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

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

The market for Courier, Express, and Parcel (CEP) in Japan is estimated to grow at a CAGR of more than 7% driven by the growth in the e-commerce segment.

Japan's CEP services have seen growth by offering clients a careful scope of alternatives including a decision of conveyance time and free redelivery. In Japan, the development in the last-mile conveyance is owing to the adjustment in a social domain.

Additionally, with the development of online business and e-commerce, the quantity of courier packages has been expanding for as far back as 10 years. In addition, the expansion in the number of convenience stores and accommodation stores in urban cities has brought about making smaller and progressively frequent delivery, which diminishes conveyance effectiveness.

Moreover, dynamic truck drivers are maturing, and it is hard to make sure about enough new drivers; in this manner, the business faces a labor shortage. As it were, while more packages are to be delivered, the business can't make sure about enough number of drivers; therefore, it is crucial to improve delivery effectiveness. To expand the proficiency, delivery organizations have come up with measures to improve existing assets, for example, trucks, and drivers to convey bundles at goals, and such measures are arranged into a few models like joint conveyance, stage applications, etc.

Key Market TrendsRise in E-Commerce Sector to Boost the CEP Market in Japan

E-commerce is one of the main contributing factors for the rise in the CEP market in Japan. By 2024, the revenue in the e-commerce industry is expected to reach USD 128 billion driven by high internet user penetration. In 2018, Japan had approximately 117.6 million internet users.

Japan is poised to be among the top 3 largest e-commerce market by the end of 2024. The e-commerce revenue of Japan in the year 2019 has amounted to USD 88.1 billion. The e-commerce market has seen a solid growth when compared to 2018, where the revenue grew by 10% approximately from 80.7 USD billion. In the year 2017, the revenue of the e-commerce industry amounted to USD 72 billion.

The growth in the e-commerce segment is largely driven by internet access that is made available to the public. The internet penetration in the year 2017 was 89.5%, whereas it is expected to reach 94.5 by the end of 2024. The user penetration rate is also expected to witness a growth during the forecast period to reach 86.7% by the end of 2024 from 68.4% in 2017.

Domestic Segment Holds Largest Share in the Market

The total CEP market in Japan is valued at USD 13.7 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 11.12 billion by the start of the year 2019, which is approximately 81% of the total revenue generated by the Japan 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.

As B2C e-commerce demand continues to grow, the role of last-mile logistics has taken the spotlight in Japan. 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 Japan CEP market. 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 in Japan's CEP market are Japan Post, Yamato, Sagawa Express. Recently, Japan Post has announced that around 1200 electronic vehicles for delivery services which will be introduced by the end of 2021 to strengthen its environmental measures. These will replace the regular gasoline fuelled delivery services in major cities like Tokyo and other urban cities.

Additional Benefits:

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

Companies Mentioned
 
Yamato
Sagawa Express
Japan Post
Seino Transportation
United Parcel Service
FedEx
DHL
Takuhai
TNT Express
Nippon Express Company
National Air Cargo *

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