The postal automation system is an innovative technology used for handling letters that provide high address reading rates and processing speed. This is an effective and intelligent solution for parcel sorting. The postal industries use it to reduce human errors. It makes the process easier and works as a reliable and quicker source. In the manual process, the issue rising towards the handling would be solved by the postal automation system. Major technological advancements such as 4.0 and digitalization have improved the postal industry's automated sorting and delivery. The postal automation system market includes parcel sorting systems, postal software, mail sorting systems, and other coding systems. The need for efficient and time-saving technology for the postal automation system market helps pre-sort and sequence the mail. Using the Postal Automation System, the quality of the services and cost of the services gets reduced. The Postal Automation System Market simplifies the work labor by sorting and delivering to the required end user. Based on the postal automation system market forecast, during the period 2017 to 2023, the market is expected to hold USD 2.2 billion by 2023 at a CAGR of 9.10%. The increasing demand in e-commerce resulted in the growth of parcels and packages. The automated system in the postal industry will further improve the logistic e-commerce industry.
The pandemic has a severe effect in different markets, resulting in several sectors' slowdown. The pandemic has shown a negative impact on the market. Pandemic has a severe impact on the trade industry, impacting the decline of the manufacturing and raw material industry as well due to which the postal automation system market got affected. In the outbreak, the shutdown's improvement made people use smart devices for mailing, which directly impacted the postal automation market due to the automatic use and extensive result. The system requires time to time up-gradation and servicing for an outstanding result. The increasing cost and demand by the end-user for quick service made the postal industry trust the market.
Chief Factors Existing in the Market
The improvisation in the people's living standards and continuous urbanization, fuel the market growth. With time the demand for receiving the important mail increases, which drives the market towards growth. Industries adapting to artificial intelligence and machine learning are boosting the postal automation system market. The automation system carries out the works such as writing addresses and printing to consume time and effort. The requirement for quick delivery of the mail by the customers is a factor that fuels the automation system market.
The market faces major challenges that affect its growth during the forecast period. The presence of less-skilled people to install, operate, and design is a challenge that the market faces. The major market players should focus on the market challenges to overcome them in upcoming years.
With the need for the speedy delivery and the improvisation of technology, urbanization fuels several opportunities for the market. The development of IoT will create necessary opportunities for the market.
Owing to the growing digitalization and people acquiring to use digital mode for messages is act as a restraining factor. Due to this, the volume of letters has also reduced and limited the postal automation system market growth. The investment and maintenance cost of the automated system is another restraining factor that affects the market's growth. Inclination towards the internet and demand for smart devices result in a declination of a traditional form of mail, hindering the market's growth.
The market overview evaluates the future opportunities and recent market situation. The market's future growth is predicted based on several demands and development. The market factors show the major effects on the development of the market. The drivers and opportunities fuel the postal automation system market share to reach the required growth of the market. In contrast, the challenges and restraining factors limit the market growth by decreasing the market's demand. The market players should take all the factors into account. Due to the pandemic loss, the market will overcome the tough situation and several challenges.
The postal automation system market size is divided into major segments. The segments are components, technology and application.
The Postal Automation System Market is divided into courier, express and parcel and government postal based on the segment application. The government postal handles a huge volume of letters, emails and flats, due to which the government postal will register the highest CAGR in the forecast period. The segment is expected to hold a 9.44% CAGR during the forecast period.
The Postal Automation System Market is segmented into delivery barcode sorter and facer canceller system. The delivery barcode sorter is expected to register the highest growth rate. Due to the advancement of technology, the industries are coming up with newer technology to reduce workload. Based on the postal automation system market analysis, the segment facing canceller system is growing with a CAGR of 10.13%.
The postal automation system market is bifurcated into hardware based on the segment component. The hardware segment is predicted to hold high CAGR in the upcoming period because of hardware for sorting and sequencing based on shape and volume. In 2017, the hardware segment held USD 845.8 million and was estimated to experience a CAGR of 10.75%.
The postal automation system market is situated in North America, Europe, Asia Pacific and other parts of the world. The presence of different prominent key players in the North American region further growth. The increasing demand from various sectors such as BFSI, government and others in the North America region improves the growth factor of the market. The Asia Pacific region is expected to hold the highest growth rate due to India, Japan, and China in the upcoming years. The growing economy is the base factor for market growth in several world regions.
Competitive Intensity within the Industry
The key players of the postal automation system market are encouraged to rise with higher demand in the forthcoming period. Their contribution to the market through the major developing regions depicts the market growth. The competition between different market players results in the development of the postal automation system. The key players signify the importance of the market, and the global players who are helping the market are
Recent Market Developments
The overall report of the postal automation system market states the complete research of the market based on different factors, segments and others. The segmentation reports provide a clear view of different segments and sub-segments and their effect on the market growth. Adaptation of Innovative technology is one factor that affects the postal automation system market size. The chief existing factors depict both positive and negative impacts on the market. Among all the segments, the highest CAGR holding segment is studied in detail. The geographical reports depict the names of continents that help develop the market. The top key market players increase the postal automation system market demand, which improves global market value. The pandemic affected several regions and markets from which the market is trying to get out. The postal automation system market will register a good growth rate in the forecast period despite the adverse effect of Covid 19. Future development and factors will lead the postal automation system market to reach its estimated value successfully.
Key Industrial Segments
|Market Size||USD 2.2 billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Technology, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Toshiba Corporation (Japan), Mitsubishi Logistics, Inc. (Japan), Escher Group (U.S.), NEC Corporation (Japan), Accenture PLC (Ireland), Siemens AG (Germany), Fujitsu, Ltd. (Tokyo), Vanderlande (Netherlands), Falcon Autotech (India), and Solystic SAS (France)|
|Key Market Opportunities||Increasing volume of mails from banking sector creating demand for automated systems.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Facer Canceller System, Delivery Barcode Sorter, and others are the technology-wise segments covered in the report.
By component, the hardware segment is leading the global market and its growth rate is projected to be 10.75% during the evaluation period.
Siemens AG (Germany), Vanderlande (Netherlands), Solystic SAS (France), Escher Group (U.S.), NEC Corporation (Japan), Accenture PLC (Ireland), Mitsubishi Logistics, Inc. (Japan), Fujitsu, Ltd. (Tokyo), Toshiba Corporation (Japan), Falcon Autotech (India), are some of the most renowned vendors in the global market.
The report projects North America to be the largest market during the review timeframe.
The market is gaining immense momentum across the globe, on account of the rising adoption of the latest technologies like optical character recognition and others coupled with the increasing urbanization.
Rising labor cost can negatively influence the market growth in the coming years.
The segmental value of the public post office application in 2017 was USD 867.36 million.