Couriers And Messengers Market Definition
The couriers and messengers’ market consist of sales of courier and messenger services by entities (organizations, sole traders and partnerships) that provide tracked, guaranteed, and express delivery services of parcels within intercity, local, and/or international geographies without operating under a universal service obligation. The industry includes the establishments that provide sorting and transportation activities of parcels. The industry also includes establishments that provide local messengers which usually deliver the parcels within a metropolitan or single urban area and mostly use bicycles, on-foot, small trucks, or vans.
Couriers And Messengers Market Size
The global couriers and messengers’ market reached a value of nearly $541.6 billion in 2019, having grown at a compound annual growth rate (CAGR) of 9.3% since 2015, and is expected to grow at a CAGR of 11.1% to nearly $824.9 billion by 2023.
Growth in the historic period resulted from increasing demand from medical and health care industries, rise in e-commerce, rise in consumer spending, and emerging markets growth. Factors that negatively affected growth in the historic period were rise in crude oil prices, and limited supply chain visibility.
Going forward, increase in cross border trade, restaurant meals delivery services, rise in business activity, grocery delivery services, economic growth, reduced logistics cost, reduced oil prices, and COVID pandemic will drive growth. Factor that could hinder the growth of the couriers and messengers’ market in the future include adoption of in-house delivery.
Couriers And Messengers Market Drivers
The key drivers of the couriers and messengers market include:
Rise In Business Activity
Business activities that will need any type of courier or messengers services to ship their parcels will boost the market for the courier and messengers’ services market in the forecast period. In the past, offices had their own office delivery personnel to deliver the couriers from the office to the desired destinations but now the trend has shifted to a courier company model to reduce the cost of overheads. Increase in e-commerce business activities such as online food deliveries, online shopping for groceries, household stuffs, personal stuffs, electronic items and others are also driving the courier and messengers service market. In developing countries, rising incomes and increasing mobile phone penetration is enhancing the number of online shoppers . In 2019, the global retail e-commerce sales accounted for $3.53 trillion US dollars and are projected to grow to $6.54 trillion US dollars in 2022 driving the courier and messengers’ services market in the forecast period.
Couriers And Messengers Market Restraints
The key restraints of the couriers and messengers market include:
Adoption Of In-House Delivery
The adoption of an in-house delivery system by retailers is expected to hinder the growth of the couriers and messengers market in the forecast period. In-house delivery networks restrict outsourced delivery service providers and this affects the growth opportunities from the retail segments. For instance, companies such as British multinational grocery and merchandise retailer Tesco, and pizza delivery company Domino’s adopt in-house delivery for their products to be delivered to customers.
Couriers And Messengers Market Trends
Major trends influencing the couriers and messengers market include:
On-Demand Delivery Of Parcels
Courier service providers are now offering on-demand delivery services for faster and efficient delivery of parcels. On-demand delivery provides customers with a flexible option of getting packages delivered at their convenient time and place. This service can also be integrated with point-of-sale systems and ecommerce platforms which enable courier companies to efficiently manage their operations, and thus is a cheaper, faster and more reliable mode of parcel delivery. For instance, UberRUSH is an on-demand courier delivery service operating in New York, Chicago and San Francisco. On-demand delivery services are being widely used for prescription medicine, laundry pickup and delivery, fast food delivery and marijuana delivery. Major on demand delivery service providers include Postmates, Deliv, Sidecar and Amazon Flex in the USA, PiggyBaggy in Finland and Nimber in Norway. In 2018, UPS invested $100 million in advanced technology in their Paris Hub, France. According to a report by Go People, a Sydney-based on-demand delivery and courier startup, in 2018, there were 51% of global retailers offering same-day delivery and this is expected to reach 65% by 2019. According to Harvard Business Review, in 2018, the on-demand economy is attracting more than 22.4 million consumers annually and receiving $57.6 billion in spending. Food delivery services are one of the trending on-demand delivery services and some of the major on demand food delivery service providers globally are FoodPanda, Swiggy, Zomato, UberEats, Grubhub, Deliveroo and Domino’s Pizza.
Automated Parcel Terminals
Courier and express delivery service providers are increasingly using automated parcel terminals. Automated parcel terminals are computer-controlled units which allow customers to collect, hand in and return parcels around the clock. These terminals are deployed at locations with maximum footfall such as walkways, convention centers, grocery outlets, shopping malls, convenient stores, gas stations and railway stations. These terminals improve the quality of the delivery services network and reduce last mile delivery management costs for the company. Automated parcel terminals are being extensively used in Europe and the global market for automated parcel delivery terminals is expected to reach $ 1.06 billion by 2025, thus indicating a significant potential for these automated systems. Major companies providing automated parcel terminals are Cleveron Ltd., Neopost group, Smartbox Ecommerce Solutions Pvt. Ltd., ENGY Company, Winnsen Industry Co., Ltd., LL OPTIC (Loginpost), InPost S.A.
