United States Domestic Courier, Express, and Parcel (CEP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United States Domestic Courier, Express, and Parcel (CEP) Market is segmented by Business Model (Business-to-Business [B2B], Business-to-Customer [B2C], and Customer-to-Customer [C2C]), Type (E-commerce and Non-e-commerce), and End User (Service, Wholesale and Retail Trade, Healthcare, Industrial Manufacturing, and Other End Users). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

United States Domestic Courier, Express and Parcel (CEP) market
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %

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Market Overview

The US domestic courier, express, and parcel (CEP) market is expected to register a CAGR of over 4% during the forecast period of 2022-2027.

Due to the COVID-19 pandemic, there were lockdowns imposed across the nation. In 2020, the United States shipped 20.2 billion parcels, up a whopping 37% from 2019, owing to the rise of e-commerce sales over the period.

Because of the rapid growth of the internet, the courier, express, and parcel (CEP) sector in the United States is primarily driven by the constantly increasing e-commerce industry. The United States has the largest share of the CEP business in the North American area, owing to a highly integrated supply chain network that connects producers and consumers via different means of transportation.

Furthermore, increasing client demands for faster delivery have resulted in the emergence of on-demand courier firms such as UberRUSH and Postmates, which provide speedy delivery services, positively boosting the industry growth. The industry is further boosted by the region's expanding customer expenditure capacities.

Lots of new regional service providers, such as OnTrac and Eastern Connection, are rising to provide cheaper, faster delivery choices to Western and Northeastern US states. In the B2C delivery category, these businesses compete directly with behemoths like FedEx and UPS.

Scope of the Report

Courier, express, and parcel (CEP) refers to the collection of services that involve the delivery of various goods and products through different mediums such as air, water, and land across regions. These packages delivered by CEP are mainly non-palletized and weigh around a hundred pounds collectively. The US domestic courier, express, and parcel market is segmented by business model (business-to-business [B2B], business-to-customer [B2C], and customer-to-customer [C2C]), type (e-commerce and non-e-commerce), and end user (service, wholesale and retail trade, healthcare, industrial manufacturing, and other end users. The report offers the market size and forecasts in value (USD billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

Business Model
Business-to-Business (B2B)
Business-to-Customer (B2C)
Customer-to-Customer (C2C)
End User
Wholesale and Retail Trade
Industrial Manufacturing
Other End Users

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Key Market Trends

The Small Parcel Market is Fueling CEP Growth

Consumers are making more online purchases due to e-commerce expansion and the COVID-19 pandemic, which is fueling the parcel delivery sector. This resulted in a 37% increase in volume, with 20 billion parcels carried in the United States, and a 29% increase in income, reaching USD 171 billion in 2020.

United Parcel Service (UPS) is the country's largest and most widely used package delivery service. In 2021, United Parcel Service's revenue from domestic package operations came to over USD 60.3 billion. FedEx Corporation generated almost USD 32.5 billion in revenue from delivering packages in 2021.

Amazon Logistics is quickly rivaling UPS and FedEx in the US last-mile delivery space. It continues to build an intricate nationwide network and is transporting and delivering more of its volumes. Amazon Logistics is expected to compete for external business with traditional carriers such as UPS and FedEx.

There could be opportunities for upstart players going forward. Smaller companies, such as Pitney Bowes, which focuses on lightweight deliveries, have also changed their strategies. According to Pitney Bowes, US volume may nearly double to up to 39 billion packages by 2026, and during this peak season, the volume would likely exceed capacity by 5 million parcels daily.

United States Domestic Courier, Express and Parcel (CEP) market share

Growth of E-commerce is Pushing the US CEP Market

Between 2020 and 2021, the e-commerce category with the fastest year-over-year growth was apparel and accessories. Retail e-commerce sales of clothing and other fashion accessories climbed over 19% in February 2021 compared to the previous year. With about 18% growth, food and beverage was the second fastest-growing segment. Office equipment and supplies, on the other hand, saw the smallest gain of 8.5%.

In 2021, Amazon and its third-party merchants accounted for 43.5% of all digital spending in the United States, up from 41.8% in 2020. Furthermore, the web giant accounted for more than half (55.4%) of all e-commerce growth in the United States in 2021.

74.3% of the US population bought things online in 2021. This represents a 4% increase over 2019 and a 2% increase since 2021. Furthermore, this share is likely to increase to 80.4% by 2025.

The US retail and e-commerce sales growth will return to pre-pandemic levels in 2022. However, shifts in consumer behavior during the pandemic have changed the way certain products are bought online. Ecommerce sales are expected to increase at a robust rate, reaching 23.6% retail sales by 2025, up from 11% in 2019.

