Package Delivery Industry
In 2018, the global package delivery industry was valued between $325 to $360+ billion; the industry is projected to reach $400 billion by 2024. Further, the package delivery industry has grown from $89 billion in 1998 to over $360 billion in 2019, registering a CAGR of 6.9%. The top companies with the largest market share include DHL at 39%, followed by FedEx at 30%, UPS at 22%, and others at 9% market share.
Global Parcel Delivery Market Size: 2018-2019
- According to the 2019 reports by IBISWorld, Beroe Inc, and Statista, the global industry revenue is estimated to be about $325 billion, $336 billion, and $361.59 billion, respectively.
- In 2019, the global package delivery industry comprised 580,947 businesses, employing a workforce of 4,143,071 individuals.
Industry Projections: 2019-2025
- The Pitney Bowes report forecasts volume growth at 13.7% (CAGR) between 2019-2023 and projects to cross 200 billion parcels annually by 2025.
- According to Mordor Intelligence, the global courier, express, and parcel (CEP) market will reach $400 billion by 2024, growing at a CAGR of 8-10% (2019-2024).
- According to the Pitney Bowes Parcel Shipping Index report, the global parcel volume was 74 billion in 2017 and reached 87 billion in 2018, registering a growth of 17.56%.
Industry Growth: 1998-2019
- The package delivery industry has grown from $89 billion in 1998 to $361.59 billion in 2019. The sector expanded at an average annualized growth rate of 6.9% from 1998 to 2019, i.e., over a period of 21 years.
- The annual revenue generated by the package delivery industry from 1998 to 2019 is presented below:
- 2019: €330.34 ($361.59) billion; annual GR%: 7.89%
- 2018: €306.18 ($335.15) billion; annual GR%: 8.45%
- 2017: €282.32 ($309.03) billion; annual GR%: 9.59%
- 2016: €257.61 ($282.02) billion; annual GR%: 8.35%
- 2015: €237.74 ($260.27) billion; annual GR%: 7.43%
- 2014: €221.29 ($242.26) billion; annual GR%: 7.95%
- 2013: €204.98 ($224.41) billion; annual GR%: 7.29%
- 2012: €191.04 ($209.15) billion; annual GR%: 7.01%
- 2011: €178.51 ($195.43) billion; annual GR%: 7.16%
- 2010: €166.58 ($182.37) billion; annual GR%: 5.79%
- 2009: €157.45 ($172.37) billion; annual GR%: (-1.5%)
- 2008: $175 billion; average annual GR% (2003-2008): 7%
- 2003: $125 billion; average annual GR% (1998-2003): 6%
- 1998: $89 billion
Global Parcel Delivery Market Share
- In 2018, Asia Pacific held the largest market share at 41%, followed by North America and Europe together at 50%.
- In 2017, the breakup of revenue generated by major regions included Asia-Pacific at $122 billion, North America at $112.7 billion, Europe at $77.2 billion, and Middle East-Asia at $7.4 billion.
- In 2018, the top 13 countries with the highest number of parcel deliveries, generated a revenue of $317 billion. Alternatively, the top-3 countries (China, US, and Japan) accounted for 83% of global parcel delivery volume in 2018.
- China represents about 68% of the total Asia-Pacific market by value. Also, China is the largest market by volume at 51 billion annual parcel deliveries in 2018; it is followed by the US with 13 billion parcel deliveries, Japan with 9 billion deliveries, UK, and Germany with 3.5 billion deliveries each.
- The United States market revenue stood at $119 billion, followed by China with $91 billion.
- The global package industry comprises integrators having a 37% market share, followed by postal operators with 24% revenue share, and other private-sector carriers having about 39% market share.
Industry Growth Drivers
- According to Apex Insight, one of the main drivers for industry growth is increasing volumes of online retail parcel delivery orders.
- The growing globalization of supply chains with increasing reliance on just-in-time production leading to greater dependence on parcel carriers.
- The developing countries are posting impressive growth due to the increasing international trade volumes, middle-class population, disposal incomes, standards of living, and smartphone penetration.
- According to recent reports by Apex Insight and IBISWorld, the largest global carrier by parcel revenue is UPS, followed by FedEx, Deutsche Post (DHL), and USPS.
- A recent data set published by Statista featured the market share of DHL to be 39% in 2018; FedEx followed it at 30%, UPS at 22%, and others at 9%. Alternatively, UPS held the largest market share of 19.6% in 2014; FedEx followed it at 14.2%, DHL at 9.4%, Yamato Holdings at 4.7%, and TNT express at 3.7%.
- DHL registered the highest growth in market share from 29% in 2010 to 39% in 2018. Alternatively, UPS and other service providers witnessed a market share decline of 1% and 3% during the same period, respectively.
- FedEx held a market share of 29% in 2010, but the company's market share declined to 24% in 2017. Further, the company acquired TNT Express in 2016, resulting in a market share increase to 30% in 2018.
- Top players in the American package delivery industry include FedEx (43%), UPS (33%), DHL (20%), TNT (1%), and others (4%).
- Top players in the European package delivery industry include DHL (44%), UPS (24%), TNT (11%), FedEx (10%), and others (11%).