Package X

The State of Packages in 2021 – A Detailed Overview

Technological advancements coupled with the multitude of benefits offered by supply chain management solutions bode well for the logistics market growth. Also, e-commerce proliferation and the ensuing demand for multi-channel distribution have aided the logistics market globally. These factors are also expected to contribute to the 6.5% CAGR during 2021 – 2029.

Package management, handling, and shipping are crucial components of logistics operations. With the changing customer shopping behaviors, expectations, and the current scenario after the pandemic hit the world, industries are switching to modern and automated package management systems.

Let’s have a detailed analysis of the state of packages that reveal the vast scope of the industry. For this purpose, we will utilize the data extracted from the PackageX platform for the year 2021.

Global Logistics Market Outlook

According to statistics, the global logistics market was worth 9525.1 billion USD in 2021. However, it is expected to reach 13,326.3 billion USD by 2027, with a compound annual growth rate of 5.7% between 2022 to 2027.

Some common reasons for this predicted growth rate are:

  • Increasing global trade activities
  • Advancements in technology and transportation
  • The rise in trade-related agreements

Moreover, the Asia-Pacific region is predicted to lead the logistics market in the future, but the US is also not far behind in the race. The USA is currently one of the top ten leading global logistics markets and has the third-highest market for 3PL companies.

State of Logistics - 2021

State of Packages - The Data

The data we will use for the analysis comprises over 3 million packages that were processed using the PackageX platform in 2021 across 40 countries. We will breakdown the data into four sections including:

  • Total number of scans – It refers to the number of packages scanned using the PackageX app.
  • Total notified – It shows the number of packages for which the recipients were notified.
  • Total picked – The number of packages picked after the recipients were notified.
  • Same-day pickups – The number of packages picked on the same day of arrival.

Year

Total Scan

Total Notified

Total Picked

Same-day Pick-ups

2021

3,040,700

2,873,882

2,748,396

1,115,948

Analysis Based on Geographical Area

Since online shopping is booming considering the COVID-19, the package volume is increasing in every country and industry.

Let’s see how many packages were processed in different countries using the PackageX platform.

Countries

Total No. of Scans

Total Notified

Total Picked

Same-day Pickups

Australia

21,364

19,116

18,818

7042

Canada

2,388

1904

2046

972

Hong Kong

49,246

46,448

49,938

22,892

India

6

6

0

0

Norway

6,910

6052

4518

254

Spain

11,508

11,020

11,352

8304

Taiwan

46

278

274

164

United Kingdom

20,478

19,282

15,652

1096

United States

2,928,754

2,769,776

2,645,798

1,075,224

The highest number of packages were scanned in the USA, reflecting the massive scope of logistics in the country.

Analysis Based on Industries

Various industries are using the PackageX platform to manage their package volume. It reflects their increasing interest in modern and automated package management for streamlined logistics operations and accelerated business growth.

Industries

Total No. of Scans

Total Notified

Total Picked

Same-day Pickups

Corporate Offices

13,316

10,938

10,064

7540

Coworking

74,998

95,390

89706

30,996

Higher Education

506,654

444,606

420,066

227,380

Hospitality

1,801,838

1,724,764

1,694,856

627,296

Residential Real Estate

422,142

422,352

364,180

135,602

Retail Sector

64,600

33,862

59,216

43,106

Among several industries, the hospitality sector witnessed a surge in package volume. Therefore, the highest number of packages were scanned, picked, and notified in hotels.

Key Considerations

All the data above reveals a new narrative for customers and businesses. The companies and industries associated with logistics need to upgrade their strategy and operations for the coming years if they want to thrive. The following are some critical considerations for the businesses:

  • Integrate a modern package management software like PackageX Receive into your existing systems and opt for new technologies to enhance accuracy and efficiency.
  • Eliminate manual data entry from your workflows to save time and eliminate errors.
  • Constantly work out to improve the recipient experience by providing end-to-end parcel tracking.
  • Inventory can make or break the business; therefore, manage your inventory efficiently.
  • Keep your customers informed through emails, texts, viable tracking numbers, and other package-related updates.
  • Learn from your competitors and keep looking out for new modes of logistics management and staff training programs.

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The Future of Logistics Industry

The logistics industry is not going anywhere. It will keep improving with a greater level of automation, digitization, and standardization in the future. Advanced technologies like AI (Artificial Intelligence), machine learning, and augmented reality are transforming logistics workflows. With the predicted growth of the global economies, the logistics market is likely to expand. According to the stats, the 3PL providers will occupy a large portion of the market. In 2017, 3PL companies in the USA accounted for 168.4 billion dollars, which is predicted to reach $266.1 billion by 2027.

Are You Prepared?

Logistics is a complicated industry that requires great attention to detail. It is rapidly growing with every passing year, which means logisticians must be prepared to excel for successful survival in this fast-paced technological world. Only those with ambition and tenacity will get new opportunities and financial success. So, make sure you are on the winning side!

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