Courier, Express, and Parcel Services Market Currently Valued at $336 Billion, Says Beroe Inc

RALEIGH, North Carolina, Aug. 29, 2019 /PRNewswire/ -- The global market size for Courier, Express, and Parcel (CEP) is currently growing at a CAGR of 6.7 percent annually, according to Beroe Inc., a procurement intelligence firm. The e-commerce industry is the main driving force for the CEP industry. The revenue performance of the e-commerce industry is currently estimated to grow at a CAGR of 21.7 percent to reach a value of $2.8 trillion.

The CEP market is highly mature in North America and Western Europe with fierce competition among the top global suppliers (DHL, UPS, and FedEx). In APAC and the Middle East, the CEP market is emerging due to the e-commerce business and there are numerous service providers with a highly fragmented market share.

https://www.beroeinc.com/category-intelligence/courier-express-parcel-services-market

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

According to Porter's Five Forces Analysis, there are no or few substitutes for CEP in developed regions. However, if the digital transmission is made a standard, it may serve as a substitute for physically shipping documents. In emerging regions, evolving digitization in metros will serve as a threat for CEP. BFSI and government organizations are still looking for CEP service for confidential document transactions.

Global suppliers are enhancing their presence by having tie-ups and M&A with regional players to use their expertise (on a regional level). For instance, FedEx acquired TNT Express in a $4.8 billion deal, assisting to expand its presence and market size in Europe. Moreover, Tier-2 and Tier-3 suppliers are entering the CEP market to bridge the demand-supply gap for e-commerce companies by handling the last-mile delivery services.

Key Findings:

• Global CEP suppliers go for rent/lease of warehouses/sorting facilities rather than owning them at a regional level, thus reducing fixed costs.
• The price of a CEP service is primarily determined by the volumetric or actual weight of the shipments (whichever is higher), distance to be shipped and time of delivery. Typically, rates increase with the decrease in transit time.
• Major cost components in the CEP services industry are labor cost and industry purchases, which hold nearly 60 to 80 percent of the total costs.
• The current revenue of the e-commerce industry in the Middle East is estimated to be $30.7 billion, and it is expected to grow at a CAGR of 12.4 percent until 2021 with the UAE and Saudi Arabia being the largest and fastest growing e-commerce markets in the region.
• Smaller organizations with lower annual spend on CEP have little power to negotiate. Companies with higher CEP spend with lesser shipping lanes have avenues to negotiate on rebates, incentives, and value-added services.
• Fuel price is one of the major costs incurred by service providers. Thus, fluctuating fuel prices impact service providers and act as a constraint to the industry since increasing fuel prices causes profit margins to decrease.

The research methodology adopted for the report included:

• Experts with twenty years of domain experience
• Interaction with buyers
• Inputs from supply chain partners

Pharmaceutical companies engage with CEP service providers based on the nature of the products that are shipped. However, the buyers are mainly dependent on 3PL providers such as DHL, UPS, and Aramex for last-mile deliveries in regions such as APAC and MEA. Large pharmaceutical companies prefer 2 - 3 years as the best contract length for courier service to track the cost components impacted by the inflation demand.

The report also includes:

Market Analysis:

• Drivers and Constraints for the CEP Industry
• Service Providers' Maturity

Regional Market Analysis:

• North America (US, Canada)
• Western Europe (UK, France, Germany, Italy)
• APAC (India, China, Australia, New Zealand)
• MEA

Porter's Five Forces Analysis:

• Developed Regions
• Emerging Regions

Supplier Analysis:

• Supply Landscape
• Key Global and Regional Suppliers - Service Portfolio
• Key Global Supplier Profiling and SWOT Analysis
• Key Regional Supplier Profiling

Procurement Best Practices:

• Cost Analysis
• Cost Breakdown by Country
• Pricing Analysis
• Sourcing Model - Key Insights, Pros & Cons, Comparative Analysis
• Pricing Model
• Negotiating Parameters

End-User Industry Update

• Pharmaceutical

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Debobrata Hembram
[email protected]

SOURCE Beroe Inc.