Market Overview
| Study Period | 2020 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Base Year Market Size (2025) | USD 9.77 Billion |
| Market Size (2026) | USD 10.20 Billion |
| Market Size (2031) | USD 12.65 Billion |
| Growth Rate (2026 - 2031) | 4.40% 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. | |
Italy Courier, Express, And Parcel (CEP) Market Analysis by Mordor Intelligence
The Italy courier, express, and parcel (CEP) market size is projected to be USD 9.77 billion in 2025 and USD 10.20 billion in 2026, and reach USD 12.65 billion by 2031, growing at a CAGR of 4.40% from 2026 to 2031.
Lockstep expansion of grocery-on-demand platforms, highway upgrades funded through the Piano Nazionale di Ripresa e Resilienza (PNRR), and cross-border e-commerce liberalization are tightening delivery windows and boosting average parcel density. Carriers are leaning on artificial-intelligence dispatch systems, automated sortation, and an expanding locker network to tame urban congestion and lift route-hour productivity. Meanwhile, energy-price volatility and low-emission-zone mandates are inflating last-mile operating costs, widening the performance gap between fleet-electrified incumbents and cash-constrained regional operators. Competitive intensity remains moderate because the five largest players hold around 45% of revenue, leaving room for specialists with healthcare, luxury, or machinery export expertise.
Key Report Takeaways
- By destination, domestic parcels led with 66.54% of the Italy courier express parcel (CEP) market share in 2025, while international flows are projected to advance at a 4.88% CAGR through 2031.
- By speed of delivery, non-express services accounted for 75.71% of the Italy courier express parcel (CEP) market size in 2025, yet express offerings show the strongest momentum at a 4.62% CAGR over 2026-2031.
- By business model, the B2C segment held 55.80% of the market share in 2025; C2C is expanding the quickest, at a 5.35% CAGR, powered by recommerce platforms.
- By shipment weight, light parcels captured 65.31% of 2025 volumes, whereas heavy shipments are forecast to climb at a 4.90% CAGR, reflecting machinery and auto-component exports.
- By mode of transport, road carried 49.79% of 2025 traffic; air freight delivers the steepest growth at a 4.82% CAGR on the back of cold-chain seafood and aerospace parts.
- By end-user industry, e-commerce produced 35.50% of parcels in 2025, yet healthcare is the fastest riser with a 5.10% CAGR through 2031, supported by home-infusion therapy adoption.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of 2026.
Italy Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis*
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Digitally driven grocery-on-demand boom fuels intra-city parcel density | +0.9% | Metropolitan areas: Milan, Rome, Turin, Bologna, Naples | Short term (≤ 2 years) |
| Multi-billion PNRR highway upgrades shortening trunk-line lead times | +0.7% | National, with priority on A1 and A14 corridors | Medium term (2-4 years) |
| EU Single Digital Market lifting cross-border order volumes into Italy | +0.6% | National, with concentration in Northern border regions | Medium term (2-4 years) |
| Nationwide roll-out of smart parcel lockers at railway hubs | +0.5% | Major cities with high-frequency rail connections | Short term (≤ 2 years) |
| AI-optimised dispatch algorithms slashing urban congestion penalties | +0.4% | Dense urban zones: Milan, Rome, Florence, Venice | Short term (≤ 2 years) |
| Tax credits for LNG-van conversions reducing inter-regional line-haul costs | +0.3% | National, with higher adoption in Northern industrial regions | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Digitally Driven Grocery-on-Demand Boom Fuels Intra-City Parcel Density
Quick-commerce players operate in 130 Italian cities, led by Glovo, which coordinates more than 1,000 employees to orchestrate 10-minute grocery deliveries from dark stores situated within 2 kilometers of dense residential clusters. Hyper-local fulfillment produces parcel densities roughly three times higher than traditional e-commerce, slashing cost per stop for carriers. Esselunga invested EUR 5.8 million (USD 6.68 million) in 2024 to build micro-fulfillment centers that each process 800 daily orders within 90-minute windows, underpinning demand for high-frequency van routes. Light commercial vehicles able to access pedestrianized zones benefit the most, while Deliveroo’s expansion to more than 200 municipalities demonstrates the scalability ceiling when order frequency surpasses four drops per courier-hour. Across Milan and Rome, the pattern is replicating food-delivery economics that reward denser drop clusters, prompting CEP firms to re-optimize tour planning. As a result, grocery-linked parcel traffic is steering the Italy courier express parcel market toward micro-hub deployment and electric two-wheeler experimentation[1]“Recovery and Resilience Facility,” European Commission, europa.eu.
