Courier, Express and Parcel Market Size 2024-2028

The courier, express and parcel market size is forecast to increase by USD 165 billion at a CAGR of 6.8% between 2023 and 2028. The CEP market's expansion is influenced by various factors, including the rising need for logistics and the proliferation of free trade agreements (FTAs) that stimulate investments in emerging economies. Another significant driver is the increasing trend of fast-moving consumer goods (FMCG) contract manufacturing in these markets. Furthermore, the adoption of advanced technologies in CEP supply chain network systems is revolutionizing the industry. Innovations such as automation, real-time tracking, and predictive analytics are enhancing efficiency and customer experience.

What will be the Size of the Courier, Express and Parcel Market During the Forecast Period?

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Courier, Express and Parcel Market Segmentation

The courier, express and parcel 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.

• Consumer Outlook 
  • B2B
  • B2C
  • C2C
• Delivery Outlook
  • International
  • Domestic
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

By Consumer 

The market share growth by the B2B segment will be significant during the forecast period. Businesses procure products from suppliers that serve as raw materials in their operations. When it comes to the global market, the B2B segment includes business-oriented transactions and is expected to grow further during the forecast period due to the increasing adoption of the e-commerce market and Internet penetration. B2B e-commerce helps companies in greater efficiency by providing services like navigation, custom contract pricing, custom catalog, and easy and clear check-out processes.

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The B2B segment was the largest segment and was valued at USD 180.40 billion in 2018. With the increasing scope of the e-commerce market, other trends like instant shipping and instant delivery are also observed. To address this, transportation companies are using route planning and resource planning to cater to dynamic consumer needs. Moreover, traditional B2B companies are also expanding to provide B2C services due to the ease of operations and market expansion by e-commerce channels. These  factors are predicted to result in further growth of this segment of the courier, express and parcel  market during the forecast period.

By Region

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APAC is estimated to contribute 45% to the growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional courier, express and parcel market growth and trends influencing the market's trajectory throughout the forecast period.

In the APAC region, countries like South Korea, Japan, China, and Australia have massive growth potential due to growing internet penetration and the presence of numerous companies. For example, the Internet penetration in South Korea, Japan, China, and Australia was 96%, 85%, 54%, and 87%, respectively in 2020.

Moreover, increasing consumer disposable income and rising urbanization levels are also factors that will drive the regional market. Quality improvements are one of the key features that companies are focusing on which is appealing to consumers. Increasing trade, especially in China, Thailand, and Vietnam, is expected to further boost the demand for the regional market and provide massive growth potential for companies in the region. Hence, such factors are likely to result in further growth of the regional CEP market during the forecast period. 

Courier, Express and Parcel Market Dynamics

The CEP market is a dynamic sector encompassing various facets of transportation and logistics solutions. Catering to a diverse clientele, including retail customers, business customers, and government agencies, CEP services offer trackability and timely delivery of parcels, documents, and more. With options like same-day delivery and next day delivery, businesses and individuals rely on CEP for time-sensitive delivery services. From international shipping to distribution industries, CEP addresses a spectrum of needs, including critical items like medical supplies and legal documents. Its role in emergency CEP services is crucial, providing immediate solutions for perishable goods and other critical items. As cross-border e-commerce expands, CEP's importance in international parcel deliveries remains paramount, attracting potential clients seeking efficient parcel shipments and immediate delivery solutions.

Our researchers studied the market research and growth data for years, 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 courier, express and parcel market forecasting report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Key Market Driver

The rise in FTAs to drive investments in markets in emerging economies is driving market growth. The courier, express, and parcel (CEP) market is one of the most dynamic markets due to shifting consumer demographics and behavior. The modern globalized world is characterized by massive volumes of international trade. This is due to various FTAs like the North American Free Trade Agreement (NAFTA) and the Association of Southeast Asian Nations (ASEAN). To promote global trade, trade special economic zones (SEZs) and free trade zones (FTZs) are established which help the courier, express, and parcel (CEP) market to generate economies of scale.

Additionally, trade corridors in emerging regions like Asia-Africa and South America-Asia are expected to witness increased demand for the transportation industry. These are resulting in massive growth and revenue potential for the logistics and transportation industry. Moreover, companies like United Parcel Service Inc. which made 16 acquisitions between 2015 and 2020 are using M&As to strengthen their market power. Hence, such factors are likely to positively impact courier, express and parcel market growth during the forecast period. 

