India Courier, Express, And Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Courier, Express, and Parcel (CEP) in India is estimated to grow at a CAGR of more than 10.5% driven by the growth in the e-commerce segment, higher internet penetration into the masses, and the latest technological innovations in the sector.

India has been turning into a significant market for both domestic and international shipments with significant companies entering and expanding networks in the market. Innovation has become a key influencing factor for organizations to be seriously lined up with market trends and dynamics. India experienced high development in parcel volumes in 2018, up 21% year-over-year to 2.5 billion. worldwide parcel volumes reached 87 billion in 2018, up from 74 billion in 2017.

The logistics organizations, particularly in the CEP business must be thoughtful in regard to the technological investments which otherwise can make the business disturbed. The presentation of Goods and Service Tax (GST) in the country has likewise emphatically influenced the online/e-commerce logistics market since all the indirect taxes have been compiled into one. It permits the logistics companies to smoothen the movement of products inside the nation.

Keeping up the consistency of quality for service and overseeing cost simultaneously is a test for all the market players. Given the constant development in online business and the way that building one's own system is over the top expensive, more associations are relied upon to occur in the market on the rear of weight on cost decrease. The developing significance and request in the course of the last-mile conveyance are compelling the market goliaths to drive their business all the more creatively.

Key Market Trends

Rise in E-Commerce Sector to Boost the CEP Market in India

E-commerce is one of the main factors driving the market growth. Rapid development in its online/ e-commerce market, more significant levels of extra cash, and increased internet penetration have made India among the best three quickest developing markets for parcel shipment.

E-commerce based business has changed the manner in which business is done in India. The Indian internet business advertise is relied upon to develop to USD 200 billion by 2026 from USD 38.5 billion starting in 2017. Increasing growth in the e-commerce industry is attributed to several reasons, the introduction of the government’s Digital India initiative is of the main such factor.

The number of internet users had increased over the years in rural as well as urban regions. It appeared to be likely from past patterns that the dispatch of the Jio fixed-line broadband assistance, called Gigafiber may help in the already expanding e-commerce and internet penetration in the nation. As of Jan 2020, the countries' digital population is around 688 million which will undoubtedly observe an ascent. Inferable from the high internet penetration over the most recent 2 years, which is just expected to ascend during the conjecture time frame, the CEP market in India is expected to observe consistent development during the gauge time frame.

Domestic Segment Holds Largest Share in the Market

The total CEP market in India is valued at USD 4.29 billion by the start of 2019 with the domestic market holding up the major share. The revenue generated by the domestic CEP market has amounted to USD 3.14 billion by the start of the year 2019, which is approximately 73% of the total revenue generated by the Indian CEP market.

The domestic CEP market is likely to witness the growth and hold the major share during the forecast period driven by the B2C e-commerce boom. Digitizing the economy and providing cheap internet to the people are a few of many reasons that boosted the growth of digital sales in India. In 2018, e-commerce sales across India were estimated to increase by 25 percent.

As B2C e-commerce demand continues to grow, the role of last-mile logistics has taken the spotlight with several investments and start-ups seen in India. Increasing demand for speed of delivery and expanding internet penetration leading to a greater number of regions active online has led to a significant rise in the last mile market in recent years.

Competitive Landscape

The report covers the major players operating in the India CEP Industry. The market is highly competitive with a few players occupying the major share in the international CEP market. The market is fragmented, and the market is expected to grow during the forecast. The major players Indian major market players such as Indian postal services FedEx Express, DHL Express, E-com Express, Ekart Logistics, Blue Dart, Delhivery, Amazon Transportation Services, and Aramex are contributing significantly into the growth of the market. The Indian post has shifted its focus from post and has identified more profit in delivering e-commerce parcel. Indian post has a vast reach and good connectivity in rural areas.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support