Higher business activity in emerging economies supported strong revenue growth over most of the past five years
Los Angeles, CA (PRWEB) July 07, 2012
The Global Courier and Delivery Services industry is estimated to grow at a stagnant annualized 0.1% over the five years through 2012 to reach $188.5 billion. Higher business activity in emerging economies and demand for time-sensitive goods supported strong revenue growth over most of the past five years. However, revenue collapsed in 2009 and remained weak in 2010 as the global economic downturn diminished demand for courier services. Global business conditions have stabilized since. However, sovereign debt concerns in Europe and North America continue to dampen consumer and business sentiment. The uncertainty, along with higher fuel costs pushing up service prices, will contribute to the slow pace of industry growth in 2012 according to IBISWorld industry analyst Aries Nuguid.
Operating profit margins for the Global Courier and Delivery Services industry are an estimated 8.3% in 2012, recovering from an estimated 1.3% profit margin in 2008, when fuel prices reached record highs and the global economic downturn took hold, says Nuguid. The cost of oil soared over the past five years. Many major operators introduced fuel surcharges to cover higher fuel prices, but the small operators, with no or little market power, form the majority of the global industry. As such, small companies had reduced ability to pass on increased costs as fuel surcharges, which pressured industry profits.
IBISWorld estimates that industry revenue will grow over the five years through 2017. Demand for high-end, time-sensitive goods will increase. Many manufacturers will use air transport to ensure that their products reach customers on time. The development of global e-commerce and manufacturing trends such as just-in-time delivery, which requires materials to be shipped to strict timeframes, will back growth in courier revenue. IBISWorld estimates that the top four industry players accounted for more than half of global industry sales, giving the industry a medium level of concentration. For more information, visit IBISWorld’s Global Courier & Delivery Services industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments primarily engaged in providing air, surface, or combined express courier delivery services of parcels, documents and packages generally between metropolitan areas or urban centers. The establishments of this industry form a network including courier local pick-up and delivery to serve their customers needs. It excludes services provided by the National Postal Service and commercial airlines (H4832 - Global Air Freight Logistics).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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