Market Size of Postal Automation System Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| CAGR | 7.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Postal Automation System Market Analysis
The Postal Automation Market is expected to register a CAGR of approximately 7% during the forecast period (2021 - 2026). The increasing adoption of automated solutions across various end-user industries and major technological advancements like industry 4.0 and digitization has necessitated the need for automation in the sorting and delivery processes in the postal industry. Further, rising labor costs due to labor shortages are expected to further drive the postal automation market.
- Also, the evolution of smart, connected, and efficient automated postal operations through the integration of Industry 4.0 practices with various technologies like RFID, Barcode Readers, Scanners, etc. is expected to grow the market significantly.
- The massive growth in e-commerce has resulted in massive growth in the volume of parcels and packages. For instance, according to Shopify, it is estimated that there will be 1.92 billion global digital buyers in 2019, with e-commerce sales expected to account for 13.7% of retail sales worldwide. Thus, a need for automated solutions in the postal industry is expected to further enhance the e-commerce logistics industry. Hence, automation in the postal industry is expected to grow significantly in the forecast period.
- However, the declining volume of traditional mails like letters and mails, owing to internet penetration and the use of smart devices, is one of the major factors hindering the market growth. Also, high initial investments and maintenance costs are further restricting the growth of the market.
Postal Automation System Industry Segmentation
With the advent of technological advancements across various end-user industries, the postal and parcel industry is also evolving rapidly. Globalization has boosted the world economy by the massive international flow of data, and new innovations in technology and data are reinventing the mail and parcel industry. For instance, when mail or parcels are scanned upon entering a facility, internet-based technology provides customers with real-time tracking information. Hence, automation in the postal and parcel industry is evolving rapidly owing to the various growth drivers.
| By Component | |
| Hardware | |
| Software | |
| Services |
| By Application | |
| Express Parcel and Courier | |
| Government Postal |
| Geography | ||||||
| ||||||
| ||||||
| ||||||
|
Postal Automation System Market Size Summary
The postal automation system market is poised for significant growth, driven by the increasing adoption of automated solutions across various industries and the integration of advanced technologies such as Industry 4.0, RFID, and barcode readers. The need for automation in sorting and delivery processes is further amplified by rising labor costs and labor shortages. The surge in e-commerce has led to a substantial increase in parcel volumes, necessitating efficient automated solutions to enhance logistics in the postal industry. However, the market faces challenges due to the decline in traditional mail volumes caused by digital communication and smart device usage, as well as the high initial investment and maintenance costs associated with automation systems.
The hardware component is expected to dominate the postal automation system market, driven by the need for connected hardware and data solutions to support automation in the postal and parcel industry. The growth in e-commerce and cross-border retail has further stimulated the demand for automated systems to improve supply chain efficiency. North America is anticipated to hold the largest market share, supported by the presence of major postal and CEP companies and the ongoing renovation and expansion of existing systems. The market is becoming increasingly fragmented due to rapid technological advancements, with key players focusing on innovation and expansion to maintain a competitive edge.
Postal Automation System Market Size - Table of Contents
-
1. MARKET DYNAMICS
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.2.1 Growth in E-commerce Industry
-
1.2.2 Increasing Labor Costs
-
1.2.3 Increasing Adoption of Automated Solutions in the Logistics Sector
-
-
1.3 Market Restraints
-
1.3.1 Declining Volume of Traditional Mails
-
1.3.2 High Adoption Costs
-
-
1.4 Industry Value Chain Analysis
-
1.5 Industry Attractiveness - Porter's Five Force Analysis
-
1.5.1 Bargaining Power of Suppliers
-
1.5.2 Bargaining Power of Buyers/Consumers
-
1.5.3 Threat of New Entrants
-
1.5.4 Threat of Substitute Products
-
1.5.5 Intensity of Competitive Rivalry
-
-
1.6 Technology Snapshot
-
1.6.1 Culler Facer Canceller
-
1.6.2 Letter Sorter
-
1.6.3 Flat Sorter
-
1.6.4 Mail Sorter
-
1.6.5 Parcel Sorter
-
1.6.6 Cross Belt Sorter
-
-
-
2. MARKET SEGMENTATION
-
2.1 By Component
-
2.1.1 Hardware
-
2.1.2 Software
-
2.1.3 Services
-
-
2.2 By Application
-
2.2.1 Express Parcel and Courier
-
2.2.2 Government Postal
-
-
2.3 Geography
-
2.3.1 North America
-
2.3.1.1 United States
-
2.3.1.2 Canada
-
-
2.3.2 Europe
-
2.3.2.1 Germany
-
2.3.2.2 United Kingdom
-
2.3.2.3 France
-
2.3.2.4 Rest of Europe
-
-
2.3.3 Asia-Pacific
-
2.3.3.1 China
-
2.3.3.2 South Korea
-
2.3.3.3 Japan
-
2.3.3.4 Rest of Asia-Pacific
-
-
2.3.4 Rest of the World
-
2.3.4.1 Latin America
-
2.3.4.2 Middle-East & Africa
-
-
-
Postal Automation System Market Size FAQs
What is the current Postal Automation System Market size?
The Postal Automation System Market is projected to register a CAGR of 7% during the forecast period (2024-2029)
Who are the key players in Postal Automation System Market?
Toshiba Corporation, Beumer Group, Siemens AG, NEC Philippines, Inc. and Solystic SAS are the major companies operating in the Postal Automation System Market.
