+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

United States Domestic Courier, Express and Parcel (CEP) Market - Growth, Trends, Covid-19 Impact AND Forecasts (2022 - 2027)

  • PDF Icon


  • 150 Pages
  • March 2022
  • Region: United States
  • Mordor Intelligence
  • ID: 5572877
The United States Domestic Courier, Express and Parcel (CEP) market is expected to grow at a CAGR of over 4% during the forecast period of 2022-2027.

Due to Covid 19 there were lockdowns imposed across the nation, in 2020, the U.S. shipped 20.2 billion parcels, up a whopping 37% from 2019, thanks to the rise of e-commerce sales over the period.

Because of the rapid growth of the internet, the courier, express, and parcel (CEP) sector in the United States is primarily driven by the constantly increasing e-commerce industry. The United States has the largest share of the CEP business in the North American area, thanks to a highly integrated supply chain network that connects producers and consumers via different means of transportation.

Furthermore, increasing client demands for faster and faster delivery have resulted in the emergence of on-demand courier firms such as UberRUSH and Postmates, which provide speedy delivery services, positively boosting industry growth. The industry is further boosted by the region's expanding customer expenditure capacities.

Lots of new regional service providers, such as OnTrac and Eastern Connection, are rising to give cheaper, faster delivery choices to Western and Northeastern US states. In the B2C delivery category, these businesses compete directly with behemoths like FedEx and UPS.

Key Market Trends

Small Parcel Market fuelling CEP Growth

Consumers are ordering more online due to e-commerce expansion and the COVID-19 epidemic, which is fuelling the parcel delivery sector. This resulted in a 37% increase in volume, with 20 billion parcels carried in the United States, and a 29% increase in income, reaching USD 171 billion in 2020.

United Parcel Service (UPS) is the country's largest and most widely used package delivery service. In 2021, United Parcel Service's revenue from domestic package operations came to over USD 60.3 billion. Where as, FedEx Corporation generated almost USD 32.5 billion in revenue from delivering packages in 2021.

Amazon Logistics is quickly rivaling UPS and FedEx in the U.S. last-mile delivery space. It continues to build an intricate nationwide network and is transporting and delivering more of its volumes. It is expected that Amazon Logistics to compete for external business with traditional carriers such as UPS and FedEx.

There could be opportunities for upstart players going forward. Smaller companies, such as Pitney Bowes, which is focusing on lightweight deliveries, have also changed their strategies. According to Pitney Bowes, U.S. volume will nearly double to up to 39 billion packages by 2026, and volume during this peak season would likely exceed capacity by 5 million parcels daily.

Growth of E-Commerce is Pushing U.S CEP Market

Between 2020 and 2021, the e-commerce category with the fastest year-over-year growth was apparel and accessories. Clothing and other fashion accessories retail e-commerce sales climbed over 19% in February 2021 compared to the previous year. With about 18% growth, food and beverage was the second fastest growing segment. Office equipment and supplies, on the other hand, saw the smallest gain of 8.5%.

In 2021, Amazon and its third-party merchants accounted for 43.5% of all digital spending in the United States, up from 41.8% in 2020. Furthermore, the web giant accounted for more than half (55.4%) of all ecommerce growth in the United States in 2021.

74.3% of the United States population bought things online in 2021. This represents a four percent increase over 2019 and a two percent increase since 2021. Furthermore, this share will increase to 80.4% by 2025.

The United States retail and ecommerce sales growth will return to pre-pandemic levels in 2022. But shifts in consumer behavior during the pandemic have changed the way certain products are bought online.Ecommerce sales will increase at a robust rate, reaching 23.6% retail sales by 2025, up from 11% in 2019.

Competitive Landscape

The United States Domestic CEP market is a fragmented market. There is a domination of old players like USPS, FedEx, UPS, Amazon Logistics, etc, but there is also the entrance of many new players like Ontrac, Postmates etc. There have been few mergers taken place in US domestic CEP market, on Sept 2021 the UPS has planned to acquire Roadies to expand its Same day delivery market, though Roadies will be operated in the same name after its acquisition. On Oct 2021, The Regional player LaserShip, which is a eastern dominated player announced its purchase of Ontrac which is a western dominated player, in order to become a National player in the CEP market.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Current Market Scenario
4.2 Value Chain/Supply Chain Analysis
4.3 Government Regulations and Initiatives
4.4 Technological Trends and automation
4.5 Insights on US postal & Mail Services
4.6 Insights into the E-commerce Market
4.7 Insights into Start-ups and Venture Capital Funding in the CEP Industry
4.8 Elaboration on Storage Functions and Value-added Services in CEP Busines
4.9 Brief on Courier Rates
4.10 Insights into Reverse Logistics and Same-day Delivery Market
4.11 Insights into Deliveries During Festive Season (Christmas, Singles' Day, Black Friday, etc.)
4.12 Impact of COVID-19 on the Market
5.1 Market Drivers
5.2 Market Restraints/Challenges
5.3 Market Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Buyers/Consumers
5.4.2 Bargaining Power of Suppliers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6.1 By Business Model
6.1.1 Business-to-Business (B2B)
6.1.2 Business-to-Customer (B2C)
6.1.3 Customer-to-Customer (C2C)
6.2 By Type
6.2.1 E-commerce
6.2.2 Non E-commerce
6.3 By End Users
6.3.1 Services
6.3.2 Wholesale and Retail Trade
6.3.3 Healthcare
6.3.4 Industrial Manufacturing
6.3.5 Others
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 United Parcel Serices
7.2.2 FedEx
7.2.3 US postal Service
7.2.4 Aramex
7.2.5 LaserShip
7.2.6 Expenditors International of Washington
7.2.7 DHL
7.2.8 General Logistics Systems
7.2.9 World Courier Group
7.2.10 Lone Star Holdings
7.2.11 T-Force Logistics
7.2.12 Cross Country Freight Solutions
7.2.13 Spee Dee Delivery Service Inc
7.2.14 Express Courier*
9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport/Courier Industry to Economy)
9.2 Key Statistics Related to CEP Sector (Such as Sales/Revenue, Consumer Preferences, etc.)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • United Parcel Serices
  • FedEx
  • US postal Service
  • Aramex
  • LaserShip
  • Expenditors International of Washington
  • DHL
  • General Logistics Systems
  • World Courier Group
  • Lone Star Holdings
  • T-Force Logistics
  • Cross Country Freight Solutions
  • Spee Dee Delivery Service Inc
  • Express Courier*