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The US - courier and local delivery services market size is estimated to grow by USD 31.4 million at a CAGR of 4.6% between 2023 and 2028. The B2C e-commerce sector in the United States is experiencing significant growth, driven by increasing consumer preferences for online shopping. This trend is further fueled by the rising demand for courier and local delivery services from various industries, particularly medical and healthcare, where timely delivery of essential supplies is crucial. In response, established players in the logistics industry are making substantial investments to expand their capabilities and meet the surging demand. For instance, Amazon has announced plans to invest USD 1 billion in its logistics network in the US, while UPS and FedEx have also announced capacity expansions to accommodate the growing e-commerce market. These developments underscore the importance of efficient and reliable logistics solutions in today's digital economy.
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The market is a significant sector in the logistics industry, characterized by the ownership and management of various assets and liabilities. The market comprises companies that provide delivery solutions for letters, parcels, and documents within a specific geographical area. Shareholding and equity management are crucial aspects of this industry, with balance sheets and financial records playing a vital role in the decision-making process for shareholders. Start-ups and established players alike invest heavily in finance and HR to expand their operations and improve service quality. Share register management and communications are essential for maintaining transparency and engaging with shareholders. Voting rights and plan types, including participating employees, are also important considerations for equity management. Human error and the need for accuracy have led to the adoption of software solutions for equity administration and automation of equity award activities. These tools help streamline transactions and reduce the risk of errors, making the market more efficient and effective. Overall, the courier and local delivery services market continues to evolve, with a focus on innovation and technology to meet the changing needs of customers and shareholders. 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.
One of the key factors driving the 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 market. Therefore, it is expected to drive the market growth during the market forecast period.
A key factor shaping the market growth is the adoption of an inorganic growth strategy by market players. Several market players are using inorganic tactics in the 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 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 market growth and trends during the forecast period.
The future outlook for the market is promising, with projections indicating sustained market growth analysis. Statistics reveal a thriving parcel market, dominated by both domestic and local couriers, solidifying the United States as a key player in the global shipping industry. As the demand for deliveries continues to rise, the American industry is witnessing an evolution in the local courier market. With advancements in logistics, locally delivered freight and domestic express services are becoming more efficient. The USA's couriers are adapting to technological trends, enhancing their logo's visibility and establishing a strong foothold in the dynamic and competitive local courier delivery landscape.
Increasing adoption of in-house delivery units by retailers is one of the key challenges hindering the 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 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 market growth during the market forecasting period.
The market operates within a robust regulatory framework to ensure compliance and consumer satisfaction. Statistically, the country witnesses a significant market share, with notable players relying on efficient logistics to cater to a diverse range of content. Amidst the challenges posed by the pandemic, reports indicate a surge in demand, driven by increased online shopping. While the industry faces questions about market drivers and competition, companies focus on reliable shipping, tracking, and timely pickup and drop-off. Comparable regulatory models in Germany and France, and the broader European context, offer insights for strategic planning. From internet-based solutions to CEP (Courier, Express, Parcel) logistics, the market navigates routes, manages inventory, and maintains customer satisfaction through innovations in vehicle technology and warehouse management.
The market growth analysis report includes the adoption lifecycle of the market analysis and report, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth 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.
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 market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 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 75 billion in 2018. 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 market growth during the forecast period.
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 market growth during the forecast period.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The courier and local delivery services market is a dynamic and competitive industry, with various players, including start-ups and small companies, vying for a share of the market. Effective equity management is crucial for these businesses to attract and retain investors, comply with regulatory requirements, and maintain accurate financial records. Equity management involves the administration of a company's shareholding, balance sheet, liabilities, assets, and share register. Key roles in this process include the CEO, CFO, Company Secretary, and HR. Share register management is a critical aspect of equity management, ensuring the accurate recording of shareholder names, emails, and voting rights. Capital raising and dividend management are essential equity management activities. Companies may use software solutions like Orchestra or spreadsheets for equity administration, automating transactions and equity award activities. Stakeholder engagement is also crucial, with effective communication and transparency key to maintaining strong relationships with shareholders. Equity management software can streamline document storage, dividend management, and stakeholder management, reducing human error and increasing efficiency. As the industry evolves, automation and technology will continue to play a significant role in equity management, enabling companies to effectively manage their financial records and meet regulatory requirements.
Industry Scope |
|
Report Coverage |
Details |
Page number |
135 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2024-2028 |
USD 31.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.17 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
A1 Express Delivery Service Inc., 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 Group Ltd., Ryder System Inc., Spee-Dee Delivery Service Inc., Target Corp., Uber Technologies Inc., United Parcel Service Inc., and XPO Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service Type
7 Market Segmentation by Product Type
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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