Postal Automation Systems Market

Postal Automation Systems Market Outlook (2023 to 2033)

The global Postal Automation Systems Market is projected to have a moderate-paced CAGR of 6.8% during the forecast period. The current valuation of the postal automation systems market is USD 854.33 million in 2023.

The demand for postal automation systems is anticipated to reach a high of USD 1649.44 million by the year 2033.

This growth in the sales of Postal Automation Systems is supported by the following:

• Rising demand from a wide range of sectors for faster delivery at reduced labor costs
• A rising desire for automation in delivery and sorting processes
• Expanding e-commerce market
• Globalization

Attributes	Details
Market Value (2023)	USD 854.33 million
Market Value (2033)	USD 1649.44 million
CAGR	6.8%

Hardware Component Changing the Market Outlook

The postal automation system hardware segment is anticipated to account for a sizable percentage of the overall market. All forms of automation in any given end-user sector involve a network of interrelated hardware nodes and informational answers.

Therefore, as the requirement for automation grows, the postal and parcel business is expected to require a hardware component.

Market growth is anticipated to be led by an increase in the deployment of new systems as part of capacity expansion and enhancements to the existing system as part of automation in the postal sector.

In addition, the proliferation of online shopping has resulted in a rise in the number of packages shipped all over the world. Additionally, international e-commerce has contributed to the expansion of parcel shipping.

Owing to this, improving the postal industry's supply chain necessitates an automated and networked hardware infrastructure.

These systems, however, require regular maintenance as well as software and hardware updates. Both postal service providers and manufacturers of the automation technology sign pricey maintenance and support agreements.

Therefore, the service sector is anticipated to experience the fastest market expansion over the forecast period.

In 2021, hardware accounted for over 66% of total income. This was mostly due to improvements in processing power, sensor accuracy, identification accuracy, and scanner accuracy, as well as the need for new systems to augment the aging infrastructure.

Over the projection period, the market segment is expected to keep expanding rapidly.

Key providers of postal automation equipment are investing in Research and Development (R&D) and establishing production facilities in other countries to increase their market share.

In August 2021, for example, Vanderlande Industries Inc., a logistics and material handling firm, announced plans to expand its operations campus in Marietta and Georgia. In order to keep up with the rising demand for its products, the company has spent around USD 59 million.

Key Drivers and Restraints for the Postal Automation Systems Market

More and more transactions are being carried out digitally as more consumers use e-commerce websites. With the daily volume of packages increasing, postal services have turned to automation to better fulfill customers' needs.

The increasing popularity of online shopping has contributed to the widespread implementation of postal automation equipment.

In order to streamline the mail processing chain, boost service quality, and cut down on fixed costs like labor, the major players in the e-commerce industry are adopting automated postal delivery systems.

To keep up with the rising demand, the industry's top providers of postal automation equipment are concentrating on technological advancements. For instance, Siemens Logistics GmbH unveiled the VarioBelt TilterPlus, a belt conveyor with a revolutionary tilting device, in June 2021.

This conveyor is intended to facilitate the expedited movement of luggage through airports. It provides benefits in three directions, resulting in less machinery being needed for baggage handling systems and less waste being produced.

Having postal services automated helps lessen reliance on human labor and associated costs. The rising cost of labor can be traced back to several factors, including falling productivity, high turnover rates, a skills gap, and government regulation of the traditional postal systems market.

The automation of postal systems has helped businesses save money on labor while increasing efficiency and accuracy. As a result, growth in the market is forecast to be substantial over the next few years.

While the initial outlay to automate the postal service is substantial, the automation itself necessitates the setup of a sizable amount of hardware and software.

To add to the system's variable costs, it needs regular upkeep after installation. Sensor malfunctions have a domino effect on the entire system, and software problems slow down the sorting process and disrupt operations.

Category-wise Insights

• In 2021, the parcel sorter market sector accounted for almost 30% of total sales. Items on conveyor systems can be sorted to the appropriate position using several devices that are directed by computer software. In addition to reducing the frequency with which customers report their shipment as missing, the accurate results generated by the parcel sorting solutions also aid in increasing their confidence in the reliability of the tracking system. In addition, the package's accessibility in real time enhances operations by simplifying workflows. Additionally, it aids businesses in increasing productivity by integrating customer clearing systems, billing systems, and many others. There is likely to be a dramatic uptick in the use of package sorters in future years.
• Over the projected time frame, the CFC is anticipated to grow at a robust CAGR of over 7%. Its ability to recognize and cancel postage stamps, as well as sorting through mail based on dimensions including width, thickness, stiffness, and length, has contributed to its rapid expansion. Additionally, it gets rid of the complicated things that can't be processed by the machine.
• Over the forecast period, the commercial postal services subsegment is projected to grow at the fastest rate (about 10% CAGR). As more and more people switch to using digital methods of communication and conducting business, the need for commercial postal services rises. In addition, the need for speedy product delivery to consumers is predicted to enhance the need for commercial automated postal services in the coming years.
• During the projection period, the government postal services subsegment is expected to grow at a high CAGR of about 5%. The government postal services are investing in infrastructure upgrades, new technology, and streamlined processes to keep up with increased customer demand. For instance, the United States Postal Service (USPS) announced the release of USPS Connect in February 2022. This service consists of a suite of delivery solutions designed to satisfy the growing needs of online shoppers with lightning-quick regional, local, and national shipping as well as low prices and convenient returns.

Regional Insights

What are the driving factors for the USA Postal Automation Systems Market?