Multi-Billion PNRR Highway Upgrades Shortening Trunk-Line Lead Times
The PNRR earmarks EUR 25 billion (USD 28.83 billion) for transport, prioritizing the A1 Milan-Naples and A14 Bologna-Taranto highway projects that remove pinch points responsible for 15-20% time losses on trunk legs. Widening the A1 to three lanes between Florence and Rome promises an 18% transit-time cut by 2028, directly safeguarding service-level agreements that penalize late express deliveries. Upgrades also include 14 new interchanges and eight freight-dedicated toll plazas on the A14, eliminating EUR 200 million (USD 208.31 million) in annual driver-hour waste according to concessionaire Autostrade per l'Italia. With fuel representing 30-35% of long-haul operating cost, smoother traffic will yield 12% consumption savings, uplifting line-haul profitability. Funding tranches are conditional upon milestone compliance, limiting schedule slippage risks and granting operators reasonable confidence when forecasting capacity additions[2]“E-Commerce Investments,” Esselunga, esselunga.it.
EU Single Digital Market Lifting Cross-Border Order Volumes into Italy
Harmonized One-Stop-Shop VAT rules have removed paperwork that previously delayed intra-EU parcels by two to three days, spurring Italian consumers to source 28% of online purchases from other member states in 2025 versus 19% in 2022. German and French retailers leverage mature logistics networks to deliver within five days at price parity with domestic sellers, nudging volume toward pan-European express carriers. The Digital Services Act, in force since February 2024, further raises consumer expectations by mandating real-time parcel tracking and transparent redress procedures. Together, these reforms enlarge the addressable pool of high-value, cross-border parcels that carry premium yields, reinforcing growth prospects for the Italy courier express parcel market.
Nationwide Roll-Out of Smart Parcel Lockers at Railway Hubs
InPost is installing more than 3,000 automated lockers at rail stations by 2027, counting on footfall that exceeds two million passengers a day at Milano Centrale alone. Lockers reduce failed deliveries that cost carriers EUR 3-5 apiece, while allowing 24/7 collection aligned with commuter schedules. Poste Italiane already runs 7,000 lockers, 1,200 of which sit on Trenitalia premises, registering 68% average utilization. The economics shine in dense corridors where retail rents top EUR 25 per square meter monthly, whereas station concessions often bundle subsidized terms. Compliance with Rete Ferroviaria Italiana fire and accessibility norms prolongs deployment cycles by up to nine months but ultimately embeds CEP infrastructure inside the broader mobility fabric, reinforcing modal integration.
Restraints Impact Analysis*
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Escalating energy tariffs inflating last-mile operating costs | -0.6% | National, with acute impact in high-density urban areas | Short term (≤ 2 years) |
| Lack of certified delivery-van personnel amid an ageing workforce | -0.5% | National, particularly Northern industrial regions | Medium term (2-4 years) |
| Expansion of ultra-low-emission urban zones curbing legacy-fleet access | -0.4% | Major cities: Milan, Rome, Bologna, Turin, Florence | Short term (≤ 2 years) |
| Rising liability-insurance premiums due to parcel crime hot-spots | -0.2% | Southern Italy, particularly Naples, Palermo, Bari metropolitan areas | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Escalating Energy Tariffs Inflating Last-Mile Operating Costs
Commercial electricity averaged EUR 0.28 (USD 0.32) per kWh in 2025, the second-highest in the EU, eroding the cost-of-ownership case for electric vans that consume 0.25 kWh per kilometer. Operators now pay EUR 0.07 per kilometer in energy versus EUR 0.05 (USD 0.058) for diesel at current pump rates, reversing the parity achieved in 2024. Italy hosts only 35,000 public chargers, pushing CEP firms to build private depots where fast-charging arrays exceed EUR 50,000 (USD 57,667). Price swings of up to 22% within a single year complicate contract pricing for e-retailers that resist surcharge clauses. Subsidies defray 30% of charging-infrastructure spending, yet fleets under 20 vehicles are ineligible, leaving regional specialists squeezed by rising input costs[3] “Electricity Prices,” Eurostat, ec.europa.eu .
