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The courier pickup and delivery services market size is forecast to increase by USD 78.09 billion, at a CAGR of 7.02% between 2023 and 2028. The courier pickup and delivery services market is experiencing significant growth due to several key trends. The rise in digital payments and mobile shopping has led to a tide in demand for quick and reliable delivery services. Furthermore, the increasing adoption of drone technology is revolutionizing the logistics industry, enabling faster and more efficient deliveries, particularly in remote areas. However, global supply chain disruptions, such as those caused by the COVID-19 pandemic, have presented challenges to the market. To mitigate these challenges, courier companies are investing in technology solutions, such as real-time tracking and predictive analytics, to optimize their operations and improve customer experience. Overall, the courier pickup and delivery services market is expected to continue growing at a vital pace, driven by these trends and the increasing demand for fast and reliable delivery solutions.
The market is experiencing significant growth due to the wave in online trading, driven by the increasing middle class population and their rising preference for B2C and B2B services. The e-commerce sector, in particular, is fueling this growth, as consumers increasingly opt for online shopping and one-day delivery. According to industry reports, shipping volume in the courier service market is expected to increase, driven by the rise in retail sales and online purchases. Courier services are not just limited to domestic deliveries but also extend to international shipments, catering to various industries such as healthcare, industrial and manufacturing. Technology-driven delivery solutions, including location-based solutions, automation, tracking systems, and route optimization, are transforming the industry. Moreover, the demand for sustainable delivery solutions, such as green delivery solutions and last-mile delivery, is on the rise, driven by the increasing awareness of environmental concerns. Messenger services are also gaining popularity, offering quick and efficient delivery solutions for time-sensitive documents and parcels. Airfreight transport plays a crucial role in the courier service market, ensuring timely and efficient delivery of high-value and time-sensitive shipments. With the increasing use of postal codes and technology-driven delivery solutions, customer communication and service quality improvement have become key differentiators for courier service providers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The international segment is estimated to witness significant growth during the forecast period. The global market is experiencing significant growth due to various factors, including transport inefficiencies and traffic congestion in urban areas. Airfreight transport plays a crucial role in cross-border courier delivery and international trade, but postal codes and skilled manpower are essential for efficient local delivery services. Technology-driven solutions, such as the Internet of Things, real-time tracking, and crowdsourced delivery models, are enhancing delivery capabilities and improving customer communication.
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The international segment accounted for USD 102.96 billion in 2018. Autonomous vehicles, route optimization, and automation are also transforming the industry, offering sustainable delivery solutions and reducing fuel prices. Messenger services and parcel services cater to business-to-consumer, business-to-business, and consumer-to-consumer shipments, while express, standard, subscription-based, and on-demand delivery options cater to diverse customer needs. E-commerce and logistics companies are investing in technology to streamline supply chain management and offer mobile users seamless tracking systems. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing significant growth due to various factors, including transport inefficiencies and traffic congestion. Airfreight transport plays a crucial role in international trade, especially for business-to-business (B2B) and business-to-consumer (B2C) shipments. Postal codes facilitate efficient delivery, while skilled manpower ensures accurate handling and delivery. Technology-driven innovations, such as the Internet of Things (IoT), real-time tracking, and crowdsourced delivery models, enhance delivery services. Autonomous vehicles and route optimization improve efficiency and reduce fuel prices. Cross-border courier delivery and e-commerce growth fuel the demand for express and on-demand delivery services. Logistics and supply chain management rely on technology for automation, customer communication, and tracking systems. Last-mile delivery poses challenges due to urban congestion, leading to the adoption of sustainable delivery solutions and green delivery methods. Messenger services and parcel services cater to consumer-to-consumer (C2C) shipments, while various delivery options, including subscription-based and mobile user-focused services, cater to diverse customer needs. Express, ground, rail, and air delivery services cater to different market segments. Standard delivery services offer cost-effective solutions, while on-demand delivery ensures quick turnaround times. Market players focus on technology integration, route optimization, and customer satisfaction to maintain a competitive edge. Hence, such factors are driving the market in APAC during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in digital payment and mobile shopping is notably driving market growth. The market is witnessing significant growth due to the increasing popularity of online shopping and digital payments. With the convenience of digital wallets, mobile banking apps, and instant payment systems, customers can complete transactions swiftly, leading to a seamless shopping experience. As the demand for cost-effective and efficient delivery services increases, companies are focusing on reducing carbon emissions and minimizing environmental impact. Delivery accuracy and speed are crucial factors that influence customer experience.
