Europe Courier, Express, And Parcel (CEP) Market Size and Share
Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 140.74 Billion |
| Market Size (2030) | USD 169.39 Billion |
| Growth Rate (2025 - 2030) | 3.77% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Europe Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Europe courier, express, and parcel (CEP) market size stands at USD 140.74 billion in 2025 and is projected to reach USD 169.39 billion by 2030, recording a 3.77% CAGR between 2025-2030. This moderate trajectory masks deeper structural shifts as e-commerce expansion, regulatory harmonization, and technology adoption reshape last-mile networks across the continent. Retailers are prioritizing delivery-experience differentiation because 81% of European shoppers abandon baskets when preferred options are unavailable, tilting competitive focus from price to service quality. EU-level VAT in the Digital Age (ViDA) reforms, phased through 2035, are standardizing cross-border data flows, favoring scale players with advanced compliance systems. Meanwhile, a driver shortfall exceeding 500,000 openings has accelerated automation investment as operators grapple with labor scarcity. Heightened sustainability mandates and city-center zero-emission zones, notably in the Netherlands, add urgency for electric fleets and parcel-locker density, reinforcing consolidation among carriers that can fund green assets.
Key Report Takeaways
- By destination, domestic deliveries held 66.06% of Europe courier, express, and parcel (CEP) market share in 2024, while cross-border shipments are forecast to advance at a 3.92% CAGR between 2025-2030.
- By speed of delivery, non-express dominated with 75.60% revenue share in 2024; express parcels are projected to expand at a 4.35% CAGR between 2025-2030.
- By customer model, business-to-consumer (B2C) commanded 52.90% of the Europe courier, express, and parcel (CEP) market size in 2024; consumer-to-consumer (C2C) is poised for the fastest 3.15% CAGR between 2025-2030.
- By shipment weight, lightweight parcels captured 57.83% of the revenue share in 2024, whereas heavyweight consignments will climb at a 3.34% CAGR over 2025-2030.
- By mode of transport, road held 50.03% revenue in 2024; air freight is the fastest-growing at 3.22% CAGR between 2025-2030.
- By end user industry, e-commerce led with 34.88% revenue share in 2024; healthcare parcels are projected to rise at a 3.98% CAGR between 2025-2030.
- By country, Germany accounted for 20.95% market revenue in 2024, while the Netherlands is expected to post the highest 4.88% CAGR during 2025-2030.
Europe Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Explosive e-commerce and omnichannel retail boom | +1.2% | Netherlands, Germany, France | Medium term (2-4 years) |
| Liberalized intra-EU cross-border trade and VAT reforms | +0.8% | EU-wide | Long term (≥ 4 years) |
| Expansion of parcel lockers and PUDO networks | +0.6% | Western Europe | Medium term (2-4 years) |
| Automation and AI-driven operational efficiency | +0.5% | Germany, Nordics | Long term (≥ 4 years) |
| Carbon-cost internalization favoring green fleets | +0.4% | Netherlands, Germany | Long term (≥ 4 years) |
| Rise of multicarrier parcel-management platforms | +0.3% | UK, Germany, France | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Explosive E-Commerce and Omnichannel Retail Boom
Social-commerce momentum is steering parcel flows toward unpredictable, trend-driven peaks rather than traditional seasonality, requiring flexible capacity planning across the Europe courier, express, and parcel (CEP) market. German e-commerce packaging spend reached USD 3.99 billion in 2025, reflecting 14.03% CAGR (2025-2030) expectations through 2034, underlining the packaging intensity of this growth. Reverse-logistics sophistication is turning from add-on to core capability, as 79% of shoppers cancel purchases when returns appear difficult. Healthcare parcels are piggybacking on this omnichannel wave; DHL’s EUR 2 billion (USD 2.20 billion) health-logistics rollout funds specialized cold-chain services aligned with rising e-pharmacy penetration. Volume concentration around influencer promotions compels carriers to design dynamic routing algorithms to absorb traffic surges without impairing service-level compliance[1]“VAT in the Digital Age Package,” European Commission, taxation-customs.ec.europa.eu.
