Japan Domestic Courier, Express, and Parcel (CEP) Market Size

Japan Domestic Courier Express & Parcel Market Analysis

The Japanese courier, express, and parcel (CEP) market is expected to record a CAGR of over 7% during the forecast period 2022-2027.

The e-commerce market has grown as a result of the COVID-19 pandemic, resulting in a growth in the volume of shipments shipped across the country. Despite online shopping for product sales being inextricably linked to home delivery, online shopping for product sales grew by 21.7% in 2020, while parcel delivery (trucks) grew by 11.5%. According to an announcement by the Ministry of Land, Infrastructure, Transport, and Tourism, the number of parcel delivery services (trucks) handled in FY2020 was 4.78 billion, an increase of 494.31 million over the previous year.

As demand for B2C e-commerce grows, the role of last-mile logistics has gained prominence in Japan. In recent years, there has been a significant increase in the last mile market due to increased demand for high-speed delivery and growing internet penetration, which has resulted in a higher number of regions being active online. In terms of the number of parcels handled by the three major courier companies in FY2020, Yamato Transport increased by 16.5%, Sagawa Express increased by 7.2%, and Japan Post increased by 11.9%.

E-commerce is one of the primary drivers of the Japanese CEP market's expansion. Due to increasing internet user penetration, the e-commerce industry's revenue is expected to reach USD 128 billion by 2024. The domestic CEP market is likely to witness growth and hold the major share during the forecast period in line with the B2C e-commerce boom.