Courier, Express, And Parcel (CEP) Market Analysis US - Size and Forecast 2024-2028

US Courier, Express, And Parcel Market Size 2024-2028

The US courier, express, and parcel (CEP) market size is forecast to increase by USD 28.5 billion at a CAGR of 5.4% between 2023 and 2028.

• The courier, express, and parcel (CEP) market In the US is witnessing significant growth due to the adoption of advanced technologies such as GPS, predictive analytics, and automation in logistics and supply chain networks. The integration of last-mile delivery models with CEP companies is also driving market growth, as consumers increasingly demand faster and more convenient delivery options. However, the market is facing challenges from sharing-based business models, which are disrupting traditional CEP business models. The COVID-19 pandemic has further accelerated the trend towards e-commerce and the need for efficient and reliable CEP services, particularly In the delivery of vaccines and other time-sensitive goods.

What will be the size of the US Courier, Express, And Parcel (CEP) Market during the forecast period?

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• The market in the global economy experiences significant activity, driven primarily by theincrease in e-commerce sales and the increasing preference for convenient and fast delivery options among consumers. CEP (Courier, Express, and Parcel) volumes continue to rise, fueled by the integration of returns management solutions in physical stores and the growing popularity of "Happy Returns" and similar services. The transportation services sector, comprised of couriers and messengers, as well as postal service workers, plays a pivotal role in this market. Key players in this sector include major retailers such as eBay, Walmart, Target, and Apple, who leverage their logistics capabilities to offer seamless delivery options to customers.
• The market also benefits from advancements in air travel and water transportation, as well as the development of port infrastructure and maritime administration. Furthermore, the increasing reliance on CEP services is influenced by various macroeconomic factors, including gasoline and petroleum prices, refining capacity, and refinery accidents. Despite these challenges, the market remains a dynamic and growing sector, demonstrating resilience and adaptability In the face of changing consumer demands and market conditions.

How is this market segmented and which is the largest segment?

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.

• Consumer
  • B2B
  • B2C
  • C2C
• Delivery
  • Domestic
  • International
• Geography
  • US

By Consumer Insights

• The B2B segment is estimated to witness significant growth during the forecast period.

The market caters to both business-to-business (B2B) and business-to-consumer (B2C) transactions. B2B transactions involve corporations procuring goods for their operations, contributing significantly to the supply chain. The B2B segment of the market is anticipated to expand moderately during the forecast period, driven by the expanding e-commerce and increasing Internet penetration In the US. Physical stores continue to leverage CEP services for returns management through partners like Happy Returns. Consumers increasingly rely on CEP for convenient last-mile delivery. Key industries such as eBay, Walmart, Target, Apple, and others contribute substantially to CEP volumes.

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The B2B segment was valued at USD 42.00 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

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.

What are the key market drivers leading to the rise in adoption of US Courier, Express, And Parcel (CEP) Market?

The key driver of the market is the adoption of new technologies in courier, express, and parcel supply chain network systems.

• The market is experiencing significant growth due to advancements in technology. These innovations are revolutionizing the industry by providing real-time parcel tracking, eliminating delivery uncertainties, and enhancing convenience for consumers. Key technologies driving this transformation include global positioning systems (GPS), bar-coding, management information systems (MIS), 3D printing, robotics, radio frequency identification (RFID), warehouse management software, and transportation management software. companies are also investing in mobility technologies to improve last-mile connectivity. For instance, FedEx Corp. Partnered with Chanje Energy Inc. In February 2020 to enhance their last-mile delivery capabilities. Consumers' increasing reliance on e-commerce sales and the middle class population's growing disposable incomes are fueling the demand for parcel shipping.
• Additionally, employment statistics show an increase in couriers and messengers and postal service workers as the sector adapts to the changing market dynamics. The transportation, storage infrastructure, and transportation services sector, including international trade activities, are also experiencing growth as a result. Federal spending on highways, air travel, water transportation, and port infrastructure development further supports the market's expansion. Technological advancements in refining capacity, refinery accidents, diesel fuel consumption, and express delivery systems are also contributing factors.

What are the market trends shaping the US Courier, Express, And Parcel (CEP) Market?

Growing integration of last-mile delivery models with courier, express, and parcel companies is the upcoming trend In the market.

• The market is experiencing significant growth due to the integration of last-mile delivery models with companies and the increasing popularity of instant delivery services. E-commerce sales continue to rise, leading to a corresponding increase in parcel volumes. Last-mile delivery models, including postal mail-run, crowd shipping, courier delivery, and delivery to lockers, are becoming increasingly common. These models cater to the demand for fast and convenient delivery options. The employment statistics In the transportation sector, including couriers and messengers and postal service workers, are also seeing growth as a result. The e-commerce market, which includes B2B, B2C, and C2C segments, is a major driver of parcel shipping volumes.
• Additionally, the middleclass population with disposable incomes and improving living conditions are contributing to the growth of this market. The supply chain, particularly In the logistics sector, is also undergoing significant changes to accommodate the demands of e-commerce and omnichannel retailing. Technology plays a crucial role in this sector, with advancements in parcel tracking systems and express delivery services. The transportation, storage infrastructure, and international trade activities are also impacting the market. Federal spending on transportation services, including highways, air travel, water transportation, and port infrastructure development, is a significant factor.

