Global Courier, Express, and Parcel (CEP) Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Global Courier, Express, and Parcel (CEP) Market Growth

As per the International Trade Administration (ITA), the global B2B e-commerce market is estimated to be valued at USD 36 trillion by 2026 whereas the global B2C e-commerce market is projected to reach USD 5.5 trillion by 2027. Reportedly, the number of digital buyers in 2024 stood at 2.71 billion, witnessing a y-o-y growth of 2.7%. This is being driven by the growing smartphone and internet penetration and the increasing number of exclusive online shopping events such as Cyber Monday, Amazon Prime Day, and Black Friday, among others. The rise of online shopping is pushing CEP providers to scale their operations to efficiently handle the growing volume of packages. The growing popularity of subscription services for products like groceries, household goods, and personal care items also necessitates the requirement for reliable CEP solutions to effectively manage recurring deliveries. Besides, the increasing cross-border shipping is surging the demand for efficient cross-border logistics services that can handle regulatory compliances and customs clearance.

Global Courier, Express, and Parcel (CEP) Market Trends

Growing Demand for Last-Mile Delivery

Last-mile delivery accounts for 53% of the overall shipping costs, and its demand is expected to soar by 78% by 2030, as per the World Economic Forum. This can be attributed to rapid urbanisation, with 60% of the population living in urban areas by the end of 2030, and an increasing trend of online shopping. A Capgemini report revealed that 55% of customers are willing to switch to a competing brand/retailer if it offers a faster delivery service. Hence, the growing demand for same-day or next-day delivery services is prompting CEP providers to improve their last-mile capabilities. With customers increasingly demanding transparency and real-time tracking regarding their deliveries, companies are prioritising last-mile delivery to meet diverse customer demands. Besides, the rising integration of technologies such as delivery management systems, route optimisation software, and mobile applications aimed at enhancing the efficiency of last-mile delivery is boosting the courier, express, and parcel (CEP) industry revenue.

Global Courier, Express, and Parcel (CEP) Market Dynamics

Rising Emphasis on Sustainability

In Europe, paper and cardboard contributed 34.0 million tonnes of packaging waste material from 2010 to 2021, followed by plastic (16.1 million tonnes) and glass packaging waste (15.6 million tonnes). This is prompting CEP providers to shift towards eco-friendly, recyclable, and biodegradable packaging solutions and implement packaging reduction strategies and recycling programmes to minimise packaging waste. Besides, as per research by Sendcloud in 2022, 54% of customers expect online retailers to offer sustainable delivery solutions. To capitalise on the growing trend of sustainability, CEP providers are adopting zero-emission and carbon-neutral fleets such as electric vehicles and bicycles for last-mile delivery. In November 2023, Amazon launched its last mile fleet programme in India, adopting 100% electric vehicles. Through the programme, the company aims to decarbonise its delivery network and commit to net-zero carbon by 2040. Technological advancements are expected to boost the popularity of innovative delivery solutions such as drones and solar-powered vehicles in courier, express, and parcel (CEP) services, driving the courier, express, and parcel (CEP) market expansion. In June 2024, DTDC Express Ltd partnered with Skye Air Mobility to launch drone-based deliveries as its last-mile deliveries.

Technological Advancements and Innovations

Technological advancements and innovations are expected to revolutionise the courier, express, and parcel (CEP) market trends and dynamics. Key players are leveraging automated dispatch software, rugged devices, delivery tracker apps, and automated dispatch software to streamline operations, improve last-mile delivery, boost customer satisfaction, optimise processes, enhance communication, and reduce costs. Technologies such as artificial intelligence and machine learning are increasingly deployed by CEP providers to analyse weather, traffic patterns, and historical data for optimising delivery routes, predicting demand spikes, improving efficiency, and lowering fuel consumption. In August 2024, Best Buy, along with a partnership with Google Cloud, announced the introduction of an AI-powered virtual assistant to provide live delivery tracking experiences to customers. Furthermore, advanced data analytics and the Internet of things (IoT) are used by CEP companies to analyse delivery times and costs and customer feedback and track package conditions such as humidity and temperature in real-time.

Market News

August 2024

Walmart-owned Flipkart launched Minutes, the 10-minute quick commerce service, to deliver electronics, smartphones, and other items within 10-15 minutes in Bengaluru across areas like Gunjur, HSR Layout, Bellandur, and Kadubeesanahalli at no extra costs. Through this, customers can rapidly buy products across categories such as beauty products, mobile phones, lifestyle, fashion, books, electronics, and home appliances.

February 2024

Ecom Express announced the launch of Same Day Delivery (SDD) services across 30 cities in India. The service features a pick-up cut-off time of up to 12 pm in key cities and metros to offer customers the flexibility to comfortably place orders and enjoy swift deliveries.

