North America Postal Services Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

North America Postal Services Market Trends and Insights

E-commerce Parcel Volume Boom Driven by Same-Day Delivery Demands

Parcel traffic reached 21.7 billion pieces in the United States during 2023 and is projected to climb toward 29 billion by 2029, adding pressure on postal operators to prioritise parcel capacity over letter routes. Operators are now favouring predictable two-to-three-day windows over ultra-fast promises because reliability has become the key buying criterion for online shoppers. USPS upgraded seasonal processing to about 60 million parcels per day for the 2024 holiday peak, reflecting a permanent shift toward parcel-centric networks.

SMB Adoption of Hybrid Mail & Fulfilment APIs in the United States

Small and midsize businesses now contribute 28.9% of total U.S. postal volume, catalysed by easy-to-integrate shipping APIs offered by USPS and private carriers. Web Tools updates released during 2024 add end-to-end tracking and harmonised customs data, enabling even micro-merchants to print compliant labels directly from e-commerce dashboards. This digital bridge is democratising enterprise-grade logistics capabilities and sustaining higher-margin traffic across the network.

U.S. Postal Service's Network Modernization Increasing Processing Capacity

The USD 40 billion “Delivering for America” roadmap earmarks USD 17.3 billion for replacing legacy plants with regional processing and distribution centres and over 60 sorting and delivery centres^{[1]United States Postal Service, “Delivering for America Plan,” usps.com}. By consolidating mail flow, the plan should lift daily parcel handling capacity from 47 million to 77 million by 2030. Despite regulatory concerns about service downgrades for rural areas, USPS expects annual cost savings of roughly USD 3.6-3.7 billion and improved on-time scores^{[2]Postal Regulatory Commission, “Advisory Opinion on Network Consolidation,” prc.gov}.

Canada Post's Parcel Expansion Hubs Enhancing Cross-Border Reach

Canada Post opened the Albert Jackson Processing Centre in Toronto with 1 million-parcel daily throughput and is enlarging the Pacific Processing Centre at Vancouver International Airport to reinforce service to Asia-Pacific lanes. Both sites meet the Canada Green Building Council’s Zero-Carbon standard, signalling a dual focus on capacity and sustainability. The move is vital as the operator’s market share slid to 29% in 2024 after a prolonged strike.

First-Class Mail Volume Decline from Digital Substitution in U.S. Government Agencies

First-Class Mail fell by 50% between FY 2008 and FY 2023, eroding one of USPS’s most profitable revenue streams. Government bodies that once mailed tax notices and benefits statements are now defaulting to digital delivery, deepening revenue pressure. Even with higher parcel income, USPS posted a USD 6.5 billion net loss in FY 2023, and further declines in physical correspondence threaten funding for universal-service mandates.

Chronic Labor Shortages & Rising Union Wage Pressures at National Posts

A 32-day Canada Post strike in late 2024 snarled holiday deliveries and pushed several retailers to switch carriers, magnifying the corporation’s quarterly loss to USD 315 million before tax. Contract talks remain tense, with another walkout possible in 2025. In the United States, letter carrier wage discussions are also proving complex, underscoring workforce fragility in a tight labour market

Segment Analysis

By Type: Express Services Outpace Standard Mail

Express services recorded a 3.8% CAGR for 2025-2030, surpassing overall market momentum. The benefits from premium pricing as businesses pay for predictable arrival windows. Continuous Producer Price Index gains for couriers confirm sustained demand, and major operators bolster time-definite lanes with later cut-offs and earlier clearances^{[3]U.S. Bureau of Labor Statistics, “Producer Price Index for Couriers,” bls.gov}.

Standard services, although covering the broadest addressable base, wrestle with secular mail decline. Yet they still commanded 63.5% of the North America postal services market share in 2024 due to universal-service obligations that entrench nationwide delivery networks. USPS is recalibrating standards so 75% of First-Class Mail maintains a 1-5-day window and 14% gains faster service, aligning commitments with real-world transport flows.

