Market Trends of Courier, Express, and Parcel (CEP) Industry
E-Commerce And Omnichannel Retail Driving the Market
The global e-commerce market reached a value of USD 13 Trillion in 2021. Rapid urbanization across the globe is one of the key factors driving the growth of the market. Furthermore, increasing internet penetration and usage of devices, such as smartphones, laptops and tablets to access e-commerce portals, is also providing a boost to the market growth. E-commerce enables organizations to conduct business without maintaining a physical presence, thereby minimizing infrastructure, communication and overhead costs. Latin America saw USD 85 billion in e-commerce sales in 2021, up 25% from USD 68 billion in 2020. The Indian e-commerce market is expected to grow to USD 111.4 billion by 2025, up from USD 46.2 billion in 2020. Russia, the UK, and the Philippines saw more than 20% e-commerce sales growth in 2021.
North America, which includes the United States and Canada as the leading regions in business-to-consumer (B2C) e-commerce sales, accounts for around one-third of digital purchases worldwide. The increase in e-commerce trade over online portals has driven the growth of the global CEP market. The various e-commerce activities, such as online shopping through e-retail portals, are expected to fuel the market growth during the forecast period. Despite a difficult year for retail during the COVID pandemic, every national market saw double-digit e-commerce growth.
One of the greatest cross-border e-commerce markets, India and Mexico were in the top five countries in the world. With 50 million e-buyers, India is in third place (the high-growth region of Southeast Asia has been triggered by increased logistics and broadband infrastructure), and Mexico is in fifth place with 40 million e-buyers. These countries' growing internet users make them great markets for multinational firms to sell into. In Hong Kong, Singapore, and Vietnam, cross-border purchases account for 31%, 43% and 55% of online purchases respectively. In Australia and New Zealand, 35% of online purchases are imported from outside the region, with 25% of e-purchases from North America and Europe.
Cross-Border E-commerce Stimulating The Growth Of The International CEP Market
The growing e-commerce sector, along with the growing cross-border trade, is one of the key factors driving the growth of the CEP market. The development of cross-border trade channels, especially in emerging nations, has enhanced the adoption of international trade and B2C shipments. Furthermore, the increasing consumer preference for shopping online through various e-commerce portals is also providing a boost to market growth. E-commerce stores partner with courier service providers to deliver their products across domestic and international locations.
Technological advancements, including the utilization of digital technologies with crowd-sourced delivery models, are also creating a positive outlook for the market. These technologies aid the service providers in increasing their overall operational efficiency and meeting the requirements of the customers effectively. Other factors, including rapid urbanization, rising consumer expenditure capacities, and significant growth in the manufacturing sector, are projected to drive the market further toward growth during the forecast period. Automated package and freight shipping solutions are available to improve efficiency for the entire shipping process of retail vendors.
Retailers will soon be able to leave the paperwork to shipping partners, such as transmitting customs documentation electronically and enjoy a smooth customs clearance process, minimizing the time and cost involved in the associated paperwork. Moreover, with more regional and trade deals being negotiated between governments and trading blocs, it has become more attractive for SMEs to expand into new markets. The rapid growth of cross-border e-commerce is attributed to the rise of a young, urban population that is heavily reliant on technology.
