Press release
Global Postal Automation Market Projected to Surpass $5.48 Billion by 2029 with 7% Annual Growth
Postal Automation Market
The postal automation market is predicted to expand due to the rising demand for package delivery services. Essentially, package delivery services are businesses or entities that specialize in transporting parcels from one place to another. The e-commerce boom and consumers' evolving preference for convenient shopping experiences are accelerating the prevalence of these services. Postal automation is employed by package delivery services to optimize sorting, tracking, and delivery operations, thereby increasing efficiency and guaranteeing prompt and correct package delivery worldwide. For instance, Pitney Bowes Inc., a US-based mailing and shipping firm, reported in its parcel shipping index that the total US parcel volume experienced a significant boost in 2023, increasing by 0.5% from the previous year. Specifically, it jumped from 21.5 billion units in 2022 to 21.7 billion units in 2023. Consequently, the growing demand for package delivery services is fueling the expansion of the postal automation market.
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What is the future CAGR of the postal automation market, and how will it impact industry expansion?
In recent times, the postal automation market has exhibited robust growth. Its size is projected to increase from $3.91 billion in 2024 to $4.19 billion in 2025, progressing at a compound annual growth rate (CAGR) of 7.1%. The historic surge in market growth can be owed to a greater number of individuals participating in online shopping, updates made to current postal automation systems, an escalating demand for package delivery services, and systems' capacity expansion.
It is anticipated that the postal automation market will experience significant expansion in the forthcoming years, reaching a value of $5.48 billion in 2029 with a compound annual growth rate (CAGR) of 7.0%. Factors contributing to growth during the projection period include the adoption of automated mechanisms for sorting, packing, and delivering mail and packages, a surge in the e-commerce sector, and the implementation of cost-saving strategies to enhance operational efficiency and streamline processes. The forecast period is also set to witness advancements in automation technologies, the formation of strategic partnerships, and the introduction of innovative designs.
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What are the most significant trends transforming the postal automation market today?
Leading firms in the postal automation market are strategically incorporating automation technologies like the robot-based parcel sortation technology to achieve a competitive advantage. This future-forward technology employs independently guided robots that optimize the parcel classification process within logistics operations. The robots can handle thousands of parcel handling per hour, substantially enhancing the pace of order delivery while decreasing the probability of errors to an almost negligible level. In January 2024, VTPost, a logistics company from Vietnam, transitioned to a completely automated robot-based parcel sortation technology by installing 160 LiBiao 'Mini Yellow' self-navigating robots at its storage and distribution center in Hanoi. The new assortment system permits VTPost to handle roughly 6,000 packages of various weights, dimensions, and forms per hour at the multi-client location. The system includes over 1,000 destination chutes and the robots halt movement and unload their parcel upon reaching the designated chute. They then return to the induction station to collect another parcel and repeat the process.
Which key market segments comprise the postal automation market and drive its revenue growth?
The postal automation market covered in this report is segmented -
1) By Type: Culler Facer Cancellers, Letter Sorters, Flat Sorters, Parcel Sorters, Mixed Mail Sorters, Other Types
2) By Component: Hardware, Software, Services
3) By Application: Government Postal, Courier, Express And Parcel
Subsegments:
1) By Culler Facer Cancellers: Single-Function Culler Facer Cancellers, Multi-Function Culler Facer Cancellers
2) By Letter Sorters: High-Speed Letter Sorters, Low-Speed Letter Sorters, Automated Letter Sorters
3) By Flat Sorters: Manual Flat Sorters, Automated Flat Sorters
4) By Parcel Sorters: Automated Parcel Sorters, Manual Parcel Sorters
5) By Mixed Mail Sorters: High-Speed Mixed Mail Sorters, Low-Speed Mixed Mail Sorters
6) By Other Types: Barcode Scanning Systems, Mail Handling Systems, Document Scanners
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What regions are at the forefront of postal automation market expansion?
North America was the largest region in the postal automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the postal automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the leading players fueling growth in the postal automation market?
Major companies operating in the postal automation market report are Siemens AG; Honeywell International Inc.; Toshiba Corporation; NEC Corporation; Leonardo S.p.A.; Murata Machinery Ltd.; Dematic Corporation; YASKAWA Electric Corporation; Pitney Bowes Inc.; Vanderlande Industries B.V.; Korber AG; BEUMER Group GmbH & Co. KG; Interroll Group; OPEX Corporation; Bastian Solutions LLC; Solystic SAS; National Presort LP; Falcon Autotech Private Limited; Fives North American Combustion Inc.; GBI Intralogistics Solutions; EuroSort Systems B.V.; Bowe Systec GmbH
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What Is Covered In The Postal Automation Global Market Report?
•Market Size Forecast: Examine the postal automation market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the postal automation market for a structured understanding.
•Key Players Overview: Analyze major players in the postal automation market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the postal automation market.
•Segment Contributions: Evaluate how different segments drive overall growth in the postal automation market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the postal automation market.
•Industry Challenges: Identify potential risks and obstacles affecting the postal automation market.
•Competitive Landscape: Review strategic developments in the postal automation market, including expansions, agreements, and new product launches.
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