29 August, 2019
RALEIGH, North Carolina, August 29, 2019 - The global market size for Courier, Express, and Parcel (CEP) is currently growing at a CAGR of 6.7 percent annually, according to Beroe Inc., a procurement intelligence firm. The e-commerce industry is the main driving force for the CEP industry. The revenue performance of the e-commerce industry is currently estimated to grow at a CAGR of 21.7 percent to reach a value of $2.8 trillion.
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 the e-commerce business and there are numerous service providers with a highly fragmented market share.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
According to Porter’s Five Forces Analysis, there are no or few substitutes for CEP in developed regions. However, if the digital transmission is made a standard, it may serve as a substitute for physically shipping documents. In emerging regions, evolving digitization in metros will serve as a threat for CEP. BFSI and government organizations are still looking for CEP service for confidential document transactions.
Global suppliers are enhancing their presence by having tie-ups and M&A with regional players to use their expertise (on a regional level). For instance, FedEx acquired TNT Express in a $4.8 billion deal, assisting to expand its presence and market size in Europe. Moreover, Tier-2 and Tier-3 suppliers are entering the CEP market to bridge the demand-supply gap for e-commerce companies by handling the last-mile delivery services.
The research methodology adopted for the report included:
Pharmaceutical companies engage with CEP service providers based on the nature of the products that are shipped. However, the buyers are mainly dependent on 3PL providers such as DHL, UPS, and Aramex for last-mile deliveries in regions such as APAC and MEA. Large pharmaceutical companies prefer 2 - 3 years as the best contract length for courier service to track the cost components impacted by the inflation demand.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com