U.S. White Glove Services Market Size, Share & COVID-19 Impact Analysis, By Type (Traditional and Non-Traditional), By Application (Electronics Appliances, Furniture, Sports Equipment and Others), and Regional Forecast, 2023–2030

The U.S. white glove services market size was valued at USD 7.84 billion in 2022. The market is projected to grow from USD 8.78 billion in 2023 to USD 20.25 billion in 2030 at a CAGR of 12.7% in the 2023-2030 period.

White glove services are a type of delivery service that goes further than a simple pick-up and drop-off of items. These services provide a premium and exceptional delivery experience for customers. Often, white glove services refer to the delivery of items that require certain assistance and extra handling of the products. The service also includes delivery and installation of the items in the specific room and also involves removing debris in some cases.

The U.S. market for white glove services is one of the most influential and prominent markets owing to increased demand for extra care logistics services in the country. The increasing presence of e-commerce companies and the higher presence of consumers ordering items online support the growth of the U.S. market. With the continuous growth of e-commerce, there has been an increase in the delivery of high-value and fragile goods directly to consumers. This includes items such as furniture, electronics, art pieces, and other luxury items that may require special handling.

COVID-19 Impact

Pandemic Restrictions Hampered the Growth of the Market to Some Extent

The coronavirus pandemic disrupted supply chain operations around the world. The crisis placed unprecedented pressure on transportation and logistics resources. Moreover, shippers faced major challenges in the movement of goods due to entry and exit restrictions in certain countries. The pandemic also created a slightly disrupted situation for the U.S. region owing to the temporary shutdown of raw material suppliers' logistics operations, and further, reduced spending capacity of various end-users accounted for a notable drop in the white gloves market size in the U.S.

Furthermore, the COVID-19 pandemic drastically impacted e-commerce and the associated deliveries, especially as people shifted toward online purchasing of items to avoid leaving their houses. According to the 2020 ARTS release, e-commerce sales increased by USD 244.2 billion or 43% in 2020, the initial year of the pandemic, rising from USD 571.2 billion in 2019 to USD 815.4 billion in 2020 in the U.S. However, post-pandemic, the U.S. market witnessed rapid recovery coupled with greater demand for logistics services than before. Therefore, even this market was able to recover successfully post-pandemic and is on a trajectory to grow at a significant growth rate.

U.S. White Glove Services Market Trends

Rise of 3PL Services and Increasing Emphasis on Reducing the Environmental Impact of Logistics Operations is the Prominent Market Trend

The rise of 3PL services has contributed to the demand for white glove services. As consumers increasingly purchase high-value goods online, the demand for the solution within the 3PL sector has risen to meet the need for specialized delivery. In addition, technological advances are becoming increasingly common in the transportation and logistics market. Leading logistics companies operating in the market are focusing on technological advancements to maintain their dominant position in the market.

Moreover, all major industry participants are digitizing their supply chain systems. Transportation management System (TMS), such as freight viewers and tracking systems, are also moving to the cloud for greater efficiency. In addition, there is a growing emphasis on reducing the environmental impact of logistics operations. Companies are adopting sustainable practices such as optimizing transportation routes using eco-friendly packaging to align with customers' preferences. The boom in the e-commerce sector is driving the demand for personalized and customized experiences and white glove services. White gloves minimizes handoffs and thus reduce the chance of loss, theft, and damage, all of which are expensive for a manufacturer to address.

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U.S. White Glove Services Market Growth Factors

Growing Demand for Personalized and Premium Customer Delivery Experience to Drive Market Growth

Growing demand for personalized and premium customer experience is a prominent factor driving market growth in the U.S. White glove service is becoming a norm in last-mile logistics. Today’s customers expect a different level of service compared to previous decades, and logistics companies are taking initiatives to keep up with these shifting expectations.

White glove deliveries contribute to enhanced customer satisfaction by providing a seamless and personalized experience. Customers feel valued and appreciated when their goods are handled with care and delivered with precision. This positive experience promotes trust and loyalty, leading to repeat business and referrals. Companies, therefore, are rendering white glove delivery services to improve their brand image and distinguish themselves from competitors in a crowded marketplace. Thus, these aspects, among a few others, are expected to drive U.S. white glove services market growth.

Rapid Boom in E-Commerce Business Fueled Market Growth

The rapid boom in the e-commerce market has intensified the demand for white glove transportation services in the U.S. As online shopping continues to grow, customers increasingly value services that go beyond standard delivery. As per the Census Bureau of the Department of Commerce, the U.S. retail e-commerce sales for the third quarter of 2023 were worth USD 284.1 billion, an increase of 2.3% from the second quarter of 2023.

As e-commerce continues to boom, the number of products being purchased online is expanding. There is a significant rise in the number of consumers purchasing home appliances, furniture, and white goods online. White glove services offer specialized handling, such as assembly, installation, and personalized consultation, enhancing the overall experience. According to the U.S. Department of Commerce, e-commerce sales reached USD 1.03 trillion in 2022, surpassing USD 1 trillion. Moreover, businesses are investing in premium services to set themselves apart, gain customers’ trust and capture a wider customer base. These few aspects, among others, drive the growth of the U.S. white glove services market.

RESTRAINING FACTORS

High Cost and Logistical Challenges May Hamper Market Growth

White glove services often involve higher costs due to specialized care and attention provided. This can limit the accessibility for budget-conscious customers and businesses. In addition, these services involve additional steps, including assembly and in-home setup, contributing to higher operational costs. Balancing these additional costs while remaining competitive can be challenging. Moreover, coordinating services, including assembly, installation, or personalized consultation, may pose logistical challenges, especially when dealing with diverse products and locations. Similar other factors might have a negative impact on the market, further hampering market growth.

