CEP companies in the United States (U.S.) delivered nearly 18.6 billion parcels in 2020. That year, the CEP industry generated some 117 billion U.S. dollars in revenue in the U.S. market. In 2021, the revenue increased by almost 18 percent and reached around 137.9 billion U.S. dollars. The U.S. CEP market is controlled by a few companies, namely the United Parcel Service, FedEx, and United States Postal Service (USPS).
The boom in e-commerce drives parcel shipping
The growth of e-commerce and the COVID-19 pandemic have altered consumer behavior, leading to more online orders and a subsequent increase in demand for parcel shipping. The volume of parcels shipped in the U.S. grew by almost 64 percent between 2014 and 2021, from 13.2 to 21.6 billion parcels shipped in the country.Revenues from retail e-commerce increased at an even higher rate in the U.S. Between 2017 and 2022; revenues nearly doubled from some 459 billion U.S. dollars to almost 905 billion U.S. dollars. The popularity of retail e-commerce will most likely continue growing in the coming years, resulting in a higher demand for CEP services.
UPS is leading the U.S. parcel market
In 2021, the United Parcel Service (UPS) held a 37 percent share of the U.S. CEP market, the largest share of all CEP companies operating in the U.S. That year, UPS generated a revenue of almost 97.3 billion U.S. dollars. About 62 percent of UPS’ total revenue was generated by its domestic segment by delivering packages in the U.S.UPS’ largest competitor in the U.S. is FedEx, holding a 33 percent share of the local CEP market. FedEx’s total revenue reached 94 billion U.S. dollars in its 2022 fiscal year, an 11 percent increase year-on-year.
