India Courier, Express, and Parcel (Cep) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Courier, Express, and Parcel (Cep) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Indian Courier, Express, and Parcel markets are estimated to grow at a CAGR of more than 10.5% during the forecast period. The growth in the e-commerce segment, higher internet penetration into the masses, and the latest technological innovations in the sector have been the driving force for the market. The COVID-19 pandemic impacted every industry. However, the pandemic accelerated online purchasing, positively impacting the CEP industry's growth and increasing its market share.

• India became a significant market for both domestic and international shipments, with powerful companies entering and expanding networks. Innovation became a critical influencing factor for organizations to be seriously lined up with market trends and dynamics.
• The logistics organizations, particularly in the CEP business, must be thoughtful regarding technological investments, which can otherwise disturb the business. The presentation of Goods and Service Tax (GST) in the country 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.
• Simultaneously keeping up the consistency of quality for service and overseeing cost is a test for all the market players. Given the constant development in online business and the way that building one's system is 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 last-mile conveyance are compelling the market goliaths to drive their business more creatively.

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

For example, according to the India Brand Equity Forum (IBEF), the Indian e-commerce market is estimated at USD 76.8 billion by 2023 and is projected to grow to USD 350 billion by 2027. According to the U.S. Census Bureau estimates, U.S. e-commerce retail sales totaled USD 196.7 billion in the first quarter of 2021, rising further to USD 231.4 billion in the first quarter of 2022.

Moreover, recent strategic initiatives by major market players, such as new service launches and acquisitions, will impact the growth of Courier, Express, and Parcel (CEP). For example, the digital commerce fulfillment platform Delhivery launched a consumer-to-consumer (C2C) express parcel service in June 2021.

With this service, you can pick up your package at your doorstep and deliver it anywhere in the country. Delhivery will launch this new service in over 2,500 cities in India. Additionally, in August 2021, Delhi acquired Bangalore-based Spoton Logistics to strengthen its business-to-business (B2B) vertical.

Also, increasing industrialization in emerging markets coupled with increased cross-border trade in the post-Covid era is expected to act as a catalyst for market demand during the forecast period. However, high operating costs associated with CEP services hinder the market growth during the forecast period.

Internet users have increased over the years in rural and urban regions. It appeared to be likely from past patterns that the dispatch of the Jio fixed-line broadband assistance, called Gigafiber, may help the already expanding e-commerce and internet penetration in the nation.

The domestic segment of the CEP market in India is expected to hold a significant market share. The domestic CEP market will likely witness the growth and maintain a considerable 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 reasons that boosted digital sales growth in India. In 2022, e-commerce sales across India were estimated to increase by 21.23%.

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

The report covers the major players operating in the Indian CEP Industry. The market is highly competitive, with a few players occupying a significant share of the international CEP market. The market is fragmented and expected to grow during the forecast.

The significant major Indian 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 highly to the growth of the market.

The Indian post has shifted its focus from post and has identified more profit in delivering e-commerce parcels. Indian post has a vast reach and good connectivity in rural areas.

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