The global market for postal delivery lockers is expected to climb more than 140% in the next seven years as businesses and shoppers look for better ways to send and receive packages.

Growing demand for alternative delivery methods is tipped to turn the smart parcel delivery market into a US$1.644 billion industry by 2028, according to new research from Insights Partners.

That represents a 13.5% compound annual growth rate from the sector’s current valuation of US$677.6 million, the research shows.

Insight Partners said the growth will be spurred on by end-use industries demanding better logistics solutions to handle the billions of parcels exchanging hands around the world each year.

Data from Pitney Bowes suggests roughly 131 billion parcels were delivered in 2020, which translates into 4160 parcels being shipped every second.

It also marks a 27% increase in parcel deliveries on the previous year, and the numbers suggest further increases are likely.

Pitney Bowes’ report estimates between 232 billion and 303 billion parcels will be delivered annually by 2026, with the most likely scenario being that parcel deliveries double in the next five years.

TZ primed for sector growth

Insight Partners noted this demand will benefit companies that supply parcel locker hardware and services, including Cleveron, KEBA and listed Australian access control platform provider TZ.

TZ has had a series of contract wins this calendar year, including the acquisition of the Couriers Please parcel locker network in April, which expanded the company’s existing click-and-collect locker bank network.

More recently the company has won more than $1 million in new contracts in Australia, to supply thousands of day lockers to major corporate clients, including Chevron, NextDC and Macquarie Telecom, and grew its US sales by 40% in the first four months of FY22.

In raw numbers, that equates to $7.75 million in US sales between 1st July and 30th October alone, compared with $5.5 million in the prior corresponding period.

TZ CEO Mario Vecchio attributed these recent successes to the changing nature of workplaces following the pandemic.

Join TZ CEO Mario Vecchio for an investor briefing this Friday, 26th November, at 12pm (AEDT). Click here to register for the briefing.

Reach Corporate provides Corporate Advisory Services to TZL and have been engaged by them to manage their investor communications.

Sources

• Business Wire, Global Parcel Volume Exceeds 131 Billion in 2020, up 27 Percent Year-Over-Year, Finds Pitney Bowes Parcel Shipping Index
• Yahoo Finance, Smart Parcel Delivery Locker Market Size ($1,644.1Mn by 2028) Led by E-Commerce Industry (13.5% CAGR) Impact of Coronavirus Outbreak and Global Analysis & Forecast by TheInsightPartners.com
• ASX, TZ Acquires couriers please locker bank network expands click, collect and return offering
• ASX, TZ receives over a million dollars in new contracts in Australia
• ASX, TZ US sales up 40% in the first 4 months of FY22 & capital raise of $3.5m completed