Couriers & Local Delivery Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS 49222Revenue
$165.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
1m
Businesses
393k
Wages
$XX.Xbn
Couriers & Local Delivery Services in the US industry analysis
The industry comprises two segments: larger couriers and smaller local delivery companies. Together, these segments cater to various consumers, with demand for each segment differing based on the services offered. Specifically, downstream demand for courier services comes from manufacturers and retailers across the country, while demand for local delivery services is derived from households and other local markets. Although the markets for each segment differ, demand for each segment tends to fluctuate in line with consumer spending, the number of businesses and e-commerce sales, all of which have grown in recent years. The onset of the COVID-19 pandemic exacerbated the already strong trend away from brick-and-mortar stores and toward e-commerce platforms, increasing demand for delivery services. As a result, industry revenue is expected to grow at a CAGR of 5.9% to $165.1 billion over the past five years, including an increase of 4.1% in 2023 alone.
Trends and Insights
- Post-pandemic economic growth has boosted revenue growth. Consumer spending and per capita disposable income have increased while unemployment has also declined.
- Consumer preferences have shifted in favor of more efficient ground transport. As a result, ground delivery services account for the biggest chunk of revenue.
- High-population areas have the highest demand for industry services. High competition in these areas also drives innovation.
- Consumers choose a company based on price and service quality. This is because customers have limited delivery options.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 5.9 % over the past five years, to reach an estimated $165.1bn in 2023.
Trends and Insights
Post-pandemic stabilizing economic conditions have boosted revenue growth
- Consumer spending has trended upward in response to an increase in per capita disposable income and a decrease in unemployment in the last few years.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Competition and environmental regulation will tighten in the coming years
- Competition from substitutes including the US Postal Service and Amazon.com, will negatively affect industry performance in the coming years. Amazon is able to provide most goods for consumer and deliver them next day, giving a clear advantage over industry operators, as this service is usually free with a monthly subscription.
Biggest companies in the Couriers & Local Delivery Services in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
United Parcel Service, Inc. | 72,390.0 | 8,078.2 | 11.2 | |
FedEx Corporation | 31,574.2 | 2,470.5 | 7.8 | |
Deutsche Post Ag | 2,651.2 | 144.2 | 5.4 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Couriers & Local Delivery Services in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Air transit services, Ground deliveries and Other services including messengers and local deliveries. Air transit services is the largest segment of the Couriers & Local Delivery Services in the US.
Trends and Insights
Ground delivery accounts for more than 60.0% of industry revenue
- Many companies in this segment have multiple lines of business, including bus lines, messenger services, armored car services, food product delivery companies and specialized bank document couriers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Postal Service in the US
Complementors
- Local Freight Trucking in the US
- Long-Distance Freight Trucking in the US
- Local Specialized Freight Trucking in the US
International industries
- Global Courier & Delivery Services
- Couriers & Local Delivery Services in Canada
- Courier Pick-up and Delivery Services in Australia
- Postal and Courier Pick-up and Delivery Services in New Zealand
- Postal & Courier Activities in the UK
Table of Contents
About this industry
Industry definition
This report combines two segments: couriers and local delivery services. Operators in the couriers segment primarily engage in delivery services between urban centers using a network of air and surface transportation systems. Conversely, operators in the local delivery services segment provide delivery services within a single urban area and are excluded from courier networks.
What's included in this industry?
Providing air courier servicesProviding general courier services (intercity network)Providing local letter and parcel delivery services (intercity network and non-intercity network services)Providing messenger servicesServing as bicycle couriersProviding grocery delivery services (i.e. independent service from grocery store)Providing restaurant meal delivery services (i.e. independent delivery services)Providing alcoholic beverage delivery servicesCompanies
United Parcel Service, Inc.FedEx CorporationDeutsche Post AgPurchase this report to view all 4 major companies in this industry.
Related Terms
COURIER SERVICELOCAL MESSENGERSEXPRESS DELIVERYIndustry Code
NAICS 492110 - Couriers & Local Delivery Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Post-pandemic economic growth has boosted revenue growth. Consumer spending and per capita disposable income have increased while unemployment has also declined.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consumer preferences have shifted in favor of more efficient ground transport. As a result, ground delivery services account for the biggest chunk of revenue.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
High-population areas have the highest demand for industry services. High competition in these areas also drives innovation.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consumers choose a company based on price and service quality. This is because customers have limited delivery options.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
This industry is dominated by UPS and FedEx. These two companies account for more than 73.0% of the market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of United Parcel Service, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of FedEx Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Deutsche Post Ag's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for United Parcel Service, Inc., and factors influencing its performance in the industry
- Description and key data for FedEx Corporation, and factors influencing its performance in the industry
- Description and key data for Deutsche Post Ag, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Demand for shipping services increases during holidays, proving to be more cyclical than anything. Thus retailers and e-commerce businesses endure a surge in orders for gifts...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Larger companies control costs by implementing automation technology. Smaller companies may not have access to automation technology.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Couriers & Local Delivery Services in the US industry in United States in 2024?
The market size of the Couriers & Local Delivery Services in the US industry in United States is $165.1bn in 2024.
How many businesses are there in the Couriers & Local Delivery Services in the US industry in 2023?
There are 393k businesses in the Couriers & Local Delivery Services in the US industry in United States, which has grown at a CAGR of 1.2 % between 2018 and 2023.
Has the Couriers & Local Delivery Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Couriers & Local Delivery Services in the US industry in United States has been growing at a CAGR of 5.9 % between 2018 and 2023.
What is the forecast growth of the Couriers & Local Delivery Services in the US industry in United States over the next 5 years?
Over the next five years, the Couriers & Local Delivery Services in the US industry in United States is expected to grow.
What are the biggest companies in the Couriers & Local Delivery Services in the US market in United States?
The biggest companies operating in the Couriers & Local Delivery Services market in United States are United Parcel Service, Inc., FedEx Corporation and Deutsche Post Ag
What does the Couriers & Local Delivery Services in the US in United States include?
Providing air courier services and Providing general courier services (intercity network) are part of the Couriers & Local Delivery Services in the US industry.
Which companies have the highest market share in the Couriers & Local Delivery Services in the US in United States?
The company holding the most market share in United States is United Parcel Service, Inc..
How competitive is the Couriers & Local Delivery Services in the US industry in United States?
The level of competition is high and steady in the Couriers & Local Delivery Services in the US industry in United States.
