Express Delivery Services Industry Profile

Companies in this industry provide express delivery and pickup of parcels. Major companies include US-based FedEx and UPS; as well as Aramex (United Arab Emirates); DHL (Germany); and Yamato Transport (Japan).

The express delivery market size was valued at about $320 billion in 2023 and is forecasted to grow at a compound annual growth rate (CAGR) of over 6% between 2024 and 2032, according to the Global Market Insights. North America is the fastest growing market while Asia Pacific is the largest market.

The US express delivery services industry includes about 14,500 establishments (single-location firms and units of multi-location firms) with combined annual revenue of about $90 billion.

COMPETITIVE LANDSCAPE

Demand is driven by business transactions and online consumer spending. The profitability of individual companies depends on price, reliability, quality, and services. Large companies compete by offering a wide range of services. Small companies compete through specialized customer service. The industry is divided into two segments: large networked couriers capable of nationwide and international delivery, and smaller local services that transport packages within a metropolitan area. The courier segment of the US industry is highly concentrated with the top 50 companies accounting for about 95% of the industry's revenue; United Parcel Service (UPS) and Federal Express (FedEx) dominate the market. The local segment, which is much smaller, is fragmented with the top 50 companies accounting for about 45% of the industry revenue.

Barriers ...