Abstract
The 'express' market in Japan is here defined to comprise private, postal, and international parcel delivery. This market is estimated to expand steadily in the near future stimulated by the demand increase of domestic and international trading from Internet mail ordering as well as the globalization of economic activities of companies. In this paper, the domestic express market is firstly categorized by private and public services, followed by empirical analysis of fluctuation factors and interconnections of both markets using estimating VAR model.