Lack of Certified Delivery-Van Personnel Amid an Ageing Workforce
Italy faced 20,000 unfilled driver vacancies in 2025, with just 2.2% of license-holders under 25 years old, while 45% are above 55, foreshadowing mass retirements. Training and licensing cost EUR 6,000 (USD 6934) per recruit and typically last six months, discouraging entry at prevailing wage levels. Salaries climbed 18% between 2022 and 2025, hitting EUR 3,392 per month (USD 3920 per month), narrowing margins for parcel firms unable to pass through higher rates. Industry associations lobby for easier recognition of non-EU licenses and publicly funded driving academies, but immigration sensitivities stall policy change. Automation trials, including autonomous sidewalk robots in Bologna, remain early-stage and have yet to dent the labor shortfall, compelling operators to ration capacity during Black Friday peaks[4]“Driver Shortage,” CLECAT, clecat.org .
*Our updated forecasts treat driver/restraint impacts as directional, not additive. The revised impact forecasts reflect baseline growth, mix effects, and variable interactions.
Segment Analysis
By End-User Industry: Healthcare Climbs the Fastest
E-commerce held 35.50% of Italy courier, express, and parcel (CEP) market share in 2025 but confronts eroding yields as merchants insist on zero-cost returns. Healthcare shipments are growing at 5.10% CAGR, buoyed by an aging population in which 29% exceed 60 years, thus demanding home-infusion therapies and temperature-controlled drug delivery. Specialty pharmaceuticals require 2-8°C compliance, prompting operators to adopt GDP-certified packaging, data-loggers, and rapid exception management.
Manufacturing rebounds as European demand for Italian machine tools and leather goods resurges, supporting B2B express charter lanes. Finance and insurance (BFSI) cling to a small but stable flow of critical documents that have yet to be fully digitized. Wholesale and retail trade employ CEP for store replenishment, while primary industries leverage parcel networks for maintenance spares in remote quarries and vineyards.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: International Parcels Gain Momentum
Domestic consignments absorbed 66.54% market share of parcels in 2025, while international consignments are forecast to clock a 4.88% CAGR to 2031 as the EU Single Digital Market unlocks friction-free trade flows. The Italy courier express parcel market size for cross-border shipments is growing significantly, strengthening carrier appetite for pan-European line-haul alliances. Domestic volumes stay dominant in absolute terms, anchored by Milan-Rome and Turin-Naples traffic, yet face slower growth because urban customers already enjoy mature e-commerce penetration. Profitability tilts toward the international niche, where higher declared-value goods subsidize low-margin same-city deliveries. Consequently, leading operators are broadening pickup-point footprints near Alpine crossings to shorten delivery standards into Germany, Austria, and France.
Italy’s exporters of precision machinery and luxury leather goods lean on time-definite air options to uphold just-in-time commitments, while import flows from German and Dutch marketplaces ride consolidated road line-hauls into Lombardy hubs. Customs-free intra-EU rules have nullified brokerage costs that previously deterred small merchants from shipping abroad. Domestic CEP firms, historically focused on B2C e-commerce, are partnering with integrators to add outbound lanes, thereby diluting the incumbency of global giants.
Note: Segment shares of all individual segments available upon report purchase
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By Speed of Delivery: Express Commands the Premium
Non-express maintained 75.71% of Italy courier, express, and parcel (CEP) market share in 2025 because price-sensitive shoppers accept 48- to 72-hour windows. Yet express parcels, growing 4.62% annually, already generate more than 50% of segment revenue due to 40-60% price uplifts. Temperature-controlled pharmaceuticals, legal files, and authenticated luxury goods must meet regulatory or brand-protection cutoffs, entrenching a resilient express baseline.
