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The Europe express delivery market size is forecast to increase by USD 15.28 billion at a CAGR of 4.61% between 2023 and 2028. The market is experiencing significant growth, driven by the burgeoning e-commerce industry. With the increasing preference for online shopping, there has been a wave in demand for quick and reliable delivery services. Another key trend is the consolidation in the express delivery market, as major players seek to expand their reach and enhance their offerings through mergers and acquisitions. Competitive pricing pressure also remains a significant challenge, as companies strive to offer affordable shipping options to customers while maintaining profitability. The market is characterized by fierce competition and constant innovation, with companies implementing new technologies like drones and autonomous vehicles for deliveries. To stay competitive, express delivery companies are investing in technology, such as automation and real-time tracking, to streamline operations and improve the customer experience.
Additionally, the market is witnessing an increasing focus on sustainability, with many players exploring eco-friendly delivery solutions to reduce their carbon footprint. Overall, the market is expected to continue growing, driven by the e-commerce boom, consolidation, and the need for competitive pricing and innovative solutions.
The market is witnessing significant growth due to the increasing popularity of online shopping and the need for faster delivery of consumer goods, including perishable items, medication, and medical equipment supplies. The parcel delivery segment is expected to dominate the market, driven by the wave in e-commerce sales and the demand for same-day delivery services. The healthcare system is another key industry driving the growth of express delivery operations, with the need for timely delivery of medicines and hospital supplies, both domestically and internationally. The B2B and B2C segments are also contributing to the market growth, with the construction industry and primary industries relying on express delivery for the timely delivery of raw materials and supplies.
Cross-border e-commerce is another emerging trend, with consumers increasingly opting for international markets for better prices and wider product choices. Regular mail is expected to continue to face stiff competition from express delivery services due to the latter's faster delivery times and better customer relationship engagement.
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.
The domestic segment is estimated to witness significant growth during the forecast period. The European express delivery market caters to the urgent transportation of parcels and packages, primarily within a single country or between neighboring European states. This segment is pivotal in addressing the escalating e-commerce trend by ensuring prompt delivery of goods, thereby benefiting various businesses. The burgeoning B2C and B2B sectors, including retail and e-commerce, IT and telecom, electronics, consumer goods, and healthcare, are major contributors to the domestic market. With the increasing preference for online shopping, the demand for quick and reliable delivery services within Europe is surging. Customer experience is a critical factor, as consumers anticipate swift and convenient delivery of perishable items such as medication and medical supplies, as well as non-perishable goods like construction materials and primary industry products.
Express delivery operations employ advanced technologies, including management information systems, mobile tracking applications, GPS tracking, sorting and grading, packaging, picking, and order processing, to ensure efficient and effective logistics supply chains for both domestic and international parcels. Cross-border e-commerce and international trade further expand the market's scope, necessitating seamless integration and interconnectedness.
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The domestic segment was valued at USD 35.75 billion in 2018 and showed a gradual increase during the forecast period.
Our market 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.
Growth of e-commerce industry in Europe is the key driver of the market. The market has witnessed significant growth due to the increasing trend of online shopping and the expansion of the Fand D industry. In 2022, European B2C e-commerce turnover reached an estimated â¬950 billion, with Western Europe accounting for over 67% of the total turnover. This growth is driven by the increasing number of EU enterprises engaging in e-sales, with 16.8% of enterprises using only websites or apps in 2021. Perishable items such as medication and medical supplies, IT and Telecom products, electronics, and consumer goods are commonly delivered via express services. Same-day delivery and customer experience are key factors driving the demand for express delivery operations.
The healthcare system, hospitals, and primary industries also rely on express delivery for the timely delivery of essential supplies. Domestic and international parcels, including those in crossborder e-commerce, are handled through advanced logistics supply chains, utilizing value-added services such as sorting and grading, packaging, picking, order processing, and management information systems. Mobile tracking applications enable real-time monitoring of parcel locations, enhancing customer relationship engagement.
