Exponential opportunities
Italian CEP market expected to benefit from growing domestic e-commerce boom. Its peculiar market conditions make Italy one of the most interesting European markets for online shopping services, which in turn benefits the CEP industry in the country. Analysts at Mordor Intelligence predict that these activities will grow by about 50% over the next five years. The segment clearly represents an above-average potential on the Italian boot.
The trends in online business speak for themselves – and represent a strong basis for the concomitant logistics providers in the courier, express and parcels industry (CEP sector). Figures from the business consultancy Mordor Intelligence, based in Hyderabad (India), rank the Italian e-commerce market, with an estimated turnover of USD 47.4 billion in 2021, just outside the top ten – in eleventh place, immediately behind Indonesia.
The Italian e-commerce market’s future potential, however – that is to say its accelerated growth – is a more important aspect. The segment grew by no less than 29% in 2021. Italy is considered a market with the potential for above-average growth, due to rapid digitalisation and the relatively low level of online penetration in the country. Only 52% of the Italian population makes one or more online purchases per year.
Mordor Intelligence expects the courier, express and parcel services market in Italy to grow from a value of about USD 9.6 billion in 2023 to around USD 14.4 billion in 2028, with an estimated annual growth rate of 8.5% over the period 2023–2028.
The Italian CEP market is “quite fragmented,” however, according to Mordor Intelligence’s analysis. Thus there is room for regional companies as well as global players. So the well-known giants DHL, FedEx, UPS and GLS have to compete with BRT Bartolini, an Anglo-Italian corporation (wholly-owned by France’s Geopost since 2019). Poste Italiane is nevertheless still considered the main player in the Italian CEP market.
A national and international presence
The pie is growing, however, according to figures published by Effigy Consulting. In 2021 around 976 million shipments weighing less than 31.5 kg were delivered by courier, express and parcel services providers in Italy. Shipment volumes have more than doubled since 2015, primarily due to e-commerce growth. This trend is continuing.
Poste Italiane also wants to secure some of the opportunities in the market for itself. In spring this year, for example, the company added special offers in its home market, and also entered into a cooperation agreement with DHL, which makes it easier for the Italian provider to enter European markets (see also page 8 of our Italy Special in ITJ 17-18 / 2023).
Poste Italiane is looking towards Asia too. In 2021 it acquired 51% of the cross-border CEP services provider Sengi Express, from China. In this context Poste Italiane was one of the important protagonists at the international CEP and logistics fair in Shenzhen (September 2023).
In autumn the Poste Italiane chief executive officer, Matteo Del Fante, announced the “restructuring of our logistics business in the freight sector,” and simultaneously revealed sales of around EUR 6.1 billion and an ebit of EUR 1.6 billion in the first quarter of 2023.
Poste Italiane soon expects to exceed the 240 million parcels it transported in 2022. The Group’s energy transition is also underway – Poste Italiane increased its fleet of low-emission vehicles to a total of 24,500 units, of which no less than 4,800 are electric vehicles. The local hero is thus on course for success.