LUGGAGE DELIVERY SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Luggage Delivery Service Market Size and Trends

The global luggage delivery service market is estimated to be valued at USD 5.67 Bn in 2024 and is expected to reach USD 9.64 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.87% from 2024 to 2031.

Key Takeaways of the Luggage Delivery Service Market

• The door-to-door delivery segment is expected to account for 37.5% of the market share in 2024
• The individuals segment is expected to represent 39.5% of the market share in 2024
• The online platforms segment is projected to account for 55.7% of the market share in 2024
• North America is anticipated to top the market with 36.8% share, followed by Asia Pacific with 20.5.% share in 2024

Market Overview:

The market has been witnessing steady growth over the past few years primarily driven by the rising tourism industry globally along with increasing consumer preference towards hassle-free travel. The demand for luggage delivery services is anticipated to witness significant growth during the forecast period. Factors such as growing business travels, expanding tourism industry, and increasing middle-class population are expected to drive the market growth. Additionally, advancements in technology used for real-time luggage tracking are also projected to support the market growth.

To learn more about this report, Request sample copy

Key Developments:

• In November 2023, Luggage Forward, a leading luggage shipping company, expanded its operations by opening a second office in Denver, U.S., to meet increasing demand. Alongside this expansion, the company appointed a new Vice President of Operations. Luggage Forward has successfully shipped over one million bags and reported an impressive 20% year-over-year growth, reinforcing its position in the market.
• In September 2024, DSV, a prominent Denmark-based logistics company, completed the acquisition of DB Schenker, a Germany-based global logistics provider, for a substantial US$ 15.16 billion. This strategic move significantly strengthened DSV's market position, making it the largest logistics company globally in terms of revenue and operational scale. DSV is a Denmark-based multinational logistics company known for offering supply chain solutions, including freight forwarding, warehousing, and value-added services. DB Schenker is a subsidiary of Deutsche Bahn, Germany's national railway company, and one of the world's leading logistics companies. It operates in more than 130 countries and provides a wide range of services, including land transport, air and ocean freight, and contract logistics.
• In February 2024, Luggage Forward introduced a major overhaul of its brand identity, which included launching a redesigned logo and an updated website. This initiative was part of the company's broader strategy to highlight its dedication to enhancing and modernizing the travel experience for its customers.

Top Strategies Followed by Global Luggage Delivery Service Market Players

• Established Players: Leading luggage delivery companies such as Luggage Forward heavily invest in research and development to innovate new products and services
  • For example, major players like DHL and FedEx dedicate over 5% of annual revenues to R&D, focusing on areas like materials science, luggage tracking technologies, and logistics optimization. This helps them deliver customized solutions using cutting-edge features like real-time GPS, environmental monitoring sensors, and AI-powered routing.
• Mid-Level Players: Mid-sized companies look to provide quality service at competitive rates. They leverage economies of scale by partnering with regional haulers and standardizing operations. This allows focusing on practical amenities instead of premium features. For instance, Bag2Door relies on shared logistics networks and digital-first processes to maintain affordable prices nationwide.
• Small-Scale Players: Small players succeed by targeting specialized audiences overlooked by major brands. For example, PackMe caters exclusively to sports equipment shipping needs. Its reinforced cases and temperature controls suit niche requirements. Likewise, Luggage Valet focuses on premium garment transportation using gentle materials handling and specialized tracking. This helps carve viable sectors within the fragmented industry.

Emerging Startups - Luggage Delivery Service Industry Ecosystem

• Innovative Technologies: Startups are developing technologies to modernize luggage delivery. For instance, Bags to Go created smart suitcases with built-in scales, batteries, and tracking beacons. These 'smart bags' enable self-routing through airports and train stations using Bluetooth. Another example is LuggageBot, whose robotic transport pods can autonomously deliver bags contactless using AI navigation. Adoption of such innovations could transform the logistics process and consumer experience.
• Sustainable Solutions: Environmentally-conscious startups are contributing to industry sustainability. Bagback collects and recycles old luggage through a resale marketplace, diverting tons of waste annually. Its business model promotes the circular economy. Meanwhile, Trunki uses innovative folding designs and recycled plastic shells to create ultra-light collapsible luggage with 80% less material.