The postal automation market has seen considerable growth due to a variety of factors.
• The size of the postal automation market has expanded significantly in the previous years. The market, which was worth $3.91 billion in 2024, is projected to reach $4.19 billion in 2025, representing a compound annual growth rate (CAGR) of 7.1%.
Factors contributing to the growth during the historical period include an surge in online shopping, upgrades to existing postal automation systems, higher demand for package delivery services, and system capacity expansion.
The postal automation market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, we can anticipate a significant increase in the size of the postal automation market. By 2029, it's predicted to reach $5.48 billion, with a Compound Annual Growth Rate (CAGR) of 7.0%.
This predicted growth in the forecast period can be ascribed to the incorporation of automated systems for mail and package sorting, packing, and delivery, a substantial increase in the e-commerce sector, and the implementation of cost savings to enhance operational efficiency and simplify processes. Some of the noteworthy trends over this forecast period include advancements in automation technologies, strategic partnerships, and the introduction of innovative designs.
Growth in the postal automation market is expected to be fueled by the escalating demand for parcel delivery services. Such services, offered by companies or organizations, deal with the transportation of parcels or packages from one place to another. The increase in these services is a result of the surge in e-commerce activities and changing consumer inclinations towards more convenient shopping methods. To enhance efficiency and ensure punctual and accurate parcel delivery to consumers around the world, parcel delivery services rely on postal automation for optimizing sorting, tracking, and delivery operations. For example, Pitney Bowes Inc., a US-based shipping and mailing firm, recently released data from the parcel shipping index in 2023 showing a significant rise in total US parcel volume during the year, marking a 0.5% increase from the prior year. More specifically, the numbers rose from 21.5 billion units in 2022 to 21.7 billion units in 2023. Thus, the growing demand for parcel delivery services is a major contributor to the expansion of the postal automation market.
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
Significant firms in the postal automation sector are concentrating on creating and implementing automation technologies like robot-based parcel sortation technology to establish a competitive advantage. This advanced system, which heavily relies on autonomously driven robots, aims to enhance the efficiency of the logistics sector's parcel sorting procedure. These robots can handle thousands of packages every hour, noticeably improving order processing speed while keeping error rates down to almost zero. In January 2024, a Vietnam-based logistics firm, Viettel Post (VTPost), embraced the fully automated robot-based parcel sortation technology, adding 160 LiBiao 'Mini Yellow' independently guided robots to its Hanoi storage and distribution center. The new sorting system gives VTPost the ability to handle roughly 6,000 varying parcels by size, weight, and shape every hour at the multi-client location. The system possesses over 1,000 target chutes, and the robots halt their movement to drop off the package when they reach the assigned chute. The robots then go back to an induction station, collect another order, and repeat the process.
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
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.