Global Courier, Express, and Parcel (CEP) Market Outlook

The growing demand for last-mile delivery is reshaping the courier, express, and parcel (CEP) market landscape, driven by rapid urbanisation and a surge in online shopping. Last-mile delivery accounts for 53% of overall shipping costs, and demand is projected to rise by 78% by 2030. With 55% of customers willing to switch brands for faster delivery, CEP providers are enhancing their capabilities and focusing on transparency and real-time tracking to meet diverse consumer expectations. Simultaneously, there is an increasing emphasis on sustainability in the market. A significant portion of packaging waste in Europe comes from paper, cardboard, and plastics, prompting providers to adopt eco-friendly materials and implement recycling initiatives. Research indicates that 54% of customers expect sustainable delivery options. Companies like Amazon are committing to zero-emission fleets, while others, such as DTDC Express, are exploring drone deliveries. Technological advancements are also revolutionising the market, with players utilising automated dispatch software, AI, and IoT to optimise delivery processes and enhance customer satisfaction. Initiatives like Best Buy's partnership with Google Cloud aim to provide innovative tracking solutions, improving operational efficiency and reducing costs in the rapidly evolving market.

Global Courier, Express, and Parcel (CEP) Industry Segmentation

The EMR’s report titled “Global Courier, Express, and Parcel (CEP) Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service Type

• B2B (Business-to-Business)
• B2C (Business-to- Customer)
• C2C (Customer-to-Customer)

Market Breakup by Destination

• Domestic
• International

Market Breakup by Transportation Type

• Air
• Marine
• Road
• Railway

Market Breakup by End Use

• Services (BFSI- Banking, Financial Services and Insurance)
• Wholesale and Retail Trade (E-Commerce)
• Manufacturing, Construction, and Utilities
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Courier, Express, and Parcel (CEP) Market Share

By Service Type Insights

B2B (business-to-business) involves transactions between businesses, including retailers, manufacturers, and wholesalers. The increasing digital transformation activities, the growing adoption of eco-friendly practices, the implementation of automated sorting systems and robotics in warehouses, and the rising focus on improving customer experience are aiding the courier, express, and parcel (CEP) market development.

B2C (Business-to-Consumer) courier, express, and parcel services refer to the delivery of goods and packages from businesses to individual consumers. With the surging popularity of online shopping for a wide variety of products, the demand for reliable delivery services to fulfil orders becomes paramount. Furthermore, e-commerce platforms can be accessed from multiple countries, which gives them massive reach and allows consumers to access products from around the world. This international aspect of online shopping drives the need for efficient international delivery services.

By Destination Insights

Domestic CEP service providers operate within a single country, handling the transportation, pickup, and delivery of goods. Domestic shipping is cost-effective and various CEP providers are increasingly offering same-day or next-day delivery options, boosting the convenience and satisfaction of customers.

Meanwhile, international CEP services encompass the transportation of goods along international borders, involving customs and logistics processes. The costs of international CEP services are higher than domestic services, influenced by tariffs, customs duties, and longer transportation services. The expansion of major seaports and airports to handle larger volumes of cargo and lead to faster delivery and customs is propelling the courier, express, and parcel (CEP) market growth.

By Transportation Type Insights

Road transportation accounts for a significant share of the courier, express, and parcel (CEP) market for the management of domestic and international shipping as it is the cheapest mode of transportation and is not dependent on logistics hubs such as airports, train stations, and ports. Road transport offers the flexibility to adapt to different delivery times and quantities of packages and is more agile than different transport modes. In May 2024, Kuehne+Nagel launched a new service for the transportation of medical technology devices as a part of its road freight offerings in Europe.

Meanwhile, air transport offers the fastest mode for the transportation of goods and ensures swift delivery, making it ideal for time-critical assignments such as time-sensitive medical supplies and perishable goods. This mode of transportation can deliver goods to nearly any location worldwide, ranging from isolated to remote areas. Besides, marine transport is ideal for the transportation of large volumes of cargo, such as industrial parts, automobile parts, and machinery. The growing cross-border trade is dependent on marine transport.

As per the courier, express, and parcel (CEP) market analysis, railway transport is economically viable, safe, and more economical than other modes of transport like road and air. Rail freight offers a high level of security, multimodal compatibility, and reliability, making it ideal for high-carrying capacity.

By End Use Insights

In the BFSI sector, courier, express, and parcel (CEP) services are leveraged for handling and delivery of physical documents such as legal agreements, account opening forms, and loan applications. Secure delivery methods like tamper-proof packaging and sealed envelopes are increasingly used to handle sensitive information, cash, and high-value options, ensuring security during transit. In January 2020, ICICI Bank announced the launch of a unique self-service delivery facility to enable customers to collect their deliverables such as credit cards, debit cards, returned cheques, and chequebooks.

