Postal Automation System Market

Global Postal Automation System Market Size (2024 to 2029)

The Global Postal Automation System Market size is expected to reach USD 1.30 billion by 2029 from USD 0.96 billion in 2024, registering a CAGR of 6.2 % from 2024 to 2029.

The postal automation system is an automatic letter-handling electronic device that handles the process of sorting and delivery of packages with efficient address reading rates and high processing speed. Automation enables high productivity and offers cost-effective solutions with less intervention of human labor. It also offers consumers a dependable and affordable alternative for transporting packages to distant locations. The postal automation system consists of parcel sorting systems, mail sorting systems, post software systems, and automatic reading & coding systems. Various advanced technologies such as culler facer cancellers, barcode readers, OCR letter sorting devices, letter sorters, mixed mail sorters, and many others are used to improve courier and package services. The postal automation systems are used in courier, governmental posts, and express & parcel.

Global Postal Automation System Market Drivers:

The growing need for efficient package deliveries is majorly driving the postal automation system market during the forecast period. The courier and express companies are installing postal automation systems for high productivity and low operational costs. The automation system's ability to deliver orders in less time and enhance performance management is significantly contributing to market growth. Further integration of advanced technologies such as barcode readers, mixed mail sorters, scanners, and RFID tags with traditional automation software has increased the address reading ability and processing speed. Moreover, the streamlining of the sorting process in automation systems can increase the capacity of automated distribution centers can fuel market expansion. Furthermore, the increase in delivery requirements in the end-user industry, such as E-commerce and retail, is bolstering the postal automation system market growth.

The increase in popularity of E-commerce platforms and online shopping is providing lucrative opportunities for processing a large number of orders at the global level. The rapid increase in a considerable number of orders is stimulating major companies to install delivery systems. Even companies are embracing ongoing digitalization, and opening online platforms is solidifying the adoption of postal automation systems for processing orders. Further technologies such as RFID, scanners, and Barcode readers are nurturing opportunities in coming years.

Global Postal Automation System Market Restraints:

A decline in the usage of traditional mail like letters and mail due to the use of smart devices and an increase in internet penetration is hindering the postal automation system market in the period. Even the high initial investment to incorporate automation in postal and courier services is hampering the market growth. Further, the postal system needs regular servicing, maintenance, and upgrades of hardware & software is negatively impacting the market growth. Moreover, technical errors due to sensor issues and delay in sorting procedures can hinder the postal automation system market size.

Impact of COVID-19 on the postal automation system market:

COVID-19 containment and treatment become the top priorities for every national government. Many countries, such as France, Brazil, and Canada, have faced humanitarian losses. Private and non-private organizations are closed down, and supply chain networks have been disrupted globally. A supply and demand mismatch in essential goods was observed due to border closure, trade restrictions, and a shortage of workforce. However, the increase in online shopping platforms and limitations in traveling has led to an increase in postal automation services. Further, the rapid increase in the number of orders in postal and courier services has positively impacted the market growth. Moreover, the rise in digitalization is likely to propel the growth rate of the postal automation system market.

REPORT COVERAGE:

This research report on the global postal automation system market has been segmented and sub-segmented based on technology, application, Component, and region.

Global Postal Automation System Market - By Technology:

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

The parcel sorter segment holds a 30% postal automation system market share during the forecast period. In the sorting process, items are identified and directed to targeted destinations on a conveyor system. The process is controlled, and certain protocols are predetermined by specific software. This sorting system provides accurate results and increases the performance of courier service companies. Further, it also provides package order traceability and increases consumer reliability. Thus, the technical advantages of the sorter system are driving the market growth. Following growth is observed in the culler facer canceller (CFC) segment owing to its ability to detect and cancel unsuitable objects for processing through the machine.

Global Postal Automation System Market - By Component:

• Hardware
• Software
• Services

The Hardware segment accounts for the highest market share of 66% in the postal automation system market during the forecast period. The automation system has a high amount of hardware installation, such as scanners, sorters, and conveyors. The regular maintenance and upgrading of automation hardware are driving postal automation system market shares. Further considerable growth is observed in the service segment attributing to a rise in demand for services such as domestic mail registrations, mail item sorting, transport tracking, and custom control area processing. These factors are significantly fuelling the postal automation system market growth rate.

Global Postal Automation System Market - By Application:

• Commercial Postal
• Government Postal

The commercial postal service segment is anticipated to record the largest market revenue during the forecast period. The growing demand for electronic communications and E-commerce platforms is fuelling the market growth. Further, the increase in digitalization has positively impacted commercial postal services. Moreover, the increased volume in the number of packages and orders in the end-user industry is supporting the postal automation system market expansion.

Global Postal Automation System Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

The North American region accounts for the largest market share of 43% in the postal automation system market during the forecast period. The growth is supported by an increase in the adoption of advanced technologies in postal and courier services. Further, the rise in E-commerce platforms and online shopping industries is attributed to market growth in the region. Moreover, the rise in courier and express service companies is responsible for market growth. The following highest market share is registered in the Asia-Pacific region owing to the high growth of the E-commerce industry in China, Japan, and India. Moreover, the rise in digitalization in developing countries such as India, China, and Korea is driving the postal automation system market growth in the estimated period.

KEY MARKET PLAYERS:

Major Key Players in the Global Postal Automation System Market are  Toshiba Infrastructure Systems & Solutions Corporation, Körber AG, NEC Philippines, INC., SOLYSTIC, Pitney Bowes Inc., Vanderlande Industries B.V., Fives Group, Leonardo S.p.A., Lockheed Martin Corporation, BEUMER GROUP, Interroll Group, Dematic, Eurosport, Fluence Automation, LLC., and others

RECENT HAPPENINGS IN THE MARKET:

• In 2022, TMEIC Corporation Americas announced the acquisition of a prime division of Orbita Ingenieria S.L. The acquisition of the port and terminal division helped TMEIC Corporation to extend its existing services and enhance its expertise in optical character recognition space.
• In 2021, Siemens Logistics GmbH launched VarioBelt Tilter Plus, a belt conveyor. The conveyor is an unparalleled tilting device used to transport baggage at airports and can serve in three directions resulting in efficient baggage handling and reduced carbon footprint.