Enjoy complimentary customisation on priority with our Enterprise License!
The courier, express and parcel (CEP) 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 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. These factors collectively contribute to the dynamic growth of the CEP market. Our report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
To learn more about this report, Request Free Sample
The 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 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 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, vendors 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 the growth of the market during the forecast period.
The growing integration of last-mile delivery models with courier, express, and parcel companies is a key trend in the market. This is especially witnessed after the prominence of E-commerce which offers delivery services like hub-and-spoke and last-mile delivery (LMD) models. 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 such as Amazon, Myntra, eBay, and Flipkart are offering faster delivery services to distinguish themselves from other service providers. This is increasing market competition and resulting in strategic alliances among vendors in the CEP Market, yet another factor likely to result in further market growth during the forecast period.
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 market growth during the forecast period.
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. E-commerce help companies in greater efficiency by providing services like navigation, custom contract pricing, custom catalog, and easy and clear check-out processes.
Customized Report as per your requirements!
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 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 vendors are also expanding to provide B2C services due to the ease of operations and market expansion by E-commerce channels. Hence such factors are predicted to result in further growth of this segment of the market during the forecast period.
For more insights on the market share of various regions Download Sample PDF now!
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 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 vendors. 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 vendors in the region. Hence, such factors are likely to result in further growth of the regional market during the forecast period.
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 the 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.
The 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.
US - Courier, Express, and Parcel (CEP) Market: US - Courier, Express, and Parcel (CEP) Market by Consumer, Delivery and Geography - Forecast and Analysis
US - Courier and Local Delivery Services Market: US - Courier and Local Delivery Services Market by Service Type and Product Type - Forecast and Analysis
Brazil - Express Delivery Market: Brazil - Express Delivery Market by Service Type and Customer Type - Forecast and Analysis
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 like Selfridges 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.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
Market growth 2024-2028 |
USD 165 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.37 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Consumer
7 Market Segmentation by Delivery
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.