Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 9.77 Billion |
| Market Size (2030) | USD 12.01 Billion |
| Growth Rate (2025 - 2030) | 4.23% 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 parcel market size stands at USD 9.77 billion in 2025 and is projected to reach USD 12.01 billion by 2030, reflecting a 4.23% CAGR between 2025-2030, with domestic deliveries supplying two-thirds of current volumes. Italy holds a pivotal logistics role inside Europe because e-commerce spending hit EUR 58.8 billion (USD 64.89 billion) in 2024 and keeps expanding, while small-package demand from manufacturing exporters recovers in parallel. Route-dense urban areas such as Milan and Rome underpin high stop densities that support premium express services, even as national road toll hikes and driver shortages push operators toward cost-saving automation. International flows expand faster than domestic shipments, powered by cross-border e-commerce, pharmaceutical exports and simplified digital VAT refund processing for tourist purchases. Competitive intensity rises as Poste Italiane, DHL, UPS, FedEx and GLS invest in sortation automation, out-of-home collection networks and low-emission fleets, while impending EU Fit-for-55 rules accelerate fleet renewal and infrastructure electrification.
Key Report Takeaways
- By destination, domestic deliveries held 66.52% of the Italy courier express parcel market share in 2024, whereas international parcels are advancing at a 4.39% CAGR between 2025-2030.
- By speed of service, non-express shipments controlled 75.85% of the Italy courier express parcel market size in 2024, yet express products are forecast to rise at a 4.87% CAGR between 2025-2030.
- By business model, business-to-consumer flows accounted for 53.63% share of the revenue in 2024, while consumer-to-consumer parcels record the highest 3.41% CAGR between 2025-2030.
- By shipment weight, light parcels captured 65.47% share of the revenue 2024, and heavy parcels are poised for a 3.46% CAGR between 2025 and 2030.
- By mode, road transport represented a 42.61% share of the revenue in 2024; air transport exhibits the fastest 3.59% CAGR between 2025-2030.
- By end user industry, e-commerce dominated with 34.94% share in 2024, whereas healthcare is expanding at a 4.44% CAGR between 2025-2030.
Italy Courier, Express, And Parcel (CEP) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| SME export rebound | +0.8% | Lombardy, Emilia-Romagna, Veneto | Medium term (2-4 years) |
| Urban micro-fulfillment roll-out | +0.6% | Milan, Rome, Turin, Naples | Short term (≤ 2 years) |
| Fleet electrification incentives | +0.4% | Nationwide, strongest in Northern cities | Long term (≥ 4 years) |
| Milan–Bergamo drone corridor pilot | +0.2% | Lombardy | Long term (≥ 4 years) |
| Tourist VAT-refund digitalization | +0.3% | Rome, Florence, Venice, Milan | Medium term (2-4 years) |
| Postal Bank cash-on-delivery expansion | +0.5% | Rural municipalities, Southern regions | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
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Strong Rebound of Italy’s SME Exports Post-2024 Creates Higher B2B Parcel Density
Small and medium manufacturers lifted export volumes by 5.8% year on year in March 2025, concentrating activity along the A4 and A1 corridors that link Lombardy with key European markets. Dense export lanes generate superior stop economies for express carriers, allowing trucks to complete more premium deliveries per route. Machinery, textiles and specialty food producers increasingly rely on next-day CEP options so they can postpone inventory and still honor tight customer schedules. Northern logistics hubs around Milan and Bergamo attract investment in automated sort centers because carriers can justify higher capex where volumes cluster. International express margins rise as exporters pick premium products that guarantee customs clearance and late pickup windows, while domestic backhauls reduce repositioning costs[1]“Rimborso IVA,” Agenzia delle Dogane e dei Monopoli, adm.gov.it.
Expansion of Micro-Fulfillment Centers by Grocery Chains Boosts Urban Same-Day Volumes
Grocery retailers accelerated micro-fulfillment roll-outs in 2024, with Esselunga spending EUR 5.8 million (USD 6.40 million) on compact facilities that can pick and dispatch orders inside two hours. These sub-10,000 ft² nodes shorten last-mile distances, create same-day demand spikes, and favor parcels under five kilograms that fit light electric vans. Partnerships such as MD’s alliance with Everli cover multiple cities and add predictable evening peak traffic, enabling carriers to deploy dedicated urban rounds that operate on strict delivery windows. Same-day grocery parcels carry premium surcharges which absorb the higher labor costs linked to dense stop frequency. Technology adoption rises as retailers test automated picking arms and temperature-segmented totes, raising requirements for data integration between store systems and CEP routing engines[2]“SME Export Data March 2025,” Promos Italia, promositalia.camcom.it.
