The Courier, Express, and Parcel or CEP services consist of delivering documents and parcels to a wide range of customers including but not limited to retail customers, business customers, government agencies etc. CEP vendors deliver items that are non-palletized and are usually 110 pounds or less in weight.
Insights on Courier, Express and Shipment Terminology
While parcel shipments mostly travel by road, the express generally covers some portion of its journey via air. Thus, express delivery is bound by time, whereas, the shipment can be delivered in a span of 1-2 days. The term courier refers to a company that delivers packages, mails or messages over short distances. Conventionally, each CEP term was used seperately, but nowadays all of them are used together to represent a common goal that is speedy and reliable delivery of items.
Global CEP Market at a Glance
The global express, courier and parcel market is witnessing a tremendous growth fuelled by rising demand for ordering consumer goods through e-commerce platforms. The penetration of the internet, the advent of e-commerce, and an upward trend in the disposable income of people have contributed heavily to the growth of the CEP market. The global key CEP service providers are accessing developing markets of India and China to boost their business revenues.
With an intent to provide excellent customer experience and satisfaction, the express, courier, parcel services are gaining more and more popularity. A recent express courier and parcel market study shows that industry is presently earning a revenue of $277 billion. The global Courier, Express, and Parcel (CEP) Market is quite fragmented and is segmented on the basis of end-user industry, service, and region.
Top 5 Global CEP Market Facts and Statistics
Let us find out some interesting facts and statistics for the CEP industry that helped the industry experts understand the potential of courier, express and parcel industry.
- Observing the exponential growth rate in the express, courier and parcel market it has been projected that that by 2025, the global CEP market will generate a revenue of approximately €420 billion.
- A region-wise breakdown of revenue of the global CEP market forecasts that by 2025, the CEP market in North America is expected to generate a revenue of nearly €105 billion.
- A region-wise CAGR study of the courier, express, and parcel (CEP) market shows that the North American CEP market is anticipated to grow at a compound annual growth rate of 5 percent by 2025.
- From the year 2015 to 2017, a sector-wise breakdown of the number of parcels distributed globally showed that domestic parcel traffic increased from 8.96 billion parcels to around 9.66 billion units.
- In a product-wise breakdown of global CEP market, it was observed that the express segment accounted for 46 percent of the U.S. parcel services market in 2017. In the same report, it was also found that ground transportation accounted for the largest share of the parcel market in the U.S.
Global CEP Market Trends
The present market scenario and the growth potential of the global courier, express, and parcel (CEP) market is primarily determined by the various trends prevalent in the CEP industry across the world. Let us delve deeper into the region-wise trends to understand the CEP market better.
The North American CEP market is driven majorly by the e-commerce sector. Due to high growth curve in the IT segment and a high internet penetration rate, an average U.S. customers expectation has risen multifold, expecting a quicker delivery. This, in turn, has expedited the requirement for on-demand courier companies, like Postmates and UberRUSH.
Europe has also seen a rising demand for e-commerce that has become the key driving factor for the CEP market. Cross-border e-commerce is also one of the trending factors that have contributed to a sharp rise in demand in the courier market. The demand for express delivery is also on the rise in the European markets, especially in the medical and healthcare sectors. To fulfill this demand, many crowd-sourced delivery companies, like Nimber are emerging across Europe.
The demand for courier express services in the APAC region is fuelled by e-commerce. It has been observed that a majority of online shoppers in the Asia Pacific region has made a cross-border purchase with countries including Singapore, Australia, and Hong Kong. Presently, the APAC CEP market observes tough competition among domestic suppliers after the State Post Bureau approved the entry of new entrants a few years ago.
The global CEP market is competing with some of the fast-growing segments of the logistics and transportation industry. It is responding and being shaped according to the market trends and consumer behavior. With increasing international trade and rise in e-commerce, this market is expected to continue to grow exponentially in the years to come.