US - Courier and Local Delivery Services Market by Service Type and Product Type - Forecast and Analysis 2023-2027

US - Courier and Local Delivery Services Market Analysis Report 2023-2027:

The US - courier and local delivery services market size is estimated to grow at a CAGR of 4.28% between 2022 and 2027. The market size is forecast to increase by USD 27.93 million. The growth of the market depends on several factors such as the growing B2C e-commerce market in the US, the increasing demand for courier and local delivery services from medical and healthcare industries, and the rising investments from established players.

This US courier and local delivery services market report extensively covers market segmentation by service type (ground, express, and deferred) and product type (B2C, B2B, and C2C). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the US Courier And Local Delivery Services Market During the Forecast Period?

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US Courier And Local Delivery Services Market Dynamics

Our researchers analyzed the data with 2022 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.

Driver

One of the key factors driving the US courier and local delivery services market market growth is the rising investments from established players. There is a rapid expansion of several established players in the global courier and local delivery service market to the US. In addition, there is an increasing investment by several established players in the US due to the growing demand from the e-commerce and retail sectors for efficient delivery services.

Moreover, the new tax reform law in the US, which was passed in 2017 and comprises reduced tax rates for business entities, is helping logistics players save investment taxes. For instance, in 2021, FedEx Corp. invested in Berkshire Grey RPSi systems at sortation facilities in Las Vegas, Nevada, and Columbus, Ohio, to help accommodate the rapid growth of e-commerce using automation and robotics. Hence, the increase in investment by established players will positively impact the US - courier and local delivery services market. Therefore, it is expected to drive the US courier and local delivery services market growth during the forecast period.

Trend

A key factor shaping the US courier and local delivery services market growth is the adoption of an inorganic growth strategy by market players. Several market players are using inorganic tactics in the courier and local delivery services market in the US  to maintain their market positions as well as broaden their service offerings, and enhance their competitive advantages. Some of the examples of these inorganic strategies include mergers, acquisitions, partnerships, and collaborations.

Moreover, several market players in the courier and local delivery services market in the US are entering into M&A as well as other strategic partnerships to increase the size of their network, boost productivity, or get hold of specialized technology. As a result of such partnerships and collaborations, it enables to simplify the delivery process for businesses as well as customers. Hence, such factors are expected to drive US courier and local delivery services market growth during the forecast period.

Challenge

Increasing adoption of in-house delivery units by retailers is one of the key challenges hindering the US courier and local delivery services market growth. Several established retail chains are setting up their own delivery networks to have complete control over the delivery process. Additionally, it is a significant challenge for courier and local delivery services to cater to the customized requirements of retailers for each category of products. For example, cold chain transportation is required to maintain the freshness of the products for delivering grocery items whereas bakery products need different temperatures and tertiary packaging requirements.

Moreover, the volume of delivering each product category is low for retail chains even though the overall online sales volume is high. Therefore, it has become an essential challenge for outsourced delivery companies to attain economies of scale and thereby profits. Furthermore, several prominent retail chains have started their own distribution networks which can pose a significant threat to the market. Hence, such factors are hindering the US courier and local delivery services market growth during the forecast period.

US Courier And Local Delivery Services Market Customer Landscape

The market research 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 growth strategies.

US Courier and Local Delivery Services Market Customer Landscape

Who are the Major US Courier and Local Delivery Services Market Companies?

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.

A1 Express Delivery Service Inc: The company offers courier and local delivery services that provide same-day courier and distribution services, and courier management in the United States.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Ace Delivery Service Inc
• AfterShip Group
• ArcBest Corp.
• Canada Post Corp.
• Courier Express
• Deutsche Post AG
• FedEx Corp.
• Life Science Outsourcing Inc.
• NAPAREX
• OnTrac
• PITT OHIO
• Power Link Expedite Corp.
• Royal Mail Plc
• Ryder System Inc.
• Spee-Dee Delivery Service Inc.
• Target Corp.
• Uber Technologies Inc.
• United Parcel Service Inc.
• XPO Inc.

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.

What is the Largest-Growing Segments in the US Courier And Local Delivery Services Market?

Service Type Analysis

The ground segment is estimated to witness significant growth during the forecast period. The ground segment is a type of delivery service where packages and parcels weighing between 70 and 110 pounds are dispatched to business and residential customers within 1-3 business days. One of the main sectors that is significantly contributing to the growth of this segment is the consumer electronics sector. The significant growth of the consumer electronics sector will fuel the demand for ground delivery services.

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The ground segment was the largest segment and was valued at USD 72.28 million in 2017. In addition, it is essential for market players offering ground delivery services to provide good quality protective packaging to safeguard consumer electronics products during transportation from the order fulfillment center to the end-users. There is an increasing growth of the e-commerce industry across the world which is significantly contributing to the growth of the segment. The growth of e-commerce has offered customers direct access to manufacturers and simultaneously several manufacturers are entering into strategic alliances with prominent e-commerce players. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the US courier and local delivery services market growth during the forecast period.

Product Type Analysis

Based on product type, the segment is classified into B2C, B2B, and C2C. In the B2B, there is an increasing demand for courier and local delivery services from the retail grocery segment There is an increasing preference among consumers for purchasing groceries online as it is a cost-effective and convenient option. As a result, there is an increasing investment by several e-commerce companies in online grocery sales. Thus, it is expected to significantly contribute to the growth of the B2C segment fuelled by the surge in e-commerce sales. Therefore, the growth of the e-commerce segment is expected to fuel the growth of the B2C segment which in turn will drive the US courier and local delivery services market growth during the forecast period.

Segment Overview

The US courier and local delivery services market report forecasts market growth by revenue and analyzes the latest trends and growth opportunities from 2017 to 2027. 

• Service Type Outlook (USD Million, 2017 - 2027)
  • Ground
  • Express
  • Deferred
• Product Type Outlook (USD Million, 2017 - 2027)
  • B2C
  • B2B
  • C2C

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What are the Key Data Covered in this US Courier And Local Delivery Services Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across the US
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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