U.S. White Glove Services Market Segmentation Analysis

By Type Analysis

Cost-effectiveness of Traditional Services to Foster Segment Growth

Based on type, the market is segmented into traditional and non-traditional.

In 2022, the traditional sub-segment dominated the U.S. white gloves services market share. Traditional white glove services logistics have been cost-effective for domestic transportation, especially for bulk goods. These factors have contributed to the largest market share of the traditional segment.  Traditional logistics practices also involve various techniques, such as freight consolidation, route optimization, storage, and freight handling, among others, aimed at ensuring the timely and smooth delivery of the items. These factors account for a larger market demand for traditional white glove services in the U.S.

The non-traditional segment is expected to grow at the highest CAGR during the forecast period. The upsurge of e-commerce has changed the retail landscape by bringing more flexibility, efficiency, and incorporating technologies in the logistics operations. In addition, customers are expecting faster, more transparent, and customized premium services. All these factors are propelling the growth of the non-traditional logistics market.

By Application Analysis

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Electronics Appliances Segment Dominates Due to the Requirement for Precise Handling

Based on application, the market is classified into electronics appliances, furniture, sports equipment, and others.

In 2022, the electronics appliances segment held the largest share of the U.S. market. The largest market share can be attributed to its higher value, the fragility of goods, and the need for precise handling. The high demand for electronics, in turn, resulted in higher demand for the solution. White gloves are crucial for electronics as they involve specialized care, ensuring items such as electronic appliances are handled with meticulous care.

The furniture segment is expected to grow at a high rate during the forecast period, followed by electronics appliances. Customers purchasing furniture seek premium service that goes beyond standard delivery, ensuring hassle-free and personalized experiences.

Sports equipment and others sub-segments are also expected to record a moderate growth rate during the forecast period, owing to rising consumer preferences and the reliability of the solution.

REGIONAL INSIGHTS

Significant Economic Development in Southern U.S. Fuels Market Growth in the Region

Based on region, the market is classified into western U.S., southern U.S., midwestern U.S., and northeastern U.S.

In 2022, the southern U.S. accounted for the largest market among other regions in the U.S., therefore accounting for the majority of the U.S. white glove services market share. The higher market share can be attributed to significant population growth, economic development, and increasing consumer spending on high-end products such as furniture, household appliances, and electronics.

The northeastern U.S. region accounted for the highest growth rate of 13.8% CAGR during the 2023-2030 period, owing to the region being home to dense population urban areas, including New York City and Boston, with high-income groups. Consumers in this region are eager to spend more on premium services. Moreover, the demand for the solution is higher in this region.

The western and midwestern regions also accounted for a decent market share in 2022 and are expected to grow at a decent rate during the forecast period, owing to the rising penetration of the solution in the region.

List of Key U.S. White Glove Services Market Companies

XPO, SEKO and UPS Dominated the Market due to Their Diverse Service Portfolio

The U.S. white glove services market is fragmented, with various players operating in local and regional markets depending on the services offered by the players operating in the U.S. markets. The top 3 players include the XPO, SEKO and UPS. The XPO dominated this market with a leading market share in 2022.  XPO Inc. is one of the leading companies in the U.S., and it specializes in the delivery of logistics, shipment handling, and tracking services. The company offers a variety of logistics and shipping services for its customers, along with a few premium services on demand from customers. Some of the other prominent players in the market include Ryder, J.B. Hunt Transport and Werner Global Logistics. The major players in the U.S. within the white glove market are highly focused on expanding their market presence across various regions within the country.

LIST OF KEY COMPANIES PROFILED:

• XPO Inc. (U.S.)


• SEKO Logistics (U.S.)


• United Parcel Service (UPS) (U.S.)


• Ryder System, Inc. (U.S.)


• J. B. Hunt Transport (U.S.)


• Werner Enterprises (U.S.)


• Fidelitone (U.S.)


• ICAT Logistics (U.S.)


• Aria Logistics (U.S.)


• Hub Group, Inc. (U.S.)


• TFI International Courier (Canada)


• FedEx Corporation (U.S.)


• Deutsche Post AG (DHL) (Germany)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – XPO announced the expansion of its service center units in the U.S. The company announced it had broken ground on a new service center facility in Lakeland, Florida. The facility will be constructed on approximately 8 acres of land and is expected to be operational in the second quarter of 2024.


• June 2023 – Ryder System, Inc. announced the expansion of its last-mile home delivery solutions at the Home Delivery World Conference 2023. The company’s last-mile segment offers various services, such as a 2-hour delivery window, room of choice, and white glove delivery, among others.


• November 2022 – UPS announced the acquisition of Bomi Group, an industry-leading multi-national healthcare logistics provider. Through the acquisition, the company’s healthcare unit, UPS Healthcare, will add temperature-controlled facilities in 14 countries and a workforce of 3,000 employees.


• April 2022 – Seko Logistics launched its e-commerce logistics unit to increase its international cross-border shipping, global fulfillment, heavyweight last-mile, returns and e-commerce solutions. The company aims to deliver various end-to-end services from its facilities, such as heavyweight e-commerce shipping, last-mile delivery, and white glove delivery.


• January 2022 - Seko Logistics launched its e-commerce logistics unit to increase its international cross-border shipping, global fulfillment, heavyweight last-mile, returns and e-commerce solutions. The company aims to deliver various end-to-end services from its facilities, such as heavyweight e-commerce shipping, last-mile delivery, and white glove delivery.

REPORT COVERAGE

The report provides a detailed analysis of the U.S. market and focuses on key aspects, such as prominent market players, type, and leading applications of the services. Besides this, it offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market’s growth in recent years.

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