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Indonesia Courier, Express, and Parcel (CEP) Market - Growth, Trends, and Forecast (2019 - 2024)

  • ID: 4772058
  • Report
  • Region: Indonesia
  • 150 pages
  • Mordor Intelligence
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FEATURED COMPANIES

  • Deutsche Post DHL Group
  • ESL Express
  • FedEx Corporation
  • Indah Group
  • Pahala Express
  • PCP Express
  • MORE
Market Overview

The market for Courier, Express, and Parcel business in Indonesia is expected to cross USD 5 billion by 2024, witnessing a CAGR of 14-16%, during the forecast period (2019-2024).

With the world’s fourth largest population and an excellent potential for growth, Indonesia is a key market in the global scenario. The Indonesian CEP market is at infant stage and there exists a lot of opportunities for the industry. With rapid regional as well as global economic integration, the local businesses are continually seeking logistics and courier services that can provide direct access to local and international markets.
  • The Courier, Express, and Parcel (CEP) Market in Indonesia is growing rapidly in line with the e-commerce sector of the country. E-Commerce is the major growth driver of the CEP market, generating significant revenues for the industry.
  • The rise in e-commerce business in recent years is increasing the business opportunities for shipping goods. The explosive growth of country’s e-commerce is presenting opportunities, as well as challenges for online retailers and logistics players.
  • While the growth of the e-commerce is the major driver of the CEP business, the rising demand of perishables and the growth of the life sciences sector of the country also support the growth of the express delivery in future.
  • The high logistics cost remains to be one of the challenges for the logistics sector as well as for the CEP market. Lack of proper infrastructure makes it difficult for delivering the parcels, especially for the remote areas outside the Java.
  • Additionally, Indonesia being an archipelago makes it difficult for companies to deliver the packages throughout the country.
Scope of the Report

A complete background analysis of Indonesia CEP Market, market overview, market size estimation for key segments and emerging trends by segments, and market dynamics are covered in the report.

Key Market Trends

CEP Market is Growing In-line with Growing E-commerce

The growth of e-commerce has opened up opportunities for many logistics companies for providing delivery services. E-commerce is rapidly growing in the country driven by growth of information and communication technology, rising middle-class population and smartphone pentration. For instance, JNE express, one of the leading courier companies in the country has captured the big opportunity in e-commerce business which accounts for almost 60-70% of its shipments.

Digitization is also enabling the consumers to reach the global markets promoting cross-border e-commerce and driving international CEP market. Some brands are looking at cross-border e-commerce operating model instead of setting a local business owing to the hassle involved in importing and customs clearance which makes it costly, time consuming, and effort intensive.

Presence of large number of SMEs and their Digitization presents an Opportunity for CEP Market

Indonesia has a large number of small and medium-sized enterprises (SMEs). SMEs play an important role for economic growth and they account for nearly 97% of domestic employment and for 56% of total business investment in Indonesia. The macroeconomic conditions of the country are supportive for the development of SMEs. Also, the young and increasing population, large domestic market, and abundant natural resources also support their growth. The growth in SMEs coupled with rise in trade activities help the courier and express industry to grow.

Many micro small and medium enterprises are also expanding in the form of e-commerce trading. According to industrial sources, only 18% of Indonesian SMEs are currently engaged in e-commerce through the use of a website or social media, and only 9% adopt more sophisticated e-commerce strategies. This represents the potential for SMEs to expand their businesses in future and significant opportunity present for the courier companies. The turnover of SMEs can be doubled if they go digital by adopting software to increase operational efficiency and applying different marketing techniques for selling goods.

In 2018, PT Citra Van Titipan Kilat (TIKI) expanded its business in the market of Micro, Small, and Medium Enterprises (MSMEs) by participating as the only official shipping partner of International Handicraft Trade Fair (Inacraft). Also, in 2017, the e-commerce platform Bukalapak and TIKI teamed up to facilitate SMEs in delivering their products.

Competitive Landscape

The Indonesian CEP market is dominated by long established players such as JNE Express, Pos Indonesia, and DHL. Other significant players in the market include TIKI, Pandu Logistics, Pahala Express, SAP Express, etc. Technology has become key for companies to increase their efficiency and to attract customers in this era of Industrial Revolution 4.0. For example, Pos Indonesia is conducting trials with robots to chat, but has no voice. J&T Express is another example which has expanded rapidly in the past three years. A lot of delivery companies that are online based or employing high technology are entering the market offering faster delivery services and presenting strong competition to conventional players as well.