 United States Domestic Courier, Express and Parcel (CEP) market analysis

Competitive Landscape

The US domestic CEP market is a fragmented market. There is a domination of old players like USPS, FedEx, UPS, Amazon Logistics, etc., but there is also the entrance of many new players like Ontrac, Postmates, etc. Only a few mergers have taken place in the US domestic CEP market. In September 2021, UPS planned to acquire Roadies to expand its same-day delivery market, though Roadies will be operated under the same name after its acquisition. In October 2021, the regional player LaserShip, which is an Eastern-dominated player, announced its purchase of Ontrac, which is a Western-dominated player, in order to become a national player in the CEP market.

Recent Developments

September 2021: FedEx (an American multinational conglomerate holding company focused on transportation, e-commerce, and services) started to use self-driving trucks to haul goods between Dallas and Houston as part of a pilot program with autonomous vehicle startup Aurora and heavy-duty vehicle manufacturer Paccar. As per the companies, the Paccar trucks that are equipped with Aurora’s technology will be used multiple times a week to complete the nearly 500-mile route along Interstate 45. The trucks will operate autonomously with a backup safety driver. The partnership marks the latest progress by Aurora to meet its target to launch an autonomous trucking business that hauls loads between terminals without a safety driver by the end of 2023.

August 2021: The US Postal Service (an independent agency of the executive branch of the US federal government responsible for providing postal service) added 10 North Texas locations to its USPS Connect local pilot program, which launched on July 19, 2021. Initially offered in three Dallas and four Houston locations, the service is now available at 27 Texas postal facility locations. USPS Connect Local is a new offering that helps businesses and organizations provide local-to-local same-day or next-day package delivery at affordable rates. It is part of a broader USPS Connect program that is being piloted in stages to help businesses meet growing consumer demand for affordable, fast, local, and regional deliveries and returns. It allows business customers direct access to its unmatched last-mile delivery network.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Current Market Scenario

    2. 4.2 Value Chain/Supply Chain Analysis

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Technological Trends and automation

    5. 4.5 Insights into US Postal and Mail Services

    6. 4.6 Insights into the E-commerce Market

    7. 4.7 Insights into Start-ups and Venture Capital Funding in the CEP Industry

    8. 4.8 Elaboration on Storage Functions and Value-added Services in the CEP Busines

    9. 4.9 Brief on Courier Rates

    10. 4.10 Insights into Reverse Logistics and Same-day Delivery Market

    11. 4.11 Insights into Deliveries During Festive Season (Christmas, Singles' Day, Black Friday, etc.)

    12. 4.12 Impact of COVID-19 on the Market


    1. 5.1 Market Drivers

    2. 5.2 Market Restraints/Challenges

    3. 5.3 Market Opportunities

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Buyers/Consumers

      2. 5.4.2 Bargaining Power of Suppliers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry


    1. 6.1 Business Model

      1. 6.1.1 Business-to-Business (B2B)

      2. 6.1.2 Business-to-Customer (B2C)

      3. 6.1.3 Customer-to-Customer (C2C)

    2. 6.2 Type

      1. 6.2.1 E-commerce

      2. 6.2.2 Non-e-commerce

    3. 6.3 End User

      1. 6.3.1 Services

      2. 6.3.2 Wholesale and Retail Trade

      3. 6.3.3 Healthcare

      4. 6.3.4 Industrial Manufacturing

      5. 6.3.5 Other End Users


    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 United Parcel Serices

      2. 7.2.2 FedEx

      3. 7.2.3 US Postal Service

      4. 7.2.4 Aramex

      5. 7.2.5 LaserShip

      6. 7.2.6 Expenditors International of Washington

      7. 7.2.7 DHL

      8. 7.2.8 General Logistics Systems

      9. 7.2.9 World Courier Group

      10. 7.2.10 Lone Star Holdings

      11. 7.2.11 T-Force Logistics

      12. 7.2.12 Cross Country Freight Solutions

      13. 7.2.13 Spee Dee Delivery Service Inc.

      14. 7.2.14 Express Courier*

    3. *List Not Exhaustive

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport/Courier Industry to Economy)

    2. 9.2 Key Statistics Related to CEP Sector (Such as Sales/Revenue, Consumer Preferences, etc.)

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Frequently Asked Questions

The United States Domestic Courier, Express, and Parcel (CEP) Market market is studied from 2018 - 2027.

The United States Domestic Courier, Express, and Parcel (CEP) Market is growing at a CAGR of >4% over the next 5 years.

UPS, FedEx, United States Postal Services, Aramex, LaserShip are the major companies operating in United States Domestic Courier, Express, and Parcel (CEP) Market.

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