Staff ReporterSaturday, February 02, 2013 - Islamabad—Global Postal Services Market would reach US$323.6 Billion by 2015, as mail volumes continuously declining owing to growing prominence of digital alternatives.
According to a new report by Global Industry Analysts upon the ‘comprehensive global outlook on the Postal Services Industry’, postal industries in several countries are on the verge of reporting costs exceeding revenues.
Global postal services industry continues to falter under the growing prominence of digital alternatives. With mail volumes continuously declining, postal industries in several countries are on the verge of reporting costs exceeding revenues, Technology Times Reported.
The traditional practice of assessing GDP of a country for predicting the volume growth in mails is now pass‚. Though globally, economies are restoring, mail volumes continue to be on the declining trend.
The postal industry is seen as entering into a new era where complete revamp of products and services portfolios would become the order of the day. Several postal organizations have added digital alternatives, such as e-commerce and digital mail to their portfolios.
Digital channels also provide additional opportunities for enhancing service quality. With digital solutions being aggressively pursued, the share of core traditional products in the overall revenue mix is rapidly declining.
However, digitalization has its own shortcomings. Connectivity and bandwidth limitations of the digital infrastructure comprise major growth barriers.
Moreover, the functionality of Internet is not available to all the citizens, unlike postal services. The global recession and slowdown in economy further eroded the postal services industry revenues in recent times. However, certain service segments managed to fare well during the crisis period.
Tremendous growth was experienced by the postal financial institutions since the beginning of the crisis. Annual growth rates of savings accounts and number of postal deposits of about 15 leading postal financial institutions across the globe averaged 50% in 2008.