The Thailand CEP Market size is estimated at USD 1.8 billion in 2024, and is expected to reach USD 3.24 billion by 2029, growing at a CAGR of 12.51% during the forecast period (2024-2029).
The market is driven by the growth of e-commerce in the country. Furthermore, the market is driven by SMEs requiring transportation services.
According to government statistics, Thailand's e-commerce industry grew by more than 15% in 2021. The need for last-mile and express delivery is increasing as the country's e-commerce business grows. Due to the emergence of e-commerce, the traditionally business-oriented parcel delivery market is expanding to include consumer deliveries. The e-commerce logistics services market in Thailand is being driven by the expansion of small and medium-sized firms selling online and well-connected technical infrastructure.
All the leading companies in Thailand's e-commerce market are international platforms, and cross-border e-commerce with neighbouring nations is on the rise. The COVID-19 pandemic resulted in an 81% increase in the e-commerce market, which now stands at THB 294 billion (USD 8.50 billion), up from the THB 220,000 billion (USD 6,659.59 billion) predicted earlier.
The Thai e-commerce market is growing faster than projected as a result of the COVID-19 pandemic. The Thai e-commerce business has a lot of room to grow in the future. More than 60% of products in Thailand's e-marketplaces are imported from the Greater Mekong Sub-region, according to the agreement on facilitating cross-border transportation between member nations of the Greater Mekong Sub-region (GMS-CBTA). Similarly, when Thai e-commerce enterprises' sales to foreign nations increase, various cross-border logistics restrictions assist them in avoiding paying taxes.
The country's growing foreign trade is driving more demand for international express services. Government and private sector measures to encourage cross-border e-commerce and assist Thai SMEs in reaching global markets are fuelling the international CEP market, which is predicted to grow at a rate of more than 9% over the forecast period. Supporting cross-border business and exporting goods to foreign markets are among the government's Thailand 4.0 initiatives, as is boosting trade with CLMV (Cambodia, Laos, Myanmar, and Vietnam) countries.
Thailand has a population that is mostly upper-middle-income, and the country is ASEAN's second-largest economy after Indonesia. Thailand is the 14th most important export destination for the United States. Thai exports to the United States totalled USD 41.23 billion in 2021, while US exports to Thailand totalled USD 12.7 billion. In addition to the United States, Thailand's main trading partners are China, Japan, Vietnam, Australia, and Singapore. Thailand's trade relies significantly on road transportation, which is dominated by third-party logistics companies.
The Thailand Courier, Express, And Parcel (CEP) Market is moderately consolidated in nature, dominated by a few players, and highly price competitive. The two key players in the market are Kerry Express and Thailand Post, and their combined market share accounts for more than 50%. Some other significant players include Nim Express, SCG Express, DHL, and Lazada Express. Besides the aforementioned companies, some large international companies have entered the Thai CEP marketspace and made the competition more intense. Some of them include BEST Logistics and Flash Express from China, J & T Express from Indonesia, and CJ Logistics from Korea. Additionally, some on-demand delivery companies, such as Lalamove and Grab Express, also add to the competition. However, these players have fewer effects due to their relatively high pricing.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook