Same-Day Delivery Market: Information by Type (B2B, B2C, and C2C), Service (International and Domestic), and Region (North America, Europe, Asia-Pacific, and Others)—Forecast till 2029

Dec 04, 2020   Market Overview The same-day delivery is defined as the delivery of products in less than 24 hours, preferably within the same day. It integrates the convenience of online retail with the immediacy of brick-and-mortar stores. Same-day delivery offers a broad range of attributes including better customer satisfaction, lower shipping costs, fewer vehicle expenses, increased efficiency, among others. Increasing urbanization, rapid e-commerce adoption, and changing customer expectations towards de...
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Report Description

Market Overview

The same-day delivery is defined as the delivery of products in less than 24 hours, preferably within the same day. It integrates the convenience of online retail with the immediacy of brick-and-mortar stores. Same-day delivery offers a broad range of attributes including better customer satisfaction, lower shipping costs, fewer vehicle expenses, increased efficiency, among others.

Increasing urbanization, rapid e-commerce adoption, and changing customer expectations towards delivery services are the major factors fueling the market growth. However, the need for complex delivery infrastructure, coupled with a high initial investment hinders market growth. The global same-day delivery market was valued USD 4.3 billion in 2019, growing at a CAGR of 19.3% during the forecast period.

Rapid E-commerce Platform Adoption

With the increase in internet connectivity and smartphones adoption over the past few decades, the demand for the e-commerce platform has increased. In today’s scenario consumers opt for convenience shopping, and that is why e-commerce platform has begun to surge across the globe. Moreover, the offering of broad traits such as customized products, huge discounts and benefits, and hustle free delivery of products are some of the factors leading to an increase in adoption of e-commerce platform by consumers. Thus, the above factors lead to the rise in demand for faster connectivity such as IoT warehousing, thereby paving the way for the same delivery services.

Segmental Overview

The global same-day delivery market has been segmented into type and services.

Based on type, the global same-day delivery market has been segmented into B2B, B2C and C2C.

Timely Product Delivery to Boost Global Same-day Delivery Market’s C2C

The B2C segment holds the fastest-growing segment in the same-day delivery market and is expected to witness growth during the forecast period. The increase is attributed to the growing inclination of consumers towards e-commerce platforms. For instance, online e-commerce platforms such as Amazon, Inc. are offering the one-day delivery option to their customers to attract more customers and provide them with a unique buying experience.

Increasinginvestment in the same-day delivery platform by significant players to cater to the increasing demand of consumers is also one of the factors fueling market growth. For instance, in September 2020, Instacart, the North American leader in grocery delivery, and Sephora, the largest prestige beauty Omni-retailer has partnered to offer same-day delivery to its consumers.

The C2C segment is expected to witness significant growth in the years to come owing to the benefits offered by same-day delivery services, such as timely delivery of the product. Additionally, the B2B segment holds a dominant position in terms of revenue and is anticipated to witness growth during the forecast period. The development is owing to the heavier weight of the packages, resulting in high shipping costs of the packages. The B2B segment caters to end-use customers, such as manufacturers, retailers, and wholesalers. The emergence of online B2B e-commerce platforms is positively impacting the market growth.

Service

Based on service, the global same-day delivery market has been segmented into international and domestic.

The international segment holds the fastest-growing segment in the same-day delivery market and is presumed to grow during the forecast period. The growth is attributed to increasing cross-border e-commerce trade. Thus, online sellers offer international shipping to attract audiences from other countries as well. Moreover, increasing import and export policies by the government to allow higher trading business globally is anticipated to fuel the market growth. For instance, in October 2019 Commerce Ministry of India has announced scheme such as EPCG in the next foreign trade policy, which provides incentives for increasing shipments. This enables the increase in cross-broader shipments, thereby enhancing the same-day delivery market.

In terms of revenue, the domestic segment dominated the market with a share of 76.50% in 2019. This growth is attributed owing to the presence of a large number of local e-commerce platforms operating within the country. Moreover, growing internet penetration, coupled with the increasing number of e-shoppers, is anticipated to bolster the segment growth over the forecast period. As shopping decisions of the customers depend on shipping time, the e-commerce platforms have started offering same-day delivery services.

