Same Day Delivery Market 2020 and Forecast 2021-2027

                                          
Report Overview: Same Day Delivery Market


The global same day delivery market size was valued at USD 3.5 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 19.2% from 2021 to 2027. The market is driven by increasing urbanization, rapid e-commerce adoption, and changing customer expectations towards delivery services.

Moreover, the ongoing substitution of stationary retail sales by online sales through e-commerce platforms has led to a significant increase in B2C shipments. Thus, the market is expected to witness substantial growth over the forecast period due to the rise in shipments, coupled with consumer demand for faster delivery service.
Long delivery time is one of the significant reasons owing to which customers shop in brick and mortar stores than on online platforms. However, same day delivery services offer products in less than 24 hours i.e., preferably within the same day of the order placement. Thus, it integrates the convenience of online retail shopping with the immediacy of physical retail stores. Moreover, ease of ordering through online platforms, coupled with reduced shipping time, is creating growth opportunities for the market.

Additionally, the availability of same day delivery services is further expected to support e-commerce adoption among consumers. Thus, online retailers are expected to be benefitted from the adoption of same day services as reduced delivery time of the product and higher convenience improves their position versus stationary retailers. Moreover, same day delivery services combine the convenience of online shopping with the immediate product availability of retail. The aforementioned benefits, coupled with the rising adoption of same day delivery services among e-commerce platforms, are anticipated to bolster the market growth over the forecast period 2021-2027.

Moreover, the need for complex delivery infrastructure, coupled with a high initial investment, is anticipated to restrain the market growth. The companies operating in the same day delivery market need to focus on developing efficient delivery infrastructure to avoid late deliveries. Furthermore, the major e-commerce platforms are starting up their own logistics operations to provide customers with delivery services. This has resulted in exploiting the revenue shares of the key companies operating in the market.

Type Insights: Same Day Delivery Market

In terms of revenue, the B2B segment lead the market with a share of 58.39% in 2019. 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 market growth. Moreover, the revenue share of the B2B segment is higher owing to heavier weight of the packages, which results in high shipping costs of the packages.
The B2C segment is projected to expand at the fastest CAGR of 23.1% from 2021 to 2027. This growth is attributed to the growing inclination of consumers towards e-commerce platforms. For instance, online e-commerce platforms such as Amazon, Inc. are offering one-day delivery option to their customers in order to attract more customers and provide them with a unique buying experience. 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.

Service Insights: Same Day Delivery Market

In terms of revenue, the domestic segment lead 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 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.

The international service segment is projected to witness substantial growth over the forecast period, expanding at a CAGR of 23.4% from 2021 to 2027. Increasing cross-border e-commerce trade is generating growth opportunities for the segment. Thus, online sellers offer international shipping to attract audiences from other countries as well. However, the shipping costs associated with international parcels are far more than that of domestic deliveries.

Regional Insights: Same Day Delivery Market

The Asia Pacific lead the market for same day delivery with a share of 37.92% in 2019. The regional market growth is accredited to an increasing number of e-commerce companies, coupled with the rising number of online shoppers. Moreover, growing internet penetration, smartphone adoption, and rapid urbanization are anticipated to fuel regional market growth. According to GSMA, it is estimated that the number of smartphone devices in Asia Pacific is expected to reach 3,900 billion by 2025.

North America is expected to witness substantial growth over the forecast period, expanding at a CAGR of 20.4% from 2021 to 2027. 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 mature e-commerce market in the region is anticipated to create avenues for the market.

Key Companies & Market Share Insights: Same Day Delivery Market

The market is consolidated owing to the presence of well-established companies operating globally. Companies are mainly focusing on mergers, acquisitions, and joint ventures or collaborations to hold a competitive position in the market. Moreover, the players operating in the market are focusing on enhancing their market presence by adopting various growth strategies. These strategies help organizations to expand their business geographically and strengthen their offerings in particular regions. Moreover, companies are increasingly focusing on providing improved user experience as part of their growth strategy. Some of the prominent players in the global same day delivery Market are:

Key companies Profiled: Same Day Delivery Market Report

 	
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.

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities from 2016 to 2027 in each of the sub-segments. Trusted Business Insights has segmented the global same day delivery Market report based on type, service, and region:

Type Outlook (Revenue, USD Million, 2016 - 2027)

 	
B2B
 	
B2C
 	
C2C

Service Outlook (Revenue, USD Million, 2016 - 2027)

 	
International
 	
Domestic