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North America Postal Services Market Size (2024 - 2029)

The North America postal services market is experiencing a shift in its market size due to various factors, including the impact of the COVID-19 pandemic, which altered revenue streams from traditional mail to parcels. The market is characterized by a legal monopoly in letter delivery by the United States Postal Service, while Canada Post holds a significant share in package and mail shipping. The industry faces challenges from digital communication and intense competition in the e-commerce parcel sector, leading to a transformation from state-owned monopolies to commercial entities with diversified services.

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Market Size of North America Postal Services Industry

North America Postal Services Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 1.00 %
Market Concentration Medium

Major Players

North America Postal Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Postal Services Market Analysis

The North America postal services market is estimated to register a CAGR of approximately 1% during the forecast period (2023-2028).

The outbreak of Coronavirus disease (COVID-19) acted as a restraint on the postal services market in 2020 as governments imposed lockdowns and restricted the movement of people and goods to contain the transmission. The pandemic drove industry growth away from mail revenue and toward parcels. According to International Post Corporation (IPC), the parcel revenue rose by EUR 19.3 billion (USD 21.7 billion) while mail revenue fell EUR 6.1 billion (USD 6.8 billion) in 2020.

USPS is the official postal service in the USA. FedEx and UPS immediately compete with USPS Express Mail and package delivery couriers, doing nationwide deliveries of urgent letters and packages. Due to the USPS monopoly, other couriers in the USA are not allowed to deliver non-urgent letters and cannot ship to U.S. Mail boxes at residential and other business locations. With a few minor exceptions, the United States Postal Service enjoys a legal monopoly in the delivery of letters. Under the Private Express Statutes, private letter carriers are subject to fines and/or imprisonment. Canada Post has the largest market share in shipping packages and traditional mail in Canada. The government mail service is responsible for shipping two out of every three parcels in Canada and is trusted by many Canadians.

Over recent years, the postal service industry in North America has been suffering disruptions from the internet and digital industries. The traditional core business of mail delivery is in decline as communications move online. Meanwhile, the industry also faces fierce competition in the rapidly growing e-commerce parcel market. As a result, postal and mailing businesses are shifting from state-owned monopolies to commercial companies with diversified portfolios.

North America Postal Services Industry Segmentation

The postal service industry refers to the business activities of the Post Office and its partners operating to provide mail (or small parcel) collecting, transporting, and delivering services on national or international scales. The global postal services market is segmented by Type (Express Postal Services and Standard Postal Services), by Item (Letter and Parcel) by Destination (Domestic and International), and by Geography (US, Canada, and Mexico). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

By Type
Express Postal Services
Standard Postal Services
By Item
Letter
Parcel
By Destination
Domestic
International
By Geography
US
Canada
Mexico
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North America Postal Services Market Size Summary

The North America postal services market is experiencing a transformation driven by the shift from traditional mail to eCommerce parcel delivery. The COVID-19 pandemic accelerated this change, as lockdowns and restrictions increased the demand for parcel services while reducing mail volumes. The United States Postal Service (USPS) holds a legal monopoly on mail delivery in the U.S., facing competition from private companies like FedEx and UPS in the parcel sector. Similarly, Canada Post dominates the Canadian market, handling a significant portion of the country's parcels and traditional mail. Both postal services are adapting to the decline in traditional mail by enhancing their parcel delivery capabilities, leveraging their extensive networks to meet the growing eCommerce demand.

Despite the opportunities presented by the eCommerce boom, many postal organizations struggle to fully capitalize on this growth due to slow adoption of digital technologies. The industry remains fragmented, with large companies benefiting from extensive infrastructure and service diversity, while smaller firms compete through specialization. Government-owned postal agencies typically maintain a monopoly on mail delivery but face stiff competition from private parcel delivery companies. Partnerships between these entities, such as those between USPS and FedEx/UPS, highlight the collaborative efforts to optimize delivery services. Recent initiatives, like USPS's 'USPS Connect' programs and Canada Post's new parcel sorting facility, underscore the ongoing efforts to enhance parcel delivery efficiency and capacity in response to evolving consumer preferences.

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North America Postal Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Market Opportunities

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Porters 5 Force Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Express Postal Services

      2. 2.1.2 Standard Postal Services

    2. 2.2 By Item

      1. 2.2.1 Letter

      2. 2.2.2 Parcel

    3. 2.3 By Destination

      1. 2.3.1 Domestic

      2. 2.3.2 International

    4. 2.4 By Geography

      1. 2.4.1 US

      2. 2.4.2 Canada

      3. 2.4.3 Mexico

North America Postal Services Market Size FAQs

The North America Postal Services Market is projected to register a CAGR of greater than 1% during the forecast period (2024-2029)

USPS, Canada Post Corporation, UPS, DHL and FedEx are the major companies operating in the North America Postal Services Market.

North America Postal Services Report Snapshots

North America Postal Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)