North America Postal Services Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 1.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Postal Services Market Analysis
The North America postal services market is estimated to register a CAGR of approximately 1% during the forecast period (2023-2028).
The outbreak of Coronavirus disease (COVID-19) acted as a restraint on the postal services market in 2020 as governments imposed lockdowns and restricted the movement of people and goods to contain the transmission. The pandemic drove industry growth away from mail revenue and toward parcels. According to International Post Corporation (IPC), the parcel revenue rose by EUR 19.3 billion (USD 21.7 billion) while mail revenue fell EUR 6.1 billion (USD 6.8 billion) in 2020.
USPS is the official postal service in the USA. FedEx and UPS immediately compete with USPS Express Mail and package delivery couriers, doing nationwide deliveries of urgent letters and packages. Due to the USPS monopoly, other couriers in the USA are not allowed to deliver non-urgent letters and cannot ship to U.S. Mail boxes at residential and other business locations. With a few minor exceptions, the United States Postal Service enjoys a legal monopoly in the delivery of letters. Under the Private Express Statutes, private letter carriers are subject to fines and/or imprisonment. Canada Post has the largest market share in shipping packages and traditional mail in Canada. The government mail service is responsible for shipping two out of every three parcels in Canada and is trusted by many Canadians.
Over recent years, the postal service industry in North America has been suffering disruptions from the internet and digital industries. The traditional core business of mail delivery is in decline as communications move online. Meanwhile, the industry also faces fierce competition in the rapidly growing e-commerce parcel market. As a result, postal and mailing businesses are shifting from state-owned monopolies to commercial companies with diversified portfolios.
North America Postal Services Market Trends
This section covers the major market trends shaping the North America Postal Services Market according to our research experts:
eCommerce Opens Opportunities for Postal Services
eCommerce represents a tremendous opportunity to postal services as consumers become increasingly comfortable with ordering items online from emerging eCommerce platforms, as well as traditional brick-and-mortar making the transition to digital environments. As the volume of online sales increases, eCommerce providers are seeking cost-effective channels for the delivery and collection of purchased items. Postal services, with their long-established national networks and experience in last-mile delivery, are emerging as effective partners in this regard.
However, many global postal services organizations are not equipped to take advantage of this growth in eCommerce: while B2C eCommerce is growing at a global rate of 17%, parcel volumes among postal services organizations have been growing at less than 5%. Part of the issue is the low adoption of digital technologies as core business and innovation drivers among low-performing postal services organizations.
Letter Volume is on Decline
The U.S. Postal Service (USPS) is the official postal service in the US. USPS has experienced a year-on-year decline in mail volume every year since 2006. In 2022, the volume of mail delivered by the USPS dropped to just 127.3 billion units. The reduced volume of traditional mail, marketing materials, and periodicals is behind this decline. However, the revenue generated from shipping packages has actually increased in recent times. Technology is the main factor driving the decline in both traditional mail volumes and the increase in parcel deliveries. On the one hand, a clear and increasing majority of people in the U.S. use email, reducing the need for traditional mail services. Also, the share of U.S. retail sales made online has doubled in just a decade, creating greater demand for package delivery services. The same is the case with the official postal service of Canada, Canada Post.
North America Postal Services Industry Overview
The industry is currently fragmented. Large companies have advantages in widespread infrastructure and diversity of services. Small companies compete by specializing. Government-owned postal agencies typically have a monopoly on mail delivery but face heavy competition from private package delivery companies. The competing entities form partnerships to capitalize on each other's strengths. For instance, major express delivery companies Federal Express (FedEx) and United Parcel Service (UPS) contract certain residential deliveries to the US Postal Service (USPS), while the USPS contracts air transportation out to FedEx and UPS.
North America Postal Services Market Leaders
USPS
Canada Post Corporation
UPS
DHL
FedEx
*Disclaimer: Major Players sorted in no particular order
North America Postal Services Market News
- February 2022: In a bid to capture more packages for next-day delivery, the United States Postal Service has created a new, cheaper parcel service called 'USPS Connect Local.' The service will enable shippers to get next-day, first-class service on document packages of up to 13 ounces for USD 2.95, according to an order from the Postal Regulatory Commission. The USPS also will offer expedited service on shipments under new 'USPS Connect Regional' and 'USPS Connect National' programs. The agency also created a fourth program to help speed product return parcels. The program is called 'USPS Connect Returns' and promises free return package pickups by letter carriers or drop-offs at post offices.
- May 2022: Canada Post unveiled its new leading-edge zero-carbon parcel sorting facility that will have the capacity to process more than one million packages a day. The Albert Jackson Processing Centre will be a key hub for the company's national network and improve service for Canadians when it officially opens in early 2023. The USD 470 million state-of-the-art facility, located at 1395 Tapscott Road in Scarborough, will help Canada Post meet the rapidly changing needs of Canadians and businesses across the country. The additional capacity will allow the company to handle the continued growth in online shopping for years to come. The Corporation plans to increase parcel capacity by more than 50% across its network over the next seven years to manage the demand beyond 2030.
North America Postal Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Current Market Scenario
4.2 Market Drivers
4.3 Market Restraints
4.4 Market Opportunities
4.5 Value Chain / Supply Chain Analysis
4.6 Porters 5 Force 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
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Express Postal Services
5.1.2 Standard Postal Services
5.2 By Item
5.2.1 Letter
5.2.2 Parcel
5.3 By Destination
5.3.1 Domestic
5.3.2 International
5.4 By Geography
5.4.1 US
5.4.2 Canada
5.4.3 Mexico
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 USPS
6.2.2 Canada Post Corporation
6.2.3 UPS
6.2.4 DHL
6.2.5 FedEX
6.2.6 Purolator
6.2.7 Correos de Mexico
6.2.8 Estafeta
6.2.9 GLS
6.2.10 APC Postal Logistics
6.2.11 Santa Lucia Post
6.2.12 Grenada Postal Corporation
6.2.13 Paquetexpress*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
North America Postal Services Industry Segmentation
The postal service industry refers to the business activities of the Post Office and its partners operating to provide mail (or small parcel) collecting, transporting, and delivering services on national or international scales. The global 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 Geography (US, Canada, and Mexico). The report offers market sizes and forecasts in value (USD billion) for all the above segments.
| By Type | |
| Express Postal Services | |
| Standard Postal Services |
| By Item | |
| Letter | |
| Parcel |
| By Destination | |
| Domestic | |
| International |
| By Geography | |
| US | |
| Canada | |
| Mexico |
North America Postal Services Market Research FAQs
What is the current North America Postal Services Market size?
The North America Postal Services Market is projected to register a CAGR of greater than 1% during the forecast period (2024-2029)
Who are the key players in North America Postal Services Market?
USPS, Canada Post Corporation, UPS, DHL and FedEx are the major companies operating in the North America Postal Services Market.
What years does this North America Postal Services Market cover?
The report covers the North America Postal Services Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America Postal Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Postal Services Industry Report
Statistics for the 2024 North America Postal Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Postal Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