Significant Market Trends

The growing integration of last-mile delivery models with courier, express, and parcel companies is a key trend in the courier, express and parcel  market. This is especially witnessed after the prominence of E-commerce which offers delivery services like hub-and-spoke and last-mile delivery (LMD). For instance, the LMD model consists of postal mail run, crowd shipping, courier delivery, and courier delivery to lockers which is expected to drive the growth of the CEP Market during the forecast period. They help ensure regular delivery, same-day delivery, instant delivery, and other value-added services. 

Furthermore, consumers are not willing to opt for online purchases of medicines and groceries that will take long delivery times. Hence, numerous e-commerce players are offering faster delivery services to distinguish themselves from other service providers. This is increasing market competition and resulting in strategic alliances among companies in the CEP Market, yet another factor likely to result in further CEP market growth during the forecast period. 

Major Market Challenge

The increasing threat from sharing-based business models is challenging market growth. Due to massive market potential, new players, including startups, are entering the courier, express, and parcel (CEP) market and providing alternative business models. For instance, companies including virtual freight forwarders are offering attractive rates by bidding on loads as well as incorporating modern technologies like robotics, temperature-monitoring devices, and ICT into their operations. This is contrary to the CEP Market which is characterized by a lack of digitalization.

Additionally, trucking industries and other industrial suppliers are partnering with OEMs and offering automated truck convoys, posing a challenge to the market. Vertical expansion of major market players along with massive technology and labor training investments is also transforming the transportation and logistics sector. Such techniques are also resulting in quality assurance and cost-cutting due to improvements in operational efficiency. Hence such factors are likely to pose a hindrance to courier, express and parcel market growth during the forecast period.

Key Courier, Express and Parcel Market Companies & Insights

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.

Allied Express Transport Pty Ltd. - The company offers Economy, Express VIP, Express Executive, and Express Gold.

We also have detailed analyses of the market's competitive landscape and offer information on key companies, including:

Allied Express Transport Pty Ltd., Aramex International LLC, Canada Post Corp., Deutsche Post AG, DTDC Express Ltd., FedEx Corp., First Flight Courier Ltd., India Post, Japan Post Holdings Co. Ltd., Korea Post, La Poste, Nippon Express Holdings Inc., One World Express Inc. Ltd., Otto GmbH and Co. KG, Royal Mail Plc, SF Express Co. Ltd., Singapore Post Ltd., United Parcel Service Inc., United States Postal Service, and Yamato Transport Co. Ltd. 

Technavio market forecast provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. 

Market Analyst Overview

The CEP industry operates across air, water, and land, offering safe delivery options bolstered by advanced parcel tracking facilities and internet-based services accessible via smartphones and websites. Leveraging digital technologies and crowd-sourced delivery models, providers navigate trade-related agreements to ensure fast delivery for wholesale and retail trade, construction, and utilities. From railways to airways, roadways, and waterways, the CEP landscape embraces cross-border trade with B2C shipment adoption and trade-related activities in overseas markets. Delivery professionals utilize road transportation infrastructure and air freight transport, aided by GPS tracking, drones, and autonomous vehicles for efficient last-mile deliveries.

Furthermore, amid logistics automation, artificial intelligence, and route optimization, retailers and CEP providers innovate to meet customer expectations for same-day delivery and on-demand delivery while prioritizing sustainability and environmental responsibility in urban areas. Small and medium-sized enterprises drive the adoption of eco-friendly solutions amidst environmental issues and geopolitical tensions, prompting a shift towards greener practices and technology disruptions with autonomous automobiles reshaping traditional CEP business models.

The CEP market plays a crucial role in the swift delivery of parcels and documents for both individual and retail customers, as well as business and government agencies. With the increasing demand for same-day delivery, CEP companies offer safe and reliable options for the timely delivery of international trade goods and important documents. These services provide trackability and peace of mind, ensuring that parcels reach their destinations on time and securely. International shipping is a significant aspect of the CEP market, with many companies offering parcel tracking facilities to keep customers informed of their packages' progress. By prioritizing timely delivery and providing a range of safe and efficient shipping solutions, the CEP market continues to be an essential component of modern business and personal life.

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What are the Key Data Covered in this Courier, Express and Parcel Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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