Southeast Asia Postal Service Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 18.43 Billion |
| Market Size (2029) | USD 27.66 Billion |
| CAGR (2024 - 2029) | 8.61 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Southeast Asia Postal Service Market Analysis
The Southeast Asia Postal Service Market size is estimated at USD 18.43 billion in 2024, and is expected to reach USD 27.66 billion by 2029, growing at a CAGR of 8.61% during the forecast period (2024-2029).
Platforms facilitating economic and social interactions between different user groups are an important feature of the Platform Economy in Southeast Asia. Primarily Online-to-Offline (O2O), key sectors include e-commerce, food delivery, logistics, ride-hailing, travel, and digital financial services. Platforms, including investments in key infrastructure such as digital payments and logistics networks, often in partnership with national postal services, are driving regional digital economy growth, not only through Gross Merchandise Value (GMV).
The fast growth of e-commerce in the region had a significant impact on the postal services market. The demand for efficient and dependable parcel delivery services has grown as a result of the increasing number of online shopping. In December 2023, Singapore Post Ltd and Google Cloud formed a collaboration to accelerate the digital transformation process of SingPost. The multi-year collaboration aims to empower SingPost's team with easy access and use of AI-powered tools to streamline work procedures, facilitate cooperation with external partners, and reduce duplicative tasks.
Southeast Asia's proximity to large manufacturing centers and its position as a world trade hub has given rise to an increased focus on cross-border logistics in the region. Postal services in the region have worked on strengthening their international shipping and customs clearance capabilities. At SFF 2023, the Monetary Authority of Singapore and Bank Indonesia established a cross-border QR payment link between the two countries. In the future, QR payments across borders will also be possible for millions of visitors coming from Singapore to Indonesia, and vice versa, every year.
Southeast Asia Postal Service Market Trends
Rise in Logistical Technology Innovation
More people are buying a wider range of products online across Southeast Asia through more diversified channels. The region's supply chain is changing to cope with this increased range of fulfillment requirements. There will be a need for new logistics skills, and the greatest benefits of these shifts are expected to come from existing logistical operators and newcomers who have them.
In February 2024, Thailand Post partnered with BIG and Electricity Generating Public Company Limited (EGCO Group) to develop the use of hydrogen energy in the logistics services provided by the post. This partnership aims to elevate energy management standards, bolster the capacity to deliver parcels and postal items sustainably and align with the country’s net-zero objective by 2065.
In November 2023, Pos Indonesia entered a partnership with China's mobile robotics specialist, Libiao Robotics, to provide a custom robotic sorting solution. The company installed a robotic sorting and RFID frequency identification system in Pos Bloc Surabaya, with Indonesia's Minister for State-owned enterprises, Erick Thohir, attending the launch.
Singapore Postal Services is Going International
Given the decline in conventional mail volumes worldwide as a result of digital communications, Singapore Post has been successful in managing its challenging logistics sector through strategic transformation.
According to SinPos International's CEO, Li Yu, the board and management have recognized that transformation is necessary for a long time. He claims that logistics accounted for more than 70% of the company's revenue in 2023 compared to less than 38% at the beginning of 2020. With acquisitions in Australia, a cross-border international business, and investment in digitalization innovation, the company has expanded to become an important player in the e-commerce logistics sector.
In November 2023, Freight Management Holdings Pty Ltd, a subsidiary of Singapore Post Limited, entered a conditional sale and purchase agreement with the shareholders of Border Express. In Australia, Border Express is the 6th largest provider of pallet and parcel distribution. The purchase price for the agreement was set at USD 210 million, i.e., EUR 183 million.
Southeast Asia Postal Service Industry Overview
Entry barriers in the Southeast Asian postal services market include high initial capital requirements for the establishment of infrastructure, sorting facilities, and transport networks. Other barriers include government regulations, licensing requirements, and the established brand presence of existing postal services. However, new entrants can choose to concentrate on specific areas or innovative solutions that will have an impact on the market in part due to technological developments and e-commerce. Traditional mail services are threatened by digitalization and the evolution of communication technology. The leaders in the Southeast Asian postal services market are DHL Express, UPS, and FedEx.