Note: Segment shares of all individual segments available upon report purchase

By Item: Parcels Dominate Amid Letter Decline

Parcels held 57.8% share in 2024, generating the lion’s share of revenue for the North America postal services market. Operators expanded mechanised sortation and shifted labour from letter plants to parcel lanes, enabling single-piece handling rates as low as 20 seconds per unit during peak periods. The North America postal services market size tied to parcel business is forecast to grow at 3.9% CAGR on the back of expanding e-commerce categories such as oversized home goods and temperature-controlled groceries.

Letter volumes, in contrast, continue their downtrend. Between 2008 and 2023, First-Class Mail halved, and the North America postal services market share for letters slipped accordingly. Still, legal documents, voter materials, and direct-mail marketing keep a rump demand that supports selective investments in high-speed letter sorting technology meant to safeguard remaining profitability.

By Destination: International Shipments Outpace Domestic Growth

Domestic traffic retained an 81.1% hold over the North America postal services market in 2024, serving 167 million U.S. addresses and millions more in Canada and Mexico every delivery day. High fixed-route density aids cost absorption, and operators layer parcels atop mail rounds to maximise last-mile productivity.

International services, though smaller, exhibit a 3.8% CAGR because of cross-border e-commerce and near-shoring tailwinds. Harmonised customs codes, electronic advance data, and new trade configurations under USMCA spur volume even as tariff shifts create temporary volatility. USPS revised customs forms in April 2024, mandating HS codes to accelerate clearance in 30+ nations, improving customer satisfaction scores on outbound parcels.

By End-User: C2C Segment Shows Surprising Strength

C2C consignments, driven by peer-to-peer resale platforms and social-commerce gifting, are forecast to grow 4.4% annually to 2030. Lightweight parcels, prepaid return labels, and kiosk drop-offs fuel the segment’s low-touch model. Meanwhile, B2C retains 66.3% share of the North America postal services market thanks to large-scale retail operations shipping daily to urban and rural addresses alike.

B2B flows remain essential for warranty parts, financial documentation, and regulated samples. Nevertheless, their growth has tempered as enterprises adopt digital document workflows. Operators advertise chain-of-custody tracking and dedicated account teams to keep B2B churn low, especially in medical devices and aerospace verticals that still prize paper originals.

Note: Segment shares of all individual segments available upon report purchase

By Delivery Mode: Air Transport Gains Altitude

Road networks dominate with 72.6% share, offering the only economically viable option for dense last-mile distribution across sprawling suburbia. Fleet electrification, improved telematics, and unified sort-to-route models are expected to sustain road’s central role. The North America postal services market size linked to road modes is projected to inch along near the headline CAGR.

Air transport, however, charts a 3.1% CAGR, its role amplified by cross-border priority parcels and return-to-origin logistics for high-value goods. UPS now lifts most USPS air consignments, integrating postal volumes into its own cargo aircraft schedules for higher load factors. Capacity expansions at secondary airports and automated air-freight sorters will help carriers meet two-day national delivery promises even into remote ZIP codes.

Geography Analysis

The United States anchors the North America postal services market with 86.4% share in 2024. USPS alone handled 6.6 billion parcels last year, yet its revenue share was only 16% because private couriers charge higher average yields. The agency’s USD 40 billion transformation plan seeks to reverse negative cash flow through processing consolidation, fleet modernisation, and broader parcel pricing tiers. Amazon Logistics surpassed UPS by delivering 5.9 billion parcels in 2024, illustrating the groundswell of in-house retailer networks.

Canada faces mounting margin pressure as labour unrest and new entrants dilute Canada Post’s foothold. Market share slipped to 29% in 2024, down from 62% pre-pandemic, after a 32-day strike pushed shippers toward Purolator, FedEx, and regional specialists. In response, the Crown corporation is pouring capital into low-carbon hubs, robotic sorters, and parcel lockers to reclaim customer confidence.

Mexico shows the fastest expansion, with a 2.3% CAGR driven by near-shoring and industrial park buildouts. Cross-border flows benefit from USMCA incentives, though rural address deficits inflate last-mile costs. Niche providers have launched geocoding apps that assign plus-codes to unnumbered dwellings, bridging the gap and unlocking growth in interior states tied to manufacturing ecosystems.