Courier, Express, and Parcel (CEP) Market Expected to Reach $749 Billion by 2031

According to a new report published by Allied Market Research, titled, “Courier, Express, and Parcel (CEP) Market," The courier, express, and parcel (cep) market was valued at $407.7 billion in 2021, and is estimated to reach $749 billion by 2031, growing at a CAGR of 6.3% from 2022 to 2031.

The concept of courier, express, and parcel is typically attributed to the service that offers logistic services in specific areas. The offer of the service providers differs in the speed, weight, and volume of the packages and the way of carrying out the shipment of the goods. Moreover, the operators provide variety of value-added services to improvise the delivery experience for the user. The express deliveries are mainly time-bounded through which different high value consignments are delivered in a few days or at a pre agreed date and time.

Major economies such as India, China, the U.S., and Germany, among others  observed an increase in demand for courier, express, and parcel services as the COVID-19 pandemic changed the consumer spending habits. Moreover, increase in investments and adoption of IT-enabled technology within courier, express, and parcel industry influences adoption of this services. For instance, DHL Express forecasts continuous growth in express transport in France of around 8% p/a for the period 2021 to 2025. In addition, in September 2020, DHL Express announced investments of $200 million (€170 million) in its new hub at Paris Charles de Gaulle Airport in October 2021.

In addition, the courier, express, and parcel market has witnessed significant growth in recent years, owing to increase in international trade across regions and rise in internet-based services and growing number of smartphones among users. For instance, in 2019, Nepal and China signed the Protocol on Implementing Agreement on Transit and Transport along with 6 other agreements to enable Nepal to access Chinese sea and land ports. China has agreed to let Nepal use Tianjin, Shenzhen, Lianyungang, and Zhanjiang open seaports; and Lanzhou, Lhasa, and Xigatse dry ports for trading with other countries. Furthermore, the companies operating in the courier, express, and parcel market have adopted partnerships, investments, and product launches to increase their market share and expand their geographical presence. For instance, in February 2020, United Parcel Service, Inc. (UPS) launched express service known as UPS Express Plus in the high business density areas of Moscow and St. Petersburg for all Russian origin cities from Kaliningrad to Vladivostok to offer a wider range of options to meet e-commerce customers.

Moreover, the continuous enhancement of the e-commerce industry, increase in trade-related agreements, and growth in demand for the fast delivery of packages drives the courier, express, and parcel market towards a positive growth in the current scenario. However, the factors such as improper infrastructure & increased logistics costs and uncontrolled nature of logistics services are the factors that hinders the growth of the market across the globe. In addition, continuous developments in delivery services and emergence of last-mile deliveries coupled with logistics automation creates numerous opportunities for the key players to develop effective strategies which supplements the growth of the market during the forecast period.

COVID-19 Impact Analysis:

Courier, express, and parcel firms, involved in the movement, shipping, storage, and flow of goods, have been directly impacted by the COVID-19 pandemic. Therefore, the supply chain disturbance formed by COVID-19 impacted the competitiveness, economic growth, and jobs lost in the courier, express, and parcel industry. For instance, according to an International Finance Corporation (IFC) report, total container volumes handled at Chinese ports dropped by 10.1% in the first few months of 2020.

According to Abhay Singh, Lead Analyst, Automotive & Transportation at Allied Market Research, the Courier, Express, and Parcel market is estimated to grow at a CAGR of 6.3% from 2022 to 2031, owing to the growing demand for faster delivery of courier & parcel across the globe. In addition, the key players operating in the industry have adopted faster means of transportation which creates a booster for the growth of the market across the globe. By business, the B2B segment dominated the global courier, express, and parcel market in 2021, in terms of revenue. By destination, the domestic segment dominated the global courier, express, and parcel market in 2021, in terms of revenue. By end-user, the services segment dominated the global courier, express, and parcel market in 2021, in terms of revenue. By mode of transportation, the roadways segment dominated the global courier, express, and parcel market in 2021, in terms of revenue. Presently, Asia-Pacific is the highest revenue contributor and expected to lead the market during the forecast period, followed by North America.”

KEY FINDINGS OF THE STUDY

• By business, the B2C segment is projected to dominate the global courier, express, and parcel market in terms of growth rate.
• By destination, the international segment is projected to dominate the global courier, express, and parcel market in terms of growth rate.
• By end-user, the wholesale & retail segment is projected to dominate the global courier, express, and parcel market in terms of growth rate.
• By destination, the airways segment is projected to dominate the global courier, express, and parcel market in terms of growth rate.

The key players operating in the courier, express, and parcel market are Aramex, Deutsche Post AG, FedEx, One World Express Inc. Ltd, Poste Italiane, PostNL Holding B.V., Qantas Airways Limited, Royal Mail Group Limited, SF Express, Singapore Post Limited, United Parcel Service of America, Inc., and Yamato Transport Co., Ltd.