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 estimated to grow by USD 28.5 billion, at a CAGR of 5.4% between 2023 and 2028. The courier, express, and parcel supply chain industry is experiencing significant transformation through the adoption of new technologies, such as automation, robotics, and real-time tracking systems. This technological advancement is driven by the growing fast-moving consumer goods (FMCG) industry, which demands faster delivery times and more efficient logistics networks. Furthermore, increasing globalization and international trade have created a need for seamless cross-border supply chain operations. These trends are shaping the future of the courier, express, and parcel industry, enabling faster, more reliable, and cost-effective delivery solutions for businesses and consumers alike.

What will be the size of the Market During the Forecast Period

 Market Forecast 2024-2028

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Market Dynamics

The market is integral to global logistics, facilitating parcel shipping and returns management for both e-commerce sales and physical stores. The transportation services sector, supported by port infrastructure development and maritime administration, ensures smooth gasoline and diesel fuel logistics, crucial for petroleum exports and imports. Challenges like gas prices and refinery accidents underscore the market's reliance on refining capacity for diesel fuel consumption and express delivery services, emphasizing the market's role in global commerce. Our researchers studied the data for years, with 2023 as the base year and 2028 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

Key Market Driver - Growing fast-moving consumer goods (FMCG) industry

The FMCG industry comprises all the products that are consumed on a day-to-day basis and have a high turnover rate such as food and beverages, personal care items, and household cleaning products, among others. The rapid growth of FMCG in the US and constantly changing consumer demands, it has fuelled the need for efficient and timely distribution of FMCG products which will significantly contribute to the market growth.

Furthermore, the rapid increase in population coupled with the rise in disposable income increases the purchasing power of consumers which in turn will result in higher consumer spending on daily necessities. Therefore, these factors will positively impact the US courier, express, and parcel (CEP) market growth. Moreover, factors such as changing lifestyles, convenience, and the growth of e-commerce will drive the US  courier, express, and parcel market growth during the forecast period.

Significant Market Trends - Growth of E-commerce startups in the US

There is an increase in the growth of several e-commerce platforms due to the factors such as the expansion in digital payment modes, low-cost and faster mobile Internet connections, and increasing comfort with shopping online among people. As a result of this growth of the E-commerce industry is significantly fuelling the growth of e-commerce startups.

Moreover, there is a growing popularity for the E-commerce space post-pandemic. Additionally, several venture capitalists(VC) in the US are highly investing in E-commerce startups and there is an increasing adoption of E-commerce platforms by several businesses to offer an omnichannel experience to consumers which will positively impact the US courier, express, and parcel (CEP) market. Hence, such factors are expected to drive US courier, express, and parcel market growth during the forecast period.

Major Market Challenge - Lack of supply chain visibility affecting the vendor-customer relationship

One of the crucial aspects of a critical aspect influencing the courier, express, and parcel market in the US is the safety of packages during transportation. Packaging and labeling play an important role in establishing the brand name of the company. The transportation industry still faces challenges regarding supply chain visibility even after the advent of advanced tracking technology.

Additionally, several e-commerce market players are innovating new techniques to ensure the safe delivery of courier packages. One of the main reasons for the implementation of such techniques is due to factors such as thefts which are negatively impacting the US courier, express, and parcel (CEP) market growth. Furthermore, as per estimates, one out of every ten courier packages is damaged. Hence, such factors are expected to hinder the US courier, express, and parcel market growth during the forecast period.

Market Segmentation 

By Consumer

The B2B segment is estimated to witness significant growth during the forecast period. B2B transactions can be referred to as commercial transactions in which corporations procure products for their manufacturing operations as opposed to the typical transactions between the public and the government. This segment of the courier, express, and parcel market in the US encompasses business-oriented transactions and B2B sales. Some of the main factors which are significantly contributing to the growth of this segment include the growth of the e-commerce market and Internet penetration in the US.

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The B2B segment was the largest segment and was valued at USD 42.00 billion in 2018. Furthermore, factors such as the need for timely and reliable delivery of vital business materials such as essential documents, contracts, legal papers, invoices, samples, and other time-sensitive items have fuelled the growth of this segment which, in turn, will drive the US courier, express, and parcel market growth during the forecast period.

Who are the Major Market Companies?

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 courier, express, and parcel such as Economy, Express VIP, Express Executive, and Express Gold.

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including 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 report provides 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.  

Segment Overview

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 Outlook 
  • B2B
  • B2C
  • C2C
• Application Outlook 
  • Large Enterprise
  • Small and Medium Enterprise

Market Analyst Overview

The market plays a crucial role in global logistics, managing CEP volumes and parcel tracking systems essential for efficient transportation within the transportation sector. It supports international trade activities and integrates value-added services for businesses in the B2B sector and B2C segments alike. With a focus on last-mile delivery and omnichannel retailing, couriers ensure the timely distribution of goods, including healthcare equipment and electronic devices. They navigate challenges like federal spending on infrastructure, enhancing storage infrastructure for heavy machinery and construction materials. As part of the utility sector, couriers facilitate petroleum imports and manage crude oil logistics, impacting GDP and living conditions by supporting middle-class populations with disposable incomes. This dynamic market thrives on innovation in transportation modes such as air transportation, rail, and mass transit, contributing to economic growth and development worldwide.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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