How is Indonesia Courier and Parcel Market Positioned?
Courier and Parcel Market is a part of the overall logistics industry which deals with time-bound logistics services. It involves the movement and transport of documents, parcels, goods, materials, and products which includes activities including freight, storage, packaging, and inventory management. The delivery time for a standard package to be delivered via express logistics usually ranges between 24 to 72 hours. The growing industrialization and busy lifestyles have increased the requirement for faster delivery. This gave the logistics industry an opportunity to launch a new service vertical named express logistics which was a faster way of delivery compared to the normal delivery. The Indonesia Courier and Parcel Market were witnessed to grow at a CAGR of ~% during the period 2013-2018 in Indonesia. The rising prominence of online shopping has attributed to the increasing demand for express delivery, especially by B2C segments in the past few years in the country.
Indonesia Courier and Parcel Market Segmentation
By Air and Ground Express: Ground express logistics dominated the Indonesia courier and parcel market with a volume share of ~% in 2018 as the majority of the demand arising can be met through road transport. The cost of air express is higher than the ground express which has resulted in the lower volume share of air express services. This segment accounted for the remaining ~% of the market share by volume. Companies prefer air express only when it takes lesser time as compared to ground logistics.
By Domestic and International Shipment: Domestic shipments in the country accounted for the majority of the market share in terms of courier and parcel market. The market share acquired by them was evaluated to be ~% in the year 2018. Due to low international demand for Indonesian products requiring courier and parcel delivery, international courier and parcel delivery was expected to acquire the remaining, much lesser revenue share of ~% in the year 2018.
By Delivery Period: The majority of the deliveries were identified to be three-day deliveries. Thus, the revenue share acquired by them was evaluated to be ~% in 2018. The second leading category was identified to be one-day delivery which had acquired ~% of the market share. The remaining ~% of the market share was split between two-day deliveries and more than three-day deliveries.
By InterCity and Intra City: In the case of segmentation of Indonesia Courier and Parcel market by inter-city and intra city business, the higher market share was acquired by intra city courier and parcel logistics. Intracity was estimated to account for ~% of the total volume of courier and parcel market as of 2018. The inefficient logistics infrastructure has restricted the islands to operate in a self-sufficing manner thereby encouraging more of intracity then inter-city business in the country.
By Market Structure: B2B segment dominated the courier and parcel market in Indonesia during 2018 with ~% as the revenue share. The businesses require their goods to be delivered within a specific time frame which is usually less than or equal to 72 hours. C2C was evaluated to be the second leading category in the courier and parcel market with a revenue share of ~% in the year 2018. B2C segment was evaluated to cater to the remaining ~% revenue share in the courier and parcel market of Indonesia in 2018. The revenue of this segment comes primarily from the e-commerce market and the online grocery and food delivery market in the country.
By Region: As per Indonesia’s Central Bureau of Statistics, the total population of the country was estimated to be 261.9 million in the year 2017. Jakarta by itself accounts for approximately ~% of the total courier and parcel deliveries in Indonesia. The region of West Java was witnessed to account for ~% of the total shipments, thereby making it the second leading category in the courier and parcel space. The remaining share of ~% in the courier and parcel market of Indonesia segmented by region was held by East Java, Sumatra and others.
By Onshore and Offshore: Onshore courier and parcel deliveries were witnessed to acquire a higher revenue share of ~% in the market in 2018. The offshore shipments were witnessed to acquire the remaining ~% of the market share of the couriers and parcels market. In the case of Indonesia’s courier and parcel market, the freight usually involves offshore delivery whereas mail is witnessed to have an onshore delivery system.
Courier and Parcel market in Indonesia is expected to grow at a CAGR of ~% during the period 2018-2023E. The high growth rate in this sector can be attributed to the growing e-commerce sector, increasing demand for perishable goods, and the rising digitization in the country. The consistently growing e-commerce industry will drive the courier and parcel market owing to the rising demand for this service for the B2C segment.
Key Segments Covered: –
Logistics and Warehousing:
By Service Mix (Freight Forwarding, Warehousing, Courier and Parcel and Value-Added Services)
By Mode of Service (Road Freight, Sea Freight, Air Freight, and Rail Freight)
By Mode of Freight – Air, Sea, and Land (Domestic and International Freight Forwarding)
By Flow Corridors (Asian Countries, North American Countries, European Countries, and Others)
By End Users (Food and Beverages, Automotive, Retail, Manufacturing, and Others)
By Third Party Logistics and Integrated Logistics
Courier and Parcel:
By Air and Ground Express
By Domestic and International Shipments
By Delivery Period (One Day Delivery, Two Day Delivery, Three Day Delivery, and More than Three Day Delivery)
By Intra City and Intercity
By Market Structure (B2B, B2C, and C2C Segments)
By Region (Greater Jakarta, West Java, East Java, Sumatra, and Others)
By Onshore and Offshore Shipments
By Delivery Period (Same Day Delivery, Next Day Delivery, Two Day Delivery and Three Day
Third Party Logistics:
By Service Mix (Freight Forwarding and Warehousing)
By Business Model (Industrial and Retail, Container Freight and Cold Storage)
By Geography (Greater Jakarta, Surabaya, Makassar, and Others)
By Type of Warehouses (Bounded, Open, Temperature Controlled, and Cold Storage)
By Third Party Logistics and Integrated Logistics
By End Users (Food and Beverages, Automotive, Consumer Retail, Healthcare, and Others)
By Cold Storage and Cold Transport
By-Products (Seafood Processing Plant, Red Meat, Poultry Chicken, Processed Dairy Food,
Horticulture and Cold Chain (Rent to Logistics)
Key Target Audience: –
Cold Chain Companies
Courier and Parcel Companies
Express Logistics Companies
E-Commerce Logistics Companies
Investors and Private Equity Companies
Time Period Captured in the Report: –
Historical Period: 2013-2018
Forecast Period: 2019-2023
Companies Covered: –
Freight Forwarding and Warehousing Market
- Synergy First Logistics
- Salam Pacific Indonesia Logistics
Samudera Shipping Line Ltd.
Trans Pratama Logistics
Yusen Logistics Co. Ltd.
Indonesia Ocean Truck
- Mitra Intertrans
Pt. LV Logistics Indonesia
Courier and Parcel Market
- POS Indonesia
J & T Express
E-Commerce Logistics Market
Key Topic Covered in the Report: –
Warehousing Type Indonesia
Warehousing Market Size Indonesia
Value Added Services Cost Indonesia
Indonesia Pipeline Transport
Cold Transport Market Indonesia
Samudera Shipping Line LTD Logistic Market
Warehousing Market in Indonesia
Challenges Indonesia Logistics Industry
Logistics Infrastructure in Indonesia Market
Indonesia Logistics Market Trends
Indonesia Logistics Industry
Indonesia Freight Forwarding and Warehousing Market
Warehousing Industry in Indonesia
Cold Chain Market Indonesia
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Ankur Gupta, Head Marketing & Communications