Luggage Delivery Service Market Poised for Growth, Expected to Hit USD 10.58 Billion by 2032 -Coherent Market Insights
Burlingame, CA, July 16, 2025 (GLOBE NEWSWIRE) -- The global luggage delivery service market is estimated to be valued at USD 6.13 Bn in 2025 and is expected to reach USD 10.58 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2025 to 2032. The market has experienced consistent growth in recent years, largely fueled by the global expansion of the tourism industry and a rising consumer preference for convenient, hassle-free travel. Demand for luggage delivery services is projected to grow substantially over the forecast period, driven by key factors such as the increase in business travel, the continued growth of the tourism sector, and the expanding middle-class population.
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Global Luggage Delivery Service Market Key Takeaways
According to Coherent Market Insights (CMI), the global luggage delivery service market size is projected to be valued at USD 6.13 Bn in 2025 and further grow at a CAGR of 8.1%, reaching USD 10.58 Bn by 2032.
Door-to-door delivery remains highly a sought-after service type, accounting for 38% share of the luggage delivery service market by 2025.
By customer type, individual category is expected to account for two-fifths of the global luggage delivery service market share in 2025.
Based on distribution channel, online platforms segment is slated to account for a prominent share of 56.2% in the global market by 2025.
North America is likely to maintain its dominance over the forecast period, accounting for a global industry share of 37.3% in 2025.
As per CMI’s new luggage delivery service market analysis, Asia Pacific is poised to experience fastest growth over the assessment period.
Booming Travel and Tourism Industry Fueling Market Growth
Coherent Market Insights’ latest luggage delivery service market research report offers insights into key factors driving market growth. One such major growth driver is the flourishing travel and tourism sector.
There has been a strong rebound in international and domestic travel post-COVID-19 pandemic. According to the UN Tourism, around 300 million tourists travelled internationally in Q1 2025, an increase of about 14 million compared to the same period in 2024.
The rising number of both international and domestic tourists will create need for convenient baggage handling. This, in turn, is expected to significantly contribute to expansion of the luggage delivery service market.
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High Service Costs and Trust Issues Limiting Market Growth
The future luggage delivery service market outlook indicates strong growth. However, high service costs and trust-related concerns may limit market growth to some extent during the forthcoming period.
Many luggage delivery service companies charge premium prices. This cost factor becomes a deterrent for budget-conscious travelers, dampening overall luggage delivery service market demand.
Similarly, some travelers are reluctant to entrust third-party services with their valuable belongings due to concerns about theft, loss, or damage. Such trust issues may also negatively impact the luggage delivery service market growth during the forecast period.
Rising Demand for Convenient Travel Experiences Creating Growth Opportunities
The looming threat of disease transmission and growing preference for convenience are prompting travelers to opt for contactless and hassle-free experiences. This trend is expected to fuel demand for luggage delivery services as they offer convenience by eliminating the need to carry baggage through airports and transit systems.
Luggage delivery service providers are capitalizing on these opportunities by launching new convenient options. For instance, recently, EzShip.in launched new affordable & hassle-free luggage delivery across India.
Impact of AI on the Luggage Delivery Service Industry
Just like in other industries, artificial intelligence (AI) is making a profound impact on the luggage delivery service market. It enhances operational efficiency, improves customer experiences, and reduces costs.
AI-powered tracking systems offer real-time updates and predictive insights, thereby ensuring timely and secure delivery of luggage. Automated customer service bots and intelligent routing algorithms streamline communication and logistics, minimizing delays and human errors.
AI also helps optimize resource allocation and demand forecasting, allowing service providers to manage peak travel seasons more effectively. It is driving greater reliability, convenience, and personalization in the luggage delivery ecosystem.
Emerging Luggage Delivery Service Market Trends
A key growth-shaping trend in the luggage delivery service market is the expansion of airline partnerships. Many prominent airlines are partnering with third-party luggage delivery companies to enhance customer experience. Adoption of these services into airline ticketing or check-in processes is making them more accessible and appealing.
Growth in business travel is expected to positively impact the global luggage delivery service market value in the coming years. This is mostly because corporate travelers prefer efficient and time-saving services, increasing demand for premium luggage delivery options.
Ongoing technological advancements are playing a key role in fostering market growth. Innovations in tracking technologies like GPS and RFID provide customers with complete visibility of their luggage from pick-up to delivery. These technologies enhance confidence and reduce anxiety about baggage safety, thereby encouraging adoption of luggage delivery services.
Rising environmental concerns are prompting companies to adopt greener practices, including using electric vehicle fleets and biodegradable packaging. This rise in eco-friendly and sustainable logistics will support market expansion.
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Analyst’s View
“The global luggage delivery service industry is poised to record robust growth, owing to rising booming travel and tourism sector, growing demand for convenience baggage handling, and continuous technological advancements,” said a senior analyst at CMI.
Current Events and Their Impact on the Luggage Delivery Service Market
| Event | Description and Impact |
| 2025 Airline Chaos and Record Mishandling Rates |
|
| Integration of Smart Luggage with Delivery Platforms |
|
| Carbon-Neutral Travel Initiatives |
|
Competitor Insights
Key companies listed in the luggage delivery service market report include:
- Send My Bag
- Luggage Forward
- AirPortr
- Luggage Free
- BagsVIP
- My Baggage
- Excess Baggage Company
- Luggage Delivery Services
- Travel Luggage
- Deliv
- Luggage Concierge
- Bagbnb
- FlyAway
- LuggageHero
- CheckedAway
Key Developments
In 2025, EzShip.in announced launch of new cost-effective & hassle-free luggage delivery across India. The new service is intended to help passengers save up to 50% on airline excess baggage fees while improving overall convenience.
In April 2024, Avaan Express launched a new international delivery service to enhance travel convenience. The new service offers door-to-door pickup and drop-off, ensuring a hassle-free travel experience from start to finish.
Market Segmentation
Service Type Insights (Revenue, USD Bn, 2020 - 2032)
- Door-to-Door Delivery
- Airport Delivery
- Hotel Delivery
- Others
Customer Type Insights (Revenue, USD Bn, 2020 - 2032)
- Individuals
- Businesses
- Travel Agencies
- Others
Distribution Channel Insights (Revenue, USD Bn, 2020 - 2032)
- Online Platforms
- Travel Agencies
- Direct Booking
Regional Insights (Revenue, USD Bn, 2020 - 2032)
- North America
- U.S.
- Canada
- Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
- Europe
- Germany
- U.K.
- Spain
- France
- Italy
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
- Middle East
- GCC Countries
- Israel
- Rest of Middle East
- Africa
- South Africa
- North Africa
- Central Africa
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