The European Courier, Express, and Parcel (CEP) market has grown remarkably over the past few years.
By 2025, twenty billion business-to-business parcels are expected to be delivered in Europe annually, according to the latest report, Out of Home Delivery in Europe 2024, released this week.
In 2023, the European CEP market recorded over 19 billion parcel deliveries, an increase of nearly 5% compared to 2022.
Out-of-Home deliveries boom
One key driver of Out-of-Home (OOH) delivery is its 99% effectiveness rate. It addresses the growing demand for parcel deliveries and is more cost-effective and sustainable.
Poland has made significant strides to lead the OOH delivery market this year, which includes nearly 40,000 automated parcel machines. It’s significantly ahead of the UK, which ranks second.
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“While the trends towards OOH delivery are more than confirmed, we are proud to have been one of the major and pioneering players in this field, reaching more than 100,000 pickup points,” says Alberto Navarro, COO of Geopost, an international parcel delivery service.
Meanwhile, the UK and France have become the largest markets for Pick-Up Drop-Off (PUDO) points, each with over 50,000 locations.
Smart parcel locker market
The Smart Parcel Locker (SPL) market is also growing rapidly and is expected to expand at a compound annual growth rate (CAGR) of 14.06% from 2022 to 2028. This is primarily driven by the need to reduce operating costs and emissions.
The e-commerce sector continues to grow despite a dip in 2022 due to economic factors.
According to the latest Market Research Community research, the global SPL market size is expected to reach 1846 million by 2028. “Players in this market are adopting and developing new products to meet the demands of evolving online markets, emerging retailers, and consumers,” states the report.
Change in consumer behavior
Consumer behavior is also shifting, with a notable increase in second-hand resale platforms and re-commerce.
According to Cross-Border Commerce Europe, 69% of second-hand sellers in Europe used the earnings from resold items to pay bills and cover unforeseen expenses. The research also shows how recommerce marketplaces “outperform the broader retail market.”
It’s further predicted that by 2025, the re-commerce sector could expand five times faster than the overall retail market. The valuation will be $102 billion ($130 billion) within the next year—an approximate increase of 27%.
Challenges ahead
Despite the impressive growth of OOH delivery in Europe, some challenges must be addressed.
One of the main concerns is the gaps in delivery infrastructure, mostly in rural areas. Continued investment in OOH delivery networks is essential to address this as quickly as possible.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
