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The global express parcels market is expected to grow 9.2% in 2024, according to a report from Ti Insight
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The market will reach €565,962 million in 2024, driven by e-commerce growth
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The top three companies in parcel delivery remain UPS, FedEx, and DHL
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Parcel carriers are no longer able to maintain revenues through price management, as has been the case in the latter part of 2022 and into 2023
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There is regional disparity in parcel market growth between North America, Europe and Asia Pacific
The global express parcels market is expected to grow 9.2% in 2024 to €565,962 million (about US$629.443 million) this year, driven by e-commerce growth, according to a report from Ti Insight.
Ti Insight’s Express and Small Parcels 2024 report shows a situation where parcel carriers are no longer able to maintain revenues through price management, as has been the case in the latter part of 2022 and into 2023.
The top three companies in parcel delivery remain UPS, FedEx, and DHL, with smaller firms like SF Express, La Poste, and Yamato experiencing relatively lower growth rates or declines. This suggests potential challenges in maintaining market share against the larger competitors.
In developed economies, in particular, carriers are posting data that show a decline in both volume and revenue for some of their service lines. In some regions, this means a shift away from premium services to standard services.
Ti Research Analyst Nia Hudson said: “Emerging markets are really driving growth in the global parcel market, somewhat offsetting poor performance in European markets.”
She added that North America stands somewhere in the middle, having experienced a resumption of growth in 2023 following a slight decline in 2022.
Hudson said, “We’re expecting a significant jump in 2024 of 9.2 percent year-on-year, driven by e-commerce amid declining inflation and a normalized economy.”
Ti market data indicates there is regional disparity in parcel market growth between North America, Europe, and Asia Pacific. This means the market cannot be viewed as a whole without understanding the contributions of the different regions.
At a high level, the global parcel market’s value growth of 3.8 percent last year was supported by China and Asian Pacific.
This year, the market is expected to expand at a faster rate as cross-border e-commerce and international trade grows in importance, said the Ti report.
However, the domestic parcel market will still dominate the industry.
Meanwhile, B2C is expected to continue dominating the B2B market.
The forecast for global parcel volumes shows a continued strong growth trajectory from 2023 all the way to 2028.
READ: Global express market to grow at CAGR of 7.5% in 2020-2024
