According to a new report from The Insight Partners, the global courier, express and parcel (CEP) market is seeing healthy growth, and is predicted to reach a value of US$595.32bn by 2031 with an expected CAGR of 8.5%.

According to the Courier Express and Parcel Market Overview, Growth, and Trends (2021-2031) report, key drivers include the booming e-commerce industry, growing demand for same day and express delivery, and the growing demand for last-mile delivery that caters to the call for quick commerce services at local levels. Retailers are increasingly partnering with CEP providers to offer seamless delivery experiences, and this has prompted significant investments in logistics infrastructure, particularly in emerging markets where e-commerce penetration is rapidly increasing.

Consumer demand

The report suggests that consumer expectations for delivery speed continue to escalate, with same-day and express delivery becoming standard in many markets. This trend, initially popularized by Amazon Prime, has now spread across the industry, forcing CEP providers to invest heavily in express delivery capabilities.

The willingness of consumers to pay premiums for expedited delivery has created lucrative segments within the CEP market. Businesses are increasingly using express delivery as a competitive advantage, particularly in sectors like food delivery, grocery, pharmaceuticals and high-value retail.

According to the report, this has fueled investments in dense urban delivery networks, micro-fulfillment centers and dark stores to enable faster delivery timeframes. The growth in express delivery has also driven changes in sorting technology, vehicle fleets and delivery scheduling to accommodate tighter delivery windows.

Convergence of B2C and B2B services

Traditionally distinct B2C and B2B delivery networks are increasingly converging as CEP companies, the report states, with B2B delivery expertise in areas like scheduled deliveries, specialized handling and time-definite services being adapted for premium B2C segments.

Simultaneously, B2C capabilities in last-mile optimization, customer communication and flexible delivery options are enhancing B2B service offerings. This convergence is enabling CEP companies to use assets more efficiently across business lines and throughout the day. It is also creating competitive advantages for integrated providers who can offer comprehensive solutions spanning both B2B and B2C needs.

According to The Insight Partners, this trend is particularly evident in urban operations where density and asset utilization are critical to profitability. The operational boundaries between business and consumer deliveries will continue to blur as companies optimize across their entire customer base.

Author Credits- HAZEL KING, Parcel and postal technology INTERNATIONAL