Courier, Express, and Parcel Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Courier, Express, and Parcel Services market reached a value of about USD 384 billion in 2021. The industry is projected to grow at a CAGR of around 5% in the forecast period of 2022-2027 to reach a value of about USD 515 billion by 2027.

The global Courier, Express, and Parcel Services industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The growing demand for transporting consignments is driving the industry's growth. The Asia Pacific is the highest category spender by region, driving the need for the Courier, Express, and Parcel Services industry.

Industry Definition and Segmentation

Courier, Express, and Parcel Services refer to postal and logistical firms that specialize in transporting consignments of minimal weight and volume, such as letters, tiny parcels, papers, or small things. The service providers offer to differ in terms of package speed, weight, volume, and the way the items are shipped. The Courier, Express, and Parcel Services industry report comprises segments by region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

Asia Pacific holds the largest share in the market due to significant population growth, growing disposable incomes and living standards, and expansion in international commerce, demand for CEP services. Increasing foreign trade as governments focus on improving their manufacturing sectors and multinational firms establish manufacturing bases in the area will likely boost growth.

The rising e-commerce sector is driving the industry as the growing demand for purchasing goods online through various e-commerce platforms is gaining traction among consumers. To distribute their items across national and international borders, e-commerce businesses work with courier service providers. In addition, the growing cross-border trade is furthering the industry's expansion. The growth of cross-border trade channels, particularly in emerging economies, has boosted international commerce and B2C shipping. These services are often offered on a business-to-business (B2B), business-to-customer (B2C), or customer-to-customer (C2C) basis and are often integrated with other value-added services to improve the user's delivery experience. Also, other factors such as rapid urbanisation, expanding consumer expenditure capabilities, and the considerable increase in the industrial sector are expected to impact the market positively.

However, the increasing digitalisation has reduced the flow of physical mail, likely to hamper the industry's expansion.

Best Procurement Practices

The global Courier, Express, and Parcel Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major international Courier, Express, and Parcel Services regions, such as engagement models and contract terms and buyer and supplier negotiation levers, among others.

Category Management Studies

A courier service specialises in one-on-one pickup and delivery. These are often lighter-weight items that are travelled escorted and delivered fast. Most courier shipments are only delivered locally or regionally across small distances. Express shipping services offer a speedy and assured travel time; the delivery is conducted through suitable handling facilities. The parcel service-providing companies have extremely standardised and automated deliverers. As a result, these system service providers strictly limit the weight and number of shipments. The shipment's travel time is more significant and is not guaranteed.

Integration of Technology in the Sector, Further Boosting the Courier, Express, and Parcel Services Market

The market is witnessing growth due to Technological improvements, such as using digital technology with crowd-sourced delivery models. Retail sellers may use automated package and freight shipping systems to increase the efficiency of their whole shipping operation. Furthermore, Consumers are getting real-time monitoring tools from courier companies, which reduces the chance of missing packages. Several logistics firms have begun incorporating artificial intelligence (AI) technologies into their workflows, such as route planning, intelligent transportation, and demand planning. Retailers will soon be able to delegate paperwork to shipping partners, such as delivering customs papers online, and enjoy a quick and painless customs clearing procedure, saving time and money. These technologies assist service providers in improving their overall operating efficiency and efficiently addressing consumer expectations.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Courier, Express, and Parcel Services Industry Report

• FedEx Corporation
• Deutsche Post AG
• United Parcel Service of America, Inc.
• The United States Postal Service
• Royal Mail Group Plc

Market Landscape

The industry is fragmented, with many national postal operators, worldwide integrators, and various more minor, privately-owned CEP providers. Companies are aggressive in seizing the ample opportunity as demand for CEP services grows fast in developing nations. To create a regional logistics network, international players make strategic investments, such as constructing new distribution facilities and smart warehouses. Multinational corporations with a well-developed infrastructure compete fiercely with local businesses. Large firms are purchasing these start-ups to obtain a significant foothold in the industry, while many start-ups join the market to harness digital technology.

Key Initiatives by Companies

• DHL Global Forwarding (DHL GF) strengthened its foothold in Africa by partnering with Unicargas, an Angolan freight carrier, in April 2021. The five-year agreement will make it easier for DHL GF to transport Angolan commodities to Europe and the United States, which account for 20% of the country's exports.
• FedEx will launch an International Connect Plus service in March 2021, which will connect Europe, the United States, and Asia for e-commerce clients. Improved customs clearing skills will be one of the most critical aspects of the service.