The number of startups that receive funding is increasing. The market observed growing activity from new and emerging players. Global supply chains have allowed developing countries to improve their cross-border trade and, with it, the increase in courier and express deliveries. Countries that are developing are also observing growth in the CEP industry as the internet penetration and smartphone penetration increase. Major economies like India, China, the United States, and Germany, among others are expected to observe higher demand for CEP services with the COVID-19 pandemic changing consumer buying habits.
#Post and courier drivers#
Besides e-commerce, the emerging trends of omnichannel retailing in certain countries and growth in trade driven by economic growth are also some of the drivers of the CEP industry. The CEP industry is posting impressive growth in the developing countries, driven by the growth in international trade, rising internet and smartphone penetration boosting e-commerce sales, growing middle-class population, disposable incomes, and improved standards of living. The package volume in the United States increased by 37% year on year, hitting 20 billion in 2020, up from 15 billion in 2019. The rise in e-commerce had a significant impact on the massive parcel shipping volumes expected in 2020. FedEx recorded a 234.7% growth in its operating profit, which amounted to USD 1.59 billion in the fiscal year ending Q1 2021 (August 31, 2020) when compared with the USD 475 million in the previous quarter. However, the COVID-19 pandemic also resulted in a surge in demand for e-commerce, driving the performance of several package delivery services providers such as FedEx Corp. With the decline of passenger flights in most regions of the world, industry-wide available cargo ton-kilometers (ACTKs) dropped an even 42% year-on-year in April 2020. As a result, industry-wide cargo ton-kilometers (CTKs) contracted by 27.7% Y-o-Y in April 2020. The pandemic depressed manufacturing activity and goods demand as well as affected cargo capacity. The global courier, express, and parcel (CEP) market is expected to witness a CAGR of 10% during the forecast period.
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