What Drives the Luggage Delivery Service Market, and What to Expect in the Future?

The worldwide luggage delivery service market, valued at US$6 billion in 2025, has been registering steady year-on-year growth.

The main reasons for this are an increase in the number of tourists around the world, including those on business trips, and their keenness to experience hassle-free travel.

Furthermore, experts from this sector anticipate continuous growth, mostly due to two key factors:

1. Numerical expansion of the middle class

2. Technological developments for real-time luggage tracking

The numbers featured in this market, the biggest players, and the key trends of the global luggage delivery service market for the next couple of years are the subject of this RightAngle article.

Luggage Delivery Market Insights

The value of the luggage delivery service market is expected to reach a figure of US$6.13 billion this year and show an 8.1% compound annual growth rate (CAGR) over the next few years, reaching US$10.5 billion in 2032, according to experts from Coherent Market Insights.

Increasing investments made by the biggest market players are one of the drivers of the CAGR. For instance:

• In fiscal year 2024, FedEx made public its plans to invest US$1.5 billion in the development of autonomous delivery systems and predictive analytics for supply chain management, among others.

• Another giant – the DHL Group – plans to invest €2 billion ($2.2 billion) by 2030 to improve logistics within its life sciences and healthcare sector.

While FedEx and DHL are well-known international brands, the market is much bigger and includes other large regional or local players:

• InterGlobe Aviation – India's biggest passenger airline and one of the world’s fastest-growing.

• JAL ABC – a Japanese company that provides a “hands-free” stay service for anyone traveling around Japan. Its counters can be found at Japan's main international airports.

• Excess Baggage Company – a large UK-based company that offers airport and rail station baggage services.

• AirPortr – Based in Denver, Colorado, United States this company provides a door-to-door luggage shipping service for some of the globe’s major travel brands.

• Bellugg – a full-service luggage delivery service company based in Bang Phli, Samut Prakan in Thailand.

Three facts about airport and air freight delivery services you probably did not know:

• DHL’s air freight volumes reached 1.8 million tons in 2024.

• In 2024, Federal Express reported an average daily shipment volume of 20 million pounds (9,000 metric tons).

• In 2024, Frankfurt am Main Airport handled the largest amount of cargo in Europe, amounting to 1.95 million metric tons.

Door-to-door delivery is the most popular service type

When it comes to the type of luggage delivery service, door-to-door delivery is expected to account for the largest share (38%) of the market in 2025, mostly due to the convenience and assurance it offers clients.

Airport delivery comes second, accounting for around 30% of the market, while hotel delivery accounts for around 20%.

Individuals are the best customers

In 2025, the largest share of the market in terms of customer type is anticipated to be held by individuals (40%), with the major driver being the increasing desire of people to travel solo.

This is mostly attributable to millennials, experts say, who choose to travel without friends and/or family.

World’s Largest Luggage Delivery Service Markets

In 2024, the largest segment of the world luggage delivery services market was attributed to the North American region. While in the near future this trend is not expected to change, the Asia-Pacific region is anticipated to develop at the fastest rate.

North America

In 2025, Canada, the U.S., and Mexico are expected to hold a 37.3% market share, being the leading geographical region in the worldwide luggage delivery service market.

This leadership is fueled by the North America region's considerable urbanization, solid logistical infrastructure, and investments aimed at creating stronger supply chain networks that make use of the latest technologies.

Asia-Pacific

This region’s market, according to experts, holds a 21% share and continues to grow at the fastest rate compared to other regions.

For the most part, such fast-paced growth is due to the rapidly growing tourism and travel industries in China and Japan, which are major drivers of the market growth.

In addition, the region shows an increasing demand for premium travel experiences, including private jet journeys, exclusive island retreats, luxury train travel with separate rooms equipped with all the amenities, etc.

Europe, Latin America, Africa, and the Middle East account for the remaining 42% of the global luggage delivery market.

Key Trends of the Global Luggage Delivery Service Market

A number of key trends in this market are expected throughout the next few years, including:

1. Same-day delivery services

These are expected to offer faster, more reliable alternatives to traditional baggage handling.

2. Streamlined logistics and real-time tracking

These aim at improving efficiency and ensuring timely delivery through technology.

Example of innovation:

In December 2024, Japan Airlines launched a same-day luggage delivery service at Haneda Airport, making it possible for travelers to send their luggage directly to Tokyo hotels without being required to have a flight ticket or passport. This considerably improves convenience and decreases public transport congestion.

3. Eco-friendly luggage delivery options

Some businesses provide carbon-neutral deliveries by estimating just how much pollution each delivery leads to and then attempting to balance this by supporting projects that aim to cut pollution such as planting trees or subsidizing clean energy activities.

Examples:

DHL Express’ GoGreen Plus program aims to cut the environmental impact of shipping by using Sustainable Aviation Fuel (SAF), which is a greener jet fuel made from renewable resources that can cut carbon emissions by up to 80% compared to traditional fossil fuels.

4. The rise of online platforms

The emergence of smartphone apps, for instance, airline apps from Emirates and Wizz Air, luggage monitoring services such as LugLoc (helps travelers to find their misplaced luggage), and internet platforms for booking are making things more convenient for customers.

It is anticipated that in 2025, online platforms will account for 56.2% of market share due to the unmatched convenience they offer.

Using these platforms, users are offered a wide variety of services that can be reached with just a few clicks on a tablet, laptop, PC, or smartphone:

● Price comparison

● Accessing user reviews

● Luggage delivery booking

In addition, users can find attractive prices via online platforms, since they often offer discounts.

Final word

The luggage delivery service market will continue to grow along with an increasing number of travelers and a rising demand for comfort.

Market players must therefore invest in new technologies and eco-friendly initiatives, and it is not just big players but smaller businesses too, mainly those that offer exclusive luggage delivery services for sports equipment, items that require special care, and the like.

The market is currently dominated by companies from the North American and the Asia-Pacific regions, and it looks as though this trend will continue for at least the next few years, particularly if companies from these regions continue to heavily invest in the market.