Courier, Express, and Parcel Services Category Intelligence
Report Coverage
- Market Trends
- Technology & Innovation Trends
- Global Supplier List and Capabilities
- Mergers and Acquisitions
Market Size
Market Size North America
$112.7 Bn
Market Size Europe
$77.2 Bn
Market Size Asia Pacific
$122 Bn
Market Size Middle East - Asia
$7.4 Bn
Courier, Express, and Parcel Services Market Trends
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
Industry Outlook & Drivers
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

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