Consolidation in express delivery market in Europe is the upcoming trend in the market. The market is witnessing significant growth due to the increasing demand for fast and reliable Parcel Delivery services in various sectors. The Fand D industry, Retail and E-commerce, IT and Telecom, Electronics, Consumer goods, and Healthcare system are the major contributors to this market. The delivery of Perishable items, Medication, and Medical supplies through Same-day delivery services is gaining popularity, especially in the B2C segment. The advent of Online shopping and crossborder e-commerce has led to an increase in the volume of International parcels, necessitating the need for efficient sorting and grading, packaging, picking, order processing, and management information systems.
Further, aligned with market trends, the market is also witnessing the adoption of value-added services such as mobile tracking applications and logistics supply chain optimization. The domestic ecommerce segment is expected to witness significant growth due to the interconnectedness of European economies and the increasing trend of domestic and international trade. Vendors in the market are focusing on expanding their service portfolios and establishing a global presence through Mergers and Acquisitions (M and A). These strategies enable firms to achieve economies of scale, open new growth opportunities, and add more value to the combined entity.
Competitive pricing pressure is a key challenge affecting market growth. The market is driven by the increasing demand for quick and reliable Parcel Delivery services, particularly in the Fand D industry, Retail and E-commerce, IT and Telecom, Electronics, and Consumer goods sectors. The market caters to various segments, including Perishable items, Medication, and Medical supplies, which require Same-day delivery. The growth of Domestic and International B2B and B2C transactions, especially through Web shops, has led to an increase in the volume of Parcels. Moreover, the construction and Primary Industries sectors also contribute significantly to the market's growth due to the interconnectedness of international trade and the rise of Crossborder E-commerce.
The healthcare system's need for quick delivery of Medicines and Hospital supplies further strengthens the market's position. Express delivery operations must prioritize high-quality services, speed, and reliability to maintain market share. However, the presence of leading vendors such as UPS and FedEx makes the market price-sensitive and highly competitive. Service providers are adopting various pricing strategies, including dimension-based pricing and fuel cost mitigation, to remain competitive. Customer relationship engagement and Value-added services, such as sorting and grading, packaging, picking, order processing, and management information systems, are essential for customer satisfaction and retention. Mobile tracking applications and logistics supply chain optimization further enhance the customer experience.
The 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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis 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.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is witnessing significant growth due to the increasing popularity of online shopping and the need for faster delivery times. The market caters to various sectors, including retail and e-commerce, IT and telecom, electronics, consumer goods, and healthcare system. Parcel delivery has become a crucial part of the F&D industry, with the demand for same-day delivery services increasing. Perishable items, medication, and medical supplies are some of the critical categories that require express delivery services. Domestic and international e-commerce have driven the demand for express delivery operations, with web shops and B2B and B2C businesses relying heavily on this service.
The construction industry and primary industries also contribute to the market's growth, with the need for time-sensitive and critical supplies. The interconnectedness of European economies and international trade have led to an increase in cross-border e-commerce, resulting in a wave in international parcels. Express delivery companies offer value-added services such as sorting and grading, packaging, picking, order processing, and management information systems to enhance customer experience. Mobile tracking applications and logistics supply chain optimization have further streamlined operations. The healthcare system's reliance on express delivery for medicines and hospital supplies is also a significant factor driving the market's growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.61% |
Market growth 2024-2028 |
USD 15.28 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.45 |
Key companies profiled |
AfterShip Group, Aramex International LLC, CMA CGM SA Group, DB Schenker, Deutsche Post AG, DPD Deutschland GmbH, FedEx Corp., International Distributions Services plc, Otto GmbH and Co. KG, United Parcel Service Inc., YTO International Express and Supply Chain Technology Ltd., BTA International, Burns Express Freight Ltd., DPEX Worldwide, La Poste SA, Manston Express Transport, Montad Ltd t a Cargo Express, POSTE ITALIANE SPA, PostNL Holding B.V., and Simpex |
Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the 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. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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