Report : South America Express Delivery Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Destination (Domestic and International), Business Type (B2B and B2C), and End-user (Automotive, Retail and E-commerce, Pharmaceuticals, BFSI, IT and Telecom, Electronics, and Others)
B2C to be Fastest Growing Segment in South America Express Delivery Market during 2020–2027
According to a new market research study on “South America Express Delivery Market to 2027 – COVID-19 Impact and Regional Analysis and Forecast by Destination, Business Type, and End- users,” is expected to reach US$ 6259.8 million by 2027 from US$ 5,839.45 million in 2020. The market is estimated to grow at a CAGR of 1.0% from 2020 to 2027. The report provides trends prevailing in the South America express delivery market along with the drivers and restraints pertaining to the market growth. Heighten adoption of express delivery to offer better customer experience, integration of technology in express delivery operations and uplifting investments by companies on same-day delivery of consumer goods are the major factor driving the growth of the express delivery market. However, premium pricing associated with express delivery hinder the growth of express delivery market.
Brazil has the largest number of cases with COVID-19, followed by Argentina, Colombia, Peru and Ecuador amongst others across the region. The covid-19 pandemic has led to the closure of all economic activities across the region, in order to combat the spread of the virus. The closure of all mode of transportation due to the temporary lockdown imposed across the region has also suspended all delivery services thereby negatively impacting the express delivery market. The closure of the economy in countries like Brazil and Argentina has led to the increase in unemployment across the country thereby impacting the overall spending capacity of the country. The unemployment rate rose from 11.0 percent in the fourth quarter of 2019 to 12.2 percent in the first quarter of 2020, according to the official statistics agency IBGE, reaching 12.9 million people. This will also have a longer impact on the express delivery market across the country as it costs higher than normal or standard delivery. Thus, the above-mentioned factors are expected to negatively influence the express delivery market over the years owing to the outbreak of the pandemic.
South America express deliver market is segmented based on destination, business type, and end users. Based on destination, the South America express delivery market is segmented into domestic and international. The domestic sector accounted for the highest share in the market in 2019 and International sector is expected to be fastest growing during forecast period. Based on business type is segmented into B2B and B2C. The B2B segment accounted for the highest share in 2019 and B2C sector is expected to be the fastest growing during forecast period. Based on end-user the market is segmented into Automotive, Retail and E-commerce, Pharmaceuticals, BFSI, IT and Telecom, Electronics, and Others. The automotive segment accounted for the highest share in 2019 and retail and automotive sector is expected to be the fastest growing during forecast period.
Amazon.com, Inc.; Aramex; DHL International GmbH; FedEx Corporation; TNT Holdings B.V.; and United Parcel Service of America, Inc. are among the leading companies in the South America express deliver market. The market players focus on new product innovations and developments in order to achieve sustainable growth and to distinguish themselves among competitors present in the highly competitive express delivery market. For instance, DHL International GmbH had started collecting surcharge amount from the shipments placed by the customers due to COVID-19. This emergency situation surcharge would allow company to cover part of the operating cost increases and the necessary air network adjustments during the time of this emergency situation.
The report segments the South America Express Delivery Market as follows:
South America Express Delivery Market – By Destination
- Domestic
- International
South America Express Delivery Market – By Business Type
- B2B
- B2C
South America Express Delivery Market – By End-user
- Automotive
- Retail and E-commerce
- Pharmaceuticals
- BFSI
- IT and Telecom
- Electronics
- Others
South America Express Delivery Market – By Country
- Brazil
- Argentina
- Rest of SAM
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