The Express Delivery Market is expected to register a CAGR of greater than 6% during the forecast period.
Growth in the global express markets has been driven by strong domestic e-commerce sales. Domestic markets have been growing more quickly than international markets in most regions, but the gap is narrowing significantly in some regions. The gap in the domestic and international market is smaller in North America and Europe. In Europe, this is primarily due to the interconnectedness of the market and the lower barriers to international trade.
Domestic markets have proved capable of seizing on the opportunities that e-commerce brings. A number of issues remain for the international market: higher costs and delivery times are associated with international parcels. Cross-border e-commerce boosts the international express market, particularly in regions with high cross-border e-commerce volumes, such as Asia Pacific and Europe.
Major players operating in the express delivery services have changed their business models with deeper customer relationship engagement to provide a varied range of value-added services in domestic, cross-border, and inter-regional trades. These include sorting and grading of products, packaging, picking, order processing through storage, management information systems (MIS), analytics services in mobile tracking applications, logistics supply chain, online tracking of parcels, e-mail alerts and SMS, and hub-to-spoke collection centers.
Asia-Pacific and North America lead the regional totals for both retail and retail eCommerce sales. Asia-Pacific accounts for 42.3%, North America accounts for 22.9%, and Western Europe makes up 16.2% of retail sales worldwide. For e-commerce, China's dominance means that 62.6% of all digital sales are in Asia-Pacific.
E-commerce continues to radically reshape how both B2C (business-to-consumer) and B2B (business-to-business) companies serve their customers. UPS (an American multinational package delivery and supply chain management company) estimated that global e-commerce sales would hit more than USD 6.7 trillion in 2025.
FedEx (an American multinational delivery services company) constantly tests and develops solutions to meet shipper needs as online platforms mature and customer demands such as how and when they want their goods delivered change.
The Asia-Pacific continues to cement its position as one of the world's most important regions for express parcels. SingPost, Japan Post, and Australia Post are all investing heavily to expand their operations in the region. In addition, a raft of Chinese operators is seeking stock market listings in order to raise capital to grow.
Asia-Pacific is anticipated to be one of the largest express delivery markets due to the rise in e-commerce across China, India, etc. It is also expected to be the fastest-growing market during the forecast period.
As the demand for express delivery services is growing rapidly in developing countries, the companies are becoming more competitive to capture the huge opportunity. The international players are making strategic investments to establish a regional logistics network, such as the opening of new distribution centers and smart warehouses. The local companies are facing high competition with multinational companies that have a comparatively well-developed infrastructure.
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