The trends of the courier services industry and how technology comes into play.
According to a 2019 report by Mordor Intelligence, the courier services industry is expected to be worth a whopping $400 billion by 2024. The industry is continuing to see high growth year upon year, and that is partially due to the emergence of new technologies. Here is a closer look at courier service industry trends and how technology comes into play.
Changes in Demand
Technology has improved the courier services industry in a wide variety of ways. However, it has also had a negative impact. Due to modern communication tools like video conferencing and email, fewer communications need to be sent via physical mail. Because of that, many courier services have moved into delivering more bulky types of packages. The parcel sector is still thriving because of technology, though. That is because more and more people are switching to purchasing goods online than in a physical store, and all those parcels need to be delivered! More businesses and entrepreneurs are now choosing to use courier services to deliver items bought online.
GPS Software and Tracking
The courier services industry has been transformed by GPS driver tracking. The Global Positioning System is a global navigation satellite system, providing location, synchronization, and velocity. GPS software and tracking bridge the communication gap between dispatchers and couriers. In turn, that increases delivery efficiency. Powerful GPS software can easily be integrated into a fleet. It is as simple as downloading and installing applications onto dispatchers and drivers’ devices. The difference in GPS software and GPS tracking is the latter is a hardware device. It is placed inside courier vehicles. Although both the software and the hardware provide the same results, GPS trackers are more efficient because they are not limited by cellular coverage. The best GPS trackers rely on satellite communication alone to track drivers. So, GPS trackers are starting to become more widely used in the courier service industry.
Delivery Management Software
Delivery management software has also transformed the courier services industry. It includes features like route optimization, route monitoring tools, and real-time updates for couriers, dispatchers, and customers. All of which has helped to enhance courier companies’ efficiency no end. Another excellent software option is electronic proof of delivery software, which helps to speed up processes, remove potential delays, and improve internal communication.
Technological advancements have also made it easier for customers to book courier delivery slots than ever before. A growing number of couriers are enabling customers to book parcel deliveries and collections online. Web-based booking systems also mean it is easier for customers to send packages back. It allows senders and recipients of parcels to track their deliveries’ progress in real-time, too. That leads to fewer mistakes, higher productivity, and an enhanced customer retention rate.
The Courier Services Industry’s Highest Growth Is in the Asia-Pacific Region
The courier, express, and parcel markets are expected to see its highest growth over the next few years in the Asia-Pacific region. Specifically, the Southeast Asia region is emerging as a global hotspot and is attracting investors from around the world. The adoption of new technologies and the rise of e-commerce in the region, along with a rise in disposable incomes and living standards, are the main contributors to this growth. China contributes the most to the courier services industry. The country’s express delivery market is the largest in the world. Indeed, it accounts for a staggering 40% of the total global delivery volume.