The courier, express, and parcel services category is expected to grow at a CAGR of 4.2% from 2023 to 2030. The growth of e-commerce is one of the main drivers of the growth of the CEP services market. E-commerce is growing rapidly, and this is leading to an increase in the demand for CEP services. Businesses that sell goods online need to be able to deliver their goods quickly and efficiently to their customers. CEP providers can help businesses do this by providing a variety of delivery services, such as next-day delivery and express delivery.
The North America courier, express, and parcel market is expected to grow rapidly due to factors like economic growth, e-commerce sales, and demand for faster, more reliable delivery services. Technological advancements, such as self-driving trucks, and government initiatives like logistics hub construction are expected to drive market growth. Globalization has increased trade-related activities, necessitating reliable and efficient delivery services.
Companies are continuously focusing on collaborating with technology providers while enhancing their capacities by setting up new hubs in various regions to stay competitive in the market. For instance,
• In January 2022, the Mexican government announced that it would be investing $90 million in the construction of a new logistics hub in Yucatán. The hub will be located in the municipality of Umán. The hub will be equipped with state-of-the-art technology and infrastructure, including a sorting facility, a warehouse, and a fleet of vehicles. It will be able to handle a variety of cargo, including goods from the manufacturing, agriculture, and tourism industries.
• In April 2021, DHL Global Forwarding (DHL GF), a subsidiary of Deutsche Post DHL Group, expanded its presence in Africa by signing a joint venture agreement with Unicargas, a leading logistics company in Angola. The agreement will allow DHL GF to offer a wider range of logistics services in Angola and other countries in Central and Southern Africa.
• In September 2021, in a test project with self-driving truck startup Aurora and heavy-duty vehicle manufacturer Paccar, FedEx Corp. began transporting cargo between Dallas and Houston using self-driving trucks. The self-driving trucks are outfitted with Level 4 autonomous driving technology from Aurora, which enables them to function under some circumstances without human supervision. A safety driver will also be in the truck to handle any emergency.
Order your copy of the Courier, Express, and Parcel Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Courier, Express, and Parcel Services Sourcing Intelligence Highlights
• The global courier, express, and parcel services category is fragmented and highly competitive, with the presence of several players in the market. To grow their market share, firms in the industry are adopting crucial strategies like opening new distribution centers, mergers, and smart warehouses.
• The major cost components in this category are fuel costs, labor costs, vehicle costs, insurance costs, and administrative costs.
• China's dominance as a sourcing destination for this category is due to its large and growing manufacturing sector, strategic location in the center of Asia, infrastructure development, and government policies.
List of Key Suppliers in the Courier, Express, and Parcel Services Category
• A1 Express Delivery Service Inc
• Aramex International LLC
• Deutsche Post DHL Group
• DTDC Express Ltd
• FedEx Corp.
• SF Express (Group) Co. Ltd
• Poste Italiane SpA
• Qantas Courier Limited
• United Parcel Service Inc.
• SG Holdings Co. Ltd.
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Courier, Express, and Parcel Services Procurement Intelligence Report Scope
• Courier, Express, and Parcel Services Category Growth Rate: CAGR of 4.2% from 2023 to 2030
• Pricing Growth Outlook: 3% - 4% (Annually)
• Pricing Models: Value-based pricing, volume-based pricing
• Supplier Selection Scope: Cost and pricing, past engagements, geographical presence
• Supplier Selection Criteria: Pricing, network, technology, customer service, flexibility, and security
• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model