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Courier, Express, and Parcel (CEP) Market

Courier, Express, and Parcel (CEP) Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Consumer Goods & Services | Author Name: Mohit


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This study intends to unfurl the multiple facets of global courier, express, and parcel market. The insights offered in the report aid in market growth examination during the forecast period.

E-commerce Expansion, and Deepening Smartphone Penetration Offer a Heavy Impetus to Courier, Express, and Parcel Market

The pandemic decreased production, decreased consumer demand for commodities, and reduced transportation capacity. In April 2020, the industry's total number of cargo ton-kilometers (CTKs) decreased by 27.7% YoY. The industry-wide available cargo ton-kilometers (ACTKs) fell even further by 42% year over year in April 2020 due to the fall in passenger flights in most of the regions. The COVID-19 outbreak did, however, also caused a spike in e-commerce demand, which helped numerous package delivery service companies, including FedEx Corp., perform better. In the fiscal year ending Q1 2021 (August 31, 2020), FedEx's operating profit increased by 234.7% to reach US$1.59 Bn, up from US$ 475 Mn the previous quarter. The growth of e-commerce greatly impacted the large parcel delivery volumes anticipated in 2020. The number of packages in the US increased by 37% annually, reaching 20 billion in 2020 from 15 billion in 2019. The courier, express, and parcel market is experiencing rapid growth in emerging nations, fueled by the expansion of global trade, increasing Internet and smartphone usage, boosting e-commerce expansion, the rise of the middle class, rising disposable incomes, and rising living standards.

Aside from e-commerce, the other prominent factors driving businesses in the courier, express, and parcel market include rising omnichannel retailing patterns in some nations and trade expansion fueled by economic expansion. The COVID-19 pandemic has transformed the consumer purchasing patterns, affecting the need for CEP services in major economies, including India, China, the United States, and Germany. As the Internet and smartphones rise, developing nations are also experiencing expansion in the CEP sector. Global supply chains have enabled developing nations to enhance their cross-border trade, leading to an uptick in courier and express services. Growing activity from new and developing firms was seen in the courier, express, and parcel market. Startups are getting more money regularly. Due to consumer demands for identical speeds and visibility for much less money, as well as a generous sprinkle of greater convenience, more control, and a lot more choice, courier businesses are forced to reconsider their old parcel delivery method. With the expansion of e-commerce, the technology significantly impacts the CEP sector. Drone delivery, automated parcel lockers, and autonomous vehicles are now three of the most important technologies on the market.  

Courier, Express, and Parcel Market: COVID-19 Impact

In the first several months of 2020, COVID-19 started to have an impact on domestic parcel shipments. However, the more important ramifications for the postal industry and customers became clear in the first quarter of 2020–21. The sudden increase in online shopping caused by the temporary shutdown of retail stores raised the demand for last mile delivery services. As a result, some package operators are growing their delivery networks and adding new jobs as of the second half of 2020 due to this trend. The epidemic has also brought to light the significance of the postal industry in delivering essential services to customers, including correspondence from the government, the NHS, banks, and the delivery and pickup of COVID-19 testing kits. Since 2015, the number of package shipments in the UK—including B2B, B2C, C2B, and consumer consigned shipments—has increased by more than 1.5 billion yearly. A total of 4.17 billion parcels were shipped annually in 2020–21, an increase of more than 1.3 billion parcels from the year before.

An Increase in Trade-related Agreements Drive Growth of Courier, Express, and Parcel Market

Globalization is primarily driven by the development of the global economy and dynamic market conditions. As a result, many trade-related activities have increased the result of globalization. Additionally, the expansion of the global courier, express, and parcel market is a key driver of the industry's expansion. For customers with strict budgets who demand a larger selection of high-quality products delivered on time, courier, express, and parcel services are essential. Thus, the globalization-related increase in trading activity promotes the expansion of the courier, express, and parcel markets. For instance, in 2019, Nepal and China signed six other agreements, the protocol on the implementation of an agreement on transit and transport and the agreement on transit and transport itself to give Nepal access to Chinese sea and land ports. To facilitate trade with other nations, China has agreed to allow Nepal to utilize the open seaports of Tianjin, Shenzhen, Lianyungang, and Zhanjiang, as well as the dry ports of Lanzhou, Lhasa, and Xigatse. A free trade agreement (FTA) would also be finalized in the fields of pharmaceuticals, fintech, chemicals, military manufacturing, petroleum, and food items by 2021, according to plans made public by India, and the UK in December 2020.

Cross-border Trade Expansion Likely to Elevtae Prospects of Global Courier, Express, and Parcel Market

One of the primary factors fueling the growth of the courier, express, and parcel market is the expanding e-commerce industry, fueled by the expanding cross-border trade. The acceptance of international trade and B2C shipments has been boosted by the growth of cross-border trade channels, particularly in emerging economies. Additionally, the growing tendency among consumers to shop online through different e-commerce portals is accelerating industry expansion. To deliver their goods to customers domestically and abroad, e-commerce stores collaborate with courier service providers. The courier, express, and parcel market is also expected to grow thanks to technological developments, such as using digital technology with crowd-sourced distribution models. Service providers can better serve their client's needs and increase operational efficiency through these technologies. Additional elements, such as quick urbanization, increasing consumer expenditure, and significant growth in the manufacturing sector, are projected to drive the expansion of courier, express, amd parcel market during the forecast period.

