New research from logistics and supply chain consultancy Transport Intelligence (Ti) has found that the global parcels market grew to a value of €306.2bn (US$341.3bn) in 2018 as domestic market growth of 8.8% outpaced international growth of 6.9%. E-commerce continued to be a key driver in both the domestic and international markets.
Ti expects market growth to slow in 2019, with the international market slowing most significantly with a forecast expansion of 5.5%. Uncertainty in the global economic environment is also weighing down growth over the medium-term, with Ti forecasting a real 2018-2023 CAGR of 7.8%.
“The growth rates for 2018 show a steady decline from 2017, which was a bumper year for the global economy,” said Andy Ralls, quantitative analyst at Ti. “Into 2019 we expect the market to slow further, as macroeconomic conditions have clearly worsened. Nonetheless there are significant bright spots for the express market, not least in e-commerce. Despite conditions softening, the unique market conditions in China mean it once again stands out as a major driver of global growth.”
Ti’s Global Express and Small Parcels 2019 report examines current market challenges and assessed the opportunities for growth in alternative delivery networks and cross-border B2C e-commerce.