The express delivery market in South America is expected to grow from 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 implementation of technologies radio-frequency identification (RFID) systems and tags for better handling of cargoes and parcels alongside avoiding human errors is expected to influence the growth of the express delivery market in South America in the coming years. Larson Express has been investing in cutting-edge equipment and applications since the past 37 years. These investments allow Larson Express to offer the top-notch courier delivery services. Moreover, the company is focused on providing its clients with the most cost-effective solutions and services. The company has computerized order entry and dispatching systems, bar code scanners, and GPS tracking technologies for avoiding misplacement during the transportation. Similarly, express delivery service providers are focusing on integrating a suite of technological tools to combine customer information, process data on real-time basis, and track and enhance delivery processes. Brazil has the largest number of cases of COVID-19, followed by Argentina, Colombia, Peru and Ecuador, among other countries in the region.In response to the emergence and rapid spread of the disease, all economic activities have been temporarily dismissed in South American countries.
The shutdown of all mode of transportation has further led to disruptions in the adoption of delivery services, which has been limiting the express delivery market growth.Moreover, rise in unemployment in countries such as Brazil and Argentina has lowered the overall spending capacity of people.
According to the IBGE, an official statistics agency, the unemployment rate rose from 11.0% in the Q4 2019 to 12.2% in the Q1 2020, and ~12.9 million people were unemployed in the region in Q1 2020. Thus, the COVID-19 pandemic has been restraining the express delivery market growth in South America since the past few months. Based on business type, the express delivery market is segmented into B2B and B2C; The B2C segment is to be the fastest growing segment led the express delivery market based on business type in 2019.The business-to-consumer express delivery refers to same day or next day delivery of parcels, couriers and other documents directly to consumers.
This is highly adopted by brands and enterprises to deliver their products to consumers in minimum time.The major industries adopting express delivery in the business-to-consumer model is food and beverages (groceries), healthcare and BFSI amongst others.
Additionally, the rising adoption of ecommerce by the goal population coupled with their demand for shorter waiting time is influencing the growth of the market in the express delivery market over the forecast period across the world. The South America express delivery market size has been derived using both primary and secondary sources.To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market.
The process also serves the purpose of obtaining overview and forecast for the South America express delivery market with respect to all the market segments.Also, multiple primary interviews have been conducted with industry participants to validate the data as well as to gain more analytical insights into the topic.
The participants typically involved in this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers—along with external consultants such as valuation experts, research analysts, and key opinion leaders—specializing in the South America express delivery market. Amazon.com, Inc.; Aramex; DHL International GmbH; FedEx Corporation; TNT Holdings B.V.; and United Parcel Service of America, Inc. are among the leading market players in the region.
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