Couriers and Local Delivery Services in Canada Industry Market Research Report Now Available from IBISWorld

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Higher consumer spending led to increased business activity, benefiting demand. For this reason, industry research firm IBISWorld has added a report on the Couriers and Local Delivery Services industry to its growing industry report collection.

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Revenue growth will be driven by the courier segment, which will benefit from increased business activity

The Couriers and Local Delivery Services industry is comprises two segments: large couriers and small local delivery companies. Together these segments cater to a wide variety of consumers, with demand for each segment differing based on the services offered. Specifically, downstream demand for courier services stems from manufacturers, households and retailers across the county, while demand for local delivery services is derived from local businesses and individuals. While the market for these two segments differ, demand tends to be cyclical. Over the five years to 2014, consumer spending increased despite lingering effects from the recession and concerns over a real estate bubble. According to IBISWorld Industry Analyst Daniel Carusotto, “Higher consumer spending led to increased business activity and effectively benefited demand for industry services.” As a result, IBISWorld expects industry revenue to increase at an annualized rate of 1.6% to $9.7 billion over the five-year period, including growth of 1.4% in 2014 alone.

While the rise of the internet and e-commerce has affected many industries, the effect on the Couriers and Local Delivery Services industry has been especially impactful. E-commerce sales have been increasing over the five years to 2014, and are expected to continue doing so in the next five years. Increased sales have led to heightened demand for courier services to deliver products from online businesses to consumers, effectively helping drive industry revenue. On the other hand, digitization of documents and e-mail have greatly reduced the need for local messengers delivering contracts, invoices, magazines and other physical items. As a result, the local deliveries segment is expected to struggle going forward.

In the coming five years, the Couriers and Local Delivery Services industry is expected to perform well. “Revenue growth will largely be driven by the courier segment, which will benefit from increased business activity resulting from an improving global economy,” says Carusotto. In addition, e-commerce and digitization will continue to benefit couriers while reducing demand for most of the local deliveries market. Competition within the courier market will be intense; as a result, couriers such as UPS will look to expand to new markets, such as to the healthcare sector.

For more information, visit IBISWorld’s Couriers and Local Delivery Services in Canada industry report page.

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IBISWorld industry Report Key Topics

This report combines two separate industries: Couriers (NAICS 49211) and Local Messengers and Delivery Services (NAICS 49221). Couriers are establishments that primarily engage in delivery services between urban centres 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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