Europe Postal Services Market Size
|CAGR:||> 4.05 %|
*Disclaimer: Major Players sorted in no particular order
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Europe Postal Services Market Analysis
The Europe postal services market is expected to grow at a CAGR of more than 4.05% during the forecast period.
- To ramp up the industry, the EU's Postal Services Directive establishes basic standards for USO service providers, subject to some exclusions. The USO's components have not changed since 1997, although each Member State is free to determine the exact USO's size and scope at the national level as long as it complies with the Postal Services Directive's baseline standards.
- In addition to national postal laws and regulations, international postal laws and legislation derived from other industries also apply to the postal sector in the EU. Cross-border letters sent between Member States are governed by the Postal Services Directive. According to the Directive, 85% of international letter mail must be delivered within three days. However, the performance is hampered by the dropping letter volume, which makes it challenging for postal operators to uphold the high standards of service.
- The COVID-19 epidemic has also had a significant influence on the European postal services industry, which has compelled universal service providers to adapt and innovate as a result. Particularly, USPs adjusted prices, entered new markets, offered new products, innovated, and used new business methods in response. At the same time, discussions on regulatory adjustments and changes to the postal regulatory framework were generated by the industry leaders.
Europe Postal Services Industry Segmentation
The term "postal services" refers to the services that include clearing, sorting, routing, and delivery of mail and postal items. Early courier networks for governmental usage were set up in the Roman Empire, the Persian Empire under Cyrus, and medieval Europe. However, postal services are now defined in Europe as the delivery of letters, packages, packets, and other items via the postal system as well as the incidental services of receiving, gathering, sorting, and delivering such items by businesses that are either owned by the government or the private sector. The Europe Postal Services market is segmented By Type (Express Postal Services and Standard Postal Services), By Item (Letter and Parcel), By Destination (Domestic and International), and By Country (Germany, United Kingdom, France, Russia, Spain, Netherlands, and Rest of Europe). The report offers market size and forecast for the Europe postal services market in terms of value (USD billion) for all the above segments.
|Express Postal Services|
|Standard Postal Services|
|Rest of Europe|
Europe Postal Services Market Trends
This section covers the major market trends shaping the Europe Postal Services Market according to our research experts:
The Postal and Delivery Sector Is Significant to the EU Economy
The postal and delivery sector in the EU makes a variety of contributions to the economy of the Union, including the fact that it generates revenues of EUR 79 billion (USD 84.38 billion) annually, which equates to 0.5% of the EU's total GDP, and that it employs about 1.7 million people across the EU or 0.8% of the employed population.
The postal and delivery sector is an enabler of e-commerce domestically, intra-EU, and globally - a fast-growing industry in Europe and was worth EUR 344 billion (USD 367.44 billion) in 2019. The incumbent postal operators (universal service providers) are typically one of the biggest employers in their countries.
The postal and delivery industry also contributes significantly to some specialized markets, such as the distribution of drugs to elderly or rural populations, as is done by La Poste in France.
There are numerous players operating in the EU's postal and delivery industries, providing a greater significance in the industry. The universal service providers, rival companies engaged in the letter delivery industry, logistics and express companies (like UPS and FedEx), and alternative delivery companies (like Amazon) are among them.
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Digital Communication Is Transforming the Postal Industry in the EU
The postal sector is not exempt from technological change. In fact, it is likely one of the sectors that are most impacted. Europe's postal industry is being impacted by digital change on two fronts. On the one hand, the demand for letters is declining as digital communication channels (the so-called "e-substitution") take the place of paper-based ones. On the other hand, the ability to order things online and have them delivered is raising the demand for packages and deliveries.
E-substitution occurs when electronic communication methods take the place of conventional letter-post communication. Depending on users’ willingness to switch from traditional letter post to electronic communication and how convenient it is to do so, for example, different technological conditions (use of the internet at home, broadband penetration, etc.) and policy conditions, the speed and extent of e-substitution still vary across countries in the region.
The most notable example of e-substitution is Denmark. The EU saw the largest volume drop in posts because of the robust e-government digitalization that has been required in the country since 2014.
In recent years, letter post traffic has decreased, and e-substitution has increased to varying degrees in other Member States. Letter post volumes in the EU decreased on average by 3% a year. Germany is an exception, where letter post is still one of the primary official routes of communication between residents, government, and corporations, mostly due to worries about digital security.
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Europe Postal Services Industry Overview
The competitive landscape of the Europe postal services market is observed to be somewhat consolidated with few major players operating in the market. Small and medium-sized local competitors have less room to compete in the market because many multinational companies dominate the market for postal services in Europe. However, there is room for growth in the market for postal services in Europe during the forecast, which is expected to boost competition. Deutsche Post, La Poste, Royal Mail, PostNL, and FedEx/TNT Express are some of the leading players operating in the Europe postal services market. Some other major players in the market are UPS, Europe Post, Omniva/Eesti Post, DPD/Geopost, Asendia, Swiss Post, Bpost, PostNord AB, Chronopost, Poste Italiane, etc.
Europe Postal Services Market Leaders
Deutsche Post DHL
*Disclaimer: Major Players sorted in no particular order
Europe Postal Services Market News
- October 2022: A 15,000m2 service center for DHL Express is being built in Courcelles, Belgium. The facility is anticipated to have a 3,000 package-per-hour handling capacity and the infrastructure to load 60 electric vans. Additionally, it will have rooftop solar panels, be completely gasless, and be CO2 neutral. The website was created in accordance with BREEAM standards and DHL CRE Go Green criteria. This new distribution facility is planned to take over as DHL's main hub in the province of Hainaut by July 2023, replacing the current service center in Charleroi, Belgium.
- July 2022: La Poste has made the decision to redesign its mail-service lineup to better serve its customers' evolving requirements, lessen its carbon footprint, and safeguard the long-term stability of the universal postal service. Customers will have a choice of 3 letter types as of January 1, 2023. Six days a week, mail delivery, newspaper/magazine distribution, package deliveries, and local services will all continue to be provided.
Europe Postal Services Market Report - Table of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Express Postal Services
5.1.2 Standard Postal Services
5.2 By Item
5.3 By Destination
5.4 By Country
5.4.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Deutsche Post DHL
6.2.2 La Poste
6.2.3 Royal Mail
6.2.5 FedEx/TNT Express
6.2.7 Europe Post
6.2.8 Omniva/Eesti Post
6.2.9 DPD/ Geopost
6.2.11 Swiss Post
6.2.13 PostNord AB
6.2.15 Poste Italiane*
7. FUTURE OF THE MARKET
Europe Postal Services Market Research FAQs
What is the study period of this market?
The Europe Postal Services Market is studied from 2019 - 2028.
What is the growth rate of Europe Postal Services Market?
The Europe Postal Services Market is growing at a CAGR of >4.05% over the next 5 years.
Who are the key players in Europe Postal Services Market?
Deutsche Post DHL, La Poste, Royal Mail, PostNL, FedEx/TNT Express are the major companies operating in Europe Postal Services Market.
Europe Postal Services Industry Report
Statistics for the 2023 Europe Postal Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Postal Services analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.