What challenges does US Courier, Express, And Parcel (CEP) Market face during the growth?

Increasing threat from sharing-based business models is a key challenge affecting the market growth.

• The market is experiencing significant competition from emerging sharing-based business models, such as peer-to-peer delivery services and crowdsourced platforms. These models enable individuals to use their personal vehicles for parcel delivery on behalf of others, offering lower costs compared to traditional courier, express, and parcel (CEP) providers. This competition can potentially impact the growth of the CEP market, as customers may prefer the cheaper alternatives. Traditional CEP companies face a decrease in market share due to increased competition. The transportation sector, including CEP volumes, employment statistics, and infrastructure development, plays a crucial role In the US economy, contributing to GDP through international trade activities and transportation services.
• Key market drivers include e-commerce sales, omnichannel retailing, and the middleclass population with rising disposable incomes and improving living conditions. The CEP market caters to various sectors, including e-commerce (B2C and B2B), healthcare equipment, heavy machinery, and electronic devices. Value-added services, such as express delivery, parcel tracking systems, and technology solutions, further enhance the market's growth. However, challenges, such as fuel prices, refinery accidents, and diesel fuel consumption, can impact the market's profitability. The CEP market encompasses couriers and messengers, postal service workers, and air, water, and land transportation services.

Exclusive US Courier, Express, And Parcel (CEP) Market Customer Landscape

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 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, market forecast 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:

• Central Courier LLC
• Deutsche Post AG
• Expeditors International of Washington Inc.
• FedEx Corp.
• Flexport Inc.
• General Logistics Systems BV
• LSO Inc.
• OnTrac
• PACE Inc.
• Shipbob Inc.
• Spee-Dee Delivery Service Inc.
• TFI International Inc.
• United Parcel Service Inc.
• United States Postal Service
• Yellow Corp.

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.

Research Analyst Overview

The market in the global economy has experienced significant growth in recent years, driven by the increase in e-commerce sales and the increasing preference for convenient and fast delivery options. Consumers' growing reliance on physical stores for purchasing goods, coupled with the rise of returns management solutions like Happy Returns, has led to an increase in CEP (courier, express, and parcel) volumes. The employment statistics In the transportation sector have seen a corresponding rise, with couriers and messengers and postal service workers being among the key contributors to this trend. The e-commerce sector, in particular, has been a major driver of this growth, with B2B, B2C, and C2C transactions fueling the demand for efficient and reliable parcel delivery services.

In addition, the CEP market's expansion has been influenced by various market dynamics, including the development of advanced technology and the integration of value-added services. The implementation of parcel tracking systems and the adoption of automation and robotics in logistics have streamlined the supply chain, making it more efficient and cost-effective. The e-commerce growth has been influenced by several factors, including the expanding middle class population, rising disposable incomes, and improving living conditions. Omnichannel retailing, which allows consumers to shop online and pick up their orders in-store or have them delivered to their doorstep, has further boosted the demand for parcel shipping services.

Furthermore, the last-mile delivery segment has gained significant attention in the CEP market due to its importance in ensuring timely and efficient delivery of parcels to consumers. Logistics companies have been investing in technology and infrastructure to optimize last-mile delivery, including the use of drones and autonomous vehicles. The transportation services sector has been impacted by various factors, including international trade activities, federal spending on transportation infrastructure, and the development of transportation modes such as highways, air travel, water transportation, and port infrastructure. The maritime administration's role in facilitating international trade and ensuring the safety and security of waterways has been crucial in enabling the smooth flow of goods and parcels across borders.

In addition, the transportation sector's growth has also been influenced by the price of fuel, with gasoline and petroleum exports and imports playing a significant role In the global economy. The refining capacity and refinery accidents have impacted the availability and price of diesel and gas, affecting the cost of transportation services. The express delivery segment has been a key contributor to the growth of the CEP market, with its focus on speed and reliability making it a preferred choice for time-sensitive and high-value shipments. The adoption of technology and automation in express delivery has enabled faster processing and tracking of parcels, enhancing the customer experience.

Therefore, the market has been a significant contributor to the global economy, driven by the growth of e-commerce sales and the increasing preference for convenient and fast delivery options. The transportation sector's development, including the adoption of technology and infrastructure, has been crucial in enabling the efficient and cost-effective movement of goods and parcels. The market's dynamics, including the impact of fuel prices and international trade activities, have influenced its growth and will continue to shape its future.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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