Market Trends of Postal Automation System Industry
This section covers the major market trends shaping the Postal Automation System Market according to our research experts:
Hardware Component Expected to Grow Significantly
- The hardware component is expected to hold a majority share in the postal automation system market. Automation in any end-user industry is essentially a collection of connected hardware components and data solutions. Hence, the need for a hardware component in the postal and parcel industry is increasing with the increase in the need for automation in the industry.
- Also, the increase in the number of new system installations as part of capacity expansion and upgrades in the existing system as part of automation in the postal industry is expected to be the major factor driving the market.
- Furthermore, the massive growth in the e-commerce industry has led to a surge in the number of parcel deliveries across the globe. Also, crossborder retail has further stimulated the growth in parcel deliveries. Hence, an automated and connected hardware system is essential in a postal automation system to enhance the supply chain in the postal industry.
- However, these hardware systems require regular maintenance, along with hardware and software upgrades. Also, high-value contracts are signed between automation equipment manufacturers and postal operators for after-sales services. Owing to this, the market for services is expected to grow at the highest rate during the forecast period.
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North America Expected to Dominate the Market
- The North America region is expected to account for the largest share of the postal automation system market in the forecast period. Major factors like the presence of major postal and CEP companies in the region are driving the market growth in the region.
- Also, renovation and upgradation of existing postal automation systems in North America has resulted in the installation or capacity expansion of these systems, thereby contributing to the growth of the market in the region.
- Further, the massive growth of e-commerce in the region has led to an increase in the need for automated solutions in the postal and parcel industry. For instance, according to the US Department of Commerce, in the first quarter of 2019, the share of e-commerce in total U.S. retail sales was 10.7%, which increased as compared to 9.8% in the first quarter in 2018. As of that quarter, retail e-commerce sales in the United States amounted to almost USD 146.2 billion.
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