Postal Services Market Size (2024 - 2029)

The market size of the postal services industry is projected to grow at a steady pace, despite facing disruptions due to the COVID-19 pandemic and the rise of digital communication platforms. The pandemic has altered the dynamics of the market, shifting the focus from mail revenue to parcel services due to lockdowns and restrictions. The industry, traditionally dominated by state-owned monopolies, is now seeing a shift towards commercial companies with diversified portfolios. The market size is heavily influenced by transaction volumes and corporate spending on direct marketing. The efficiency of operations significantly impacts the profitability of companies in this sector. The market is witnessing high growth in certain regions and is expected to be positively impacted by the adoption of data analytics, technology development, and the use of automated and electric vehicles in the future. However, factors such as workforce shortage could hinder market growth.

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Market Size of Postal Services Industry

Postal Services Market Summary
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

Postal Services Market Major Players

*Disclaimer: Major Players sorted in no particular order
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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 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
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
Rest of Asia-Pacific
Rest of the World
Latin America
Middle East & Africa

Postal Services Market Size Summary

The postal services industry is expected to see a steady growth rate in the coming years, despite disruptions from the internet and digital industries. The COVID-19 pandemic has significantly altered the landscape of the industry, shifting growth away from traditional mail revenue and towards parcel services. This is largely due to the increase in online shopping and the subsequent demand for delivery services. Major players in the global postal services market include the US Postal Service, Deutsche Post DHL, La Poste, and Japan Post. The demand for these services largely relies on transaction volume and corporate spending on direct marketing. The market is moderately fragmented with large companies having advantages in widespread infrastructure and diversity of services. Smaller companies compete by specializing in certain areas. Government-owned postal agencies typically control a major portion of the market in most nations. These agencies usually have a monopoly on mail delivery but face stiff competition from private package delivery companies. High-growth markets within the postal services industry include Canada, India, Portugal, and Singapore. Future growth in the industry is likely to be influenced by the adoption of data analytics, technology development, and the use of automated and electric vehicles.

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Postal Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Market Opportunities

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Value Chain/Supply Chain Analysis

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Express Postal Services

      2. 2.1.2 Standard Postal Services

    2. 2.2 By Item

      1. 2.2.1 Letter

      2. 2.2.2 Parcel

    3. 2.3 By Destination

      1. 2.3.1 Domestic

      2. 2.3.2 International

    4. 2.4 By Geography

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

        3. 2.4.1.3 Mexico

      2. 2.4.2 Europe

        1. 2.4.2.1 Germany

        2. 2.4.2.2 United Kingdom

        3. 2.4.2.3 France

        4. 2.4.2.4 Italy

        5. 2.4.2.5 Spain

        6. 2.4.2.6 Rest of Europe

      3. 2.4.3 Asia-Pacific

        1. 2.4.3.1 India

        2. 2.4.3.2 China

        3. 2.4.3.3 Japan

        4. 2.4.3.4 Rest of Asia-Pacific

      4. 2.4.4 Rest of the World

        1. 2.4.4.1 Latin America

        2. 2.4.4.2 Middle East & Africa

Postal Services Market Size FAQs

The Postal Services Market is projected to register a CAGR of greater than 1% during the forecast period (2024-2029)

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.

Postal Services Report Snapshots

Postal Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)