The courier, express, and parcel (CEP) market is expected to exhibit a CAGR of over 6% during the forecast period. Asia-Pacific is the largest regional parcel market by value, accounting for around 40% of the global market.
New York, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "COURIER, EXPRESS, AND PARCEL (CEP) MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 - 2026)" - https://www.reportlinker.com/p06192778/?utm_source=GNW
North America and Europe together represent a little over 50%. Owing to the development of e-commerce (online retail is the main driver of growth in parcel delivery volumes), the market is experiencing very strong growth, especially in industrialized countries and in Eastern Europe.
A huge transformation is taking place in the last-mile delivery, with companies looking at alternatives, such as delivery lockers, pickup points, crowdsourced deliveries, drone deliveries, and autonomous vehicles. The evolution of technology is reshaping the entire supply chain and reinventing the parcel industry. Technology is becoming a crucial enabler in increasing efficiency and reaching consumer expectations.
The courier and delivery business is opening up new avenues for the e-commerce markets by simplifying the way how products are delivered. Indeed, it is a lucrative business these days when it comes to handling the logistics of eCommerce startups.
Shippers are feeling increasingly squeezed after the integrators drove up charges for their international traffic, citing exceptional circumstances associated with operating in the COVID-19 pandemic. In the near future, the market is expected to experience a further cost increase.
Key Market Trends
Cross-border E-commerce is Stimulating the Growth of the CEP Market
The growing e-commerce sector, along with the growing cross-border trade, is one of the key factors driving the growth of the CEP market. The development of cross-border trade channels, especially in emerging nations, has enhanced the adoption of international trade and B2C shipments. Furthermore, the increasing consumer preference for shopping online through various e-commerce portals is also providing a boost to the market growth. E-commerce stores partner with courier service providers to deliver their products across domestic and international locations.
Technological advancements, including the utilization of digital technologies with crowd-sourced delivery models, are also creating a positive outlook for the market. These technologies aid the service providers in increasing their overall operational efficiency and meeting the requirements of the customers effectively. Other factors, including rapid urbanization, rising consumer expenditure capacities, and significant growth in the manufacturing sector, are projected to drive the market further toward growth during the forecast period.
With half of the Asia-Pacific online shoppers making purchases cross-border, vendors now are focusing on building extensive knowledge of procedures, such as duty collection, customs clearance, and other minefields.
Due to the COVID-19 pandemic, governments are forcing shops to close inter-border trade if they are considered non-critical (clothing stores, flower shops, etc.). These are also locations for Pick-Up and Drop-Off (PUDO) points. Therefore, the amount of PUDO points can be significantly lower in different countries depending on the current measures. However, the increase in the online dependence of the customers resulting from preventive measures like lockdown and social distancing has significantly affected the market.
Asia-Pacific is Driving the Growth in the Market
Asia-Pacific is the largest regional market by value, accounting for around 41% of the global market. North America and Europe together represent a little over 50% of the market. The demand for CEP services in the Asia-Pacific region is expected to witness high growth during the forecast period, owing to the high population growth, rising disposable incomes and standards of living, and growth in international trade.
As the governments are focusing on developing the manufacturing sectors in the countries and the global companies are setting up their manufacturing bases in the region, the countries’ international trade is rising and is expected to rise further in the future. The retail sector in the region is also growing rapidly.
The global courier service industry is projected to be driven by the revival of the manufacturing sector and expected economic expansion. Asian countries, such as China, Taiwan, Korea, and Thailand, are witnessing increased penetration of electronic devices. This, coupled with the rise in availability of multiple online payment methods, the changing lifestyles due to urbanization, and the growth in electronic goods, automobiles, and food and beverage shipments, will benefit the courier, express, and parcel industry.
The Southeast Asian region is one of the emerging hotspots globally, attracting investments from across the world. E-commerce in the region is also expected to bolster in the next few years. The rise in contract manufacturing of FMCGs in emerging markets may significantly influence courier, express, and parcel service growth over the next few years.
With a large number of national postal operators, global integrators, and other smaller, privately-owned CEP companies, the market is fragmented with intense competition. As the demand for CEP services is growing rapidly in developing countries, the companies are becoming more competitive to capture the huge opportunity. The international players are making strategic investments to establish a regional logistics network, such as opening new distribution centers, smart warehouses, etc.
The local companies are facing high competition with multinational companies that have a comparatively well-developed infrastructure. As a number of start-ups are entering the market to leverage digital technologies, there is a trend of large companies acquiring these start-ups to gain a significant footprint in the market.
As a number of start-ups are entering the market to leverage digital technologies, there is a trend of large companies acquiring these start-ups to gain a significant footprint in the market. DHL, FedEx, and UPS are continuing to expand their business across the world to capture the market in the untapped areas.
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