Wholesalers require specialised CEP services for the transportation of large quantities of goods to retailers and help them maintain optimal stock levels and avoid stockouts. The booming e-commerce sector is offering lucrative courier, express, and parcel (CEP) market opportunities. Retailers heavily rely on CEP services to fulfil online orders and ensure quick and reliable delivery to customers. In August 2024, Amazon India expanded its partnership with Indian Railways to scale up the use of the rail network for rapid movement of customer packages.

Global Courier, Express, and Parcel (CEP) Market Regional Insights

North America Courier, Express, and Parcel (CEP) Market Growth

The robust growth of the e-commerce sector in the region is driving the courier, express, and parcel (CEP) demand growth. In Q2 2024, retail e-commerce sales in the United States totalled USD 282.3 billion, witnessing a 5.3% surge from the first quarter. Similarly, in 2022, 75% of the Canadian population of more than 27 million were e-commerce users. This is driving the demand for reliable CEP services. Key players are also expanding their offerings of global and cross-border shipping solutions amidst the evolving shipping and logistics sector. For instance, in July 2024, Purolator announced the expansion of its global shipping solution into Canada from Europe, China, India, Mexico, and the United Kingdom, offering flexible transport options, streamlined delivery models, and simplified customer services.

Europe Courier, Express, and Parcel (CEP) Market Dynamics

As per a report by York Aviation in 2024, 95% of UK businesses stated that express parcel services are essential for business operations whereas 93% of businesses consider express delivery as an essential measure to ensure their competitiveness. In August 2024, Ocado, a UK-based online supermarket, launched same-day deliveries for its customers. Besides, the expansion of cross-border shipping services within Europe is favouring the courier, express, and parcel (CEP) market expansion. In September 2024, XPO announced the launch of Connect Europe, a solution that simplifies the management of shipments to 25 European countries while enhancing the accessibility of international freight shipments.

Asia Pacific Courier, Express, and Parcel (CEP) Market Outlook

The courier, express, and parcel (CEP) demand forecast can be attributed to the growing demand for express delivery in the Asia Pacific. Countries like China boast robust economic growth and a highly efficient logistics network. According to China’s State Post Bureau (SPB), an average of 71.43 packages per person in China (5,144 packages delivered every second) were delivered, as of August 2024. The organisation also revealed that the country’s monthly express delivery development index reached 370.9 in May 2023, witnessing a y-o-y increase of 37.8%. Improvements in rural logistics services, the expansion of international delivery systems, and advancements in technology are further expected to boost the China courier, express, and parcel (CEP) market revenue in the forecast period.

The introduction of favourable government initiatives aimed at boosting exports and ease of doing business is driving the market expansion. In September 2024, the Indian government extended incentives for exports through the courier medium to promote shipments through e-commerce. Besides, the surging number of delivery service start-ups in India such as Delhivery, Ecom Express, Bigship, and Dunzo, among others, is expected to aid the courier, express, and parcel (CEP) market development in the coming years.

Competitive Landscape

Key courier, express, and parcel (CEP) market players are offering real-time tracking services to improve transparency and enable customers to monitor their deliveries. They are also expanding their capabilities to provide same-day and next-day delivery services amid evolving customer experiences.

Key Industry Players

Deutsche Post DHL Group

Deutsche Post DHL Group, a leader in logistics and mail services, is headquartered in Bonn, Germany. It operates in over 220 countries and territories and employs over 600,000 people across the globe. The company is committed to achieving zero emissions in logistics by 2050.

FedEx Corporation

FedEx Corporation, established in 1971, is a global leader in transportation and logistics services, headquartered in Tennessee, United States. Some of its divisions include FedEx Express, FedEx Freight, FedEx Ground, and FedEx Logistics. Operating in over 220 countries and territories, the company heavily invests in technology to enhance customer experience, operating capabilities, and tracking capabilities.

United Parcel Service Inc.

United Parcel Service Inc., founded in 1907 and headquartered in Washington, United States, is a leading package delivery and logistics service. The company heavily invests in advanced technologies such as drone services, automated sorting systems, route optimisation software, and real-time tracking tools to enhance its efficiency and improve customer services.

Other key players in the market include SF Express (Group) Co. Ltd., DSV AS, DB Schenker, Nippon Express Holdings Inc., Yamato Holdings Co., Ltd., SG Holdings Co., Ltd., PostNL NV, and Qantas Courier Ltd., among others.

Recent Developments

September 2024

Cainiao Group announced the expansion of its local express delivery services across 10 countries and regions, in addition to its strong presence in China. Through this, the company aims to meet the growing demand for reliable and cost-effective logistics services amid the booming e-commerce sector.

March 2024

Walmart introduced its latest delivery offering, Express On-Demand Early Morning Delivery. Through this, customers can easily get baby essentials, home appliances, work attire, and outdoor supplies within 30 minutes, starting from 6 am.