Liberalized Intra-EU Cross-Border Trade and VAT Reforms
ViDA’s e-invoicing mandate arriving in July 2030 will standardize EN16931 formats for all intra-EU B2B trades, shrinking manual paperwork and accelerating customs clearances. The July 2028 expansion of the One-Stop Shop lets merchants maintain a single VAT ID across member states, a boon for the Europe courier, express, and parcel (CEP) market handling millions of cross-border parcels daily. Advanced IT retrofits are required because declarations must be filed within 10 days of chargeable events, favoring operators that already run integrated data lakes. Concurrently, Import Control System 2 obliges detailed entry summaries before crossing EU borders, tightening security and tilting the playing field to carriers with rich product-level data pipelines. Together, these measures reduce friction in sales expansion while raising digital-compliance thresholds, shaping a long-run shift toward international consolidation[2]“EU Needs 500,000 Drivers Urgently,” Euractiv, euractiv.com .
Expansion of Parcel Lockers and PUDO Networks
Automated locker adoption has crossed the proof-of-concept stage. InPost installed 11,500 new machines in 2024, lifting its network to 46,977 endpoints, and plans a 14,000-unit roll-out funded by PLN 1.8 billion (USD 0.45 billion) capex for 2025. Collaboration with fuel retailers and high-street chains, such as Galp in Spain and WHSmith in the UK, allows rapid density without new land acquisition. Royal Mail and Amazon are racing to replicate locker footprints to retain share. City dwellers appreciate 24/7 pickup flexibility, and 72% of European online buyers weigh sustainability in delivery choices, making out-of-home collection a direct carbon-reduction lever. Locker-centric models improve first-attempt success, lowering route miles per parcel and feeding operators’ zero-emission commitments.
Automation and AI-Driven Operational Efficiency
Artificial-intelligence routing, vision-based sortation, and collaborative robots are moving from pilots to network-wide upgrades. DHL is partnering with Deus Robotics in warehouses and testing autonomous delivery vans with Scania, targeting multi-shift operations that cut unit cost despite wage inflation. Dutch zero-emission zones active from January 2025 push carriers to maximize battery cycles via AI route optimizers that balance charge windows against service cut-offs. McKinsey research shows green logistics coupled with AI can shave last-mile costs by 15-20%, a margin delta that smaller couriers cannot match without scale. The fast-track payoff encourages M&A as carriers seek volume to amortize algorithm build-out and robot fleets.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Margin squeeze from price wars and dimension-based tariffs | -0.9% | UK, Germany, France | Short term (≤ 2 years) |
| Acute driver and warehouse-labor shortages | -0.7% | EU-wide | Medium term (2-4 years) |
| Country-level courier wage-floor legislation | -0.5% | France, Germany, Belgium, Netherlands | Medium term (2-4 years) |
| Rising cybersecurity and data-sovereignty compliance costs | -0.3% | EU-wide | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Margin Squeeze from Price Wars and Dimension-Based Tariffs
Post-pandemic overcapacity has resurrected discounting as operators defend share, eroding yields despite volume growth in the Europe courier, express, and parcel (CEP) market. Dimensional-weight pricing, meant to reflect cubic consumption, often gets waived for strategic accounts, compressing margins faster than cost-line efficiencies. InPost’s acquisitions of Yodel and Sending highlight the pivot toward inorganic density to dilute fixed overhead. Carriers add peak or fuel surcharges but shippers push back, leveraging multicarrier software to arbitrage rates. The tug-of-war limits near-term price recovery while stoking further consolidation[3]“Europe Truck Driver Shortage Report 2023,” IRU, iru.org.
Acute Driver and Warehouse-Labor Shortages
Europe faces more than 500,000 open driver roles, and projections suggest shortfall may widen to 745,000 by decade-end without intervention. Nearly 37% of current truckers are over 50, placing demographic pressure on fleet staffing. The EU plans to drop the heavy-goods licensing age from 21 to 18, but member-state transposition will lag until 2029. Wage escalation and overtime limits inflate operating costs and increase service volatility, nudging carriers toward robots, high-capacity trailers, and autonomous middle-mile pilots[4]"Industry Outlook for 2025 & Beyond." Parcel Industry, parcelindustry.com.
Segment Analysis
By End User Industry: Healthcare Becomes the Standout Growth Engine
E-commerce retained a 34.88% share in 2024, yet healthcare parcels are set to rise fastest at 3.98% CAGR between 2025-2030. Aging populations and e-pharmacy expansion make temperature-controlled last-mile a priority.
DHL’s EUR 2 billion (USD 2.20 billion) program funds GDP-compliant facilities, cool-chain packaging, and dedicated control towers. Manufacturers require part-express lanes, and financial-services documents sustain secure-courier niches. Carriers cross-sell same-day biomedical pickup to monetize vehicle downtime during retail off-peak cycles.
