Luggage Delivery Service Market Is Estimated To Witness High Growth Owing To Increasing International Travel

The luggage delivery service market is estimated to be valued at US$ 5.67 Bn in 2024 and is expected to exhibit a CAGR of 7.87% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

The increasing international travel and tourism is driving the growth of the luggage delivery service market. International travel and tourism is growing rapidly across the world. According to United Nations World Tourism Organization (UNWTO), international tourist arrivals grew by 58 million in 2021 compared to 2020, showing signs of recovery in the sector. This has increased the demand for luggage delivery services amongst travelers from different countries. Moreover, popularity of multidestination travels whereby travelers split their journey across multiple destinations is also fueling market growth. Luggage delivery services help travelers seamlessly move their luggage while they travel to the next destination, without having to carry heavy bags.

Key Market Trends: Eco-friendly luggage delivery service options is gaining traction in the market. Rising environmental concerns have prompted luggage delivery service providers to offer eco-friendly delivery options. For instance, some companies offer carbon neutral deliveries by calculating and offsetting the carbon footprint of each delivery through verified carbon offset projects. Moreover, companies are focusing on reducing plastic usage and incorporating sustainable packaging materials for luggage deliveries. Meanwhile, digitization of luggage delivery services is also a key trend. Emergence of online platforms and mobile apps for booking, tracking luggage status, and managing deliveries is enhancing convenience for customers. This is positively impacting the growth of digital luggage delivery bookings. More coverage can be found in the sample copy.

Luggage Delivery Service Market Opportunities: The luggage delivery service market by service type is segmented into one-way and round-trip delivery services. The one-way luggage delivery service segment held the largest market share of around 65% in 2019 and is expected to grow at a CAGR of 8.2% during the forecast period. The increasing number of one-way travelers who want their luggage delivered separately is driving the growth of this segment.

The business travelers segment accounts for over 50% of the luggage delivery service market share globally. With growing business travel and the need to travel light, business travelers widely use luggage delivery services. They can focus on their meetings and presentations without having to worry about luggage. The segment is expected to witness a CAGR of 8% during the forecast period.

Key Market Takeaways: The luggage delivery service market is anticipated to witness a CAGR of 7.87% during the forecast period 2024-2031, owing to the growing travel and tourism industry globally. On the basis of service type, the one-way luggage delivery segment is expected to hold a dominant position, accounting for over 65% of the market share due to the high demand from one-way travelers.

By customer type, the business travelers segment dominates the market owing to increased business travel requirements where travelers opt for luggage delivery services to travel light. On the basis of region, North America is expected to hold a dominant position over the forecast period, due to the large number of business and leisure travelers in the region.

Competitor Insights: AirPortr, My Baggage, Luggage Free, Send My Bag, Forward Air Inc

Recent Developments in Luggage Delivery Service Market: In June 2023, Delhi-based Lumos Luggage raised $5 million in Series A funding to expand its 2-hour luggage delivery services in Delhi-NCR. The company has seen over 200% growth since launching in 2020. Similarly, Mumbai-based Luggo announced the rollout of electric cargo bikes and electric vans for luggage deliveries within 3 kilometers of major terminals in Mumbai. They promise drop-off and pickups within 90 minutes for distances up to 10 km. Such hyperlocal specialized players focusing on first and last mile connectivity are expected to multiply across major Indian cities by mid-2024. Existing national operators are also likely to introduce city-specific hyperlocal options through partnerships.

Logistiopia partnered with Incheon International Airport in South Korea to set up dedicated baggage pickup and drop lockers within the airport premises for travelers connecting between Asian cities. Services like these offer travelers continuity and convenience by managing baggage transfer between flights book in the same reservation. They help remove the hassle of rechecking luggage at transit points. More such partnerships are expected between global luggage delivery startups and airports in 2024. Full coverage of the report available here.