North America CEP - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

North America CEP - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

The North America CEP Market size is estimated at USD 146.02 billion in 2024, and is expected to reach USD 226.93 billion by 2029, growing at a CAGR of 9.22% during the forecast period (2024-2029).

The CEP market is highly mature in North America with fierce competition among the top global suppliers (DHL, UPS, and FedEx), The B2C segment had a substantial market share in 2019, and this trend is expected to continue over the forecast period. Factors such as the same-day delivery and returns on packages will play a significant role in maintaining its market position in the B2C segment.

Change in government leads to a change in regulatory policies. Many policies in the region are conducive to business growth, which is one of the reasons behind the concentration of e-commerce growth in a number of businesses. Nevertheless, the decision establishing a regulatory structure could affect transport configuration and logistical networks.

Companies are currently conducting experiments with on-demand fleet services using crowd-sourced delivery services such as UberRUSH. Using these on-demand services, tend to create a flexible logistics service for retailers and providers by enabling them to expand their delivery capacity temporarily.

North America CEP Market Trends

E-Commerce is growing in the region:

In 2019, North America accounted 26% of global e-commerce revenue, Internet penetration rates are also good in North America (84%).

The ubiquity of smartphones in North America is one factor affecting the continued growth of online commerce.

Consumers spent USD 601.75 billion online with U.S. merchants in 2019, up 14.9% from USD 523.64 billion the prior year 2018, Total retail sales increased 3.8% in 2019 to USD 3.763 trillion from USD 3.626 trillion the year before 2018.

North-American e-commerce logistics is expected to grow significantly due to various pivotal factors which includes technological advancement, developed Infrastructure and wide connectivity through roadways & railways. High production of goods, presence of large number of e-commerce industries, high disposable income and high internet penetration are some other factors boosting the North America e-commerce logistics market. US contributes highest in the growth of North America e-commerce market followed by Canada due to quality infrastructure and smooth logistic system.

Express and small parcel segment to grow:

North America grew at 9% with the US, the regional market leader growing at 10%. Higher delivery rates and less competition characterize in North America region, The North American market is dominated by UPS and FedEx in the express and small parcel segment. Due to the increased e-commerce and online retail sales in the region, North America is projected to dominate the overall demand for postal automation systems during the forecast period. The growing need for the rehabilitation of existing postal automation systems in North America has resulted in the implementation or expansion of such systems, leading to the growth of postal automation system market.

The growth of value-added services in express delivery is one of the latest trends that will contribute to the growth of this market in North America. Vendors in the express delivery services market in North America are increasingly focusing on providing distinct types of services, such as grading and assortment of products,packaging, online tracking of parcels, mobile applications, e-mail, and SMS alerts. This focus of vendors towards providing such value-added services will subsequently drive the growth of the express delivery market in North America.

North America CEP Industry Overview

The market is Fragmented, The market is dominated by FedEx, DHL, UPS in the North America region, still market has a room for the international and local players. The market is expected to grow during the forecast period due to growth in the e-commerce sector and growing last mile delivery segment in the region.

The key differentiating elements or services, which differentiate Express vendors in this market are the value-added services offered by the service providers. The vendors compete based on price, reliability, delivery speed, and supply chain capacity. They are also trying to attain and sustain competitive advantage by providing value-added services to expand their product portfolio.

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• The market estimate (ME) sheet in Excel format
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