Postal Services Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 1.00 % |
| Fastest Growing Market | North America |
| Largest Market | South America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Postal Services Market Analysis
The postal services market is estimated to register a CAGR of approximately 1% during the forecast period. The spreading of COVID-19 has forced nations to suspend public activities, changing how governments, corporations, and people see the postal system. When more people are required to stay at home to stop the virus from spreading, posts are becoming more and more recognized as crucial service providers.
- The COVID-19 outbreak restrained 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 the International Post Corporation (IPC), the parcel revenue rose by EUR 19.3 billion (USD 21.7 billion), while mail revenue fell by EUR 6.1 billion (USD 6.8 billion) in 2020.
- Over recent years, the postal service industry has suffered disruptions from the internet and digital industries. The traditional core mail delivery business is declining 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.
- Currently, some of the top postal service companies across the world include the US Postal Service (USPS), Deutsche Post DHL (Germany), La Poste (France), and Japan Post.
- The demand for postal and mailing services depends on transaction volume and corporate spending on direct marketing. The profitability of individual companies depends on the efficiency of their operations.
- Some of the largest postal and mailing markets are China, the United States, the United Kingdom, France, Germany, and Italy. High-growth markets include Canada, India, Portugal, and Singapore.
- In 2021, the leading markets for postal and courier activities worldwide were Germany, the United Kingdom, France, Italy, and the Netherlands. In the future, the adoption of data analytics, technology development, and the use of automated and electric vehicles may positively impact the market. Factors that could hinder the growth of the postal services market in the future include workforce shortage, etc.
Postal Services Market Trends
E-commerce Opens Opportunities for Postal Services
E-commerce represents a tremendous opportunity for postal services as consumers become increasingly comfortable ordering items online from emerging e-commerce platforms, and traditional brick-and-mortar outlets are also transitioning to digital environments. As the volume of online sales increases, e-commerce 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. In Kenya, for example, a partnership between online marketplace Jumia and the Postal Corporation of Kenya enables online shoppers to collect items they purchase on Jumia from their nearest post office.
However, many global postal services organizations are not equipped to take advantage of this growth in e-commerce. 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. Where digital adoption is high, innovations inevitably emerge. The launch of mPost by Kenya's postal services, for example, has turned every mobile phone into a formal postal address, enabling people to access letters and parcels from anywhere in the country.
United Kingdom Boost the Postal Delivery Service by Drones
The COVID-19 epidemic is redefining how much the post and parcel sector needs autonomous delivery systems.
United Kindom: In the coming three years, Royal Mail will establish 50 new "postal drone routes" as part of its increased usage of drones for delivery. The move, which is subject to Civil Aviation Authority permission, would give rural communities speedier and more practical services thanks to cooperation with the logistics drone business Windracers. The Isles of Scilly, Shetland Islands, Orkney Islands, and the Hebrides are among the initial destinations for the new service. For the next three years, Royal Mail said it plans to utilize up to 200 drones, and eventually more than 500, to service every part of the UK. Four drone tests have been carried out by Royal Mail over the past 18 months, including flights over the Scottish Isle of Mull, the Isles of Scilly off the coast of Cornwall, and the Orkney Islands' Kirkwall and North Ronaldsay. Between Tingwall Airport in Lerwick and Unst, a 50-mile journey each way, test flights for the new service have been conducted. Letters and packages are subsequently carried by the neighborhood postman or lady using the drones employed in the study, which can carry up to 100kg of mail for two daily return trips between the islands.
Postal Services Industry Overview
The industry is moderately fragmented. Large companies have advantages in widespread infrastructure and diversity of services. Small companies compete by specializing. Most nations have a government-owned postal service that controls a major portion of the market there. These 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.
Postal Services Market Leaders
United States Postal Services
Deutsche Post DHL
Le Groupe La Poste
Royal Mail Group
Japan Post
*Disclaimer: Major Players sorted in no particular order
Postal Services Market News
February 2022: To capture more packages for next-day delivery, the United States Postal Service 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 plans to offer expedited service on shipments under the 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.
July 2022: Innoviz Technologies Ltd, a leading provider of high-performance, automotive-grade LiDAR sensors and perception software, announced that Japan Post aims to construct digital maps with Innoviz's high-performance InnovizOne LiDAR sensor, paving the way for next-generation smart city services such as autonomous driving and unmanned delivery. Japan Post is a special private company under the jurisdiction of the Ministry of Internal Affairs and Communications, offering postal and logistics services and banking and life and non-life insurance agency services. Japan Post also announced its plans to install InnovizOne LiDAR sensors on its postal delivery cars. The InnovizOne-equipped delivery vehicles will generate detailed digital maps that gather information such as changes in roads and buildings along delivery routes. These detailed maps will serve as foundational data to enable next-generation services for Japan's residents, such as automated driving and more.
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 Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Value Chain/Supply Chain Analysis
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
5.2.1 Letter
5.2.2 Parcel
5.3 By Destination
5.3.1 Domestic
5.3.2 International
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 India
5.4.3.2 China
5.4.3.3 Japan
5.4.3.4 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 Latin America
5.4.4.2 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 United States Postal Services
6.2.2 Deutsche Post DHL
6.2.3 Le Groupe La Poste
6.2.4 Royal Mail Group
6.2.5 Japan Post
6.2.6 Swiss Post
6.2.7 Post NL
6.2.8 Poczta Polska
6.2.9 The Singapore Post
6.2.10 The Australian Post AG
6.2.11 China Post*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
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 in national or international scales.
The postal services market is segmented by type (express postal services and standard postal services), item (letter and parcel), destination (domestic and international), and geography (North America, Europe, Asia-Pacific, and Rest of the World). 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 | ||||||||
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Postal Services Market Research FAQs
What is the current Postal Services Market size?
The 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 Postal Services Market?
United States Postal Services, Deutsche Post DHL, Le Groupe La Poste, Royal Mail Group and Japan Post are the major companies operating in the Postal Services Market.
Which is the fastest growing region in Postal Services Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Postal Services Market?
In 2024, the South America accounts for the largest market share in Postal Services Market.
What years does this Postal Services Market cover?
The report covers the Postal Services Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Postal Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Postal Services Industry Report
Statistics for the 2024 Postal Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 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.
