Postal Automation System Market

Growing adoption of automated solutions is driving the market growth

The need for automation in the postal industry's sorting and delivery processes has arisen due to the growing adoption of automated solutions across various end-user industries and significant technological advancements like Industry 4.0 and digitization. The postal automation market is also anticipated to be further driven by rising labor costs brought on by a lack of labor. The development of Industry 4.0 practices with various technologies, such as RFID, Barcode Readers, Scanners, etc., to create smart, connected, and effective automated postal operations. It is anticipated to expand the market significantly.

The volume of packages and parcels has increased dramatically due to the enormous growth in e-commerce. For instance, according to Shopify, there will be 1 point 92 billion digital buyers worldwide in 2019, and e-commerce sales are predicted to make up 13 points 7 percent of all retail sales globally. As a result, the e-commerce logistics sector is anticipated to grow due to a need for automated solutions in the postal sector. As a result, during the forecast period, automation in the postal sector is anticipated to increase significantly.

One of the main factors impeding the market's growth is the decline in traditional mail, such as letters and mail, brought on by internet usage and the use of smart devices. Further limiting the market's expansion are high initial investments and maintenance costs. The need for automation in the postal industry's sorting and delivery processes has arisen due to the growing adoption of automated solutions across various end-user industries and significant technological advancements like Industry 4.0 and digitization. The postal automation market is also anticipated to be further driven by rising labor costs brought on by a lack of labor.

The volume of packages and parcels has increased dramatically due to the enormous growth in e-commerce. For example, according to Shopify, there will be 1 point 92 billion digital buyers worldwide in 2019, and e-commerce sales are predicted to make up 13 points 7 percent of all retail sales globally. As a result, the e-commerce logistics sector is anticipated to grow due to a need for automated solutions in the postal sector. As a result, during the forecast period, automation in the postal sector is anticipated to increase significantly.

One of the main factors impeding the market's growth is the decline in traditional mail, such as letters and mail, brought on by internet usage and the use of smart devices. Further limiting the market's expansion are high initial investments and maintenance costs. Thus, driving the postal automation system market revenue.

Government initiatives aimed at modernizing postal services play a crucial role in the Global Postal Automation System Market Industry. Many countries are investing in infrastructure upgrades to enhance the efficiency of postal operations. For example, the implementation of national postal strategies often includes funding for automation technologies. These initiatives not only improve service delivery but also stimulate economic growth by creating jobs in the technology sector. As governments recognize the importance of efficient postal systems, the market is likely to see substantial growth, potentially reaching 1.52 USD Billion by 2035.

The surge in e-commerce activities globally is a primary driver for the Global Postal Automation System Market Industry. With online shopping becoming a norm, postal services are under pressure to handle increased parcel volumes efficiently. In 2024, the market is expected to reach 0.8 USD Billion, driven by the need for faster delivery and improved logistics. This demand is likely to push postal operators to invest in automation technologies that streamline sorting and delivery processes. By 2035, the market could expand to 1.52 USD Billion, indicating a robust growth trajectory fueled by e-commerce.

The Global Postal Automation System Market Industry is projected to experience substantial growth over the next decade. With a market value of 0.8 USD Billion in 2024, it is anticipated to reach 1.52 USD Billion by 2035, reflecting a compound annual growth rate of 6.01% from 2025 to 2035. This growth trajectory is driven by various factors, including technological advancements, rising e-commerce demand, and government initiatives aimed at modernizing postal services. The increasing focus on cost efficiency and environmental sustainability further supports this positive outlook, indicating a robust future for the industry.

The Global Postal Automation System Market Industry is witnessing rapid technological advancements that enhance operational efficiency. Innovations such as artificial intelligence and machine learning are being integrated into sorting systems, allowing for faster processing and reduced errors. For instance, automated sorting machines can now process up to 30,000 items per hour, significantly improving throughput. As postal services increasingly adopt these technologies, the market is projected to grow from 0.8 USD Billion in 2024 to 1.52 USD Billion by 2035, reflecting a compound annual growth rate of 6.01% from 2025 to 2035.

