The global supply chain is at risk in its recovery phase of the Covid-19 pandemic. Few of the many obstacles that the global supply chain is facing include trade barriers, shortages of raw materials and labour.
However, many companies have now resumed trading and new trade lanes have become a priority in the global market. Even when the world was battling with the Covid-19 pandemic, thankfully, the global logistics market will reach $5.2 trillion in 2020. According to an IMARC Group report, by 2026, the global logistic markets will hit $6.9 USD by 2026.
Couriers And Messengers Global Market Report 2021
According to the market report by Couriers and Messengers Global Market Report of 2021 that has been published by The Business Research Company, the couriers and messengers market can expect a compound annual growth of 11% through 2025.
The growth of the couriers and messengers can be attributed to the fact that companies are rearranging how they operate in the post-Covid world to survive. When the retail market was shut down to avoid the spread of the Covid virus, the eCommerce segment grew to fulfill the basic requirements of the people.
Along with the growth of the eCommerce segment, the logistics sector also shows mutual growth. Logistics companies like YunExpress, ePacket and DHL were still working to ensure that the products reached the customers in their doorstep in as little time as possible.
Even though the logistic sectors faced some disruption due to the different rules of different regions in their functioning, they still continued to function and the growth of the couriers and the messenger companies is the result of the same.
The couriers and messenger market generally consist of its sales and related goods, which when transferred, allows the users to track and further guarantees express delivery within the city, country and of course, through the international geographies too.
Impact of Covid-19 On Logistics Sector
The impact of Covid-19 on the logistics sector is peculiar in the sense that when many sectors were suffering losses due to the disruption caused by the virus, eCommerce actually managed to grow at a rate of 13% in 2020. However, there is a geographic disparity in the same as the Eurozone and Asian economies actually contracted.
The importance of the eCommerce and logistic sector is now realized, and there is the focus to work on the infrastructural development in the same. With this new focus, the sector is projected to show good growth. Currently, the top five 2021 emerging markets logistics index has placed China, India, Indonesia, UAE and Malaysia in the top positions followed by Saudi Arabia, Mexico, Vietnam, Qatar and Turkey.
What Are The Different Market Segments of the Logistics Sector?
By large, the market segment of the logistic sector can be divided into four categories. By type, there are domestic couriers and international couriers. If the parameter of the end-user is considered, B2B, B2C and others lie in it.
By coverage, the different types of delivery services included are local messengers and local delivery, couriers and express delivery systems. Further, by geography, the couriers and messengers market can be segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Currently, the largest share of the global couriers and messengers market lies in the Asia-Pacific region.
What’s In Store For The Logistics Sector?
Even though the logistic sector grew, it still will be in the recovery phase till 2022. An exception for the same is available for the region of Asia, Europe and North America that is expecting a recovery in the sector this year itself.
With the global economy opening up, an increased focus is provided to the infrastructure of railways, roads, ports and maritime and this will help the logistic sector to grow tremendously. In addition to that, the trade barriers are also being minimized for the development of all the countries.
Currently, Asia Pacific dominates the logistic sector with a 35$ share in it, followed by North America that accounts for 26% in the logistic sector. For improving efficiency in the logistic sector, courier and express delivery services have started working on automated parcel terminals.
The implementation of the same will reduce the cost of the last mile delivery and will further improve the network of the delivery services. Currently, it is extensively used in Europe and hopefully, other regions will start using it to grow further.