Australia CEP market seen reaching $17.8 billion by 2034

By AI, Created 5:08 PM UTC, May 18, 2026, /AGP/ – Australia’s courier, express and parcel market reached $13.2 billion in 2025 and is projected to grow to $17.8 billion by 2034, driven by e-commerce, faster delivery demands and major infrastructure spending. The outlook also reflects a shakeup in competition after Sendle shut down and as Australia Post, DHL and other operators expand capacity.

Why it matters: - Australia’s CEP market is expanding as online shopping and delivery expectations reshape logistics capacity, pricing and competition. - The market’s growth is forcing operators to automate faster, add sorting and air-freight capacity, and widen last-mile options. - A weaker startup layer and stronger global integrators are changing where parcel volumes flow.

What happened: - IMARC Group said Australia’s courier, express and parcel market reached USD 13.2 billion in 2025. - IMARC Group expects the market to reach USD 17.8 billion by 2034, implying 3.26% CAGR from 2026 to 2034. - Australians spent $82.6 billion online in 2025, up 14% year-on-year. - Online retail represented about 24% of total retail expenditure in 2025. - Australia Post processed more than 110.7 million parcels in the 2025 peak season, up 7.6% year-on-year. - Sendle shut down parcel pickups and deliveries on Jan. 11, 2026. - Wing continued expanding drone delivery operations in Logan, Queensland, with hundreds of thousands of completed deliveries. - DHL completed a new 16,600m² warehouse and office facility in Australia in mid-2025. - Australia Post invested $320 million in a parcel super hub expected to open in late 2026. - Australia Post also opened a AUD 75.8 million air parcel facility at Brisbane Airport in early 2026.

The details: - E-commerce shipments account for about 35.78% of total CEP volumes and are the fastest-growing segment. - Domestic parcels make up about 62.90% of the Australian CEP market. - International parcel volumes are growing faster than domestic volumes, helped by cross-border e-commerce and global marketplace platforms such as Amazon and Temu. - Australia Post’s new parcel super hub is designed to process up to 400,000 parcels a day with 70% automation. - The super hub is an 83,000m² facility and is expected to cut regional delivery times by 30%. - The super hub is also expected to process up to 21,000 parcels per day during peak season. - Australia Post’s Brisbane Airport facility is designed to handle 176,000 parcels daily and combine Australia Post and StarTrack operations under one roof. - Parcel locker deliveries rose 18% during the 2025 peak season. - Operators are expanding same-day delivery, click-and-collect and out-of-home collection networks. - C2C is the fastest-expanding service segment, driven by peer-to-peer marketplaces, resale activity and social commerce. - Australia Post’s international express share has fallen below 35% as DHL, FedEx and UPS gain ground. - The report identifies B2B, B2C and C2C service types; domestic and international destinations; air, ship, subway and road transport; and BFSI, wholesale and retail trade, manufacturing, construction and utilities, and other end uses. - The market coverage spans Australia Capital Territory and New South Wales, Victoria and Tasmania, Queensland, Northern Territory and Southern Australia, and Western Australia. - Key players listed include Australia Post (StarTrack), DHL Express, FedEx Express, Toll Group, CouriersPlease, Aramex, Amazon Logistics, Team Global Express and UPS. - More information is available through IMARC’s sample report request page. - The full report is available on IMARC Group’s site.

Between the lines: - The Sendle shutdown exposed how vulnerable smaller, startup-led logistics models can be when capital or operating pressure rises. - Established carriers with national networks and large facilities are positioned to absorb displaced volumes. - The rise in lockers, click-and-collect and same-day delivery suggests consumers want flexibility as much as speed. - AI, automation and predictive planning are becoming core operating tools rather than add-ons. - Drone delivery is moving from pilot to practical use in remote and regional logistics.

What’s next: - Australia Post’s super hub is expected to open in late 2026. - The Brisbane Airport air parcel facility is already operational and should support higher air-freight throughput. - International parcel growth should keep benefiting carriers with customs and global network strength. - Operators are likely to keep investing in automation, regional capacity and last-mile innovation as parcel volumes climb.

The bottom line: - Australia’s CEP market is entering a capacity-and-technology buildout, with e-commerce demand, competitive disruption and infrastructure spending setting the pace.