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The Courier, Express, and Parcel (CEP) Market size is estimated to increase by USD 162.5 billion and grow at a CAGR of 7.07% between 2022 and 2027. The growth of the market depends on several factors such as the rise in FTAs to drive investments in markets in emerging economies, the growing fast-moving consumer goods (FMCG) contract manufacturing in emerging markets, and the adoption of new technologies in courier, express, and parcel supply chain network systems.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
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.
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The B2B segment was the largest segment and was valued at USD 172.15 billion in 2017. 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.
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APAC is estimated to contribute 44% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during 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.
Deutsche Post AG - The company offers Xpresspost for individuals and services for businesses.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market players, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The market is undergoing a transformation driven by technological advancements and the Internet of Things (IoT). With the rise of e-commerce industry, especially in developing countries, the demand for safe delivery options and parcel tracking facilities has surged. Companies like Ninja Van and Grab are pioneering crowd-sourced delivery models and drones for last-mile delivery, enhancing cost-effectiveness and urgency of delivery.
GPS tracking and smartphones have revolutionized parcel tracking, offering real-time updates to etail customers. Despite challenges like poor infrastructure and restraints from lockdowns, the industry is leveraging IT infrastructure for efficient operations. Cross-border trade has benefited from globalization, with trade-related agreements easing mode of transportation between countries.
Key stakeholders, including service operators and investment pockets, are focusing on technological advancements to improve logistics costs and enhance customer experience. The market's future will likely see more pilot programs and partnerships as companies aim for cost-effective, reliable, and environmentally sustainable solutions.
Courier, Express, And Parcel Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.07% |
Market growth 2023-2027 |
USD 162.5 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.17 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allied Express Transport Pty Ltd., Aramex International LLC, 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, Yamato Transport Co. Ltd., and Canada Post Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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