Moreover, real-time tracking and data analytics enable companies to optimize their delivery routes and improve overall efficiency. Flexible delivery options, such as same-day or next-day delivery, further enhance the customer experience. Companies that prioritize these factors are gaining recognition for their exceptional services, as demonstrated by FedEx's receipt of the Best Partner Award from Samsung Electronics Logitech in 2023. Thus, such factors are driving the growth of the market during the forecast period.
Increasing adoption of drone technology is the key trend in the market. The market is witnessing significant advancements with the integration of drone technology. Drones, also known as unmanned aerial vehicles (UAVs), provide a cost-effective and efficient solution for delivering goods, particularly in regions with challenging terrain or congested urban spaces. Companies are investing heavily in drone-based delivery systems to meet the escalating demand for swift and accurate deliveries, especially in e-commerce and essential goods sectors. In March 2023, regulatory approvals were granted to major players, enabling them to operate drone services in specific regions.
Further, by August 2024, these companies had expanded drone trials, focusing on delivering essential items such as medical supplies. In April 2024, a significant milestone was achieved as a leading player announced the deployment of drones from its same-day delivery site, enhancing delivery speed and accuracy while reducing carbon emissions. Real-time tracking and data analytics further improve the customer experience, offering flexible delivery options and ensuring timely deliveries. Thus, such trends will shape the growth of the market during the forecast period.
Global supply chain disruption is the major challenge that affects the growth of the market. The market has faced substantial challenges due to global supply chain disruptions, leading to increased costs and reduced purchasing power for buyers. These increased expenses were subsequently passed on to customers, dampening demand and impacting shipping volumes and profitability.
Moreover, inflation, which reached 0% in the CPI excluding volatile food and energy prices in June 2023, further weakened buying power. In response, courier companies have focused on cost-effective delivery solutions, minimizing carbon emissions, ensuring delivery accuracy, and providing real-time tracking and flexible delivery options. Data analytics plays a crucial role in optimizing operations, improving customer experience, and enhancing delivery speed. Companies are also exploring sustainable delivery methods and investing in electric vehicles to mitigate environmental impact and meet evolving customer expectations. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the wave in online trading and the increasing middle class population. The shipping volume for both B2B and B2C services has seen a notable increase, driven by the rise of e-commerce and B2B e-commerce. The market is witnessing service quality improvement through location-based solutions, GPS technology, drones, and crowd-sourced deliveries. Startups are disrupting the industry with technology solutions for swift delivery, tracking features, and one-day delivery. Domestic and international courier services cater to the e-commerce trade of electronic gadgets, ensuring online payment options and smart warehouses are integrated into their logistics network. The healthcare sector also relies on courier services for the delivery of essential medical supplies. The market is expected to continue growing, with a focus on improving delivery infrastructure and meeting the demands of small businesses, B2C customers, and online shopping platforms for same-day delivery and retail sales.
Market Scope |
|
Report Coverage |
Details |
Page number |
209 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.02% |
Market Growth 2024-2028 |
USD 78.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.22 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., Antron Express, Aramex International LLC, Asendia Management SAS, Blue Dart Express Ltd., Deutsche Bahn AG, DHL Express Ltd, DTDC Express Ltd., DX Group, FedEx Corp., International Distribution Services, Japan Post Holdings Co. Ltd., JD.com Inc., Nippon Express Holdings Inc., PostNL N.V., Qantas Airways Ltd., SF Express Co. Ltd., Singapore Post Ltd., Swiss Post Ltd, The Courier Guy Pty Ltd, United Parcel Service Inc., Yamato Holdings Co. Ltd., and ZTO Express Cayman Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by Consumer
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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