The CEP market will grow by $165 billion over the next four years

A new report by Technavio has revealed that the global courier, express and parcel (CEP) market is expected to grow by $165 billion between 2024 and 2028, with the growth of free trade agreements (FTAs) in CEP markets in emerging economies driving growth.

According to Global Courier, Express and Parcel Market (CEP) 2024-2028 The report says there is a growing trend towards integrating the last-mile delivery model with e-commerce providers, driven by the growing demand for instant delivery services.

This growth is particularly noticeable in the instant delivery market, where there is a lot of capital investment in startups and venture capital firms. The e-commerce sector is responding by introducing new delivery models, such as hub-and-spoke and last-mile delivery, to meet customer needs. These models include postal mail, crowd shipping, courier delivery, and locker delivery.

Key trends

Despite the popularity of instant delivery, price remains a key decision factor for more than half of online customers. However, for some product categories such as medicines and groceries, customers prefer traditional purchasing methods due to longer delivery times.

According to the report, domestic and international shipping volumes are growing, with a particular focus on e-commerce and B2B transactions. Technologies such as automation and real-time tracking are on the rise, enabling more efficient and transparent operations. Courier companies are also expanding their networks and services, offering new options such as same-day and next-day delivery.

Additionally, the use of manufacturing centers and distribution centers to reduce delivery times and costs is becoming more common. Overall, the CEP market is evolving to meet the changing needs of consumers and businesses.

Industry challenges

The report also reveals the challenges of the CEP market such as increased competition due to the entry of new players into the scene, including startups and merging companies. These new entrants are leveraging technology and attractive freight rates to gain an advantage.

The logistics industry’s potential for technological advancements such as robotics and ICT remains untapped due to challenges related to digitization and employee training. Partnerships between industry players and technology providers, as well as market entry of global companies, are driving the digital transformation of the CEP industry, leading to cost savings, improved efficiency and quality of service. This transformation may pose a threat to the market development during the forecast period.

Another major challenge highlighted in the report is the growing demand for faster deliveries, especially in the e-commerce sector, as well as the need to maintain a large and distributed network of delivery centres and transport fleets to guarantee on-time delivery.

National and international regulations also pose challenges in terms of compliance and documentation requirements. Moreover, the development of digital technologies and automation requires significant investments in IT infrastructure and system modernization. Markets can be segmented based on services offered, such as on-demand, scheduled and same-day delivery, as well as by regions including North America, Europe, Asia Pacific and others. Competition is intense, with major players including UPS, FedEx, DHL and TNT.

For more information, download the sample report.