The global courier market is expected to achieve a CAGR of over 7 per cent in the period from 2021 to 2028, reaching $519.6 billion by 2028 . The courier industry is flourishing across the world thanks to meteoric growth in the e-commerce sector and a rise in demand for fast delivery. The highest CAGR is expected to be in the Asia-Pacific region for the forecast period.
One of the fastest-growing markets in Europe is Italy, with a CAGR above 8 per cent during the last five years . This is due to the rapid rise of e-commerce and the digital transformation of the global economy. Growth in the e-commerce industry was fuelled by the pandemic, and consumers were keen to purchase online in order to avoid having to shop in-store. Even faster growth is predicted for the next five years and increases as high as 11 per cent are being projected.
The huge increase in volume has proved challenging for traditional carriers and shippers. End customers now demand a higher level of service because they are relying on parcel deliveries for a much larger percentage of their goods. Courier services looking to expand their business and increase their market share are developing new ways of meeting these demands.
The main driver of growth in the parcel market is also e-commerce. During Covid-19, customers became reliant on shopping online and B2C e-commence grew by over 25 per cent. C2C growth was surprisingly high, with consumers selling their used goods to others online. This particular market segment skyrocketed during the pandemic as people were facing economic uncertainty and had more time available to recycle the things they no longer wanted or needed. Many new businesses were created for customers to trade their second-hand goods, such as Vinted, and their popularity forced the more traditional and established resale platforms, such as eBay, to rethink and up their game.
This explosive expansion has been a significant challenge for delivery and logistics systems as e-commerce volumes become ever greater. Customers now demand a higher level of service and quickly came to expect same-day and next-day delivery as well as parcel tracking and the option to change delivery addresses. This has made the delivery service a company offers an important element in differentiation, with strong competition amongst companies to meet customer needs and provide the best quality service. It became easy and convenient for customers to shop online and this time-saving approach has become embedded in their daily lives, with no sign of them returning to pre-pandemic habits. All of this means that the global courier services market is expected to continue to grow rapidly over the next five years and carriers will have to keep up with their competitors to stay in business. Competitive pricing, user-friendly tracking, same-day delivery and excellent customer service are now demanded and expected, in what has become a highly competitive market