Impact of COVID-19

The impact of COVID-19 has a devastating effect on all industry verticals globally. The growth of same-day delivery has slightly decreased amid pandemic, as governments haveshutdown cross border activities temporarily, travelling and other activities to curb the pandemic. This results in the inability to scale deliveries deliver on same-day delivery expectations, and increasing operational costs that are rapidly feeding into the bottom lines of businesses. However, the domestic e-commerce services of essential commodities have to lead to the survival of companies amid COVID-19.

To manage the situation efficiently, savvy businesses are leveraging advanced crowdsourcing tools,which can be referred to as a process that empowers shippers, retailers, and grocery stores to dodge the middlemen and directly reach out to temporary or part-time delivery executives.

Regional Overview

The Asia Pacific region dominated the market for same-day delivery and is presumed to grow during the forecast period. The growth is attributed to an increasing number of e-commerce companies, coupled with the rising number of online shoppers. Moreover, increasing internet penetration, smartphone adoption, and rapid urbanization are also one of the factors fuelingthe regional market growth. For instance, according to GSMA, it is estimated that the number of smartphone devices in the Asia-Pacific is expected to reach 3,900 billion by 2025. This results in further growth of the e-commerce platform, thereby paving the way for the same-day delivery market.

Increasing investment by global players in developing economies on account of FDI policies to cater to the increasing demand of consumers also leads to the development of the market. For instance, e-commerce marketplace Snapdeal and home-grown autonomous mobility startup Ottonomy IO has partnered for test same-day contactless delivery using robots. This enables the increase in demand for the same day delivery market among the consumers.

North America is expected to witness substantial growth over the forecast period. This growth is attributed to the presence of significant players, such as FedEx, A1 Express Services Inc., and United Parcel Service of America, Inc., in the region. These companies are offering same-day delivery services to expand their service offerings in the region. Moreover, the presence of SMEs, which prefers to adopt innovative services to cater a greater number of consumers’ attractions to compete with major players, also leads to the development of the market.

Increasing penetration of smartphones adoption in the region also paves the way for higher growth of the same-day delivery market. For instance, the following figure depicts the increase in adoption of smartphones users in the U.S. This increase in the adoption of smartphones is expected to escalate the same-day delivery services.

Source: Statista, 2020

Key Development

  • In April 2020, Walmart Inc. has launched Express Delivery a new service that delivers more items from the store than ever before to customers’ doors in less than two hours. This enables Walmart to increase customers integration during Pandemic COVID-19.
  • In September 2019, UPS partnered with online logistics solutions, HubBox to expand e-commerce delivery options for consumers and retailers worldwide.
  • In September 2020, Air City and Seko Logistics partnered to launch international parcel delivery service in the U.S. This new service enables to produce savings of 25-50% compared to the Universal Postal Union (UPU) rates, thereby enhancing customers’ experience.

Key Players

The key players in the global same-day delivery market have adopted organic as well as inorganic growth strategies that include; partnerships and collaborations, product launch, mergers and acquisitions to expand its geographical reach. In June 2020, Walmart Inc. has developed an e-commerce market place by joining forces with Shopify, an all-in-one commerce platform. This enables Walmart to cater more U.S. based small business, thereby increasing its customer’s integration. The other key players involved are; FedEx; A1 Express Services Inc.; United Parcel Service of America, Inc.; Aramex; Deliv; Deutsche Post AG; Courier Express; Jet Delivery, Inc.; Dropof, Inc.; XPO Logistics, Inc.