Costlier Logistics Due to Inadequate Infrastructure Limits Courier, Express, and Parcel Market Growth

Globally, the main factors affecting courier, express, and parcel services are infrastructure accessibility, and quality. It has been noted that the services have a restricted capacity and capabilities in terms of infrastructure. These include considerable inefficiencies in transportation, shoddy storage infrastructure, complicated taxation, slow adoption of new technology, and inadequate delivery professional abilities. The courier, express, and parcel markets are also significantly impacted by inadequate road transportation infrastructure. Moreover, the courier, express, and parcel market also remains influenced by the city transportation congestion, which is a big problem in locations with dense populations.

Additionally, the delivery of goods, particularly time-sensitive international parcel deliveries, depends heavily on air freight services. Shipping companies frequently need help delivering packages successfully since many nations lack postal codes and depend on local landmarks for addresses. Additionally, obstacles, including a lack of skilled labor, a lackluster IT infrastructure, and an excessive reliance on cash-on-delivery (COD) payments, impact market expansion in several international locations. It follows that inadequate infrastructure is expected to impede the expansion of the courier, express, and parcel market.

Business-to-business (B2B) Segment to Dominate Courier, Express, and Parcel Market with Rising Sales and Transactions

Business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer segments (C2C) are the three divisions of the courier, express, and parcel market. Due to an uptick in online sales and international e-commerce transactions, the business-to-consumer (B2C) market is expected to expand. As a result of the increase in the trade of goods and services between various organizations worldwide, the business-to-business segment of the courier, express, and parcel market is predicted to expand.

With Expansion and Rise in E-commerce Sales Services, International Segment by Destination Dominates Courier, Express, and Parcel Market

With over 41% of the global market, Asia Pacific is the largest regional market in terms of value. Around 50% of the market comprises North America, and Europe combined. Because of the region's rapid population growth, rising disposable incomes and level of life, and expansion of global trade, the demand for CEP services is anticipated to expand rapidly during the projection period.

Asia Pacific to Retain a Lucrative Spot in Global Courier, Express, and Parcel Market Through 2029

The countries' governments are putting more effort into growing their manufacturing industries, and foreign corporations are establishing manufacturing facilities in the area, which has increased and is projected to continue to increase commerce between the nations internationally. Another rapidly expanding industry in the area is retail. The resurgence of the manufacturing sector and anticipated economic growth are predicted to fuel the worldwide courier, express, and parcel market. Electronics are becoming more widely used in Asian nations, including China, Taiwan, South Korea, and Thailand. This will help the courier, express, and package industries. It will also increase the number of online payment options available, change urban lives, and increase shipments of electronic items, cars, and food and beverage products. One of the worldwide hotspots currently luring investments from all over the world is the Southeast Asian region. In the coming years, e-commerce is also anticipated to grow. The development of contract manufacturing of FMCGs in emerging nations may greatly impact the courier, express, and parcel services.

Global Courier, Express, and Parcel Market: Competitive Landscape

A few of the players in the courier, express, and parcel market include Aramex PJSC, Deutsche Post AG, Fedex Corporation, La Poste SA, Pos Malaysia Berhad, Poste Italiane SpA., PostNL NV, Qantas Courier Limited, Royal Mail Group Plc, SF Express Co. Ltd., SG Holdings Co. Ltd., Singapore Post Ltd., and United Parcel Service Inc.

Recent Notable Developments

  • In March 2022, The technological platform ZigZag, which specialises in e-commerce returns, and DHL Parcel UK have announced a new alliance. DHL's Just Right Returns service, a quick, convenient, and high-quality returns solution, is now available to ZigZag's network of over 100 stores, including Selfridges, GAP, and Superdry

  • In June 2022, The last-mile delivery company from General Motors (GM), BrightDrop, has received its first 150 electric delivery vehicles, according to a statement from FedEx Corp. This is an important turning point for FedEx, which plans to convert its entire parcel pickup and delivery (PUD) fleet to all-electric, zero tailpipe emissions vehicles by 2040. It also comes shortly after BrightDrop commercialised the Zevo600, which was the fastest vehicle ever to reach the market in the history of General Motors

Global Courier, Express, and Parcel Market is Segmented as Below:

By Service Type

  • B2B (Business-to-Business)
  • B2C (Business-to-Consumer)
  • C2C (Customer-to-Customer)

By Destination

  • Domestic
  • International

By Type

  • Air
  • Ship
  • Subway
  • Road

By End-Use Sector

  • Services (BFSI-Banking, Financial Services and Insurance)
  • Wholesale and Retail Trade (E-Commerce)
  • Manufacturing, Construction and Utilities
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Courier, Express, and Parcel (CEP) Market

  • Courier, Express, and Parcel (CEP) Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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