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PRESS RELEASE
Published September 26, 2023
A recently published report intends to shed light on the multifaceted landscape of the global courier, express, and parcel (CEP) market. The insights presented in this comprehensive study are poised to be instrumental in examining market growth trends during the forecast period.
E-commerce Expansion and Smartphone Penetration: Catalysts for CEP Market Surge
The COVID-19 pandemic, with its unprecedented challenges, disrupted production, consumer demand, and transportation capacity across industries. However, it also triggered a surge in e-commerce demand, offering a lifeline to package delivery service providers like FedEx Corp., who reported a remarkable increase in operating profit during the fiscal year ending Q1 2021. E-commerce growth significantly impacted the CEP sector, with the number of packages in the US alone witnessing a substantial annual increase. Moreover, the CEP market is experiencing rapid expansion in emerging economies, driven by global trade, increased internet and smartphone usage, a burgeoning middle class, rising disposable incomes, and improved living standards.
Omnichannel Retailing and Trade Expansion: Additional Growth Drivers
Apart from e-commerce, factors such as the adoption of omnichannel retailing in select regions and trade expansion driven by economic growth have played pivotal roles in shaping the CEP market. The pandemic transformed consumer purchasing patterns, affecting CEP service demand in major economies like India, China, the United States, and Germany. As internet and smartphone penetration grows, developing nations are witnessing a surge in the CEP sector. The integration of global supply chains has enabled these countries to bolster their cross-border trade, leading to an upswing in courier and express services. Startups are also making significant inroads into the CEP market, with more funding flowing in, driven by consumer demands for speed, visibility, affordability, convenience, control, and choice.
Impact of COVID-19: Last Mile Delivery Takes Center Stage
The COVID-19 pandemic brought about a notable impact on domestic parcel shipments in the early months of 2020. However, the more profound effects on the postal industry and customers became evident in the first quarter of 2020-21. The sudden surge in online shopping, spurred by retail store closures, heightened the demand for last-mile delivery services. This trend prompted some package operators to expand their delivery networks and create new job opportunities. The pandemic underscored the pivotal role of the postal industry in delivering essential services, including government correspondence, healthcare materials, banking services, and COVID-19 testing kits.
Trade Agreements Drive Market Growth
Globalization and dynamic market conditions have led to a surge in trade-related activities, further propelling the expansion of the global CEP market. The growing need for a wide range of high-quality products delivered on time within budget constraints has made CEP services indispensable for businesses. Examples include trade agreements signed between Nepal and China, which provide Nepal access to Chinese sea and land ports, and the anticipated free trade agreements in various sectors announced by India and the UK.
Cross-border Trade Expansion Boosts Prospects
The growth of the courier, express, and parcel market is heavily influenced by the expanding e-commerce sector, driven by cross-border trade. The acceptance of international trade and B2C shipments has gained momentum, particularly in emerging economies. Technological advancements, including digital technology and crowd-sourced distribution models, are expected to further propel market growth. Factors such as urbanization, rising consumer spending, and significant growth in the manufacturing sector are set to drive the expansion of the CEP market in the foreseeable future.
Infrastructure Challenges Pose Limitations
Despite its rapid growth, the CEP market faces constraints related to infrastructure accessibility and quality on a global scale. These challenges encompass transportation inefficiencies, inadequate storage infrastructure, complex taxation, slow technology adoption, and insufficient delivery personnel skills. Inadequate road transportation infrastructure and urban traffic congestion in densely populated areas are significant impediments. The reliance on air freight services for time-sensitive international parcel deliveries and the lack of standardized postal codes in many countries also add complexity to the industry.
B2B Segment Dominates with Expanding Sales and Transactions
The CEP market is segmented into business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C) segments. The B2B segment is poised for growth due to the increase in online sales and international e-commerce transactions. As organizations worldwide engage in the exchange of goods and services, the business-to-business segment is expected to expand significantly.
Global Market Overview
Asia Pacific leads the global CEP market, accounting for over 41% of its value, with North America and Europe comprising approximately 50%. Rapid population growth, rising disposable incomes, improved living standards, and expanding global trade are driving the demand for CEP services in Asia Pacific. The resurgence of manufacturing and growth in the retail sector are expected to further fuel market growth. Southeast Asia is emerging as a hotspot for investments, and e-commerce is projected to grow substantially. The development of contract manufacturing in emerging economies is poised to impact CEP services positively.
Competitive Landscape
Key players in the global courier, express, and parcel market include Aramex PJSC, Deutsche Post AG, FedEx Corporation, La Poste SA, Pos Malaysia Berhad, Poste Italiane SpA, PostNL NV, Qantas Courier Limited, Royal Mail Group Plc, SF Express Co. Ltd., SG Holdings Co. Ltd., Singapore Post Ltd., and United Parcel Service Inc.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/courier-express-parcel-cep-market
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