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United States International Courier, Express, and Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 120 Pages
  • January 2023
  • Region: Global, United States
  • Mordor Intelligence
  • ID: 5724245
The US international CEP market is expected to record a CAGR of more than 5% during the forecast period. The constantly evolving e-commerce industry primarily drives the market due to the significant penetration of the internet.

Due to the COVID-19 pandemic, there is an increase in online shopping. Such a rapidly growing adoption of online shopping across the country increased the volume of express deliveries and parcels. New technologies and changing customer demands have seen a dramatic shift in the strategic priorities of all post and parcel players in the United States. Digital transformation is a driver, impacting the delivery demand and supply, returns, and cross-border e-commerce. Technological developments like the introduction of drone delivery services and e-locker delivery systems are further creating opportunities for startups to enter the market.

The new approaches, such as Crowdsourcing Courier Service, are serving new consumer demands, such as faster deliveries at lower prices. The country is experiencing rapid growth in the B2C market compared to the B2B market, mainly due to the growth of the e-commerce market. This growth has caused the carriers to expand their product portfolios to cater to various consumer requirements, such as instant deliveries and locker services. The market is further spurred by the rising customer expenditure capabilities in the country.

Key Market Trends

Courier Industry Witnessing Lucrative Growth

E-commerce growth and the COVID-19 pandemic are fueling the parcel shipping market, as consumers are ordering more online. With more consumers moving from offline to online shopping, courier companies have witnessed a rise in businesses delivering goods amid the social restrictions, especially during festivals and holidays. Delivery companies have managed to book growth amid the pandemic-induced economic downturn.

The companies have seen a 37% growth in volume, with 20 billion parcels being shipped in the United States. Parcel revenue increased by 29% to 171 billion USD in 2020. In 2020, around 640 parcels were shipped per second, compared to 466 in 2019. Between 2015 and 2020, the US parcel volume doubled from 10 billion to 20 billion. The rise in e-commerce hugely impacted the monumental parcel shipping volumes in 2020. In 2020, there were 70,700 couriers and messengers in the United States.

Furthermore, the courier and messenger industry registered robust growth amid the pandemic. In Q4 2021, the revenue of the courier market experienced a growth rate of 13.8% compared to Q3 2021. It also registered a growth rate of more than 11% compared to Q4 2020. The total revenue in 2021 was more than USD 137.91 billion compared to USD 117.1 billion in 2020.

Rising E-commerce Sector to Boost the International CEP Market in the United States

The US e-commerce market has evolved over the past decade. Retail e-commerce sales in the United States are projected to grow rapidly in the coming years, going from USD 470 billion in 2021 to over USD 560 billion in 2025. Customer satisfaction with online retail in the United States is relatively high. However, online sales still represent only a small share of all retail sales in the United States. Meanwhile, the country had more than 307 million internet users in January 2021, and eight out of every 10 users made online purchases. Online retailers and brand websites are popular e-commerce channels. However, online marketplaces and social media are gaining relevance among online shoppers.

A growing trend within the US e-commerce market is the increasing presence of mobile shopping. Smartphones are mostly used for online shopping in the United States. This large base of mobile buyers has an impact on mobile commerce revenue. The average value spent per order while shopping from a cellphone is also increasing compared to desktop, even though conversion rates still lag in the mobile segment.

Competitive Landscape

The US international CEP market is relatively fragmented. Many new startups based in the United States or other countries entered the market to leverage the rapidly growing CEP industry. Due to the increasing market activity, the industry observes high competition among the players. Major players are United Parcel Service Inc., FedEx Corporation, DHL, Aramex New York Ltd, and TForce Logistics.

Additional Benefits:

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

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Government Regulations and Initiatives
4.4 Overview of the Logistics and Warehousing Market in the United States
4.5 Spotlight on Cross-border Transportation in the United States
4.6 Brief on US Freight Forwarding Market
4.7 Spotlight on US E-Commerce Sector
4.8 Impact of COVID-19 on the CEP Market (Short-term and Long-term Impact on the Market and the Economy)
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6.1 By Business
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 User
6.3.1 Services
6.3.2 Wholesale and Retail Trade
6.3.3 Healthcare
6.3.4 Industrial Manufacturing
6.3.5 Other End Users
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 United Parcel Service Inc.
7.2.2 FedEx Corporation
7.2.3 DHL
7.2.4 Aramex New York Ltd
7.2.5 Tforce Logistics
7.2.6 Express Courier International Inc.
7.2.7 Prestige Delivery Systems LLC
7.2.8 International Bonded Couriers Inc.
7.2.9 Fusion Logistics Inc.
7.2.10 Stat Overnight Delivery LLC*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • United Parcel Service Inc.
  • FedEx Corporation
  • DHL
  • Aramex New York Ltd
  • Tforce Logistics
  • Express Courier International Inc.
  • Prestige Delivery Systems LLC
  • International Bonded Couriers Inc.
  • Fusion Logistics Inc.
  • Stat Overnight Delivery LLC*