Non-express growth remains tethered to returns policies in fast fashion and home decor, where free returns triple parcel touches and pressure handling margins. Carriers deploy AI route-sequencing that postpones non-urgent parcels to off-peak slots, clearing capacity for express runs and trimming urban congestion penalties. Locker networks also blur the traditional express–standard distinction by offering low-cost overnight drop but instant pickup flexibility.
By Shipment Weight: Heavy Parcels Edge Up
Light parcels, primarily apparel and consumer electronics under 5 kilograms, still formed 65.31% of 2025 consignments. Heavy-weight articles between 30 and 70 kilograms are, however, advancing at a 4.90% CAGR on stronger demand for machinery spares and automotive parts exported to tier-one suppliers across the Rhine. The Italy courier express parcel market size attributed to heavy-weight items is expected to grow significantly by 2031, feeding investment in mechanized sorters with higher weight tolerances.
Operationally, heavy parcels strain the 3.5-ton van limits, requiring C-license drivers already in chronic shortage. Carriers have responded by upgrading to box trucks with tail lifts and deploying dual-man crews, a measure that simultaneously mitigates parcel-theft risk. The economics remain favorable because just-in-time penalties dwarf the incremental cost per kilogram. Light-weight dominance endures in fashion, cosmetics, and accessories that reward dense routing and support the locker model.
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By Mode of Transport: Air Lifts Time-Sensitive Cargo
Road commanded 49.79% market share of 2025 traffic owing to door-to-door ease, but airfreight’s 4.82% CAGR makes it the fastest mover as export-oriented verticals seek 24-hour transit to Northern Europe. Milano-Malpensa and Roma-Fiumicino have both earmarked additional night slots for integrator freighters, a shift that will raise the Italy courier express parcel market share of air to 16% by 2031. Sea-rail intermodal solutions remain peripheral, serving mostly bulk replenishment to Sardinia and Sicily.
High road tolls up 1.8% annually, and low-emission-zone exclusions in Milan and Rome propel certain shippers to offload premium goods onto air corridors to dodge urban cutoffs. Conversely, grocery and fast fashion stick to the road because per-unit weight economics cannot justify air uplift. Carriers hedge by building hybrid road-air products that truck parcels overnight to Malpensa, tender them to dawn flights, and deliver before noon across Western Europe.
By Business Model: C2C Rides the Circular Wave
The B2C format kept a 55.8% market share foothold in 2025, mirroring the USD 58.8 billion domestic e-commerce sector. Nevertheless, C2C transactions now post the swiftest 5.35% CAGR through 2031, propelled by Vinted and Wallapop aggregating 12 million monthly Italian listings. Each listing wedges a prepaid shipping label to doorstep collection, embedding parcel flows seamlessly inside resale transactions. B2B retains predictable lane density among wholesalers and manufacturers but is ceding share where palletized LTL options gain traction.
Italy’s under-35 demographic embraces resale culture, with 42% purchasing second-hand items in 2025. This behavioral pivot elevates small-format parcels under 3 kilograms, favoring van and locker channels over heavier truck routes. To court C2C loyalty, carriers are experimenting with dynamic pricing tied to marketplace ratings, rewarding top sellers with preferential tariffs that heighten retention. The shift positions the Italy courier express parcel market as a barometer for emerging circular-economy logistics.
Geography Analysis
Northern Italy dominates volumes, with Lombardy generating per-capita parcel counts 40% above the national mean because of higher income and digital adoption. PNRR-backed widening of the A4 Milan-Venice and A1 Milan-Bologna corridors will cut trunk transit by nearly one-fifth by 2028, reinforcing the region’s status as the linchpin of the Italy courier express parcel market. Locker density already peaks here, where InPost has clustered 1,200 machines that average 70% utilization, underscoring customer acceptance.
Central Italy orbits around Rome’s conurbation. Tourist purchases translate into C2C exports as visitors ship goods home via VAT-refund parcel desks, while Florence’s luxury workshops rely on tamper-evident express services to sustain brand authenticity. Urban access restrictions in Rome’s historic Anello Ferroviario oblige carriers to field electric vans or operate within a 6:00-10:00 window, compressing delivery capacity and inflating route costs.
