to 80,000 miles-plus annually in urban duty cycles — which means tires wear out faster, making replacement demand strong and recurring.
Amazon (Rivian vans), UPS and others are shifting to EV vans. EVs are heavier and require specialized tires with low rolling resistance and higher load indexes. This is an area where tiremakers are positioning themselves for growth. While Amazon has national deals, there are thousands of independent contractors — FedEx Ground, regional couriers, medical/pharma delivery fleets — who buy more like small/medium businesses and are accessible through distributors. Vans like the Ford Transit, Mercedes Sprinter and Ram ProMaster are also used by plumbers, electricians and service fleets - not just parcel delivery. They make up a big secondary demand pool.
Tyler Scott, automotive and fleet manager, Nokian Tyres Inc.: Industry analysts project global last-mile delivery tire sales to increase by roughly 70% by 2030, according to Smithers. North America represents roughly a third of that unit growth. Specialized tires that can withstand extreme load variance, frequent curb impacts and stop-and-go urban driving are therefore in high demand. The rapid rise in electric delivery vans is also creating opportunities. EV-compatible tires are expected to make up more than 40% of the category by 2030, creating ongoing opportunities for innovation in this space.
Ken Coltrane, vice president of product development and marketing, Prinx Chengshan Tire North America Inc.: The last‑mile fleet tire market is booming. You can see this with the expansion of e-commerce and home delivery services, such as meal prep kits and pharmaceuticals being delivered directly to the consumer’s doorstep.
Alan Eagleson, TBR segment manager, North America, Sailun Tire Americas: Growth has been steady from 2021 through 2025. North American demand for last-mile delivery tires (16-inch to 19.5-inch rim diameter) is estimated to reach over $450 million in 2025. The (last-mile delivery) market is also expected to continue growing at a double-digit rate over the next five years.
Nick Gutierrez, territory sales and marketing director, Sentury Tire USA: As long as the trend for consumers to increasingly shop online grows, the demand for last-mile delivery tires will grow with it.
Nurali Bunyatov, vice president of commercial tire brand management, TBC Corp.: The continued surge of e-commerce — U.S. online retail sales hit $1.34 trillion in 2024, up about 9% year-on-year, according to a Capital One Shopping report — means more delivery vans on the road, which creates strong demand for last-mile delivery commercial light truck tires and 17.5-inch and 19.5-inch tires.
Mark Lindsey, chief strategy officer, Tire Group International LLC: Overall, the cargo van tire market in the U.S. continues to grow at a rapid pace, driven by the explosion of e-commerce and last-mile delivery services. With that said, there has been a dramatic increase in the number of tire options in the segment. At the same time, there has been a concerted effort to centralize the purchase decisions with direct and national account programs, which in turn make it difficult for smaller independent tire dealers to participate in this space.
As the last-mile delivery fleet continues to evolve, we anticipate that there will be a continued consolidation of suppliers, specifically for larger fleets like Amazon and its DSP network. In the end, those providers that can reduce downtime and offer off-peak servicing of these larger fleets will continue to increase their share of this rapidly growing business.
Jordan Vastine, field manager, commercial product and business development, Toyo Tire U.S.A. Corp.: There is still an opportunity in the last-mile delivery segment of the business. This type of business is now ingrained in our culture as people are more reliant on shopping from home and expecting deliveries to take place within two days or even sooner.
Tom Clauer, senior manager of commercial product planning, Yokohama Tire Corp.: The market for this segment has grown substantially since the COVID-19 pandemic, but even before then, fleets were seeing the need for last-mile deliveries and have made investments into meeting those increasing demands. Fleets and dealers are seeing the need for products that perform and have longer run-out miles, durability and retreadability to help lower long-term expenditure, similar to how they manage their more conventional operations.
MTD: Is this still a growing category for your company and your customers? Why or why not?
Stotsenburg (Kenda): For Kenda, we work with our distributors and servicing retailers to find the right fleets that fit our product value proposition.
Calcagno (ATD): ATD has an opportunity to grow in this area and we are working with our manufacturing partners to make sure we have the right products and programs in place to service the market.
