Smartphones and Internet penetration speeds Express Delivery Services
Dec 13, 2022 – The prevalence of smartphones and rising Internet penetration rates around the world have hastened the development of the express delivery logistics segment, as consumers and businesses turn online for purchasing.
Worldwide, the express delivery market is expected to grow at a pace reflecting its name, with an annual growth rate of over 6% from 2022 to 2028. Much of this growth will be driven by China, the largest regional market in the world since 2013. China’s express delivery industry handled over 83 billion packages in 2020, a year-on-year increase of 30.8%. The largest e-commerce platform, Alibaba, has 4.5 million active sellers, and nine in 10 e-commerce sales in the country are done through mobile devices.
China’s courier, express and parcel (CEP) market is forecasted to grow at more than 7% annually between 2022 and 2027.
While the future looks rosy for the sector, challenges remain worldwide. As more players enter the market, growing competition is expected to fragment market structures. Many players will likely buckle under a lack of infrastructure and funds to develop their supply chains, and employ more staff and assets such as delivery drivers and vehicles.
With China so preponderant in the courier, express and parcel, CEP, market, how will logistics players in other countries evolve to compete?
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