Express Delivery Services
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 North American market is expected to reach about $94.9 billion by 2027, according to Research and Markets. Globally, the express delivery market is expected to reach about $484.4 billion by 2030 as a result of developing e-commerce and growth in international trade services, according to PR News Wire.
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 to entry into the industry vary. National and international delivery services require heavy capital investments in vehicles, material handling equipment, and other technology. Conversely, barriers are low for local market service providers, which rely primarily on labor.
In addition to other public and private business, express delivery services compete against services offered by government-owned postal operators. China Post, Japan Post, La Poste, and the United States Postal Service (USPS) all offer express service.
Products, Operations & Technology
The express delivery primarily industry transports small parcels handled by a single delivery person without the use of special equipment. This differentiates
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