Courier, Express, And Parcel (CEP) Market Size and Forecast 2025-2029
The CEP market size estimates the market to reach by USD 188.1 billion, at a CAGR of 7.2% between 2024 and 2029.APAC is expected to account for 45% of the growth contribution to the global market during this period. In 2019 the b2b segment was valued at USD 189.50 billion and has demonstrated steady growth since then.
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Report Coverage |
Details |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
| Market structure | Fragmented |
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Market growth 2025-2029 |
USD 188.1 billion |
- The Courier, Express, and Parcel (CEP) market continues to evolve as e-commerce growth, digital platforms, and automation technologies reshape delivery models. Increasing demand for fast, flexible, and cost-efficient delivery has accelerated adoption of real-time tracking systems, AI-driven route optimization, and smart last-mile delivery solutions, aligning with broader innovations in the Smart Logistics Solutions Market and E-Commerce Fulfillment Market.
- The market is experiencing significant growth in emerging economies due to the increasing number of Free Trade Agreements (FTAs). These FTAs are driving investments in the sector, expanding market opportunities for CEP companies. Simultaneously, there is a growing trend towards the integration of last-mile delivery models, enabling faster and more efficient delivery services. However, the market faces challenges from emerging sharing-based business models, which are disrupting traditional CEP business structures. Companies must navigate these challenges by adapting their strategies to remain competitive and capitalize on the market's potential. The integration of advanced technologies, such as automation , RFID , and real-time tracking, can help CEP companies streamline their operations and improve customer experience.
- Additionally, collaborations and partnerships with e-commerce platforms and logistics providers can provide opportunities for growth and expansion. Overall, the CEP market's strategic landscape is characterized by a dynamic and competitive environment, requiring companies to be agile and innovative to succeed.
What will be the Size of the Courier, Express, And Parcel (CEP) Market during the forecast period?
Understand technological advancements in CEP services, including automation and last-mile delivery optimization Request Free Sample
- Key advancements such as automated sorting systems, predictive analytics for demand forecasting, and cloud-based fleet management platforms improve efficiency and scalability. Internal linking opportunities include IoT in Logistics Market, Blockchain in Supply Chain Market, and Drone Delivery Services Market, as these technologies enable secure data exchange, fraud prevention, and autonomous delivery capabilities.
- Industry reports indicate that over 65% of CEP shipments now involve real-time tracking integration, reflecting growing consumer demand for transparency and reliability. Additionally, green logistics initiatives and electric delivery vehicles are becoming critical to meeting sustainability goals. These innovations highlight the market's continuous evolution toward digital ecosystems, operational efficiency, and enhanced customer satisfaction, positioning CEP services as a cornerstone of global commerce.
- Parcel sorting automation and delivery exception management minimize errors and delays in the delivery process. The CEP market is expected to grow at a significant rate, with industry growth forecasted to reach 10% annually. For instance, a leading retailer reported a 25% increase in sales due to improved delivery time prediction and shipping cost calculation, highlighting the market's impact on business success. Parcel handling equipment, such as conveyor belts and sorting machines, play a vital role in ensuring efficient parcel processing and delivery. Cross-border shipping and international shipping compliance require specialized solutions, including freight management software and carrier selection algorithms, to navigate complex regulations and ensure seamless delivery. Pickup and delivery services, consignment tracking, and delivery fleet management further enhance the efficiency and reliability of CEP services.
- Technology wise the Artificial intelligence (AI) and machine learning are transforming the CEP industry by enabling faster, smarter, and more efficient operations. These technologies power real-time route optimization, predictive delivery scheduling, and automated sorting and handling systems. By analyzing vast amounts of logistics data, AI helps improve delivery accuracy, reduce costs, and enhance customer satisfaction across the entire supply chain.
How is this Courier, Express, And Parcel (CEP) Industry segmented?
The courier, express, and parcel (cep) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Consumer
- B2B
- B2C
- C2C
- Delivery
- International
- Domestic
- Service
- Standard Delivery
- Express Delivery
- Same-Day Delivery
- Last-Mile Delivery
- Mode of Transport
- Roadways
- Airways
- Railways
- Waterways
- Distribution Channel
- Direct Delivery
- Third-Party Logistics
- Geography
- North America
- US
- Canada
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Middle East and Africa
- UAE
- APAC
- China
- India
- Japan
- South Korea
- South America
- Brazil
- Rest of World (ROW)
- North America
By Consumer Insights
The b2b segment is estimated to witness significant growth during the forecast period.