Southeast Asia Postal Service Market Leaders
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DHL Express
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UPS
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FedEx
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Singapore Post Limited
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Ninja Van
*Disclaimer: Major Players sorted in no particular order
Southeast Asia Postal Service Market News
• October 2023: Singapore Post Limited issued stamps to commemorate the 165 years of postal services in Singapore. The issue of stamps is an example of how Singapore's postal services have changed throughout its history, from colonial times to nationhood, and today, it is a globally connected city.
• October 2023: FedEx Express is expanding its international flights between Vietnam and Europe with the introduction of a new flight that offers better transit times. To tap into the vast growth potential in the region, FedEx is supporting businesses with nine weekly flights from Ho Chi Minh City.
• March 2023: Pos Indonesia committed to speeding up the development of a logistics sector in eastern Indonesia to promote economic equality in the outermost, frontier, and lagging regions. The regional division has a supporting capacity of 42 main branches, 168 branch offices, and 4,308 subbranches covering all the provinces in Indonesia.
Southeast Asia Postal Service Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Market Scenario
- 4.2 Technological Trends
- 4.3 Industry Value Chain Analysis
- 4.4 Government Regulations and Initiatives
- 4.5 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Drivers
- 5.1.1 Expansion of Ecommerce
- 5.1.2 Rapid Urbanization and Population Growth
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5.2 Restraints
- 5.2.1 Last-Mile Delivery Challenges
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5.3 Opportunities
- 5.3.1 Leveraging Technology to Enhance Efficiency
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5.4 Industry Attractiveness - Porter's Five Forces Analysis
- 5.4.1 Bargaining Power of Suppliers
- 5.4.2 Bargaining Power of Consumers / Buyers
- 5.4.3 Threat of New Entrants
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Express Postal Services
- 6.1.2 Standard Postal Services
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6.2 By Item
- 6.2.1 Letter
- 6.2.2 Parcel
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6.3 By Destination
- 6.3.1 Domestic
- 6.3.2 International
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6.4 By Country
- 6.4.1 Indonesia
- 6.4.2 Malaysia
- 6.4.3 Singapore
- 6.4.4 Thailand
- 6.4.5 Rest of Southeast Asia
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
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7.2 Company Profiles
- 7.2.1 DHL Express
- 7.2.2 UPS
- 7.2.3 FedEx
- 7.2.4 Ninja Van
- 7.2.5 Pos Malaysia
- 7.2.6 Singapore Post Limited
- 7.2.7 GD Express
- 7.2.8 Pos Indonesia
- 7.2.9 JNE Express
- 7.2.10 Thailand Post*
- *List Not Exhaustive
- 7.3 Other Companies
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
** Subject To AvailablitySoutheast Asia Postal Service Industry Segmentation
The postal services market consists of the businesses and industries relating to post offices' delivery of mail and parcels. Postal organizations, which include government-run postal services, private mail carriers, and delivery companies, form part of the market.
A complete background analysis of the Southeast Asian postal service market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
Southeast Asia's postal service market is segmented by type (express postal services and standard postal services), item (letter and parcel), destination (domestic and international), and country (Indonesia, Malaysia, Singapore, Thailand, and Rest of Southeast Asia). The market size and forecasts are provided in values (USD) for the above-mentioned segments.
| By Type | Express Postal Services |
| Standard Postal Services | |
| By Item | Letter |
| Parcel | |
| By Destination | Domestic |
| International | |
| By Country | Indonesia |
| Malaysia | |
| Singapore | |
| Thailand | |
| Rest of Southeast Asia |
Southeast Asia Postal Service Market Research FAQs
How big is the Southeast Asia Postal Service Market?
The Southeast Asia Postal Service Market size is expected to reach USD 18.43 billion in 2024 and grow at a CAGR of 8.61% to reach USD 27.66 billion by 2029.
What is the current Southeast Asia Postal Service Market size?
In 2024, the Southeast Asia Postal Service Market size is expected to reach USD 18.43 billion.
Who are the key players in Southeast Asia Postal Service Market?
DHL Express, UPS, FedEx, Singapore Post Limited and Ninja Van are the major companies operating in the Southeast Asia Postal Service Market.
What years does this Southeast Asia Postal Service Market cover, and what was the market size in 2023?
In 2023, the Southeast Asia Postal Service Market size was estimated at USD 16.84 billion. The report covers the Southeast Asia Postal Service Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Southeast Asia Postal Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Southeast Asia Postal Service Industry Report
Statistics for the 2024 Southeast Asia Postal Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Southeast Asia Postal Service analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