EU Fit-for-55 Regulation Accelerates Fleet Electrification Incentives
Revised EU emission ceilings limit Euro-5 diesels inside major Italian cities, leading parcel operators to order battery vans and biogas trucks before 2026 enforcement. GEODIS has introduced 420 low-emission vehicles across European operations, and GLS performed its first Italian heavy electric truck delivery in 2024. Early movers gain priority access to restricted traffic zones and avoid potential congestion charges, thus securing punctual premium windows. Electricity price volatility remains an operational risk; however, municipal subsidies and depot photovoltaic projects partly mitigate energy cost swings. Route-optimization software now includes battery consumption models to balance service promise against recharging constraints.
Drone Corridor Pilot Between Milan and Bergamo Airports Slated for 2026
Italian aviation authority ENAC approved test plans for a 60-kilometer corridor that will link Milan Linate, Malpensa and Bergamo Orio al Serio airports using heavy-lift drones developed with Leonardo’s FlyingBasket technology. Initial operations target pharmaceuticals and urgent electronic parts weighing up to 100 kilograms, cutting door-to-door transit from two hours by road to under 25 minutes. CEP networks will position consolidation depots adjacent to drone ports, with ground couriers handling pickups and last-mile hand-offs. Performance metrics will focus on on-time reliability, payload utilization and weather-related diversion rates. Positive pilot outcomes may unlock further corridors connecting Bologna, Turin and Venice by 2028.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Freighter slot scarcity at Milano-Malpensa | –0.3% | Lombardy | Short term (≤ 2 years) |
| Demographic driver shortage | –0.7% | Nationwide, acute in industrial North | Medium term (2-4 years) |
| 2025-27 toll increases on A4 and A14 | –0.4% | Milan–Venice, Bologna–Bari corridors | Short term (≤ 2 years) |
| High parcel theft in Southern regions | –0.2% | Calabria, Sicily, Campania | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Driver Shortage Aggravated by Demographic Ageing
Only 2.2% of Italian truck drivers are under 25, while nearly one-half surpass 55, a gap wider than the European mean. Conftrasporto estimates 20,000 vacant driving jobs, and training costs near EUR 4,000 (USD 4,414.56) deter entrants. Logistics employers around Milan advertise monthly pay of EUR 3,392 (USD 3,743.55) but still struggle to fill shifts. Capacity tightness inflates subcontracting rates, forcing CEP networks to rebid linehaul contracts or lengthen transit windows. Policy responses include proposals to fast-track non-EU driver permits and co-fund license programs, yet uptake remains slow. Carriers trial double-deck trailers and AI routing tools to lift parcels per driver, but these gains do not fully offset workforce attrition[3]“Europe’s Truck Driver Shortage Worsens,” CLECAT, clecat.org.
2025-27 Road-Toll Step-Ups on A4 And A14 Corridors
Autostrade per l’Italia lifted tolls by 1.8% in January 2025 as part of a EUR 36 billion (USD 39.73 billion) modernization program scheduled through 2038. The A4 Milan–Venice and A14 Bologna–Bari links carry high CEP traffic, so surcharges raise cost per parcel by up to EUR 0.07 (USD 0.077) on long-haul domestic legs. Larger integrators cross-subsidize by re-routing low-priority volumes onto night rail, while smaller couriers with limited modal flexibility face margin pressure. Shippers accustomed to all-inclusive prices resist surcharge pass-through, encouraging carriers to bundle toll fees inside dynamic fuel and capacity indexes. Over the medium term, infrastructure upgrades are expected to trim congestion, partly compensating earlier cost spikes[4]“Toll Adjustments and Investment Plan,” Autostrade per l’Italia, autostrade.it.
Segment Analysis
By End-User Industry: E-commerce Leads, Healthcare Accelerates
E-commerce commanded 34.94% share of 2024 volumes and sets service benchmarks that spill into other verticals. High return rates create extra reverse-logistics complexity, prompting carriers to deploy rules-based automation that sorts returns directly to refurbishment centers. Fashion brands pilot same-day try-at-home programs in Milan and Turin, extending parcel touches but lifting overall revenue per customer.
