The research study covers the present scenario and growth prospects of the global CEP market for 2016-2020. To calculate the market size, we have considered the revenue generated by the vendors that provide CEP services.
The market for business-to-consumer (B2C) and business-to-business (B2B) is expected to increase tremendously during the forecast period. This is attributable to an increased number of service providers, improved transit time, and value added services. With the advent of the Internet, the online shopping or e-commerce market saw a tremendous growth. Due to which, the weight per shipment in CEP market has decreased when compared to the B2B orders.
Technavio transportation and logistics analysts highlight the following three factors that are contributing to the growth of the global CEP market:
- Growing e-commerce market
- Booming manufacturing sector
- Increased value-added services
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Growing e-commerce market
Urbanization and increased disposable income of consumers are influencing the retail sector, which is resulting in the expansion of well-organized retail spaces. The scenario is prominent, especially in the e-commerce market, which is growing rapidly in most regions, fostered by the increased adoption of Internet and mobile services.
Sharan Raj, a lead logistics analyst at Technavio, says, “The growth in the e-commerce industry is expected to give rise to an intense competition in the CEP market as the pricing pressure increases. North America, which includes the US and Canada as the leading regions in business-to-consumer (B2C) e-commerce sales, accounts for around one-third of the digital purchases worldwide. The US accounts for more than 60% of the total e-commerce market in North America.”
This increase in e-commerce trade over online portals has driven the growth of global CEP market. The various e-commerce activities such as online shopping through e-retail portals is expected to fuel the market growth during the forecast period.
Booming manufacturing sector
The revival of the manufacturing sector and the expected economic expansion worldwide will drive the demand for the CEP segment. The growth in automobile production, electronic product shipments, and food and beverages is poised to benefit the CEP industry for the delivery of goods.
“APAC is the prominent region in the global manufacturing market. Malaysia holds the first position in the global manufacturing market followed by Taiwan, Korea, Thailand, and China. China manufactures 70% of the world mobile phones, 80% of the air conditioners, and 60% of the shoes globally, which generate huge revenue for the manufacturing market in APAC,” adds Sharan.
There is high demand for e-commerce shopping from developing countries such as China and India. These countries are witnessing increased penetration of technology, availability of multiple online payment options, changing consumer lifestyles, increased awareness of global brands, and changes in sociocultural conditions.
Increased value-added services
Currently, the vendors in the CEP market are focusing on providing value-added services such as the assortment and grading of products, packaging, management information system (MIS) services in the logistics supply chain, mobile tracking applications, online tracking of parcels, SMS and e-mail alerts, other legal formalities necessary in the process, and hub-to-spoke collection centers.
There are very few players in the market that provide one-stop solutions. The market is witnessing a trend where businesses prefer third-party logistics (3PL) providers that provide a one-stop shipping solution and avoid the concerns associated with outsourcing different tasks to different vendors.
- A-1 Express
- BDP International
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