Consolidation gains momentum in Europe’s Express and Parcels market
The latest findings to emerge from independent market analyst Datamonitor's (DTM.L) "European Express Benchmarking 2004," research reveals that the European* 34 billion Euro express market is consolidating. The top 6 players in the industry account for over 50% of these revenues compared to 2001, when they accounted for 44% of the market value and 47% of that in 2002. "The European express industry forms one of the fastest growing segments in the transportation business. Industry consolidation has continued apace as express and parcel delivery companies merge, make acquisitions and form strategic alliances in order to gain scale and enhance their capabilities. 2005 promises new opportunities for these companies with the expansion of the EU. Europe's fast moving express industry proves difficult to keep track of and the players must be aware of competitors' operations, changes within the industry and opportunities," says Emilio Pedrinaci, courier and express analyst at Datamonitor.
Deutsche Post World Net, La Poste/GeoPost and TPG/TNT are the top 3 players in Europe
Datamonitor's "Europe Express Benchmarket 2004," database shows the six largest Pan-European express companies (Deutsche Post / DHL, TPG / TNT, UPS, La Poste / GeoPost, Royal Mail Group and FedEx) benchmarked on a variety of financial and operational criteria. Company ranking by European country in terms of estimated market share by value is also provided.
The data reveals Deutsche Post World Net (DPWN), comprising the express and parcel operations of Deutsche Post and DHL, was the leading provider of parcel services in Europe during 2003, with 18.4% share of the market. The second biggest player in terms of market share is La Poste / GeoPost, which includes the combined operations of ColiPoste, Taxicolli, TAT Express, Chronopost International and DPD, with 9.4% market share. La Poste is closely followed by TPG / TNT, with 9.3% market share. The UK group Royal Mail, including the operations of Parcelforce and GLS, is the fourth biggest player with 7% market share. US integrators UPS and FedEx have 6% and 2% market share respectively.
In the majority of European countries the market leader is the incumbent national postal operator followed by DHL
The German express delivery market is dominated by a handful of big players, all with international operations. Postal operator Deutsche Post World Net (DPWN) remains the clear leader in the German express and parcel delivery market with an estimated market share of 24.6%. UPS Germany is second in size in the total German express market with 9.2% market share, although still quite behind DPWN. The German DPD network, a subsidiary of French postal operator La Poste, follows UPS in the ranking with an estimated 8.9% share of the German express market.
The five leading players in the Spanish express and parcel delivery market accounted for nearly 60% of the total sector in 2003. The market remains primarily dominated by domestic players, such as Seur, MRW and the national postal operator Correos y Telegrafos. However, in early 2003, Deutsche Post decided to incorporate into DHL Iberia its Spanish acquisitions (Guipuzcoana Euroexpress, Danzas and DHL) in a process expected to conclude during 2005. The estimated market share of the new DHL Spain is 16.2%, which would put the company in a leading position within the sector, challenging both Seur and MRW.
French postal operator La Poste is the largest player in the French express and parcel market with an estimated 28.7% market share. La Poste operates its parcel activity through both Coliposte, in the B2C sector, and the GeoPost holding company, which in France includes the activities of Chronopost International, TAT Express and Taxicolis. Of all its subsidiaries, Chronopost International is the most important one, with 9.8% market share.
Emilio Pedrinaci concludes:
"The structures of the respective, regional express and parcels markets vary widely in Europe. Several smaller competitors within individual countries compete with the bigger players for a place in the market. Nevertheless, most European countries share one commonality: the market leader is usually the incumbent national postal operator and its express subsidiary. In the majority of countries included in this study, the national postal operator is followed by DHL as the second biggest player in terms of market shares."
Notes for Editors:
*Belgium, France, Germany, Italy, Netherlands, Spain, Sweden and the UK
Datamonitor's "Express Benchmarking 2004" database provides extensive data and analysis of 25 leading express and parcel delivery companies in Europe. The product provides insight into the operational and financial statistics of the top players in the industry, their market shares in key countries and the strategies that they are employing. The database includes a benchmarking of the leading pan-European operators on key criteria. The model also includes analysis and market shares of the top players in each of the countries under study.
Emilio Pedrinaci is an express analyst with Datamonitor and is the author of the study.
Datamonitor plc (DTM.L) is a premium business information company specializing in industry analysis. We help our clients, 5000 of the world's leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for six industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Healthcare, Technology. Datamonitor maintains its headquarters in London and has regional offices in New York, San Francisco, Sydney, Frankfurt, Shanghai and Hong Kong.
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