Opportunities And Recommendations In The Couriers And Messengers Market
Opportunities – The top opportunities in the global couriers and messengers’ market segmented by type will arise in the domestic couriers segment which will gain $226.8 billion of global annual sales by 2023. The top opportunities in the global couriers and messengers’ market segmented by type of coverage will arise in the couriers and express delivery services segment which will gain $258.10 billion of global annual sales by 2023. The top opportunities in the global couriers and messengers’ market segmented by end user will arise in the B2C segment which will gain $161.35 billion of global annual sales by 2023.
Market-trend-based strategies for the couriers and messengers’ market include offering cost-efficient and reliable on-demand parcel delivery services to customers, investing in automated parcel terminals to reduce operational costs, realigning services to leverage opportunities and remain competitive in the B2C delivery services market, offering customized solutions to e-commerce companies to increase revenues, and adopting drones in their delivery process to save time and transportation costs. Player-adopted strategies in the couriers and messengers industry include developing strategic partnerships and collaborations to improve operations, strengthening business and service offerings through acquisitions, and investing to develop technology to provide better services.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the couriers and messengers companies to collaborate with Healthcare, Food & Beverage, And E-commerce Companies. Couriers and messenger should incorporate latest technologies and increase the supply chain visibility and focus on contactless delivery.
Couriers And Messengers Market Segmentation
The couriers and messengers market is segmented by type of service, by coverage, by end-user and by geography.
By Type Of Service-
The couriers and messengers market can be segmented by type of service
The domestic couriers market was the largest segment of the couriers and messengers’ market, accounting for $437.92 billion or 80.9% of the total in 2019. The international couriers market is expected to be the fastest-growing segment going forward at a CAGR of 11.5%.
- a) Domestic Couriers
- b) International Couriers
By Coverage –
The couriers and messengers market can be segmented by coverage
The couriers and express delivery services market was the largest segment of the couriers and messengers’ market, accounting for $507.5 billion or 93.7% of the total in 2019. The local messengers and local delivery market is expected to be the fastest-growing segment going forward at a CAGR of 14.9%.
- a) Local Messengers And Local Delivery
- b) Couriers And Express Delivery Services
By End User –
The couriers and messengers market can be segmented by end user
The B2B end use courier market was the largest segment of the couriers and messengers’ market, accounting for $314.2 billion or 58.0% of the total in 2019. The B2C end use courier market is expected to be the fastest-growing segment going forward at a CAGR of 16.0%.
By Geography –
The couriers and messengers market is segmented into
Asia Pacific was the largest region in the couriers and messengers’ market, accounting for 35.1% of the global market in 2019. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest growing regions in the couriers and messengers’ market will be Asia-Pacific and Middle East, where growth will be at CAGRs of 15.7% and 13.9% respectively. These will be followed by Africa and the Eastern Europe, where the markets are expected to grow at CAGRs of 13.7% and 13.0% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- New Zealand
- Hong Kong
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Couriers And Messengers Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • United Parcel Service, Inc.
- • FedEx Corporation
- • United States Postal Service
- • Deutsche Post DHL Group
- • SF Holdings
- • Yamato Holdings Co. Ltd.
- • Royal Mail plc
- • PostNL
- • Canada Post
- • Swiss Post
- • Safexpress Pvt. Ltd.
- • Blue Dart Express Limited
- • DTDC Express Limited
- • BEST Inc.
- • ZTO Express
- • Shentong Express Co., Ltd.
- • Sagawa Express Co., Ltd.
- • Japan Post Co., Ltd.
- • Toll Holdings Limited
- • Australia Postal Corporation
- • CORREOS
- • CitySprint
- • Deutsche Post DHL Group
- • DPDgroup
- • Parcelforce
- • Transworld Couriers
- • Avantia Transportes
- • Envialia
- • ChronoExpress
- • DPD RUS JSC
- • Russian Post JSC
- • MESSENGER
- • Czech Post (Ceská pošta)
- • Poczta Polska
- • FedEx Corporation
- • United Parcel Service
- • Canada Post Corporation
- • Purolator Inc.
- • Servicio Continental de Mensajeria SA de CV
- • Parcelmonkey
- • DHL
- • FedEx Express
- • Skynet Worldwide Express
- • TNT Courier Service
- • UPS Courier Service
- • ZIM Integrated Shipping Services Ltd.
- • Correios
- • Emirates Post Group
- • Aramex
- • Saudi Post
- • Israel Post company
- • FedEx Bahrain
- • Aerospeed Couriers
- • Dawn Wing
- • CourierPlus Nigeria
- • ACE (Africa Courier Express)
- • Mambo Express Courier Ltd
- • Fargo Courier Ltd
- • Eagle Express Limited
- • Advanced Courier & Logistics Ltd
- • DHL International (Nigeria) Ltd.
- • United Parcel Service Nigeria Ltd.