Singapore’s last-mile delivery sector is growing at a speed that few industries can match. According to Mordor Intelligence, the Singapore last-mile delivery market is projected to grow from approximately S$17.6 billion (USD 12.98 billion) in 2025 to S$19.7 billion (USD 14.53 billion) in 2026, with forecasts pointing to S$34.7 billion (USD 25.57 billion) by 2031, at a compound annual growth rate (CAGR) of nearly 12%.
Behind these numbers lies a simple truth: every parcel that moves from a warehouse to a doorstep requires a vehicle to carry it. And that reality is creating an unprecedented surge in demand for commercial vehicles across Singapore.
The primary catalyst for this boom is Singapore's e-commerce explosion. The country's online retail market reached an estimated USD 5.04 billion in 2024, with user penetration expected to climb from 58.8% to over 80% by 2029. More than half of Singaporeans already shop online at least once a week. As same-day and next-day delivery expectations become the norm, logistics operators are scrambling to scale their delivery fleets fast.
This demand is directly translating into pressure on commercial vehicle availability. Light commercial vans, in particular, are forecast to grow at a 6.15% CAGR across Asia-Pacific through 2031, driven almost entirely by last-mile delivery momentum. In Singapore specifically, commercial vehicle registrations are projected to rise steadily to approximately 16,840 units by 2028.
For businesses looking at selling commercial vehicle assets or expanding their operations, the timing could not be more favourable. Fleet operators, from logistics SMEs to multinational courier companies are actively sourcing reliable, road-ready vehicles to meet surging delivery volumes.
Not every logistics operator has the budget or appetite for brand-new fleet acquisition, particularly when scaling quickly. This is where the market for used commercial vehicle options come in.
Pre-owned trucks and pre-owned vans are increasingly sought after by delivery startups, food distribution companies, and third-party logistics (3PL) providers looking to expand capacity without taking on excessive capital expenditure. A used van or truck that is well-maintained and road-compliant offers immediate operational value, a critical advantage in an industry where delivery windows are shrinking.
While demand for pre-owned internal combustion engine (ICE) vehicles remain strong in the near term, Singapore’s regulatory landscape is shifting decisively. The Land Transport Authority (LTA) has already banned new diesel car and taxi registration from 1 January 2025. More significantly for the logistics sector, the LTA's Commercial Vehicle Emissions Scheme (CVES) provides up to S$15,000 in incentives for operators switching to the least-pollutive light vehicles. From 2026, the new Heavy Vehicle Zero Emissions Scheme (HVZES) extends further incentives for heavier commercial vehicle electrification.
It comes as no surprise then that electric vehicle Singapore adoption in the commercial segment is accelerating sharply. EV commercial vehicles are forecast to grow at a staggering 37.21% CAGR through 2031, led by light vans in last-mile delivery. Major logistics players, including FedEx, DSV, and others have already deployed electric van fleets on Singapore routes.
This dual market, strong short-term demand for used commercial vehicles and a long-term shift towards electric vehicles, defines the opportunity for fleet operators and vehicle traders alike.
Whether you are a logistics operator expanding your fleet, an SME entering the delivery business, or a company looking at selling commercial vehicle assets as you transition to EVs, understanding this market inflection point is essential.
Singapore’s S$14.5 billion last-mile delivery boom is not a temporary spike, it is a structural shift in how goods move through one of the world's most connected cities. The commercial vehicles that support this ecosystem are in high demand, and sourcing the right pre-owned vans or pre-owned trucks from a trusted partner matters more than ever.
At Skylink Auto, we help businesses navigate this evolving landscape – from sourcing used trucks and used vans in Singapore to advising on fleet transitions for the electric age. Visit us at Wcega Plaza or explore our inventory online to find the right commercial vehicle for your next phase of growth.