The B2B sector of the market is characterized by transactions between companies for procurement of logistics services. As businesses increasingly rely on just-in-time manufacturing and global supply chains, the demand for efficient and reliable CEP services has grown. E-commerce sales, driven by Internet penetration, have significantly boosted this market. Shipment consolidation and route planning software enable businesses to optimize their logistics networks, reducing costs and improving delivery times. In-transit visibility allows companies to track their shipments in real-time (GPS tracking ), ensuring timely delivery and exception management. Last-mile delivery solutions cater to the unique challenges of urban areas, ensuring timely and accurate delivery of goods.
As of 2019 the B2B segment estimated at USD 189.50 billion, and it is forecast to see a moderate upward trend through the forecast period.
Dimensional weight calculation is crucial for accurate pricing and efficient handling and parcel delivery network. Delivery scheduling and customer delivery portals provide transparency and convenience, enhancing the customer experience. Reverse logistics management and automated routing software streamline the return process and optimize delivery routes. Supply chain visibility and delivery route optimization help businesses respond to market demands quickly and effectively. Parcel sorting automation and exception notification systems reduce manual labor and improve efficiency. Shipping label generation and freight management software facilitate seamless integration with enterprise systems. Cross-border shipping and international shipping compliance require specialized expertise and technology, making carrier selection algorithm and real-time tracking updates essential.
E-commerce order fulfillment processes and delivery fleet management ensure timely and accurate delivery of goods, while package tracking systems provide transparency and peace of mind for customers. Weight handling capacity and logistic cost are critical factors for businesses, making it essential to optimize networks and negotiate favorable rates. Delivery time prediction and shipping cost calculation help businesses manage their inventory and cash flow effectively. In conclusion, the B2B CEP market is a dynamic and evolving landscape, driven by the growth of e-commerce and the need for efficient and reliable logistics solutions. Companies that can provide innovative and integrated solutions, leveraging technologies such as automation, real-time tracking, and supply chain visibility, will be well-positioned to succeed.
Regional Analysis
During the forecast period, APAC is projected to contribute 45% to the overall growth of the global market. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in Asia Pacific (APAC) is witnessing significant growth due to the increasing e-commerce activities and the region's large internet user population. In 2023, countries like South Korea, Japan, China, and Australia had internet penetration rates of over 97%, 84%, 77%, and 95%, respectively. This trend is driving the expansion of the CEP market in APAC, as major service providers capitalize on the region's potential for courier, express, and parcel services. Shipment consolidation and route planning software are essential tools for CEP companies to optimize their networks and reduce logistics costs. In-transit visibility and real-time tracking updates enable businesses to monitor their shipments and improve customer satisfaction.
Last-mile delivery solutions, including parcel sorting and automation and delivery exception management, ensure timely and efficient delivery of packages. E-commerce global logistics network , including package dimensions and cross-border shipping, require specialized handling and compliance with international shipping regulations. Weight handling capacity, shipping cost calculation, and carrier selection algorithms are critical factors in the CEP market, as businesses seek to minimize costs while maintaining delivery speed and accuracy. Delivery fleet management, order fulfillment process, and consignment tracking are essential components of the CEP supply chain, ensuring efficient and transparent operations. Freight management software, pickup and express delivery service , and parcel handling equipment facilitate the smooth flow of goods from origin to destination.
In conclusion, the CEP market in APAC is evolving to meet the demands of the e-commerce industry and the region's growing internet user population. Companies are investing in technology solutions, such as automated routing software, delivery route optimization, and package tracking systems, to improve operational efficiency and customer experience. The market is expected to continue growing as e-commerce activities expand and logistics providers adapt to meet the evolving needs of businesses and consumers.
Market Dynamics
Our researchers analyzed the data with 2024 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 CEP market is focused on impact delivery speed efficiency by leveraging technology to optimize delivery route planning and improve last mile delivery speed. Companies aim to reduce parcel handling damage and enhance supply chain visibility through automation. Investments in automated parcel sorting machines and systems offering real-time package tracking updates are growing. Businesses also integrate multi-carrier shipping to optimize international shipping and improve on-time delivery rates. Strategies to manage delivery exceptions effectively, predict parcel volume accurately, and streamline order fulfillment process are essential. The industry works to improve customer delivery experience and enhance delivery network design while seeking to optimize freight cost management. These measures help reduce delivery failure incidents, measure key performance indicators, and analyze delivery performance data, driving overall operational excellence in the CEP market.