Global Same-day Delivery Market: Segmentation

By Type

  • B2B
  • B2C
  • C2C

By Service

  • International
  • Domestic

Global Same-day Delivery Market:Regional Segmentation

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • The U.K.
  • Italy
  • France
  • Spain
  • Germany
  • The Rest of Europe

The Middle East and Africa (MEA)

  • Saudi Arabia
  • Egypt
  • South Africa
  • The Rest of MEA

Asia-Pacific

  • India
  • China
  • Japan
  • Australia
  • South Korea
  • The Rest of Asia-Pacific

Central and South America and the Caribbean

  • Colombia
  • Brazil
  • Chile
  • Peru
  • Argentina
  • The Rest of South America

Market Overview

The same-day delivery is defined as the delivery of products in less than 24 hours, preferably within the same day. It integrates the convenience of online retail with the immediacy of brick-and-mortar stores. Same-day delivery offers a broad range of attributes including better customer satisfaction, lower shipping costs, fewer vehicle expenses, increased efficiency, among others.

Increasing urbanization, rapid e-commerce adoption, and changing customer expectations towards delivery services are the major factors fueling the market growth. However, the need for complex delivery infrastructure, coupled with a high initial investment hinders market growth. The global same-day delivery market was valued USD 4.3 billion in 2019, growing at a CAGR of 19.3% during the forecast period.

Rapid E-commerce Platform Adoption

With the increase in internet connectivity and smartphones adoption over the past few decades, the demand for the e-commerce platform has increased. In today’s scenario consumers opt for convenience shopping, and that is why e-commerce platform has begun to surge across the globe. Moreover, the offering of broad traits such as customized products, huge discounts and benefits, and hustle free delivery of products are some of the factors leading to an increase in adoption of e-commerce platform by consumers. Thus, the above factors lead to the rise in demand for faster connectivity such as IoT warehousing, thereby paving the way for the same delivery services.

Segmental Overview

The global same-day delivery market has been segmented into type and services.

Based on type, the global same-day delivery market has been segmented into B2B, B2C and C2C.

Timely Product Delivery to Boost Global Same-day Delivery Market’s C2C

The B2C segment holds the fastest-growing segment in the same-day delivery market and is expected to witness growth during the forecast period. The increase is attributed to the growing inclination of consumers towards e-commerce platforms. For instance, online e-commerce platforms such as Amazon, Inc. are offering the one-day delivery option to their customers to attract more customers and provide them with a unique buying experience.

Increasinginvestment in the same-day delivery platform by significant players to cater to the increasing demand of consumers is also one of the factors fueling market growth. For instance, in September 2020, Instacart, the North American leader in grocery delivery, and Sephora, the largest prestige beauty Omni-retailer has partnered to offer same-day delivery to its consumers.

The C2C segment is expected to witness significant growth in the years to come owing to the benefits offered by same-day delivery services, such as timely delivery of the product. Additionally, the B2B segment holds a dominant position in terms of revenue and is anticipated to witness growth during the forecast period. The development is owing to the heavier weight of the packages, resulting in high shipping costs of the packages. The B2B segment caters to end-use customers, such as manufacturers, retailers, and wholesalers. The emergence of online B2B e-commerce platforms is positively impacting the market growth.

Service

Based on service, the global same-day delivery market has been segmented into international and domestic.

The international segment holds the fastest-growing segment in the same-day delivery market and is presumed to grow during the forecast period. The growth is attributed to increasing cross-border e-commerce trade. Thus, online sellers offer international shipping to attract audiences from other countries as well. Moreover, increasing import and export policies by the government to allow higher trading business globally is anticipated to fuel the market growth. For instance, in October 2019 Commerce Ministry of India has announced scheme such as EPCG in the next foreign trade policy, which provides incentives for increasing shipments. This enables the increase in cross-broader shipments, thereby enhancing the same-day delivery market.

In terms of revenue, the domestic segment dominated the market with a share of 76.50% in 2019. This growth is attributed owing to the presence of a large number of local e-commerce platforms operating within the country. Moreover, growing internet penetration, coupled with the increasing number of e-shoppers, is anticipated to bolster the segment growth over the forecast period. As shopping decisions of the customers depend on shipping time, the e-commerce platforms have started offering same-day delivery services.

