• Courier, Express, and Parcel Services Market Intelligence | Analysis, Trends, Forecast, Outlook

Courier, Express, and Parcel Services Market Description

The global CEP market has grown about 6.7 percent year on year to reach $336 billion presently. The e-commerce industry is the main driving force for this growth. The CEP market is highly concentrated in North America and Western Europe, with fierce competition among the top global suppliers like DHL, UPS, and FedEx. In APAC and the Middle East, the CEP market is emerging due to the e-commerce business and there are numerous service providers.

The report covers a regional market analysis covering the CEP market size and the regions with high and low market concentration. It includes regional market overview in countries in North America, Europe, MEA and APAC regions. The report elaborates on Porter’s Five Force Analysis of the developed regions of North America, Western Europe, and MENA, including countries like China, India, Australia, and Brazil. The report further provides a comprehensive supply analysis sharing the supply landscape and supply trends & insights. A supplier profile analysis and SWOT analysis of key CEP suppliers globally has also been discussed. Suppliers like FedEx, DHL Express, UPS, TNT Express etc have been included in this analysis.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Market Trends
Technology & Innovation Trends
Global Supplier List and Capabilities
Mergers and Acquisitions

Courier, Express, and Parcel Services Market Trend, Analysis & Forecast

Category Intelligence on Courier, Express, and Parcel Services covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Global CEP Industry Outlook

The global CEP industry was valued at approx. $261 billion in 2017 and the market is forecasted to grow at about 6 percent Y-o-Y to reach $277 billion by 2018
The e-commerce industry is the main driving force for the forecasted period. As of 2017, revenue of the e-commerce sector stood at $2.3 trillion and is projected to grow at a CAGR of 18 percent until 2020

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Drivers and Constraints for the CEP Industry

Drivers

E-commerce

The global e-commerce market was valued at $2.3trillion in 2017. On-time delivery plays a crucial role in e-commerce, and e-retailers depend on CEP service providers to fulfill these demands

Global Import and Export Activity

Continued shifts in the global economy toward more services, increased production of high-value and lightweight goods and expanded trade among the member countries result in increased imports and exports

GDP

The CEP market is directly proportionate to GDP of a country. The GDP is an indicator of economic parameters such as manufacturing, trade and consumer spending, impacting courier industry directly

Constraints

Digitization

Technology and digitization have been reducing the volume of physical mail

Fuel Rate

Fuel price is one of the major costs incurred by service providers
Fluctuating fuel prices impact service providers; if fuel prices go up, profit margins decreas

Service Provider Maturity

The CEP market is highly mature in North America and Western Europe, with fierce competition among the top global suppliers (DHL, UPS and FedEx)
In APAC and the Middle East, the CEP market is emerging due to e-commerce business and there are numerous service providers. The CEP market is highly fragmented in these regions

Supply Market Outlook

Global/Regional Outlook

Increase in M&A and tie-ups

Global suppliers are enhancing their presence by having tie-ups and M&A with regional players to use their expertise (on a regional level)
FedEx acquired TNT Express in a $4.8 billion deal, assisting to expand its presence and market size in Europe
UPS cooperates with First Flight couriers in India to increase its presence in the Indian CEP market

Value-added services

Global suppliers have shaped their service offerings based on shippers’ requirements. Services such as same-day delivery, door-to-door service, NFO* options, time-critical services and customized supply chain solutions

Tier-2/Local Supplier

Global suppliers, collaborating with regional suppliers to cater to the domestic needs of CEP in the region(e.g. DHL and Blue Dart collaborate to cater to the international operations of BlueDart)
Tier-2 and tier-3 suppliers entering the CEP market to bridge the demand-supply gap for e-commerce companies by handling last-mile delivery
Many small and regional players have cost-effective supply chains, due to the advantage of using a 3PL for last-mile delivery rather than having end to end services

Engagement trends

Single sourcing:Shippers with high volumes of domestic and limited international shipments adopt a single-sourcing strategy in order to secure maximum discounts on rates and incentives on volume. In order to mitigate the risk of dependency, shippers can engage with another supplier as a secondary carrier
Multiple sourcing: Shippers with significant volumes of international express transactions adopt a multiple sourcing strategy in order to secure the regional expertise of respective suppliers. In addition, the risk of supply disruption is also low, with decreased dependency on a primary carrier. However, the scope of securing discounts on high spends is reduced

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