Additionally market is evolving with innovations such as cross-border logistics, AI/ML-powered route optimization, and the use of robotics in sorting to improve speed and accuracy. Real-time tracking, EV fleets and drones, and healthcare logistics are transforming service models, especially for same-day delivery. Technologies like package tracking system, shipping route optimization, and delivery time management enhance visibility and reliability. Cost control is improved through freight cost calculation, dimensional weight pricing, and robust warehouse management system. Operations benefit from reverse logistics handling, strategic carrier selection strategy, and delivery exception handling. Real-time tools such as real-time shipment updates, proof of delivery system, and signature capture technology are now standard. Efficiency grows with multi-carrier integration, international shipping rates, customs clearance process, and automated dispatch system. Tools like fleet management system, parcel volume forecasting, manifest creation process, and delivery scheduling optimization support performance tracking using performance monitoring KPI, on-time delivery rate, and customer satisfaction score in the last mile delivery chain.
What are the key market drivers leading to the rise in the adoption of Courier, Express, And Parcel (CEP) Industry?
- The increase in Free Trade Agreements (FTAs) is the primary catalyst for investments in the courier, express, and parcel markets in emerging economies. This trend is driving significant growth in these sectors as FTAs facilitate easier trade and logistics, making it more attractive for businesses to expand their operations in these regions.
- The market is experiencing robust growth, driven primarily by the surge in international trade facilitated by free trade agreements (FTAs) in emerging economies. This segment of the logistics and transportation industry is among the fastest growing, with consumer demographics and behavior also playing significant roles in market dynamics. The EU, NAFTA, SAFTA, EAEU, and ASEAN are just a few examples of FTAs that have fueled cross-border trade, leading to increased demand for efficient CEP services. According to industry reports, the CEP market is projected to expand at a substantial rate, with analysts estimating a growth of over 10% annually.
- For instance, the implementation of the EU-China Comprehensive Economic and Trade Agreement (CETA) in 2020 is expected to boost CEP market growth by increasing trade volumes between Europe and China.
What are the market trends shaping the Courier, Express, And Parcel (CEP) Industry?
- The integration of last-mile delivery models is becoming a prominent trend in the courier, express, and parcel industry. This growth involves the collaboration between companies to optimize delivery processes and enhance customer experience.
- The integration of last-mile delivery models with companies is a significant market trend, projected to fuel growth in the rapidly expanding instant delivery sector. This sector is experiencing substantial investment from startups and venture firms due to its increasing popularity. A notable portion of these new businesses focuses on food preparation and delivery services. In response to evolving customer expectations, e-commerce companies are innovating with delivery models such as hub-and-spoke and last-mile delivery (LMD) to cater to a diverse range of customer needs.
- LMD models encompass postal mail, crowd shipping, courier delivery, and delivery to lockers. According to recent industry reports, the instant delivery market is poised to expand by approximately 25% over the next five years.
What challenges does the Courier, Express, And Parcel (CEP) Industry face during its growth?
- The escalating competition from sharing-based business models poses a significant challenge to the industry's growth trajectory. The meal replacement market experiences robust growth due to increasing health consciousness and busy lifestyles among consumers. New players, including startups and companies entering through mergers, are intensifying competition. These new entrants leverage advanced technologies and offer competitive pricing through methods like load bidding. However, the industry faces challenges such as slow adoption of digitalization and untrained labor, which hinder the integration of new-age technologies like robotics, temperature-monitoring devices, and ICT. For instance, the logistics and transportation industry's digital freight market is projected to reach USD30 billion by 2025, growing at a significant rate.
- Despite this potential, the industry's digitalization rate remains low. Overcoming these challenges and embracing technology will be crucial for market players to stay competitive and meet evolving consumer demands.
