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The global express and small parcels market expanded 7.9% year on year in 2024 and further growth of 7.9% is projected by 2029, according to Ti Insight
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E-commerce continues to be a steady driver with the business-to-customer sector accounting for 61% of last year’s total demand
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Asia Pacific is the leading region with its express parcel market seen to grow 10.6% by 2029
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Other developments that will influence the industry include Amazon’s delivery network expansion, China’s express sector, and out-of-home delivery options
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The US tariff impact may prompt a gradual shift toward more regionalized models
The global express and small parcels market expanded 7.9% year on year in 2024 and further growth of 7.9% is projected by 2029, according to Ti Insight.
In its Express and Small Parcels 2025 report released this week, the global logistics industry market research firm said e-commerce continues to be a steady driver with the business-to-customer sector accounting for 61% of last year’s total demand.
“After the exceptional volatility of the pandemic years, the global parcels market has now entered a period of measured, structural expansion,” said Ti research analyst Paul Chapman in a press release.
“Growth is being driven primarily by Asia Pacific, where e-commerce volumes continue to surge, while North America and Europe are settling into more mature, efficiency-led trajectories,” he said.
The express parcel market in Asia Pacific is seen to grow 10.6% by 2029.
Apart from e-commerce, the report cited several developments that will influence industry growth.
These include Amazon’s delivery network expansion, China’s express sector that has reached extraordinary scale, and out-of-home delivery options that are reshaping the economics of the last mile.
READ: Amazon taps FedEx for large package deliveries
The disruption caused by US tariff policy has affected key trade lanes and may prompt a gradual shift toward more regionalized models across major markets.
“The next phase of market development will be defined by structural, not cyclical, forces. Growth will increasingly depend on digitalization, cross-border trade innovation, and the industry’s ability to balance capacity investment with environmental and regulatory pressures,” according to the Ti Insight report.
“Measured expansion and operational consolidation define the market as operators focus less on raw volume growth and more on profitability, network optimization, and service differentiation,” it added.
The report noted that companies have been investing heavily in technology to streamline performance, reduce emissions, and enhance visibility.
There is also wider competition with the entry of new players, regional specialists, and platform-driven delivery models that are challenging established integrators and postal operators which are commonly state-owned.
“Despite tariff headwinds and inflationary pressures, the industry’s fundamentals remain strong, supported by domestic network density, digitalisation, and the ongoing rise of cross-border e-commerce,” Chapman said.
READ: Global express, small parcel market seen to grow by 9.2% in 2024