In 2021, over 43% of the global postal automation systems market was in North America. The presence of major market players in the area and the rising popularity of cutting-edge postal technologies are two major reasons for the expansion.

Increases in labor expenses and shortages of available workers are also pushing businesses toward automation. Increasing demand for postal automation services from the public sector, the business financial services industry, and other sectors is driving the development of the market in the region.

What are the defining characteristics of the European Postal Automation Systems Market?

In Europe, the demand for postal automation systems is expected to expand at a CAGR of 6.8 percent during the period of the forecast.

When looking at the European postal automation systems market, in 2021, Germany was far and away the leader, with a market value of USD 76.6 million by 2028. Forecasts place the United Kingdom market's rate of growth at 5.9% CAGR for the years in question. The French market is expected to grow at a CAGR of 7.5% over the same time frame.

Germany has one of the largest e-commerce markets in Europe. In comparison to Europe, the United States has more online shoppers, a larger share of the population that uses the internet, and higher annual spending overall. In 2021, total sales topped USD 127.5 billion, up 24% from the previous year.

From an estimated 62.4 million in 2020, Germany's online population is expected to reach 68.4 million by 2025. German consumers are known for their high standards and aversion to taking chances when making purchases. The proliferation of smartphones is one factor propelling the postal automation systems market forward.

How is the Asia Pacific Region Progressing in the Postal Automation Systems Market?

An estimated 10% CAGR growth in Asia Pacific’s sales of postal automation systems is predicted during the projection period.

The rapid development of the online marketplace in nations like Japan, China, and India has stimulated the growth of the related e-commerce logistics business, which in turn has necessitated the development of cutting-edge logistics technology.

Additionally, substantial expansion potential exists for the demand for postal automation systems in the Asia Pacific region due to rising demand from the BFSI sector.

In 2021, China was the most lucrative country in the Asia Pacific postal automation systems market, with a total market value of USD 90.5 million by 2032. To that end, the Japanese market is expected to expand at a CAGR of 7% during the projection time frame. Additionally, the Indian market is expected to grow at a CAGR of 8.3% over the forecast time frame.

Wage earners make up most of India's consumer class. More breadwinners mean more disposable money, which means the family can afford to buy whatever it wants. There has been a shift away from selling products and toward selling services in retail.

India's consumer market is booming thanks to the country's favorable demographics, big working-age population, rising income levels, increasing urbanization, and rising brand orientation. Thus, these elements are expected to boost the growth of the regional postal automation systems market over the forecast period.

Competitive Landscape

As the postal business undergoes several technological changes, the demand for postal automation systems worldwide is trending toward fragmentation. The market is dynamic; therefore businesses are always coming up with new ways to stay ahead of the competition through tactics like innovation and expansion.

Major recent developments and strategies adopted by the market players are:

Product Launches

In order to automate its newly formed 12,034 square meters international categorization center in Sordio, a suburb of Milan, Italy, the global logistics system has opted for physical handling specialist MHS worldwide.

The latest version of Vanderlande's scalable solutions was released in September of 2019. With the goal of reducing the total cost of ownership, DIRECTSORT provides a unified, future-proof, and easy-to-understand description of what kinds of packages need to be unloaded from trailers, forequarters, and load carriers (TCO).

Mergers and Acquisitions

TMEIC Corporation Americas is pleased to share the news that in April 2022, it acquired the Ports and Terminals Division from Orbita ingeniera, S.L. With the acquisition of TMEIC, it will be able to provide new and existing customers in the ports and depots with access to superior and tried-and-true OCR competencies, as well as a wider range of mechanization choices.

Along with TMEIC's financial backing, operational support, and market impact, the present Ports and Terminals Division will be able to afford further growth and development opportunities.

In order to streamline operations at airports and airlines, Siemens Logistics proposed a suite of cutting-edge software solutions in October 2019. For predictively maintaining baggage treatment systems, this is Service 4.0. Predictions are created using aggregated data, and preventative measures are implemented to boost system dependability and reduce the frequency of unscheduled outages.

Partnerships and Collaborations

To create and install motorized grade and entirely electronic in private and public organizations in North America, beep Inc., and Mobile Eye have consciously partnered with Bentelers EV schemes.

Some of the prominent players in the Postal Automation Systems market are:

• NEC Philippines, INC.
• SOLYSTIC
• Pitney Bowes Inc.
• Vanderlande Industries B.V.
• Fives Group
• Leonardo S.p.A.
• Lockheed Martin Corporation
• BEUMER GROUP
• Interroll Group

Key Segments in the Postal Automation Systems Market

By Technology:

• Culler Facer Canceller
• Letter Sorter
• Flat Sorter
• Mixed Mail Sorter
• Parcel Sorter
• Others

By Component:

• Hardware
• Software
• Services

By Application:

• Commercial Postal
• Government Postal

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa (MEA)
• Europe

Frequently Asked Questions

What is the Growth Outlook for the Postal Automation Systems Market?

The growth outlook for the Postal Automation Systems market is predicted to advance at a CAGR of 6.8% from 2022 to 2032.

Which Region Leads the Postal Automation Systems Market?

North American region is anticipated to lead the Postal Automation Systems market during the forecast period.

What is the market valuation of Postal Automation Systems in 2022?

The valuation of the Postal Automation Systems market stands at USD 854.33 million in 2023.

How much Growth Potential do Postal Automation Systems hold?

The Postal Automation Systems market is likely to hold a valuation of USD 1649.44 million by 2033.