Note: Segment shares of all individual segments available upon report purchase
By Destination: International Momentum Changes the Mix
Cross-border parcel flows accounted for 33.94% of revenues in 2024 as domestic services retained the remainder of Europe courier, express, and parcel (CEP) market share. International consignments are forecast to climb at a 3.92% CAGR between 2025-2030, outpacing domestic growth as ViDA simplifies VAT settlement and merchants centralize fulfillment.
European shoppers increasingly purchase from neighboring states once delivery times align with domestic benchmarks. InPost’s November 2024 network activation across eight EU countries uses a locker-to-locker model that bypasses manual sorting and customs delays. ICS2 data prerequisites initially elongate lead-times for goods sourced outside the bloc, but EU-internal routes face fewer friction points. Improved service predictability attracts SME exporters, prompting postal incumbents to upgrade track-and-trace and push into premium cross-border offerings.
By Speed of Delivery: Express Captures Value in Time-Critical Niches
Non-express services delivered 75.60% of 2024 revenue, anchoring the Europe courier, express, and parcel (CEP) market on cost-effective offerings for fashion, books, and general merchandise. Express parcels will grow at a 4.35% CAGR between 2025-2030 as healthcare, automotive aftermarket, and luxury segments demand guaranteed delivery windows.
DHL’s health-logistics network offers temperature-controlled same-day service with pricing premiums exceeding 200% of standard rates. Manufacturing plants running just-in-time scheduling rely on overnight supply of critical components to avert downtime. Although consumers still favor low-cost shipping, expectations for two-day or faster delivery are rising; carriers respond with hybrid models blending economy pricing with express-style visibility. Technology investments in predictive ETAs and dynamic rerouting narrow the service gap, compressing the price differential yet expanding overall demand for accelerated options.
By Shipment Weight: Lightweight Parcels Dominate; Heavyweight Gains Niche Ground
Lightweight consignments held 57.83% of 2024 value; heavyweight parcels will log a 3.34% CAGR between 2025-2030 on back of appliances and industrial parts.
Locker apertures cater to smaller boxes, channeling fashion, beauty, and gadget shipments through automated grids that lower stop density costs. Manufacturers reshoring production within Europe require just-in-sequence delivery of bulkier components, elevating demand for tail-lift vans and white-glove crews. Packaging optimization is nudging mid-weight items downward, though furniture and exercise equipment remain in heavyweight lanes that command premium surcharges.
Note: Segment shares of all individual segments available upon report purchase
By Model: C2C Outpaces but B2C Retains Dominance
B2C deliveries controlled 52.90% of Europe courier, express, and parcel (CEP) market revenue in 2024, reflecting e-commerce maturation across retail verticals. C2C shipments are projected to climb 3.15% CAGR between 2025-2030 as social-commerce and resale platforms such as Vinted and Depop scale network effects.
InPost’s multi-year contract with Vinted covers eight countries and funnels millions of peer-to-peer parcels through lockers that eliminate failed first attempts. B2B parcels retain structural importance, but procurement digitization drives transparent pricing that suppresses ancillary fees. Circular-economy trends spur reverse flows as consumers return or resell goods, generating complex pickup requirements. Carriers that master both forward and reverse C2C logistics position themselves to harvest incremental volume without heavy marketing spend.
By Mode of Transport: Road Leads but Air Gains from Urgency and Green Mandates
Road accounted for 50.03% of the 2024 revenue thanks to dense highway infrastructure. Air freight will register the highest 3.22% CAGR between 2025-2030 amid express and intercontinental e-commerce requirements.
Zero-emission road corridors enforce battery-electric transitions, but payload and range limitations make regional air charters viable for high-value, time-critical goods. ReFuelEU Aviation mandates 2% sustainable-fuel blends from January 2025, narrowing green-premium spreads between modes. Overland congestion and driver shortages pressure carriers to explore rail and multimodal links, especially on intra-EU trunk lanes.
Geography Analysis
Germany anchors the Europe courier, express, and parcel (CEP) market with 20.95% revenue in 2024, leveraging its industrial depth and high household e-commerce usage. Parcel operators continue automating megahubs near Leipzig and Cologne to manage cross-border flows to Central Europe. The Netherlands delivers superior growth at 4.88% CAGR between 2025-2030 because of Port of Rotterdam connectivity, progressive zero-emission zone rollouts in 14 municipalities, and a national push for parcel-locker ubiquity that slashes urban congestion.
France and the United Kingdom remain sizeable through La Poste and Royal Mail networks but confront agile entrants using locker-heavy models that lower mile-per-parcel metrics. Consolidation is accelerating; DSV’s acquisition of DB Schenker widens pan-European capacity and intensifies competition for cross-Channel lanes post-Brexit. Nordic countries rely on high digital literacy and affluent consumers to sustain premium express uptake, while environmental rigor drives early adoption of hydrogen vans and drone pilots.
