Parcel Sortation Systems Market
Parcel Sortation Systems Market Size, Share Analysis, By Component (Hardware, Software, Services), By Type (Linear, Loop), By End Use (Logistics, e-Commerce, Airports, Food & Beverages, Other), & Region - Global Market Insights 2022 to 2032
Analysis of Parcel Sortation Systems Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Parcel Sortation Systems Market Outlook (2022-2032)
The global parcel sortation systems market is valued at US$ 1.4 billion in 2022 and is predicted to hit US$ 2.7 billion by 2032, registering a CAGR of 6.7% from 2022 to 2032 (forecast period).
Almost every organization and individual now makes use of the Internet. Online purchasing has increased as the e-Commerce sector has grown in popularity. A vast number of consumer and commercial items are purchased on a daily basis, resulting in a large number of parcel shipments. Generally, manual parcel sorting takes a long time. As a result, an efficient technique is required to simplify the delivery of parcels from one location to another.
As technology advances, firms are gravitating toward automation in their shipping procedures. Parcel sortation systems are automated procedure that involves identifying parcel items on a conveyor system and routing them to certain destinations using devices controlled by task-specific software.
Parcel sortation systems provide numerous benefits, such as increased space utilization, lower per-packet processing time, error-free operations, end-to-end process transparency, predictability in handling peaks, increased scalability, and reduced dependency on skilled manpower.
Parcel sortation systems are used in a variety of industries, including logistics, e-commerce, airports, pharmaceuticals & medical supply, food & beverages, and others.
The rapidly expanding e-Commerce industry is raising the demand for parcel sortation systems. With increasing internet penetration and the ease of online shopping, the number of products ordered online has increased. Moreover, as people increasingly prefer to buy things online, the demand for parcel sortation systems is growing significantly.
- For example, the International Telecommunication Union (ITU) states that over 4.1 billion people used the internet globally in 2019, representing a 5.4% increase over the global internet penetration rate in 2018.
- According to a Morgan Stanley report, the e-commerce industry grew from 15% in 2019 to 21% in 2021.
Key market players are focusing on developing technologically advanced products to stay ahead of the competition.
- Photonoe s.r.o, based in Slovakia, unveiled a new 3D machine vision in September 2021, allowing a robot to pick 2,350 parcels each hour. With a gripping capacity of up to 3mm packet sizes, the equipment delivers 3D data and enables precise placement. The equipment can be employed in a variety of industries, including e-commerce, logistics, pharmaceuticals, and others. Moreover, the equipment can recognize envelopes, parcels, and even bags of any material, shape, and texture.
Report Attributes |
Details |
---|---|
Market Size (2022) |
US$ 1.4 Billion |
Projected Market Value (2032) |
US$ 2.7 Billion |
Global Market Growth Rate (2022-2032) |
6.7% CAGR |
Europe Market Growth Rate (2022-2032) |
5.4% |
U.S. Market Value (2022) |
US$ 322.1 Million |
Key Companies Profiled |
|
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Why is Demand for Parcel Sortation Systems Intensifying?
“Increasing Industrial Automation and Labor Cost”
The use of automation in end-use industries such as e-commerce, logistics, and others provides improved performance by reducing errors and increasing quality. Moreover, the increasing implementation of IoT and robotics in industrial automation is expected to fuel the demand for parcel sortation systems.
IoT-based solutions are utilized to make sorting processes more efficient, cost-effective, and productive.
- For example, Siemens industrial IoT solutions such as cloud computing, advanced analytics, and Mind Sphere are utilized to automate parcel sortation systems.
Furthermore, increasing labor costs is another major factor projected to boost the demand for parcel sortation systems.
Which Aspect Can Limit the Sales of Parcel Sortation Systems?
“High Initial Investments to Install Parcel Sortation Systems”
The massive investments necessary in the initial phase are a significant aspect that can limit the sales of parcel sortation systems. Moreover, the associated cost, such as maintenance costs, software solutions, integration of intelligent sensors, and aftermarket services, increases the overall ownership costs.
Furthermore, small and medium-sized businesses find it challenging to switch from traditional sorting systems due to low production output and return on investment, restructuring existing facilities designs, and other aspects.
Country-wise Insights
Why are the United Kingdom and Germany the Largest Contributors to the European Market?
The Europe parcel sortation systems market is projected to develop at a CAGR of 5.4% from 2022 to 2032. The United Kingdom and Germany are the largest contributors to the European market.
Amazon first introduced the concept of a sortation center in the United Kingdom in 2013. Following considerable cost savings, while maintaining sufficient throughput, other e-commerce companies in the United Kingdom adopted the same model before other major countries.
Due to the e-commerce boom, parcel delivery is growing across Europe, particularly in countries like the United Kingdom and Germany. Many courier and postal firms face considerable challenges as a result of the increased shipment volume. The growing demand for delivered goods is promoting the use of automation in sorting and handling shipping items, thereby boosting the demand for parcel sortation systems.
Along with the e-commerce boom, the aviation industry in the United Kingdom drives the market for parcel sortation systems. Four major UK airports have announced expansion plans to accommodate increased passenger traffic.
