Postal Automation System Market : All You NEED to Know About Emerging Trends | Global Future Forecasts | Impact on Revenue Growth

The postal automation system market is expected to be valued at USD 1,022.2 million by 2023, growing at a CAGR of 6.30% between 2018 and 2023. Growing e-commerce industry, increasing labor cost, and need for automated sorting and delivery of parcels are the key factors driving the growth of the postal automation system market. However, the declining volume of traditional mails, along with high initial investments and maintenance costs, is hindering the growth of the market.

In the component segment, the postal automation system market for services is estimated to grow at a high CAGR between 2018 and 2023. Services play a crucial role in the postal automation system market. Postal automation systems have life cycle of about 8 years to 12 years. Services pertaining to postal automation systems include maintenance and repair, training and consulting, and software upgrades. Postal automation systems have a long shelf life and hence, these require frequent servicing, in terms of hardware and software upgrades or capacity expansion. Moreover, these systems require regular maintenance, along with hardware and software upgrades. Owing to this, the postal automation system market for services is expected to grow at a high rate during the forecast period.

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The postal automation system market for parcel sorters is likely to exhibit a high growth between 2018 and 2023. The demand for parcel sorters is rapidly increasing owing to the rise in parcel volumes. There is a strong pressure from consumers and e-retailers on postal operators to improve efficiency and increase service quality. Increased use of parcel shipping by traditional customers, along with the growth in internet retailing and new parcel shipping services, is boosting the demand for parcel sorters to automate and upgrade hub infrastructure. Moreover, a decline in traditional mail volume has put postal operators under pressure to upgrade their infrastructure for increasing parcel mail volume. Automation technologies, therefore, play a vital role in letter and parcel delivery operations, and it is expected that their importance will grow in the future.

The postal automation system market for courier, express, and parcel (CEP) applications is expected to grow at a high rate between 2018 and 2023. Courier, express, & parcel companies are facing stiff competition as e-retailer companies are offering same-day delivery services to their customers. Same-day delivery of large volumes of packages and parcels put courier companies under pressure to upgrade their sortation infrastructure and automate distribution facilities. The e-commerce industry is experiencing tremendous growth in most economies worldwide. This has led to a rise in the number of parcels to be delivered per day by courier, express, & parcel companies. Manual sortation of large volumes of parcels requires extra labor and involves risk of errors. This is boosting the demand for postal automation systems for courier, express & parcel applications.

The postal automation system market in APAC is expected to grow at a high rate between 2018 and 2023. High penetration of e-commerce and logistics companies, supported by the increasing investments in postal automation projects in several APAC countries, is expected to drive the growth of the postal automation system market in this region. China, Japan, and South Korea are among the leading countries in terms of market share in the postal automation market in APAC. China is the largest e-commerce market in the world; the revenue of e-commerce companies in China has increased over the years owing to the increasing penetration of Internet across the country. The presence of prominent e-commerce and logistics players, such as Alibaba, JD.com, Tencent, COSCO, Sinotrans, and Xiamen Xiangyu Co, is contributing to the growth of the postal automation system market in China. Moreover, increasing demand for mobile devices and high growth in B2C e-commerce in APAC are creating huge growth opportunities for the postal automation system market in the region.

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