According to a recent report published by Allied Market Research, titled, “Express Delivery Market by Application, End Use, and Destination: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global express delivery market was valued at $262.86 billion in 2020, and is projected to reach $484.38 billion by 2030, registering a CAGR of 6.4% from 2021 to 2030.
Asia-Pacific is the highest revenue contributor, followed by Europe, North America, and LAMEA. On the basis of forecast analysis, LAMEA is expected to lead the express delivery market growth during the forecast period, owing to the booming e-commerce industry in emerging economies, infrastructural development, and increased adoption of various express delivery services in the region.
Express delivery is the fastest form of shipping that involves the delivery of various goods and products through different mediums such as air, water, and land. The customer pays an extra shipping cost for this type of delivery, as the shipment will get transported to the receiver anywhere between 24 to 72 hours depending on the distance of the shipment. In express shipping, the price and rates are also higher than other forms of transportation.
Express delivery services significantly operate on the business-to-business (B2B) and business-to-customer (B2C) models. These include personal and business items such as letters, documents, merchandise, consumer goods, and other non-palletized goods. Express delivery services are coupled with a variety of value-added services, such as packaging, labeling, billing, payment collection, and return, to improvise the delivery experience for the user.
The factors such as growth of the e-commerce industry, rise in B2C deliveries and international trade services boost the market growth. However, higher operational costs of express delivery services and lack of logistics infrastructure are anticipated to hinder the market growth. Furthermore, ongoing technological advancements in delivery services and emergence of last-mile deliveries are some of the factors offering the lucrative growth opportunities for the express delivery market.
COVID-19 Impact Analysis:
As a consequence of the coronavirus outbreak, important supply chains in the logistics and transportation industry are hampered, though differently across air, freight, and sea sectors. Thus, express delivery firms, which are involved in the movement, storage, and flow of goods, have been directly affected by the COVID-19 pandemic. Although, the e-commerce, healthcare & FMCG supplies, and daily essentials goods industry is expected to affect the express delivery services industry positively during the COVID-19 outbreak. This is due to significant growth in online retail and B2C e-commerce deliveries. For instance, according to the report from the U.S. Census Bureau 2020, the U.S. retail e-commerce industry reached $211.5 billion, up 31.8% from the first quarter of 2020 and 44.5% year-over-year.
Key Findings Of The Study
- On the basis of application, the B2B segment is anticipated to exhibit a remarkable growth during the forecast period.
- On the basis of end-use, the e-commerce platform segment is the highest contributor to the express delivery market in terms of revenue.
- On the basis of destination, the international segment is anticipated to exhibit a remarkable growth during the forecast period.
Aramex, BEST Inc, DB Schenker, Deutsche Post Ag (DHL GROUP), DSV (DSV Panalpina), FedEx, Geodis, SF Express, United Parcel Service, Inc. (UPS) and YTO Express Group Co. are some of the leading key players operating in the express delivery market.