Mathis (Atturo): Even dealers who are not traditional commercial tire dealers are seeing an influx of these vehicles. From the local plumber to the delivery courier, the opportunity to service these vans is growing. These vans have also generated a resurgence in the conversion van category. From overland camping rigs to luxury executive transportation, the van is the new status symbol of the upfitter. These all represent opportunity for local tire dealers to offer tires specifically built for the variety of uses where these vans are utilized.
Cunningham (Bridgestone): Last-mile delivery remains a growing category for both Bridgestone and its customers. The continued rise of e-commerce, combined with evolving consumer expectations for faster delivery, drives sustained demand in this space.
Martin (Continental): The growth potential is still present as the importance of last-mile delivery has grown over the last several years. Delivery vehicles are in constant service, and our emphasis is on developing tires that meet the requirements of the stop-and-go nature, coupled with the higher carrying loads in daily use.
Thomas (Goodyear): The last-mile delivery category continues to grow for Goodyear and our customers. As delivery networks expand and fleets modernize, there’s increasing demand for tires that deliver performance, reliability and cost efficiency.
Han (Hankook): We expect demand for last-mile delivery to continue.
Neal (Michelin): As delivery fleets become more specialized, so do their expectations around tire performance. We're seeing increasing demand for solutions that go beyond basic functionality: extended tread life, all-weather traction, resistance to curb damage and reduced downtime are now table stakes.
Lee (Nexen): Last-mile delivery tires are still a growing category for us and our customers. E-commerce volumes continue to drive fleet mileage higher, which means more frequent tire replacement. We’re also seeing growth from electrification, since EV vans require specialized tires with higher load capacities, durability and low rolling resistance. In addition, service contractors — HVAC, plumbing, utilities — use the same vans, so demand is expanding beyond just parcel fleets.
Scott (Nokian): Yes. Nokian Tyres is known for designing safe and sustainable products that perform in harsh northern climates, and many of those characteristics — traction, durability and energy efficiency — translate well to the last-mile delivery (tire) market.
Coltrane (Prinx): 2024 was a great year for this segment and our growth in 2025 will more than double.
Eagleson (Sailun): We have seen an increase in demand since the fourth quarter of 2024. We believe this increase is a result of the increase in the number of LMD vehicles that were added to fleets during COVID-19. When you look at tire life cycles, it makes a lot of sense that fleets are currently requiring tire replacements.
Bunyatov (TBC): Customer demand continues to grow.
Lindsey (TGI): Due to urban driving with frequent stops and curbing of tires, we see last-mile delivery vehicles utilizing two to three sets of tires per year. And many operators still chose price and value over national account programs at a higher price point.
Vastine (Toyo): Yes, this is still a growing opportunity for our company and customers. Besides the last-mile delivery segment, other companies or contractors are adopting similar vehicle platforms that run the same size of tire as the large last-mile delivery companies. A utility company with five to eight vans needs to look at its operating cost no differently than any e-commerce retailer, and we are confident we have the tires to do so.
Clauer (Yokohama): Taking into consideration the market demand remaining strong historically and, in many periods, outperforming other segments, Yokohama sees this as a growth segment going forward.
MTD: Do you see demand for last-mile delivery tires topping out at a certain point?
Stotsenburg (Kenda): As mentioned, the primary needs for last-mile delivery are from fleets that have a business model following the consumer demand. The economic climate will dictate the miles-driven metric for this channel. Long term, we believe that the consumer demand will continue to increase the need for last-mile delivery.
Calcagno (ATD): The LMD tire segment is expected to continue expanding through at least 2030, with a projected 12.4% compound annual growth rate (CAGR) from 2025 to 2030. With more specific requirements for the delivery vehicles coming into play and continued consumer expectations for faster delivery, we foresee continued growth in this market in the short to medium term.
Mathis (Atturo): The U.S. market is actually late to the trend of the urban last-mile delivery van. The rest of the world has refined and expanded on its use beyond what we have today. There is plenty of room for more expansion of this type of vehicle and the associated commercial spec tires they require. We are just starting to see some of the unique size expansion and aftermarket opportunities for this category.
Cunningham (Bridgestone): While every market eventually matures, we don’t anticipate an immediate cap in the last-mile delivery segment. The industry continues to expand, developing new segments that didn’t exist before, such as the grocery delivery business, offering new opportunities for tire manufacturers. As urban logistics continue to evolve and sustainability regulations tighten, the need for durable, efficient and environmentally friendly tire solutions will only increase.
