Mobile Menu

Postal Service in the US - Market Research Report (2015-2030)

Seth Lee Seth Lee New York, United States Last Updated: June 2025 NAICS 49111

Revenue

$91.9bn

2025

$91.9bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

638k

Businesses

1

Wages

$XX.Xbn

Postal Service in the US industry analysis

Trends and Insights

  • A big switch from air to ground transportation is helping USPS rein in transportation costs. By investing in local sorting centers and reducing empty air trips, the postal service has saved over $1.0 billion, though it can't fully overcome overall financial pressures yet.
  • Rural and exurban mail delivery demand is rising as more people move to less populated areas. While these regions offer new opportunities, they also stretch USPS resources since routes serve fewer addresses and are more expensive.
  • Pennsylvania’s diverse urban and rural centers benefit from USPS’s focus on streamlining logistics infrastructure. Centralized Sorting and Delivery Centers and tech upgrades improve efficiency across the state, supporting high-growth cities and critical rural connections.
  • USPS’s legal monopoly keeps competitors out of traditional mail delivery. Laws like the Private Express Statutes mean only the Postal Service can use your mailbox or deliver standard letters, ensuring its market share stays high despite falling mail volumes.
Show more

Unlimited access to industry research for a full year?

With an annual membership, enjoy the clarity and confidence you need to make forward-looking business decisions. Subscriptions include data and analysis for thousands of industries globally.

Get in Touch

Access hundreds of data points and trends

  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
  • PDF report or online database with Word, Excel and PowerPoint export options
  • 100% money back guarantee

Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 0.6 % over the past five years, to reach an estimated $91.9bn in 2025.

Trends and Insights

USPS raises rates even as mail volumes continue to fall

  • Declining mail volumes place financial pressure on the industry while operational requirements remain unchanged. From 2023 to 2024, weighted mail volumes dropped by 2.0%, partly because of consumers increasingly opting for digital alternatives for bills and letters. Both the priority and marketing mail segments experienced notable declines during this period, revealing an ongoing shift in demand. The mandate to serve every address nationwide under the Universal Service Obligation obligates USPS to maintain the same geographic coverage, regardless of the reduced physical mail delivered.
  • Additional trends and insights available with purchase
Postal Service in the US
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to decline over the next five years.

Trends and Insights

Steep mail volume declines and discount reliance force USPS to balance tradition and survival

  • The primary force shaping the USPS outlook is a large and steady drop in mail volumes. Data from the USPS Office of Inspector General and WIK Consult reveal that first-class mail sent by consumers may drop by 32.3% from 2025 to 2035 if trends continue gradually. If a technological breakthrough causes Americans to switch to electronic alternatives even faster, mail volumes could plunge by as much as 46.4% in the same period, showing how vulnerable mailing revenue is to digital disruption.

Biggest companies in the Postal Service in the US

Company
Market Share (%)
2025
Revenue ($m)
2025
Profit ($m)
2025
Profit Margin (%)
2025
United States Postal Service
91,914.5
-6,914.5
-7.5

To view the market share and analysis for all 1 top companies in this industry, view purchase options.

Products & Services Segmentation

Postal Service in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including First-class mail, Marketing mail (formerly standard mail) and Shipping and package services. First-class mail is the largest segment of the Postal Service in the US.

Trends and Insights

USPS shipping and packaging services drive agency revenue growth

  • Shipping and packaging services include Priority Mail, Ground Advantage and Parcel Select, serving customers from e-commerce businesses to individuals. These services encompass the agency’s largest revenue-generating segment, capitalizing on trends like growing online shopping demand and the need for direct-to-consumer shipments.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry includes establishments that are part of the national postal service and perform one or more postal services such as sorting, routing and delivery. Establishments that operate on a contract basis, except for the bulk transportation of mail, are included in this industry.

What's included in this industry?

Products and services covered in the Postal Service industry in the United States include Delivering first-class mail, Shipping and packaging services, Delivering marketing mail, Delivering international mail and Delivering periodicals.

Companies

Companies covered in the Postal Service industry in the United States include United States Postal Service.

Purchase this report to view all 1 major companies in this industry.

Related Terms

Related terms covered in the Postal Service industry in the United States include postage, e-mail, usps, dominant product and competitive product.

Industry Code

NAICS 2017

NAICS 49111 - Postal Service in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

A big switch from air to ground transportation is helping USPS rein in transportation costs. By investing in local sorting centers and reducing empty air trips, the postal se...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Rural and exurban mail delivery demand is rising as more people move to less populated areas. While these regions offer new opportunities, they also stretch USPS resources si...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Pennsylvania’s diverse urban and rural centers benefit from USPS’s focus on streamlining logistics infrastructure. Centralized Sorting and Delivery Centers and tech upgrades ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each state in 2025
  • Number and share of revenue each state accounts for in 2025
  • Number and share of wages each state accounts for in 2025
  • Number and share of employees in each state in 2025

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

USPS’s legal monopoly keeps competitors out of traditional mail delivery. Laws like the Private Express Statutes mean only the Postal Service can use your mailbox or deliver ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The government mandates that the USPS have a monopoly. The postal service controls all mail distribution throughout the United States. This mandate causes the USPS to take up...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of United States Postal Service's performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for United States Postal Service, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Congress allocated support to the Postal Service Fund. Although this support is a small slice of the overall budget, this targeted funding helps USPS keep statutory mandates ...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Rising retirement and compensation obligations are keeping USPS deep in the red. Despite boosting revenue, about 80.0% of the agency's losses last year were tied to mounting ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2018-2023)
  • Industry Tax Structure (2018-2023)
  • Income Statement (2018-2023)
  • Balance Sheet (2018-2023)
  • Liquidity Ratios (2018-2023)
  • Coverage Ratios (2018-2023)
  • Leverage Ratios  (2018-2023)
  • Operating Ratios (2018-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Postal Service industry in the United States in 2025?

The market size of the Postal Service industry in the United States is $91.9bn in 2025.

How many businesses are there in the Postal Service industry in the United States in 2025?

There are 1 businesses in the Postal Service industry in the United States, which has declined at a CAGR of 0.0 % between 2020 and 2025.

How may import tariffs affect the Postal Service industry in the United States?

The Postal Service industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Postal Service industry in the United States?

The Postal Service industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Postal Service industry in the United States grown or declined over the past 5 years?

The market size of the Postal Service industry in the United States has been growing at a CAGR of 0.6 % between 2020 and 2025.

What is the forecast growth of the Postal Service industry in the United States over the next 5 years?

Over the next five years, the Postal Service industry in the United States is expected to decline.

What are the biggest companies in the Postal Service industry in the United States?

The biggest company operating in the Postal Service industry in the United States is United States Postal Service

What does the Postal Service industry in the United States include?

Delivering first-class mail and Shipping and packaging services are part of the Postal Service industry in the United States.

Which companies have the highest market share in the Postal Service industry in the United States?

The company holding the most market share in the Postal Service industry in the United States is United States Postal Service.

How competitive is the Postal Service industry in the United States?

The level of competition is moderate and steady in the Postal Service industry in the United States.

Related Industries

Widen your competitive advantage with related industries

View all industries in United States

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

feedback