Healthcare parcels expand at a 4.44% CAGR between 2025-2030 because Italy’s aging population increases medication throughput and biologic therapies demand strict cold-chain compliance. Carriers retrofit vans with GDP-validated chillers and install real-time temperature probes that send alerts to control towers. Pharmaceutical firms favor dedicated delivery windows that synchronize with hospital pharmacy schedules, ensuring priority access inside security zones.
Note: Segment shares of all individual segments available upon report purchase
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By Destination: Domestic Networks Secure Scale, Cross-Border Flows Accelerate
Domestic deliveries accounted for 66.52% of the Italy courier express parcel market in 2024 because local sourcing and nationwide e-commerce anchor predictable daily volumes. Dense residential delivery points allow carriers to maximize stop efficiency, and familiarity with postal codes reduces address correction costs. Cross-border parcels, while smaller in count, expand at a 4.39% CAGR between 2025-2030 as fashion, pharmaceuticals, and industrial components rely on time-definite services for competitive differentiation. Customs simplification under the Import One-Stop Shop scheme lowers administrative frictions and supports growth.
International outbound growth is clustered around Milan, Turin and Bologna airports where exporters can access bonded facilities that speed clearance. Tourism-linked C2C parcels leverage duty-free thresholds, and operators market flat-rate boxes to capture souvenir traffic. The domestic network still underpins scale advantages, letting integrators redirect vehicles to international linehauls during off-peak domestic cycles. Alignment of domestic and European sortation windows will remain critical for maintaining overnight cut-off commitments without inflating hub staffing costs.
By Speed of Delivery: Express Products Widen Value Capture
Non-express services retained a 75.85% share of the Italy courier express parcel market in 2024, catering to price-sensitive goods and lower urgency B2B replenishment. Nevertheless, express options generate higher gross margins and are rising at a 4.87% CAGR between 2025-2030 because consumers increasingly expect next-day guarantees. Marketplaces display delivery-time badges that boost conversion, pushing sellers to accept higher logistics fees.
Express growth is strongest inside Milan and Rome ring roads where vehicle electrification grants access to limited-traffic zones. Carriers invest in hour-slot delivery windows and predictive ETA updates to cut failed attempts. Rural demand for express remains subdued given long distances and lower buying power; however, premium services for temperature-controlled medicines or high-value electronics travel via scheduled night flights to regional airports. Integration of autonomous locker pickup mitigates last-mile costs for express, enabling higher delivery speeds at near-standard price differentials.
By Shipment Weight: Light parcels Dominate, Heavy Parcels Regain Momentum
Pieces weighing under two kilograms captured 65.47% share of the Italy courier express parcel market size in 2024, mirroring the rise of clothing accessories, books, and beauty products in e-commerce baskets. These items favor small vans and cargo bikes that can bypass traffic restrictions. Parcels above 10 kilograms grow at 3.46% CAGR between 2025-2030 as spare parts and mid-sized machinery components migrate from groupage freight to time-definite services.
Weight segmentation drives vehicle-mix planning: operators allocate electric micro-vans for lightweight rounds, while lift-gate trucks service heavy express lanes. Packaging R&D seeks to compress volumetric weight to avoid surcharges, indirectly lowering fuel consumption. Advanced dimensioning scanners in hubs generate precise billing that improves margin visibility for mixed-weight consignments.
Note: Segment shares of all individual segments available upon report purchase
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By Mode of Transport: Road Remains Backbone, Air Captures Time-Critical Trade
Road legs carried 42.61% of revenue share in 2024 due to extensive motorway coverage and the ability to serve door-to-door without trans-loading. Night trunk routes connect regional depots to three super-hubs near Bologna, Milan, and Rome, maximizing trailer fill factors. Air freight rise at 3.59% CAGR between 2025-2030 as luxury goods and pharma exporters prioritize 24-hour European reach. Nonetheless, freighter slot shortages at Milano-Malpensa force carriers to lease capacity from dedicated cargo operators or divert through Leipzig and Liège.
Rail intermodal remains niche, but targeted pilot lanes on the Verona–Brenner axis test swap-body shuttles that cut CO₂ and bypass toll hikes. Maritime parcel flows exist mainly for Sardinia and Sicily, using ro-ro ferries that feed day-definite delivery windows. Mode mix decisions increasingly hinge on carbon accounting, with shippers demanding granular emission reports for ESG tracking.