Martin (Continental): Since 2020, North America has seen double-digit growth in last-mile delivery. As consumers’ demand for faster deliveries increases, it can be seen as an indicator that the overall growth in this segment is far from over.
Thomas (Goodyear): While growth may eventually stabilize, we believe the last-mile delivery segment will remain robust for the foreseeable future. The shift toward electrification, urban logistics and optimized delivery practices will continue to drive innovation and demand in this space. Rather than tapping out, we expect the focus to shift toward performance optimization and data-driven fleet management.
Han (Hankook): If anything, the demand may evolve. For example, last-mile fleets have started to introduce electrified platforms and could expand in the future.
Neal (Michelin): Rather than plateauing, the category is shifting from explosive growth to strategic optimization. Fleet managers are now laser-focused on getting more out of every vehicle in their operation. That means selecting tires that last longer, perform reliably in any weather and help control operating costs, as fuel and tires are some of their highest overall costs.
In this next phase, it’s not just about keeping up with demand. It’s about making smarter, more efficient choices. Performance, longevity and total cost of ownership will continue to drive decisions. And as a partner to these fleets, it's not only important to provide durable products, but offer services and data-driven tools that help fleets run more efficiently over the long haul.
Lee (Nexen): The e-commerce van and truck market is expected to continue growing, but competition among tire manufacturers is also intensifying.
Scott (Nokian): (The) long-term outlook suggests continued expansion. E-commerce penetration keeps rising, and analysts are projecting steady growth of last-mile delivery over the next five years, which will only sustain tire demand. While growth may slow as adoption matures, we expect the mix will shift to tires that can deliver better cost per mile, strong all-weather performance, EV alignment and IoT smart tire technologies. We do not expect the category to tap out in the near term; rather, we anticipate steady evolution as fleets evolve and prioritize durability, efficiency and sustainability.
Coltrane (Prinx): I don’t see it happening anytime soon. There is tremendous opportunity for Prinx and Fortune in this segment.
Eagleson (Sailun): Certainly not in the near future. The growth estimates through 2030 prove this out. Online sales are not likely to decrease in the coming years. This means that home deliveries will continue to be required. Last-mile delivery fleets will continue to learn better ways to minimize costs. Utilization of commercial EVs will continue to grow which should lower overall vehicle costs. We believe the last-mile delivery segment will continue to thrive and grow.
Gutierrez (Sentury): While e-commerce in general is unlikely to have the rapid growth it experienced during the pandemic, consumers are still becoming increasingly comfortable with online shopping and embracing a variety of platforms like livestream shopping and Shopify. Even people who prefer to shop in person will often compare the salesperson’s advice with their own research and may ultimately make the purchase online. And this is where last-mile delivery tires come in. So long as consumers need products delivered right to their doors, they’ll need a vehicle to deliver them and last-mile delivery tires are simply the best product for this style of driving.
According to a 2025 Capital One report on retail statistics, 273.5 million Americans shopped online in 2024 and they estimate that 2.77 billion people worldwide will make an online purchase by the end of 2025. That presents a huge opportunity for the last-mile delivery segment to continue offering tire solutions to facilitate the millions of deliveries each year in the U.S. alone.
Bunyatov (TBC): We don’t see this segment’s growth slowing down in the foreseeable future. Consumer expectations have shifted toward on-demand services and just-in-time delivery. According to a November 2023 study conducted by OnTrac, 63% of consumers expect to receive their e-commerce deliveries in two days or less and will switch retailers if their expectations are not met. That means last-mile logistics will continue to expand, along with demand for delivery vans and tires.
Lindsey (TGI): Most estimates show a continued downsizing of the fleet with double-digit CAGRs (compound annual growth rates) over the next five years. Consumers want speed. Same-day or next-day delivery is no longer a luxury. It is the norm. Thus, this trend will continue but with more automation and electrification over the next decade.
Clauer (Yokohama): As is the case in all segments, it’s likely that we may see a slowing of growth, but it’s expected to continue to be an overall growth segment for years to come. Consumers of all different types of goods have become accustomed to a sort of immediate gratification. When they order something, specifically something online, they’ve been conditioned to expect that thing, whatever it might be, on their doorstep in a relatively short timeframe. There is a logistics infrastructure that has been built up around this level of service and that infrastructure is reliant on last-mile deliveries.