Express and Small Parcel Market Size

Express and Small Parcel Market Size

Express and Small Parcel Market was valued at USD 397.2 billion in 2023 and is estimated to register a CAGR of over 5% between 2024 and 2032. The rapid expansion of online shopping especially in the Asia Pacific region has significantly increased the demand for express and small parcel delivery services.

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With a rapidly expanding digital consumer base and increasing internet penetration, online shopping has become a dominant retail channel. This surge in e-commerce has led to higher demand for efficient, reliable, and quick delivery services to meet consumers' expectations for fast shipping. Major players in the market are investing in advanced logistics networks and last-mile delivery solutions to cater to the diverse needs of the region's vast and varied geography.
 

For instance, in May 2024, DHL Express Commerce’s new international returns portal enables small businesses to easily implement a branded returns process on their website within minutes. The fully customizable portal allows e-commerce companies to set their own returns policies, avoid duties and taxes, and streamline the returns process. It is free, simple to set up, and currently used by 4,000 businesses. Further, the rise of mobile commerce and social media platforms is accelerating parcel volumes, making express delivery services crucial. As e-commerce continues to evolve, the express and small parcel market in Asia Pacific is expected to grow, driven by the need for swift and dependable delivery solutions. Moreover, innovations in logistics technology, such as real-time tracking, automated sorting systems, and advanced route optimization algorithms, enhance efficiency and improve delivery speeds, fueling market growth.
 

The final stage of delivery, known as last-mile delivery, is often the most expensive and complex part of the logistics process. High costs are driven by the need for efficient routing, managing urban traffic congestion, and meeting customer expectations for rapid delivery. This can strain operational budgets and reduce profitability for delivery companies. Further navigating varying regulations and compliance requirements across different countries and regions can be challenging. Companies must manage diverse customs regulations, import/export restrictions, and local legal requirements, which can complicate operations and increase the risk of delays and additional costs.