Central and Eastern Europe grows quickly thanks to manufacturing reshoring and lower labor costs. InPost’s Polish arm delivered 709.3 million parcels in 2024, with 64% of citizens living within a seven-minute walk of a locker bank. Southern Europe witnesses renewed demand tied to tourism recovery and social-commerce penetration, with Spain and Italy upgrading cross-dock terminals. Smaller markets like Switzerland and Norway uphold niche positions through high service quality, stringent customs rules, and willingness to pay for premium delivery.
Competitive Landscape
European CEP competition remains moderately consolidated. National postal incumbents defend domestic share, while private integrators pursue cross-border scale. InPost shipped more than 1 billion parcels in 2024 and expanded locker sites to 46,977, building an out-of-home fortress rivals find difficult to replicate.
Strategic M&A defines 2024-2025: DSV closed the EUR 14.3 billion (USD 15.78 billion) DB Schenker deal in April 2025, creating a European juggernaut positioned to contest DHL and FedEx on air-road integrated lanes. InPost acquired 95.5% of Yodel, leapfrogging five years of organic UK growth and adding 10,000 lockers to its footprint. Healthcare logistics draws targeted investment; DHL’s EUR 2 billion (USD 2.20 billion) outlay funds purpose-built pharma depots and cool-chain fleets, signaling a shift from generalized parcel handling toward vertical expertise.
Technology differentiation is the new battleground. Operators deploy AI sortation, EV fleets, and API-first customer portals. Carriers unable to match capex intensity risk relegation to subcontractor status, driving them to merge or exit. Multicarrier software further erodes loyalty, prompting incumbents to integrate sustainability scoring, real-time ETAs, and proactive NPS dashboards to protect accounts. Market leaders leverage data breadth to anticipate volume shocks and reprice lanes dynamically, yielding resilience that smaller couriers cannot easily emulate.
Europe Courier, Express, And Parcel (CEP) Industry Leaders
-
DHL Group
-
FedEx
-
International Distributions Services (including GLS)
-
La Poste Group
-
United Parcel Service of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: InPost finalized the acquisition of Sending, strengthening its Iberian network and broadening fulfillment offerings.
- April 2025: InPost completed the 95.5% takeover of Judge Logistics, Yodel’s parent, creating the UK’s third-largest agnostic parcel carrier with 10,000 lockers and 18,000 pickup points.
- April 2025: DSV closed the EUR 14.3 billion (USD 15.78 billion) acquisition of DB Schenker, forming one of Europe’s largest integrated logistics providers.
- January 2025: DHL launched its EUR 2 billion (USD 2.20 billion) health-logistics investment program, earmarking funds for cold-chain sites and same-day pharma delivery across Europe.
Europe Courier, Express, And Parcel (CEP) Market Report Scope
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry. Albania, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Romania, Russia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, United Kingdom are covered as segments by Country.| Domestic |
| International |
| Express |
| Non-Express |
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
| Air |
| Road |
| Others |
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| Albania |
| Bulgaria |
| Croatia |
| Czech Republic |
| Denmark |
| Estonia |
| Finland |
| France |
| Germany |
| Hungary |
| Iceland |
| Italy |
| Latvia |
| Lithuania |
| Netherlands |
| Norway |
| Poland |
| Romania |
| Russia |
| Slovak Republic |
| Slovenia |
| Spain |
| Sweden |
| Switzerland |
| United Kingdom |
| Rest of Europe |
| Destination | Domestic |
| International | |
| Speed of Delivery | Express |
| Non-Express | |
| Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| Mode of Transport | Air |
| Road | |
| Others | |
| End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others | |
| Country | Albania |
| Bulgaria | |
| Croatia | |
| Czech Republic | |
| Denmark | |
| Estonia | |
| Finland | |
| France | |
| Germany | |
| Hungary | |
| Iceland | |
| Italy | |
| Latvia | |
| Lithuania | |
| Netherlands | |
| Norway | |
| Poland | |
| Romania | |
| Russia | |
| Slovak Republic | |
| Slovenia | |
| Spain | |
| Sweden | |
| Switzerland | |
| United Kingdom | |
| Rest of Europe |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
| Keyword | Definition |
|---|---|
| Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
| Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
| Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
| Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
| Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
| C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
| Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
| Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
| Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
| Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
| Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
| First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
| Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
| Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
| Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
| Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
| ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
