Low Cost Of Printing Using Digital Printers To Drive Smart Mailbox Market Demand

Global Smart Mailbox Market: Overview

Smart mailbox is an upgrade to traditional mailbox systems mainly envisioned to address the issue of neglected mails, letters, packages and package theft. Relevance in direct mail demands natural growth for mailbox market. Direct mail is dominantly used by services such as retail, finance, telecoms, public sector, charity, travel and tourism industry. Important mails are not limited to particular type or sector and this aids the expansion of mail services and creates demand for smart mailbox market.

Market trends such as the Internet of Things affect the smart mailbox market in a dominant way. This demands the need for smart security solutions in smart mailboxes that can connect and interact with smart devices. Emerging technologies such as drones are essential in the growth of the smart mailbox market as package delivery industry is expected to change by the end of the forecast period.

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In 2016, August Home Inc. conducted a study where 1 Mn U.S. homeowners experienced package theft and 69% of package theft victims preferred a delivery service that enters their houses. This further aids the demand for smart mailbox systems.

Global Smart Mailbox Market: Market Dynamics

Smart mailbox guards mails and packages against thieves by using sensors and cameras that can notify the owner of any suspicious activities, if detected. A Canadian company called Danby launched “Parcel Guard,” a mailbox with an anti-theft drop-in box, where once the package is in, it stays there. Another company called “ParcelHome” successfully launched a smart mailbox similar to Danby’s. As the market has only two dominating enterprises, the market is consolidating for smart mailbox.

Direct mail market is expected to grow at a single-digit CAGR. Google trend analysis result shows a spike in the market for smart mailbox in 2018 and the market demand for an intelligent mailbox is expected to increase in the coming years.

In a study by United States Postal Service, U.S. homeowners received an average of 27 packages each year & 26% of them received deliveries at least once a week. Almost 53% of them said that the packages left on the doorstep were stolen. Also, victims spend around $200 to replace each stolen package. Similarly, Shorr Packaging released a study report for Amazon packages in 2018. In this study, 31% of Americans had experienced package theft, with sudden spurt during the holiday period. This establishes the need for smart mailbox in the U.S. and the market is expected to surge during the forecast period.

Factors driving the smart mailbox market include low cost of printing using digital printers, which negates the labor charge for printing postcards. Increasing vanity of direct mails even if emails dominate the modes of communication can also be an important factor for smart mailbox market. According to a recent study by a company called “MailChimp”, direct mails provide higher opening rate. The average email open rate of 45 industries is 20.81%, which clearly indicates that the email lacks the trust factor, which is offered by direct mail. These driving factors, in turn, create a dominating demand for smart mailbox market.

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Global Smart Mailbox Market: Regional Analysis

The smart mailbox market can be segmented into seven geographies: North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa. America’s (North & Latin America) mailmen & women delivered 268,894 letters and 2,633 parcels per carrier, which is more than any other country in the world, thereby making it the target market for smart mailbox. Japan post is considered to be the most trustworthy in direct mail service according to a survey conducted by the world economic forum.

Korea is also in the top five list of mail services. So, dominating countries in postal and courier services are still engaged in direct mail and smart mailbox solutions could be a natural transgression for them going forward. The rising cases of mail theft demand a safe and smart mailbox system, which can notify the user about mail delivery and also of any intrusion and suspicious activities.

According to a national survey conducted by United States Postal Service in 2016, the American public anticipates their post to be delivered by drone within the next 5 to 10 years, which, in turn, aids in the growth of smart mailbox systems.

Smart Mailbox Market: Key Manufacturers

Global smart mailbox market is consolidated with only two dominant market players in the smart mailbox manufacturing. Danby, a Canadian company has a product called “Parcel Guard” and a Belgium-based enterprise called ParcelHome has a similar smart mailbox named as “Smart Parcel Box”. So, there’s virtually no competition in the smart mailbox market. This provides room for growth in the smart mailbox market. The global smart mailbox market is projected to witness a surge by the end of the forecast period.

Companies like uCella, InBin and Cleveron also provide secure mailbox solutions. uCella, which is crowdfunded on indigogo, is yet to deliver a smart mailbox to any of its clients. InBin, which is owned by GMGMC LLC, has a patent pending for smart mailbox. Cleveron, an Estonia-based enterprise, developed its first ever cloud-based smart mailbox system for enterprise and home-end users.

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Global Smart Mailbox Market: Key Segments

Global smart mailbox market can be segmented based on product type

  • Technology type
  • Material type
  • Mounting type
  • Package type
  • Package size
  • Delivery

Package type can be further segmented as direct mail and delivery packet. The delivery type can be further segmented by aerial and on-ground delivery. Aerial delivery can be implemented by drones to drop packages in a mailbox, and mailmen/women can use an on-ground delivery system. End users of smart mailbox can be of two types: Industrial use and home use. Material type can be segmented into steel. Similarly, mounting types can be segmented into wall-mounted and on-ground smart mailbox. The product type segment in the smart mailbox controls various technologies like IP motion-activated camera, Wi-Fi, and iOS/Android app altogether to secure the package.

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