How large is the parcel and postal automation systems market, and what is its growth trajectory?
The parcel and postal automation systems market size has grown strongly in recent years. It will grow from $837.24 billion in 2024 to $903.13 billion in 2025 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to growth in the e-commerce industry, increased number of packages and shipments, rise in demand for automation, the need for improved operational efficiency, and increased labor costs.
The parcel and postal automation systems market size is expected to see strong growth in the next few years. It will grow to $1214.61 billion in 2029 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to the growing need for effective methods for sorting packages, the need for monitoring of mail Items, the requirement to satisfy sustainability targets, the increasing need for accurate, efficient, and economical parcel handling, booming e-commerce sector. Major trends in the forecast period include the use of automated mobile robots, technological advancements in the parcel and postal automation industry, data management through data analytics, use of AI in parcel sorting.
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Which industry factors have accelerated the parcel and postal automation systems market’s expansion?
The growing number of packages and shipments is expected to propel the growth of the parcel and postal automation systems market going forward. Packages and shipments encompass the process of preparing, transporting, and delivering goods from one location to another, with packages serving as the individual units containing items and shipments representing the collective consignment of packages sent together to a common destination. The growing number of packages and shipments is fueled by increased e-commerce activity, facilitated by advances in technology and changing consumer preferences, leading to heightened demand for logistics services worldwide. Packages and shipments use parcel and postal automation systems to streamline sorting, tracking, and delivery processes through advanced technologies, ensuring efficient handling and timely delivery. For instance, in 2023, according to recent figures of the parcel shipping index from Pitney Bowes Inc., a US-based shipping and mailing company, the total US parcel volume saw a notable increase in 2023, rising by 0.5% compared to the preceding year. Specifically, it surged from 21.5 billion units in 2022 to 21.7 billion units in 2023. Therefore, the increasing number of packages and shipments is driving the growth of the parcel and postal automation systems market.
What are the primary segments of the parcel and postal automation systems market?
The parcel and postal automation systems market covered in this report is segmented –
1) By Component: Hardware, Services, Software
2) By Technology: Delivery Barcode Sorter, Facer Canceller System
3) By Application: Courier, Express, And Parcels, Government Postal
Subsegments:
1) By Hardware: Automated Sorting Systems, Conveyors And Material Handling Equipment, Barcode Scanners And Readers, Automated Storage And Retrieval Systems (ASRS), Weighing And Dimensioning Systems, Automated Guided Vehicles (AGVs), Robotic Arms For Sorting And Packing, Labeling And Printing Machines
2) By Services: Consulting And System Design, Installation And Integration Services, Training Services, Maintenance And Support Services, Managed Services, Upgrade And Retrofit Services
3) By Software: Parcel Management Software, Warehouse Management Systems (WMS), Transportation Management Systems (TMS), Tracking And Tracing Software, Sorting And Routing Software, Fleet Management Software, Analytics And Reporting Software
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Which firms are leading the parcel and postal automation systems market?
Major companies operating in the parcel and postal automation systems market are Schneider Electric SE, Honeywell International Inc., Toshiba Corporation, NEC Corporation, Leonardo S.p.A., Murata Machinery Ltd., Rockwell Automation Inc., Zebra Technologies Corp., Daifuku Co. Ltd., Dematic Corporation, YASKAWA Electric Corporation, Pitney Bowes Inc., Vanderlande Industries B.V., Körber AG, Fives, BEUMER Group GmbH & Co. KG, Siemens Logistics GmbH, Interroll Group, OPEX Corporation, Bastian Solutions LLC, Solystic SAS, National Presort LP, Falcon Autotech Private Limited, GBI Intralogistics Solutions, EuroSort Systems B.V., Bowe Systec GmbH
Which market trends are set to define the future of the parcel and postal automation systems market?
Major companies operating in the parcel and postal automation systems market are focusing on advanced technologies, such as robot-based parcel sortation technology, to gain a competitive edge in the market. The robot-based parcel sortation technology is a cutting-edge system that utilizes autonomously guided robots to streamline the parcel sorting process in logistics operations. These robots are capable of processing thousands of parcels per hour, significantly increasing order throughput speed and reducing error rates to nearly zero. For instance, in January 2024, Viettel Post (VTPost), a Vietnam-based logistics company, adopted fully automated robot-based parcel sortation technology with the installation of 160 LiBiao ‘Mini Yellow’ autonomous guided robots at its storage and distribution hub in Hanoi. It is the new sorting system providing VTPost with the capacity to process around 6,000 parcels of various sizes, weights, and shapes every hour at the multi-client site. The system has more than 1,000 destination chutes, and when robots reach the assigned chute, they stop running and deposit their parcel before returning to an induction station, collecting another order, and starting the process over again.
Which geographic trends are shaping the parcel and postal automation systems market, and which region has the highest market share?
North America was the largest region in the parcel and postal automation systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the parcel and postal automation systems market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Parcel And Postal Automation Systems Market Report 2025 Offer?
The parcel and postal automation systems market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Parcel and postal automation systems refer to the use of technology and machinery to automate various processes involved in handling, sorting, processing, and delivering parcels and mail items within postal and courier services. These systems are designed to increase efficiency, accuracy, and throughput while reducing operational costs and manual labor.
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