Logistics market research company Ti Insight has released its Express and Small Parcels 2024 report, which reveals that the express and small parcel market will grow by 9.2% year on year (YoY).
In the report, Ti forecasts that the global express parcels market will reach €565.9bn (US$630bn) in 2024. The market will continue to be driven by e-commerce growth. Forecasting to 2028, the global parcels market is expected to reach €736.6bn (US$820bn), growing at a five-year CAGR of 7.3% between 2023 and 2028.
The global international parcel market is expected to expand at a faster rate in 2024 as cross-border e-commerce and international trade grow in importance. Despite this, the domestic parcel market will continue to dominate the market. Additionally, B2C is expected to continue dominating over the B2B market. Ti’s forecast data for global parcel volumes shows a continued strong growth trajectory from 2023 to 2028.
UPS, FedEx, and DHL maintained their positions as the top three players in the parcel delivery market. Smaller companies like SF Express, La Poste, and Yamato experienced relatively lower growth rates or declines, suggesting potential challenges in maintaining market share against larger competitors.
The Express and Small Parcels 2024 Report is written by industry researchers and analysts and uses data from Ti’s GSCi knowledge portal, a data source with over one million pieces of data and analysis.
The report also 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. It also found that carriers are posting data that show a decline in both volume and revenue for some of their service lines – particularly in developed economies. For some regions, this largely means a shift away from premium services to deferred or standard services.
According to Ti market data, there is a regional disparity in parcel market growth between North America, Europe and Asia-Pacific. At a high level, global parcel market value growth at 3.8% in 2023 was found to be supported by Asia-Pacific and China.
Nia Hudson, research analyst at Ti, said, “Emerging markets are really driving growth in the global parcel market, somewhat offsetting poor performance in European markets. North America sits somewhere in the middle, having experienced a resumption of growth in 2023 (3.2%) following a slight decline in 2022. We’re expecting a significant jump in growth in 2024 of 9.2% YoY (2023: 3.8%), driven by e-commerce amid declining inflation and a normalized economy.”
The full report – available here – also analyses the competitive landscape in the Contract Logistics market and offers in-depth market projections and forecasts.