Courier, Express, and Parcel (CEP) Market - Forecasts from 2023 to 2028

The global courier, express, and parcel (CEP) market is expected to grow at a compound annual growth rate of 7.68%, reaching US$734.054 billion in 2028 from US$437.414 billion in 2021.

The market is projected to grow at a significant pace with the growing urbanization and expanding middle-class population, especially in the emerging economies of the world. The growing mergers & acquisition (M & A) activities among the market players are further providing an opportunity for extending the business's scope and burgeoning the market growth in the forecast period. The expanding e-commerce industry is propelling the market demand for CEP services. The growing national and international trade is further creating more opportunities for the market players to grow over the next six years.

Furthermore, the emergence of disruptive start-ups is providing an opportunity for the market to thrive in the forecast period. Additionally, with the growing labor costs, the market is predicted to grow with technological advancements, such as the utilization of autonomous vehicles for deliveries, surging the market growth in the forecast period. Geographically, North America, followed by Europe, is estimated to hold a significant market share. In contrast, the Asia Pacific is estimated to be among the fastest-growing in the global CEP market in the forecast period.

The surge of the e-commerce industry.

There is continuous growth observed in the e-commerce industry that has further raised the growth of parcel delivery as well. Additionally, with the growing adoption of e-commerce retailing and the increase in digitization, the volume of parcels has also increased with time, owing to the evolving customer expectations for faster and more flexible delivery. To achieve this, it is required for current delivery models to evolve and use advanced technologies like advanced analytics, dynamic route optimization, and artificial intelligence to provide a greater and more efficient delivery speed and flexibility.

The trend of last-mile delivery.

Consumer expectations for faster delivery times and time-definite deliveries have grown. Retailers and CEP providers are adapting to meet these demands by offering same-day or next-day delivery options, resulting in market growth. For instance, last-mile delivery, the final leg of the delivery process from the distribution center to the customer's doorstep, has become a key focus for retailers. Efficient last-mile delivery is crucial for customer satisfaction and loyalty, driving investment and innovation in the CEP market.

Presence of tech-savvy customers.

The presence of tech-savvy customers, with high penetration of mobile devices like smartphones, has further raised the chances of enhanced market growth with growing e-commerce. For example, tech-savvy customers demand additional features with a large focus on control over the delivery experience. This has further raised prospects for adding novel features like the ability to select and modify delivery windows, i.e., the delivery period, keeping track of the deliveries in real-time, and communicating with drivers when needed.

Incentives, discounts, and marketing strategies.

The incentives and discounts being offered by big e-commerce organizations in response to their membership further provide the necessary impetus to market growth. For example, Amazon offers free 2-day shipping on all items and free same-day delivery on the specified items to the customers buying their Amazon Prime membership. The company has over 100 million subscribers to date. The company's unique delivery relies on its vertically integrated network positioning the e-commerce giant to achieve dominance across all the retail, fulfillment, and logistics.

Retail is the dominant end-user segment.

By the end-user, the courier, express, and parcel (CEP) market is segmented into healthcare, retail, manufacturing, food and beverages, and others. The retail segment is expected to hold a significant market share due to the growing e-commerce industry coupled with rising disposable income in developing countries like India and China. The healthcare industry is anticipated to witness exponential growth due to the increasing importance of on-time delivery of pharmaceutical and healthcare products. Further, the food and beverage industry is expected to grow significantly over the forecast period, augmenting the demand for fast and efficient CEP services.

North America held a significant market share in 2021.

The growing technological advancements and digitization have increased the scale of e-commerce activities in the United States, majorly driving the demand for CEP services in the country. For instance, according to the data by the US Department of Commerce, in Q1 of 2023, retail e-commerce sales in the US reached US$272.6 billion, representing a 7.8% increase over 2022's e-commerce sales figure of US$252.8 billion for Q1. Such an increase in e-commerce sales will make retailers optimize their supply chains for improving their delivery service, thereby providing a positive scope to courier, express, and parcel (CEP) services in the United States.

The presence of major courier, express, and parcel service providers such as FedEx, Aramex, DHL, and ShipBob is also an additional driving factor for the CEP market growth in the US.

The introduction of high-tech delivery solutions is further augmenting the market demand during the forecast period. For example, JD.com is the second-largest e-commerce business in China and is considered a pioneer in the sales of electronics and home appliances. The company invested in its logistics network for developing a market-leading supply chain. This has further enabled the company to gain market share from its main competitor Alibaba's Tmall. The company, JD.com, has tested various drones, autonomous vehicles, and robots to fulfill consumer demands for fast and timely delivery.

Market Segmentation:

By Customer Type

• B2B
• B2C
• C2C

By Items

• Medical Supplies
• Household Items
• Mails
• Luggage
• Others

By Destination

• Domestic
• International

By Transport Medium

• Air Transport
• Road Transport
• Sea Transport

By End User

• Medical & Healthcare
• Retail & E-Commerce
• Manufacturing
• Food & Beverages
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan
• Others