DHL Express, one of the leading global companies has invested EUR 16 million in Indonesia to build the Jakarta Distribution Center (JDC) which is expected to be opened in April 2019. JDC is one of the biggest investments of the company in Asia Pacific and is also one of the largest shipping centers. The service center is equipped with advanced equipment such as motorized conveyor systems and weighing and re-measuring systems.
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Deutsche Post DHL Group
  • ESL Express
  • FedEx Corporation
  • Indah Group
  • Pahala Express
  • PCP Express
  • MORE
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study

2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.4 Value Chain / Supply Chain Analysis
4.5 Government Regulations and Initiatives
4.6 Technological Trends
4.7 Overview of the Logistics Market and Transport Infrastructure
4.8 Brief on Frieght Collect and Freight Prepaid
4.9 Insights on Reverse Logistics
4.10 Insights on the Trucking Industry (Domestic and Cross-border Trucking)
4.11 Elaboration on Warehousing Market of Indonesia

5 MARKET SEGMENTATION
5.1 By Business
5.1.1 B2B (Business-to-Business)
5.1.1.1 Electronic Appliances
5.1.1.2 Food and Beverages
5.1.1.3 Life Sciences
5.1.1.4 Others
5.1.2 B2C (Business-to-Consumer)
5.1.2.1 E-Commerce and Omnichannel Retailing
5.1.2.2 BFSI (Banking, Financial Services and Insurance)
5.1.2.3 Others
5.2 By Destination
5.2.1 Domestic
5.2.2 International

6 COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration, Major Players)
6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)
6.2.1 Deutsche Post DHL Group
6.2.2 United Parcel Service Inc.
6.2.3 FedEx Corporation
6.2.4 Pos Indonesia
6.2.5 PT Jalur Nugraha Ekakurir (JNE Express)
6.2.6 PT. Global Jet Express (J&T Express)
6.2.7 Pahala Express
6.2.8 PT. Jaringan Ekspedisi Transportasi (JET Express)
6.2.9 PT. Citra Van Titipan Kilat (TIKI)
6.2.10 PT Satria Antaran Prima Tbk.
6.2.11 ESL Express
6.2.12 PT.Globalindo Dua Satu Express (21 Express)
6.2.13 PT. Synergy First Logistics (First Logistics)
6.2.14 PT Pandu Siwi Group (Pandu Logistics)
6.2.15 PCP Express
6.2.16 Indah Group
6.2.17 PT Kereta Api Indonesia (Kereta Api Logistics)
6.2.18 Ritra Logistics (SUPEX)
6.2.19 PT. SiCepat Ekspres Indonesia
6.2.20 PT. Reka Cakrabuana Logistik (Red Carpet Logistics - RCL - part of Lippo Group)*
6.3 Other companies (Key Information/Overview)
6.3.1 GoSend, SF Express, Total Logistics, Lion Parcel, aCommerce, iruna eLogistics, ASP Express, REX Kiriman Express, Anterin, Pt Herona Express, Pt Dakota Express Indonesia, Pt Dunia Express Transindo*

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

8 APPENDIX
8.1 GDP Distribution, by Activity and Region
8.2 Insights on Capital Flows
8.3 E-Commerce and Cross-Border E-Commerce in ASEAN (Market Size, Growth Rate and Forecast)
8.4 E-Commerce Sales in Indonesia by Product
8.5 External Trade Statistics - Export and Import, by Product
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  • Deutsche Post DHL Group
  • United Parcel Service Inc.
  • FedEx Corporation
  • Pos Indonesia
  • PT Jalur Nugraha Ekakurir (JNE Express)
  • PT. Global Jet Express (J&T Express)
  • Pahala Express
  • PT. Jaringan Ekspedisi Transportasi (JET Express)
  • PT. Citra Van Titipan Kilat (TIKI)
  • PT Satria Antaran Prima Tbk.
  • ESL Express
  • PT.Globalindo Dua Satu Express (21 Express)
  • PT. Synergy First Logistics (First Logistics)
  • PT Pandu Siwi Group (Pandu Logistics)
  • PCP Express
  • Indah Group
  • PT Kereta Api Indonesia (Kereta Api Logistics)
  • Ritra Logistics (SUPEX)
  • PT. SiCepat Ekspres Indonesia
  • PT. Reka Cakrabuana Logistik (Red Carpet Logistics - RCL - part of Lippo Group)*
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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