Report sees continued growth for courier sector
20 / 07 / 2016
Growing demand for urgent and timed delivery will boost the turnover of the global courier industry to $66bn by 2021, according to new research by financial consultants, Ngenko Investments.
The report, Global Courier Industry Analysis, sees particularly strong demand from the pharmaceutical, banking, garments, fast-moving consumer goods, IT and automotive industries.
New technology will also play an important part in the industry’s growth. RFID (radio frequency identification) inventory management, robotic warehousing, real-time monitoring and temperature-controlled for segments such as pharmaceuticals and the healthcare industry are all expected to drive growth.
Currently, though, the industry consists of large organized entities and medium to small-unorganized service providers. The organized segment accounts for over two-thirds of the revenue generated as they have national and international cross-border supply networks and delivery reach.
Some of the key international larger entities include DHL, FedEx, UPS in the global context and, in India, GATI and BlueDart.
The industry primarily focuses on medium to small deliverable parcels, electronic equipment, samples or parts. Revenue generated in 2015 by document shipments was larger due to the sheer volume of deliveries.
North America and Europe account for over two-thirds of present revenue but developing economies in Asia Pacific, Middle East and Africa have considerable growth potential to 2021 as networks expand into those regions.