Tight ship: Rising e-commerce and declining brick-and-mortar stores will benefit operators

Over the past five years, many developments in the e-commerce and online retailing space have driven growth in the Couriers and Local Delivery Services industry. Downstream demand for industry services from major online retailers have increased due to increased consumer spending, which has supported industry revenue growth. Over the five years to 2022, the industry is expected to build on its momentum from the past five years moving forward. Factors that historically help boost demand for industry services, such as increases in consumer spending, corporate profit and the number of US businesses, are expected to and help fuel revenue growth over the next five years...read more.

Industry Statistics & Market Size
Revenue
$93bn
Annual Growth 12-17
3.2%
Forecast Growth 17-22
Profit
Employment
839,673
Businesses
197,382
What Our Customers Say

Industry Threats & Opportunities

  • Developments in the e-commerce and online retailing space have driven growth in this industry
  • The USPS charges competitive rates compared with most privately held courier companies
  • Companies will continue to lower prices or attempt to broaden market share
  • Industry Report - Industry Analysis Chapter

    The Couriers and Local Delivery Services industry comprises large couriers and smaller local delivery companies, each with distinct operating conditions. Large couriers use a network of air and surface transportation systems to provide delivery services nationwide, while local messengers only provide delivery services within a single urban area. Both segments provide services for a diversified customer base in an effort to shield demand from a downturn in any one specific market.Demand for this industry largely depends on consumer spending, corporate profit and e-commerce. Over the past five years, consumer spending has trended upward due to an increase in per capita disposable income and a decrease in unemployment. The...purchase to read more.

    Additional Insights for the Couriers & Local Delivery Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Couriers & Local Delivery Services Industry are

  • Effective quality control
  • Differentiating services from competitors
  • Ability to pass on cost increases to clients
  • IBISWorld analysts also discuss how external factors such as Corporate profit and commerce sales in the Couriers & Local Delivery Services industry impact industry performance..

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    What is the Couriers & Local Delivery Services Industry?

    This report combines two separate industries, namely Couriers and Local Messengers and Delivery Services. Couriers are establishments that primarily engage in delivery services between urban centers using a network of air and surface transportation systems. In contrast, local messengers provide delivery services within a single urban area and are excluded from courier networks.

    Industry Products
  • Air Transit Services
  • Ground deliveries
  • Other services including Messengers and local deliveries
  • Industry Activities
  • Providing air courier services
  • Providing general courier services (intercity network)
  • Providing local letter and parcel delivery services (intercity network and non-intercity network services)
  • Providing messenger services
  • Serving as bicycle couriers
  • Providing grocery delivery services (i.e. independent service from grocery store)
  • Providing restaurant meal delivery services (i.e. independent delivery services)
  • Providing alcoholic beverage delivery services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • commerce sales
  • Consumer spending
  • Number of businesses

  • Current Performance
  • Business customers drive demand
  • Competition persists
  • Growing e-commerce
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition and environmental regulation
  • E-commerce will become the most important market
  • Industry profit
  • Table: Couriers & Local Delivery Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Couriers & Local Delivery Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Finance and Insurance
  • Professional, Scientific and Technical Services

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul
  • Bicycle Dealership and Repair
  • Boat Dealership and Repair
  • Fuel Dealers
  • Motorcycle Dealership and Repair
  • Oil Change Services

  • Products & Services
  • Ground deliveries
  • Air Transit Services
  • Other services including Messengers and local deliveries
  • Chart: Couriers & Local Delivery Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Business to Consumers including Households
  • Business to Business
  • All Other
  • Chart: Major Market Segmentation for the Couriers & Local Delivery Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationRent and utilitiesMarketingOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Couriers & Local Delivery Services

  • Basis of Competition
  • Large couriers
  • Local couriers

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Couriers & Local Delivery Services Industry

  • Industry Globalization
    United Parcel Service Inc.FedEx Corporation
  • Table: United Parcel Service Inc. - financial performance
  • Table: FedEx Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Couriers & Local Delivery Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Couriers & Local Delivery Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer Spending (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Courier Service
  • Fast, door-to-door, local or international pickup and delivery service of letters and goods that uses a network of transportation systems, including air and ground transportation.
  • Express Delivery
  • A courier service that guarantees quick delivery, mainly next-business-day or two-day service.
  • Local Messengers
  • Companies that deliver small items within a single metropolitan area.
  • Why buy this report?

    IBISWorld’s industry research report on Couriers & Local Delivery Services contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Couriers & Local Delivery Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Couriers & Local Delivery Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Couriers & Local Delivery Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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