PUBLISHER: Grand View Research | PRODUCT CODE: 1611635
PUBLISHER: Grand View Research | PRODUCT CODE: 1611635
The global postal automation system market size is anticipated to reach USD 1,365.9 million in 2030 and is projected to grow at a CAGR of 7.0% from 2025 to 2030. The increasing e-commerce market and online retail shopping have resulted in a considerable rise in the number of orders across the globe. The companies are incorporating automation in postal services to meet the rising number of package processing.
Implementing automation in postal services has helped companies reduce their dependency on labor. Automation in parcel sorting systems, mail sorting systems, coding systems, automatic reading, and postal software has helped companies save operating costs and achieve high accuracy and productivity. Moreover, it reduces processing time, human errors, and increased labor costs and requirements.
The increasing adoption of e-commerce platforms has increased the demand for faster package processing as companies focus on faster deliveries to gain a competitive edge in the market. The automation in postal services helps to simplify processes and reduce labor costs while improving service quality.
The leading postal automation system market companies focus on technological development and introducing the latest technologies to reduce operational costs and carbon footprints. For instance, in May 2022, Deutsche Post DHL Group installed two robotic sorting machines of Dorabot Inc. at the Atlanta distribution centers to achieve labor efficiency and boost the sortation process.
The market offers various growth opportunities due to digitization; the companies are upgrading their infrastructure and incorporating automation into their existing postal services to improve service quality and reduce operational costs. In contrast, the challenges such as high initial investment as the systems require installation due to high numbers of software and hardware and timely service requirement, upgrades, and maintenance to avoid technical errors are expected to create challenges over the forecast period.