By Model: B2C Remains Core, C2C Unlocks Untapped Niches
Business-to-consumer (B2C) values delivered 53.63% of all parcels in 2024, matching the Italian shopper shift to web marketplaces and omnichannel retail. Free-shipping thresholds incentivize smaller, more frequent orders, sustaining urban parcel densities. Enterprise shippers leverage negotiated tariffs, so carriers rely on up-selling value-added options such as evening delivery or returns consolidation to shore up yields.
Consumer-to-consumer flows are expected to rise at a 3.41% CAGR between 2025-2030, thanks to recommerce apps, online classifieds, and tourist VAT-refund shipping. The C2C segment benefits from flat-rate packaging bundles that simplify pricing for occasional senders. Meanwhile, business-to-business shipments provide dependable backhaul volumes, especially for automotive spares and fashion samples that cannot wait for pallet freight. Carriers integrate C2C traffic into existing residential rounds, maximizing truck utilization and offsetting empty space left by declined catalog mailings.
Geography Analysis
Northern Italy drives the majority of the Italy courier express parcel market, with Lombardy alone supplying more than one-quarter of national export parcels and sustaining multiple daily linehauls toward Central Europe. High GDP per capita and dense industrial activity around Milan-Bergamo create continuous flows that keep vehicle utilization above 80% on many lanes. Extensive warehouse parks in Pavia and Piacenza augment sort capacity and enable late cut-off times for premium orders.
Central regions centered on Rome and Florence serve dual roles as administrative nodes and tourism magnets. Digital VAT-refund shipments give rise to C2C parcels leaving major shopping streets and airports, while media and aerospace manufacturers in Lazio fuel B2B traffic. Congested historical centers challenge last-mile execution, but municipal locker installations and cargo-bike pilots demonstrate early success at improving first-attempt delivery rates.
Southern territories, including Campania and Puglia, have lower parcel densities yet present expansion potential via cash-on-delivery offerings linked to Postal Bank services. High parcel theft concentrations oblige couriers to embed photo proof-of-delivery and real-time geofencing alerts. Intermodal sea routes from mainland ports to Sicily and Sardinia compress transit times versus prior reliance on slower ro-ro schedules. Public incentives under the National Recovery Plan finance road upgrades on the Salerno-Reggio Calabria corridor, gradually improving transit predictability for long-haul domestic services.
Competitive Landscape
The market shows moderate consolidation; the five largest operators account for the majority of the Italy courier express parcel market share, leaving room for regional specialists to thrive. Poste Italiane tightens its lead through a EUR 1.2 billion (USD 1.32 billion)automation program that lifts hub throughput by 30%, while its nationwide locker deployment with DHL adds out-of-home capacity. International integrators focus on cross-border and healthcare niches: DHL upgrades its Milan gateway to temperature-controlled standards, FedEx expands weekend outbound flights, and UPS debuts a ground product that integrates freight-based pricing for bulky parcels.
GLS invests EUR 8 million (USD 8.82 million) in the Sordio hub and buys ProntoPacco’s 6,000 pick-up points, underscoring the strategic value of consumer convenience locations. Technology partnerships multiply, with carriers embedding AI route optimizers and predictive maintenance on electric fleets to curb downtime.
Smaller couriers position around value niches like art logistics or wine export, but rising compliance costs could spur acquisitions. Pilot programs in autonomous delivery and drone flights remain exploratory due to regulatory uncertainty, yet early adopters aim to secure first-mover branding benefits.
Italy Courier, Express, And Parcel (CEP) Industry Leaders
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DHL Group
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International Distributions Services (including GLS)
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La Poste Group (including BRT)
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Poste Italiane
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United Parcel Services of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- January 2025: Poste Italiane completed AI-enabled sortation upgrades that expanded processing capacity by 30% and trimmed unit handling cost across its network.
- December 2024: GLS Italy acquired ProntoPacco’s 6,000-plus pickup-point estate to strengthen consumer parcel pick-up density.
- November 2024: DHL extended its locker collaboration with Poste Italiane to enhance cross-border parcel convenience.
- September 2024: UPS launched Ground Saver and Ground with Freight Pricing services tailored to Italian SME exporters.
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.
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 |
| 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 |
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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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