Southern Italy trails on account of lower purchasing power and sparser infrastructure, yet growth prospects brighten as e-tailers penetrate underserved communities. Parcel theft tops 8% in Naples, Palermo, and Bari, escalating insurance premiums by up to 40% and prompting some operators to refuse high-value consignments. Nevertheless, the universal-service mandate compels Poste Italiane to maintain dense branch coverage and deploy lockers in marginal zones, ensuring baseline accessibility. Agrifood exports Sicilian citrus and Apulian olive oil necessitate temperature-controlled express lanes to Northern Europe, giving airfreight uplift via Catania and Brindisi cargo gateways an incremental push.
Competitive Landscape
The top carriers Poste Italiane, DHL Express, UPS, GLS Italy, and Bartolini collectively hold roughly 45% of revenue, a level that leaves the Italy courier express parcel market moderately concentrated. Poste Italiane differentiates through 7,000 lockers and AI sortation hubs that can handle 150,000 parcels an hour with sub-0.5% mis-sort, doubling processing agility. InPost’s plan to deploy 3,000 new lockers by 2027 at rail nodes further intensifies last-mile competition, emphasizing convenience over speed.
Technology adoption is the battleground. Machine-learning dispatch trims urban route time by up to 18% and lowers fuel usage 9% in Lombardy pilots. Cold-chain capability is the other frontier; Sailpost entered GDP-compliant healthcare logistics in January 2026, adding real-time temperature monitoring to its Southern Italy network. Sustainable operations also gain prominence: UPS introduced carbon-neutral delivery options in 2025 by blending renewable diesel and offsets, courting enterprise shippers with ESG targets.
Consolidation persists. GLS purchased ProntoPacco’s 6,000 pickup sites to shore up B2C reach, while GEODIS sealed Malherbe’s long-haul fleet in December 2025 and signed interline air deals with Atlas Air and MAS Air to cement Atlantic and Latin links. Autonomous delivery robots, still in pilot phase in Turin, promise structural cost cuts but await regulatory maturity and public trust.
Italy Courier, Express, And Parcel (CEP) Industry Leaders
DHL Group
International Distributions Services (including GLS)
La Poste Group (including BRT)
Poste Italiane
United Parcel Services of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2025: GEODIS bought Malherbe to expand its European trucking spine, extending cross-border capacity into Italy.
- November 2025: GLS Italy entered into a strategic partnership with Quadient to expand its out-of-home network by deploying carrier-agnostic parcel lockers across Italy on a nationwide scale.
- August 2025: Bloq.it partnered with InPost to supply next-gen locker hardware for 20,000 European units, earmarking high-density Italian cities.
- February 2025: Glovo widened quick-commerce coverage to 15 additional municipalities, taking its Italian network to 130 cities.
Italy 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.By Destination
| Domestic |
| International |
By Speed of Delivery
| Express |
| Non-Express |
By Business Model
| Business-to-Business (B2B) |
| Business-to-Consumer (B2C) |
| Consumer-to-Consumer (C2C) |
By Shipment Weight
| Heavy Weight Shipments |
| Light Weight Shipments |
| Medium Weight Shipments |
By Mode of Transport
| Air |
| Road |
| Others |
By End User Industry
| E-Commerce |
| Financial Services (BFSI) |
| Healthcare |
| Manufacturing |
| Primary Industry |
| Wholesale and Retail Trade (Offline) |
| Others |
| By Destination | Domestic |
| International | |
| By Speed of Delivery | Express |
| Non-Express | |
| By Business Model | Business-to-Business (B2B) |
| Business-to-Consumer (B2C) | |
| Consumer-to-Consumer (C2C) | |
| By Shipment Weight | Heavy Weight Shipments |
| Light Weight Shipments | |
| Medium Weight Shipments | |
| By Mode of Transport | Air |
| Road | |
| Others | |
| By End User Industry | E-Commerce |
| Financial Services (BFSI) | |
| Healthcare | |
| Manufacturing | |
| Primary Industry | |
| Wholesale and Retail Trade (Offline) | |
| Others |
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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. |
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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
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