The growing emphasis on environmental sustainability is influencing the Global Postal Automation System Market Industry. Postal services are increasingly adopting eco-friendly practices, including the use of energy-efficient automated systems. These initiatives not only reduce carbon footprints but also align with global sustainability goals. For example, automated sorting facilities that utilize renewable energy sources contribute to lower emissions. As sustainability becomes a priority, the market is likely to experience growth, with projections indicating an increase from 0.8 USD Billion in 2024 to 1.52 USD Billion by 2035.

Cost efficiency remains a pivotal concern for postal operators, driving the Global Postal Automation System Market Industry. Automation technologies reduce labor costs and minimize operational inefficiencies, allowing postal services to allocate resources more effectively. For instance, automated sorting systems can significantly decrease the time and manpower required for processing mail. This focus on cost reduction is expected to propel the market from 0.8 USD Billion in 2024 to 1.52 USD Billion by 2035, as organizations seek to optimize their operations and enhance profitability.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American postal automation system market area will dominate this market, The market growth in the region is being driven by important factors like the presence of significant postal and CEP companies in the area. Additionally, installation or capacity expansion of these systems due to renovation and upgrade of already-existing postal automation systems in North America has led to market expansion in the region.

Furthermore, the region's rapid expansion of e-commerce has increased the demand for automated solutions in the postal and parcel sector. In the first quarter of 2019, for instance, the US Department of Commerce reports that the proportion of e-commerce in overall U. S. retail sales increased from 9.8 percent in the first quarter of 2018 to 10.7 percent. In the United States, retail e-commerce sales were close to USD 146.2 billion as of that quarter.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Postal Automation System Market SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s postal automation system market accounts for the second-largest market share. The market is expanding due to companies adopting automation due to rising labor costs and labor shortages. Government, BFSI, and other sectors increasingly need postal automation services, boosting the market's expansion in the area. Further, the German postal automation system market held the largest market share, and the UK postal automation system market was the fastest-growing market in the European region.

The Asia-Pacific Postal Automation System Market is expected to grow at the fastest CAGR from 2024 to 2032. A technologically advanced e-commerce logistics sector is now necessary due to the rapid growth of the e-commerce sector in nations like Japan, China, and India. Additionally, there are many opportunities for postal automation systems to grow in the Asia Pacific region due to rising BFSI sector demand. Moreover, China’s postal automation system market held the largest market share, and the Indian postal automation system market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the postal automation system market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, postal automation system industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global postal automation system industry to benefit clients and increase the market sector. The postal automation system industry has offered some of the most significant advantages in recent years. Major postal automation system market players, including Toshiba Corporation (Japan), Mitsubishi Logistics (Japan), Escher Group (U.S.), NEC Corporation (Japan), Accenture PLC (Ireland), Siemens AG (Germany), Fujitsu (Tokyo), Vanderlande (Netherlands), Falcon Autotech (India), Solystic SAS (France) and others, are attempting to increase market demand by investing in research and development operations.

Siemens AG (Germany) is a technology company focusing on business, transportation, infrastructure, and healthcare. We develop technology to provide real customer value, whether through resource-efficient factories, resilient supply chains, smarter buildings and grids, cleaner and more comfortable transportation, or cutting-edge healthcare. The Siemens Group generated revenue of €72.0 billion and a net income of €4.4 billion during the fiscal year 2022, which ended on September 30, 2022. The company, which combines a rich history with the spirit of innovation, had about 311,000 employees worldwide as of September 30, 2022.

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Fujitsu (Tokyo), Our mission is to increase social trust through innovation in order to create a more sustainable world. To achieve the Fujitsu Group Purpose, we will improve our capacity to stay abreast of world society while pursuing agile change-making and value creation. With about 130,000 employees supporting customers in 180 countries, we provide a wide range of products, services, and solutions.