ANALYSTS at UK-based Datamonitor predict that Europe's Expressindustry will undergo a period of "drastic transition" driven by the deregulation of the postal sector by 2009.

Their report also claims that globalisation, mergers and alliances, booming trade and e-commerce in combination will shape the future of the express market in the world's largest trade block.

Datamonitor is forecasting the express industry in Germany, France, UK, Spain, Italy, Belgium, Netherlands, Sweden and Poland will grow at a compound annual rate of 4.1 per cent to EUR41.2 billion (US$55.06 billion) by 2010.

It also predicts that from 2006 to 2013, the value of the global air freight market will expand by almost six per cent annually, driven by just-in-time express operations and growing international trade, particularly as many industries have moved their operations to emerging markets, including pharmaceuticals, semiconductors and electronics.

Pooja Khazanchi, express analyst, and author of the study, said: "These products need faster transportation as they are either perishable or high value-low volume items; therefore they continue to dominate the growth in the global express market."

Another trend in recent years has been for express operators to turn their focus to enhancing road services, according to the report. It said TNT along with DPD and GLS have been developing their road networks in Europe, with TNT investing more than EUR14 million in expanding and upgrading its facilities at the Duiven hub alone. DHL also delivers its day-definite products by road.

The larger players are said to be leading consolidation in the global express industry by making investments overseas, particularly in emerging markets.

Mr Khazanchi also expects the international express and business-to-consumer (B2C) services to fuel growth in the express and parcels delivery market going forward, with B2C forecast to grow at a faster rate than e-commerce.