Market Overview

Postal automation systems refer to a set of technologies that automate the entire mail delivery process, from sorting and categorizing mail to printing stamps, and from delivering mail to tracking and monitoring delivery status. These systems make mail processing faster and more efficient, and help postal service providers to cope with the growing volume of mail they handle on a daily basis.

The global postal automation system market is expected to grow at a CAGR of around 7% during the forecast period of 2021-2026. The market is primarily driven by the increasing adoption of automation technology in the postal industry, rising e-commerce sales, and the need for faster and more efficient mail delivery services.

Meaning

Postal automation systems are designed to streamline the entire mail delivery process, from collection and sorting to final delivery to the recipient. These systems are highly automated and rely on advanced technologies such as OCR (optical character recognition), RFID (radio-frequency identification), and barcoding to process mail faster and with greater accuracy.

With the growth of e-commerce and online shopping, the volume of mail and packages being sent has grown dramatically in recent years. Postal automation systems help postal service providers to handle this increased volume while maintaining high levels of service quality and efficiency.

Executive Summary

The global postal automation system market is expected to grow at a CAGR of around 7% during the forecast period of 2021-2026. The market is primarily driven by the increasing adoption of automation technology in the postal industry, rising e-commerce sales, and the need for faster and more efficient mail delivery services.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The global postal automation system market is expected to grow at a CAGR of around 7% during the forecast period of 2021-2026.
• The market is primarily driven by the increasing adoption of automation technology in the postal industry, rising e-commerce sales, and the need for faster and more efficient mail delivery services.
• The Asia-Pacific region is expected to witness the highest growth during the forecast period, due to the increasing adoption of automation technology in countries such as China and India.
• Key players in the market include Siemens AG, NEC Corporation, Toshiba Corporation, Mitsubishi Logistics Corporation, and Vanderlande Industries B.V.

Market Drivers

• Increasing Adoption of Automation Technology: The postal industry is increasingly adopting automation technology to handle the growing volume of mail and packages being sent. Automation helps to streamline the entire mail delivery process, from sorting and categorizing mail to tracking and monitoring delivery status.
• Rising E-commerce Sales: The growth of e-commerce and online shopping has led to a significant increase in the volume of mail and packages being sent. Postal automation systems help to handle this increased volume and ensure faster and more efficient delivery of packages and mail.
• Need for Faster and More Efficient Mail Delivery Services: Postal service providers are under pressure to deliver mail and packages faster and with greater accuracy. Postal automation systems help to achieve this by automating the entire mail delivery process and reducing the time required for manual sorting and processing.

Market Restraints

• High Initial Investment Cost: The initial investment required for implementing postal automation systems can be high, which may act as a barrier to adoption for some postal service providers.
• Limited Technical Expertise: The implementation of postal automation systems requires technical expertise, which may be a constraint for some postal service providers who lack the necessary skills or resources.

Market Opportunities

• Growing Adoption of AI and Robotics: The use of AI and robotics in postal automation systems is expected to increase in the coming years, providing opportunities for market growth and innovation.
• Emerging Markets: The increasing adoption of automation technology in emerging markets such as India and China provides significant growth opportunities for the postal automation system market.

Market Dynamics

The postal automation system market is highly dynamic, with several factors influencing its growth and development. The market is characterized by a high degree of competition, with numerous players vying for market share. The adoption of new technologies and the emergence of new market trends are likely to shape the future of the market.

Regional Analysis

The postal automation system market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region is expected to witness the highest growth during the forecast period, due to the increasing adoption of automation technology in countries such as China and India. North America and Europe are also expected to witness significant growth due to the high demand for faster and more efficient mail delivery services.

Competitive Landscape

Leading Companies in the Postal Automation System Market:

1. Siemens AG
2. Toshiba Corporation
3. NEC Corporation
4. Lockheed Martin Corporation
5. Vanderlande Industries B.V.
6. Beumer Group
7. Fives Group
8. Eurosort Systems B.V.
9. Bastian Solutions, Inc.
10. Falcon Autotech Pvt. Ltd.