- For example, Gatwick Airport launched a new EUR 1.1 billion expansion plan over five years, with the goal of increasing passenger counts by about 53 million by 2024.
Moreover, Germany is contributing considerably to the market growth in Europe. The country is increasingly adopting automation technologies to boost the distribution process.
What Allows the United States to Dominate the North American Market?
The demand for parcel sortation systems in North America is rapidly increasing. In North America, automation of warehouse and order fulfillment processes has become the major technique for ensuring supply chain productivity and financial goals while improving customer service standards.
The United States market garnered US$ 322.1 million in 2022. Over the next ten years, the United States is expected to dominate the North American market. Organizations across the United States boost order accuracy by automating distribution operations. Moreover, organizations that automate their operations see a significant drop in operational expenses and a notable increase in service levels, which immediately impacts overall profitability.
Why are Parcel Sortation Systems in High Demand in Japan and South Korea?
The demand for parcel sortation systems is expected to grow in Asia Pacific during the study period. This is due to the rapidly rising retail and e-commerce industries in developing nations.
Japan and South Korea are projected to promote market growth in Asia Pacific. With the growth of online shopping portals, businesses in these countries have had to manage massive volumes of deliveries that must be delivered on time to their customers' doors. As a result, parcel sortation systems are in high demand in Japan and South Korea.
Parcel sortation systems add value by sorting parcels and automating several activities within a warehouse and supply chain management process like re-allocation and order fulfillment, all while seamlessly connecting with existing e-commerce platforms.
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Category-wise Insights
How is the e-Commerce Industry Driving the Demand for Parcel Sortation Systems?
The demand for parcel sortation systems is skyrocketing due to the rapidly growing e-commerce industry. This is due to a spike in the number of internet users buying products through online platforms. Moreover, many retailers and wholesalers have begun automating their everyday operations to fulfill the scheduled delivery time.
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Competitive Landscape
The worldwide parcel sortation systems market is highly competitive and fragmented. Key manufacturers of parcel sortation systems are pursuing strategies such as product launches, heavy expenditure on research and development, partnerships, and acquisition to maintain and solidify their market presence.
- Invata Intralogistics opened a 406,000-square-foot omnichannel fulfillment center in Florence, New Jersey, for Destination Maternity Corporation in October 2022. The company designed, developed, and managed a warehouse automation system that handled all aspects of Destination Maternity's retail distribution, e-commerce fulfillment, wholesale distribution, and reverse logistics processing. Among the systems included were a Bomb Bay sorter supplying 600 discharge destinations at sortation speeds averaging 15,000 units per hour, 5 narrow belt sorters, 24v routing sorters, linear motion systems, machine interface stations, and 11 merges.
- Interroll Group released Split Tray Sorter in March 2022. For the automatic sortation of conveyed products weighing up to 12 kilograms, the innovative device ensured maximum availability, a very long service life, and quick payback times. With this, the company supplied appropriate solutions for logistics service providers as well as express, courier, and parcel service providers to increase the productivity of customer-oriented distribution centers by effectively segregating small parts from other transport items.
- Satake released the "NIRAMI series," its newest and largest optical sorter in terms of size and capacity, in June 2021. The latest high-performance Optical Sorter, "NIRAMI" from Satake, is designed to effectively sort grains, seeds, pulses, and a variety of other items. Nirami's different sizes, with extra-wide chutes and customizable configurations, make it perfect for a wide range of applications and processing capabilities. These newly developed optics detect and differentiate subtle color changes using RGB full-color cameras and optional infrared (IR) cameras.
- Interroll has expanded its successful portfolio of automated sortation solutions with the introduction of a new drop tray sorter, the Split Tray Sorter MT015S, in March 2021.
Key Segments of Parcel Sortation Systems Industry Research
-
By Component:
- Hardware
- Software
- Services
-
By Type:
- Linear
- Loop
-
By End Use:
- Logistics
- e-Commerce
- Airports
- Food & Beverages
- Other End Uses
-
By Region:
- North America
- Latin America
- Europe
- APAC
- MEA
- FAQs -
What is the market value of parcel sortation systems in 2022?
The global parcel sortation systems market is valued at US$ 1.4 billion in 2022.
What is the future value of the global parcel sortation systems market?
Demand for parcel sortation systems is likely to touch US$ 2.7 billion by 2032.
At what CAGR is the parcel sortation systems market predicted to develop?
Worldwide sales of parcel sortation systems are anticipated to increase at a CAGR of 6.7% during the forecast period.
How fast is the European market expected to expand?
The European market is estimated to develop at a CAGR of 5.4% from 2022 to 2032.
Who are the leading players operating in the parcel sortation systems market?
Alstef Automation S.A, Autotech Private Limited, Bastian Solutions, LLC, Beumer Group, Murata Machinery, Ltd, Honeywell International Inc, Böwe Systec GmbH, Daifuku Co. Ltd, Siemens Logistics GmbH, Dematic, Equinox, Falcon Fives, GBI Intralogistics, Inc,