E-commerce and China's Growth Propel Global Parcel Delivery Market
New York, Monday, 1 December 2025.
The global parcel delivery market is set to grow 7.9% annually through 2029, driven by e-commerce demand and China’s express delivery expansion, according to a new report.
Key Drivers of Market Growth
The global express and small parcels delivery market is projected to maintain a growth rate of 7.9% annually through 2029, largely fueled by the persistent rise in e-commerce activities and the significant expansion of express delivery services in China. E-commerce continues to be a primary driver of parcel demand, accounting for a substantial portion of the market’s growth trajectory [1]. The Chinese market, in particular, has reached an unprecedented scale, positioning itself as a critical player in the global landscape. ‘Tongda’ operators and companies like SF Express lead the volume rankings within China, emphasizing the region’s dominance in express delivery [1].
Technological Innovations and Strategic Investments
To enhance efficiency and meet the growing demand, major players such as FedEx, UPS, and DHL Group are heavily investing in technology. These investments focus on improving automation, reducing emissions, and enhancing visibility across the supply chain [1][2]. The adoption of innovative last-mile delivery solutions is reshaping the economics of parcel delivery, enabling companies to optimize routes and reduce delivery times. This focus on technology and sustainability aligns with the broader trend towards eco-friendly logistics practices, which are increasingly becoming a competitive differentiator in the industry [3].
Regional Highlights and Future Projections
The Asia-Pacific region stands out as the fastest-growing market, with projections indicating a 10.6% increase by 2029 [1]. This growth is largely attributed to the rapid urbanization and digitalization in countries like China and India, which are driving demand for efficient logistics solutions. The report also highlights that the market’s B2C segment accounted for 61% of the total market share in 2024, underscoring the shift towards consumer-centric delivery models [1]. Looking ahead, the integration of advanced analytics and AI technologies is expected to further streamline operations and enhance customer experiences across the sector [2].
Economic Impact and Strategic Implications
The expansion of the global express delivery market presents significant economic opportunities, particularly for businesses that can adapt to evolving consumer expectations and technological advancements. For governments and policymakers, supporting infrastructure development and fostering a conducive regulatory environment will be crucial in facilitating this growth. The report indicates that strategic planning focused on efficiency, automation, and sustainability will be essential for companies aiming to capture market share and drive profitability in the coming years [1][3].