The global courier, express, and parcel (CEP) market is estimated to be valued at USD 376. 03 billion in 2021, and it is expected to reach USD 675. 72 billion by 2027, witnessing a CAGR of 10. 26%, during the forecast period.
New York, June 14, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "COURIER, EXPRESS, AND PARCEL (CEP) MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)" - https://www.reportlinker.com/p06192778/?utm_source=GNW
The domestic CEP market is mainly driven by the growth of e-commerce. Apart from e-commerce, services sectors, such as the banking, finance, and healthcare sectors, contribute to the growth of the domestic CEP market.
Due to the COVID-19 pandemic, many governments were 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. Trucking capacity was strained because of additional demand for their services, especially food and medical supply transportation, under lockdown, combined with reduced employee availability (due to COVID-19-related restrictions), leading to higher rates.
The global cross-border e-commerce is growing, resulting in an increase in the number of parcels shipped around the globe, boosting the CEP market.
The B2C segment witnessed a beneficial impact in 2020 as a result of the COVID-19 restrictions, which are projected to continue for the next few years.
Technology is transforming the entire supply chain and revolutionizing the parcel industry, and it is quickly becoming a critical facilitator in enhancing efficiency and meeting customer expectations.
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.
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.
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.
Automated package and freight shipping solutions are available to improve efficiency for the entire shipping process of retail vendors.
Retailers will soon be able to leave the paperwork to shipping partners, such as transmitting customs documentation electronically and enjoy a smooth customs clearance process, minimizing the time and cost involved in the associated paperwork.
Moreover, with more regional and trade deals being negotiated between governments and trading blocs, it has become more attractive for SMEs to expand into new markets.
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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