Exclusive Customer Landscape
The courier, express, and parcel (cep) 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 courier, express, and parcel (cep) market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, courier, express, and parcel (cep) market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Allied Express Transport Pty Ltd. - This company specializes in courier, express, and parcel services, providing various options such as Economy, Express VIP, Express Executive, and Express Gold, catering to diverse customer needs and preferences. These services ensure efficient and reliable delivery solutions for businesses and individuals alike.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about 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.
- Hermes Europe GmbH
- India Post
- Japan Post Holdings Co. Ltd.
- Korea Post
- La Poste
- Nippon Express Holdings Inc.
- One World Express Inc. Ltd.
- Royal Mail Group Ltd.
- SF Express Co. Ltd.
- Singapore Post Ltd.
- United Parcel Service Inc.
- United States Postal Service
- Yamato Transport Co. Ltd.
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 industry 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.
Recent Development and News in Courier, Express, And Parcel (CEP) Market
- In January 2024, FedEx Express, a leading player in the market, announced the launch of its new autonomous delivery drone, Raven, in collaboration with NASA and Pepperdine University (FedEx press release, 2024). This strategic partnership aimed to test and evaluate the drone's capabilities for last-mile delivery in remote areas.
- In March 2024, DHL and Alibaba Group entered into a strategic partnership to expand DHL's e-commerce logistics services in China (Alibaba Group press release, 2024). This collaboration enabled DHL to offer Alibaba's customers faster and more efficient delivery services, further strengthening DHL's presence in the Chinese market.
- In May 2025, United Parcel Service (UPS) completed the acquisition of TNT Express, a leading European parcel delivery company, for approximately €6.8 billion (UPS press release, 2025). This acquisition expanded UPS's global reach and market share, allowing it to offer a broader range of services and improve its competitiveness in the European CEP market.
- In the same month, the European Union's Executive European Commission approved the merger between UPS and TNT Express, subject to certain conditions (European Commission press release, 2025). The approval marked a significant regulatory milestone for the consolidation of the European CEP market.
Research Analyst Overview
- The market for courier, express, and parcel (CEP) services continues to evolve, with delivery time windows becoming increasingly important for customer satisfaction. Delivery network design and warehouse automation are key areas of focus, optimizing routes and reducing handling time. Route optimization software and delivery driver management enable efficient parcel transportation, while proactive notification systems keep customers informed. Package security features and transportation mode selection ensure safe and reliable delivery. Carrier performance metrics and capacity planning are essential for maintaining service levels and managing resources. Dynamic routing and claims management systems streamline operations, while predictive analytics and order routing algorithms enhance efficiency.
- The CEP market is rapidly evolving with improved shipping container tracking and advanced express delivery service integration. A robust parcel delivery network and global logistics network enable efficient freight transportation mode selection, including air freight handling, ground shipping options, and ocean freight shipping. The use of intermodal transportation and cold chain logistics supports specialized needs like hazardous material transport and document handling process. Innovations in inventory management tech, returns management system, and pick and pack operations streamline the supply chain. Smart order routing algorithm, delivery point assignment, and exception management rules enhance precision. Tools like shipment notification system, delivery confirmation method, and tracking number verification improve transparency. Accurate delivery location accuracy, customer service chatbots, shipping cost comparison, and modern package handling equipment are helping logistic service providers offer reliable, scalable solutions.
- Inventory management and hub-and-spoke models optimize warehouse operations, and fleet optimization reduces transportation costs. Delivery failure analysis and delivery density mapping provide valuable insights, improving overall delivery efficiency. The CEP market is expected to grow by over 10% annually, driven by increasing e-commerce sales and the need for faster, more reliable delivery options. A notable example of this trend is a major retailer experiencing a 30% increase in online sales, leading to a corresponding surge in parcel volume.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Courier, Express, And Parcel (CEP) Market insights. See full methodology.
Courier, Express, And Parcel (CEP) Market Market Scope |
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Report Coverage |
Details |
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Page number |
205 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.2% |
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Market growth 2025-2029 |
USD 188.1 billion |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
6.7 |
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Key countries |
US, China, Germany, Canada, India, South Korea, France, Japan, Italy, Brazil, UAE, UK, and Spain |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Courier, Express, And Parcel (CEP) Market Research and Growth Report?
- CAGR of the Courier, Express, And Parcel (CEP) industry during the forecast period
- Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
- Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
- Accurate predictions about upcoming growth and trends and changes in consumer behaviour
- Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the courier, express, and parcel (cep) market growth of industry companies
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