Impact of COVID-19

The impact of COVID-19 has a devastating effect on all industry verticals globally. The growth of same-day delivery has slightly decreased amid pandemic, as governments haveshutdown cross border activities temporarily, travelling and other activities to curb the pandemic. This results in the inability to scale deliveries deliver on same-day delivery expectations, and increasing operational costs that are rapidly feeding into the bottom lines of businesses. However, the domestic e-commerce services of essential commodities have to lead to the survival of companies amid COVID-19.

To manage the situation efficiently, savvy businesses are leveraging advanced crowdsourcing tools,which can be referred to as a process that empowers shippers, retailers, and grocery stores to dodge the middlemen and directly reach out to temporary or part-time delivery executives.

Regional Overview

The Asia Pacific region dominated the market for same-day delivery and is presumed to grow during the forecast period. The growth is attributed to an increasing number of e-commerce companies, coupled with the rising number of online shoppers. Moreover, increasing internet penetration, smartphone adoption, and rapid urbanization are also one of the factors fuelingthe regional market growth. For instance, according to GSMA, it is estimated that the number of smartphone devices in the Asia-Pacific is expected to reach 3,900 billion by 2025. This results in further growth of the e-commerce platform, thereby paving the way for the same-day delivery market.

Increasing investment by global players in developing economies on account of FDI policies to cater to the increasing demand of consumers also leads to the development of the market. For instance, e-commerce marketplace Snapdeal and home-grown autonomous mobility startup Ottonomy IO has partnered for test same-day contactless delivery using robots. This enables the increase in demand for the same day delivery market among the consumers.

North America is expected to witness substantial growth over the forecast period. This growth is attributed to the presence of significant players, such as FedEx, A1 Express Services Inc., and United Parcel Service of America, Inc., in the region. These companies are offering same-day delivery services to expand their service offerings in the region. Moreover, the presence of SMEs, which prefers to adopt innovative services to cater a greater number of consumers’ attractions to compete with major players, also leads to the development of the market.

Increasing penetration of smartphones adoption in the region also paves the way for higher growth of the same-day delivery market. For instance, the following figure depicts the increase in adoption of smartphones users in the U.S. This increase in the adoption of smartphones is expected to escalate the same-day delivery services.

Source: Statista, 2020

Key Development

  • In April 2020, Walmart Inc. has launched Express Delivery a new service that delivers more items from the store than ever before to customers’ doors in less than two hours. This enables Walmart to increase customers integration during Pandemic COVID-19.
  • In September 2019, UPS partnered with online logistics solutions, HubBox to expand e-commerce delivery options for consumers and retailers worldwide.
  • In September 2020, Air City and Seko Logistics partnered to launch international parcel delivery service in the U.S. This new service enables to produce savings of 25-50% compared to the Universal Postal Union (UPU) rates, thereby enhancing customers’ experience.

Key Players

The key players in the global same-day delivery market have adopted organic as well as inorganic growth strategies that include; partnerships and collaborations, product launch, mergers and acquisitions to expand its geographical reach. In June 2020, Walmart Inc. has developed an e-commerce market place by joining forces with Shopify, an all-in-one commerce platform. This enables Walmart to cater more U.S. based small business, thereby increasing its customer’s integration. The other key players involved are; FedEx; A1 Express Services Inc.; United Parcel Service of America, Inc.; Aramex; Deliv; Deutsche Post AG; Courier Express; Jet Delivery, Inc.; Dropof, Inc.; XPO Logistics, Inc.

Global Same-day Delivery Market: Segmentation

By Type

  • B2B
  • B2C
  • C2C

By Service

  • International
  • Domestic

Global Same-day Delivery Market:Regional Segmentation

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • The U.K.
  • Italy
  • France
  • Spain
  • Germany
  • The Rest of Europe

The Middle East and Africa (MEA)

  • Saudi Arabia
  • Egypt
  • South Africa
  • The Rest of MEA

Asia-Pacific

  • India
  • China
  • Japan
  • Australia
  • South Korea
  • The Rest of Asia-Pacific

Central and South America and the Caribbean

  • Colombia
  • Brazil
  • Chile
  • Peru
  • Argentina
  • The Rest of South America