Growth of the e-commerce industry, increasing urbanization, growing consumer expenditure, and development of cross-border trade channels drive the courier, express, and parcel services category’s growth

Courier, Express, and Parcel Services Category - Procurement Intelligence

The courier, express, and parcel services category is expected to grow at a CAGR of 4.2% from 2023 to 2030. The growth of e-commerce is one of the main drivers of the growth of the CEP services market. E-commerce is growing rapidly, and this is leading to an increase in the demand for CEP services. Businesses that sell goods online need to be able to deliver their goods quickly and efficiently to their customers. CEP providers can help businesses do this by providing a variety of delivery services, such as next-day delivery and express delivery.

The North America courier, express, and parcel market is expected to grow rapidly due to factors like economic growth, e-commerce sales, and demand for faster, more reliable delivery services. Technological advancements, such as self-driving trucks, and government initiatives like logistics hub construction are expected to drive market growth. Globalization has increased trade-related activities, necessitating reliable and efficient delivery services.

Companies are continuously focusing on collaborating with technology providers while enhancing their capacities by setting up new hubs in various regions to stay competitive in the market. For instance,

• In January 2022, the Mexican government announced that it would be investing $90 million in the construction of a new logistics hub in Yucatán. The hub will be located in the municipality of Umán. The hub will be equipped with state-of-the-art technology and infrastructure, including a sorting facility, a warehouse, and a fleet of vehicles. It will be able to handle a variety of cargo, including goods from the manufacturing, agriculture, and tourism industries.

• In April 2021, DHL Global Forwarding (DHL GF), a subsidiary of Deutsche Post DHL Group, expanded its presence in Africa by signing a joint venture agreement with Unicargas, a leading logistics company in Angola. The agreement will allow DHL GF to offer a wider range of logistics services in Angola and other countries in Central and Southern Africa.

• In September 2021, in a test project with self-driving truck startup Aurora and heavy-duty vehicle manufacturer Paccar, FedEx Corp. began transporting cargo between Dallas and Houston using self-driving trucks. The self-driving trucks are outfitted with Level 4 autonomous driving technology from Aurora, which enables them to function under some circumstances without human supervision. A safety driver will also be in the truck to handle any emergency.

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Courier, Express, and Parcel Services Sourcing Intelligence Highlights

• The global courier, express, and parcel services category is fragmented and highly competitive, with the presence of several players in the market. To grow their market share, firms in the industry are adopting crucial strategies like opening new distribution centers, mergers, and smart warehouses.

• The major cost components in this category are fuel costs, labor costs, vehicle costs, insurance costs, and administrative costs.

• China's dominance as a sourcing destination for this category is due to its large and growing manufacturing sector, strategic location in the center of Asia, infrastructure development, and government policies.

Courier, Express, and Parcel Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, PPT, and online dashboard versions

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the courier, express, and parcel services category:

• Fuel cost

• Labor cost

• Vehicle cost

• Insurance cost

• Administrative cost

• A1 Express Delivery Service Inc

• Aramex International LLC

• Deutsche Post DHL Group

• DTDC Express Ltd

• FedEx Corp.

• SF Express (Group) Co. Ltd

• Poste Italiane SpA

• Qantas Courier Limited

• United Parcel Service Inc.

• SG Holdings Co. Ltd.

List of Key Suppliers in the Courier, Express, and Parcel Services Category

• A1 Express Delivery Service Inc

• Aramex International LLC

• Deutsche Post DHL Group

• DTDC Express Ltd

• FedEx Corp.

• SF Express (Group) Co. Ltd

• Poste Italiane SpA

• Qantas Courier Limited

• United Parcel Service Inc.

• SG Holdings Co. Ltd.