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The postal automation system market is segmented on the basis of component, application, and deployment type. By component, the market is segmented into hardware, software, and services. By application, the market is segmented into letter sorting, parcel sorting, and others. By deployment type, the market is segmented into on-premises and cloud-based.

Category-wise Insights

The hardware segment is expected to hold the largest share of the postal automation system market during the forecast period, due to the high demand for hardware components such as sorters, conveyors, and printers. The software segment is also expected to witness significant growth due to the increasing adoption of AI and robotics in postal automation systems.

Key Benefits for Industry Participants and Stakeholders

• Increased Efficiency: Postal automation systems help to streamline the entire mail delivery process, reducing the time required for manual sorting and processing and increasing efficiency.
• Improved Service Quality: Automation technology helps to improve the accuracy and speed of mail delivery, resulting in higher levels of service quality and customer satisfaction.
• Cost Savings: Postal automation systems can help to reduce operational costs by eliminating the need for manual sorting and processing and increasing efficiency.

SWOT Analysis

Strengths:

• Helps to streamline the entire mail delivery process, reducing the time required for manual sorting and processing.
• Improves the accuracy and speed of mail delivery, resulting in higher levels of service quality and customer satisfaction.
• Can help to reduce operational costs by eliminating the need for manual sorting and processing and increasing efficiency.

Weaknesses:

• High initial investment cost may act as a barrier to adoption for some postal service providers.
• Limited technical expertise may be a constraint for some postal service providers who lack the necessary skills or resources.

Opportunities:

• Growing adoption of AI and robotics in postal automation systems provides opportunities for market growth and innovation.
• Increasing adoption of automation technology in emerging markets such as India and China provides significant growth opportunities for the postal automation system market.

Threats:

• Intense competition in the market may lead to price wars and reduced profit margins.
• Emerging technologies and market trends may disrupt the existing market landscape.

Market Key Trends

• Adoption of AI and Robotics: The use of AI and robotics in postal automation systems is expected to increase in the coming years, providing opportunities for market growth and innovation.
• Growing Emphasis on Sustainability: Postal service providers are increasingly focusing on sustainability, and postal automation systems can help to reduce the environmental impact of mail delivery by reducing energy consumption and waste.

Covid-19 Impact

The Covid-19 pandemic has had a significant impact on the postal industry, with increased demand for mail and packages due to lockdowns and social distancing measures. Postal automation systems have played a key role in ensuring the continued delivery of mail and packages during the pandemic, and the market is expected to witness continued growth as the adoption of automation technology increases in response to the pandemic.

Key Industry Developments

• In 2020, Siemens AG launched its new Sort Mail Solution, an automated mail sorting system that uses OCR technology to sort letters and parcels.
• In 2019, Vanderlande Industries B.V. acquired Optosecurity, a leading provider of security and screening technology for the aviation industry, to expand its product offerings and strengthen its market position.
• In 2018, NEC Corporation announced the development of a new AI-based mail sorting system that uses deep learning technology to recognize handwriting and addresses.

Analyst Suggestions

To capitalize on the growing demand for postal automation systems, market players should focus on:

• Developing innovative products and solutions that address the evolving needs of the postal industry.
• Establishing strategic partnerships and collaborations to expand market presence and increase product offerings.
• Investing in R&D to develop new technologies and stay ahead of emerging market trends.

Future Outlook

The global postal automation system market is expected to witness continued growth in the coming years, driven by the increasing adoption of automation technology in the postal industry, rising e-commerce sales, and the need for faster and more efficient mail delivery services. The Asia-Pacific region is expected to witness the highest growth during the forecast period, due to the increasing adoption of automation technology in countries such as China and India.

Conclusion

Postal automation systems are becoming increasingly important in the postal industry, as they help to streamline the entire mail delivery process, reduce operational costs, and improve service quality. The global postal automation system market is expected to witness significant growth in the coming years, driven by the increasing adoption of automation technology, rising e-commerce sales, and the need for faster and more efficient mail delivery services. Market players should focus on developing innovative products and solutions, establishing strategic partnerships, and investing in R&D to capitalize on the growth opportunities in this dynamic market.