Parcel Sortation Systems Market
Parcel Sortation Systems Market - Global Industry Assessment & Forecast
- By Type Linear Parcel Sortation Systems, Loop Parcel Sortation Systems
- By Offering Hardware, Software, Service
- By End-User Logistics, E-Commerce, Airports, Pharmaceuticals and Medical Supply, Food & Beverages, Others
- By Regions North America, Europe, Asia Pacific, Middle East & Africa, Latin America
|Forecast Years:||2023 - 2030|
|Historical Years:||2017 - 2021|
|Revenue 2022:||USD 1.09 Billion|
|Revenue 2030:||USD 2.22 Billion|
|Revenue CAGR (2023 - 2030):||9.40%|
|Fastest Growing Region (2023 - 2030)||Asia Pacific|
|Largest Region (2022):||Asia Pacific|
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Parcel Sortation Systems Market: By Type, Offering, End-user industry, and Region
Global Parcel Sortation Systems market is valued at USD 1.09 Billion in 2022 and is estimated to reach a market size of USD 2.22 Billion by 2030 at a CAGR of 9.40% during the forecast period.
Parcel Sortation Systems Market Size, 2022 To 2030 (USD Billion)
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As the global economic situation remains uncertain and businesses continue to look for ways to reduce costs, the demand for Parcel Sortation Systems is expected to rise over the predicted period. Parcels are an important part of many e-commerce companies' business models as they allow consumers to buy products from retailers online and have them delivered directly to their home or office. This means that these retailers need parcel sorting systems in order to efficiently dispatch goods; whether it be through a delivery company such as UPS, FedEx or a postal service. One industry that could see a significant increase in demand for this type of machinery is e-commerce retailing.
Rapidly Expanding E-commerce Sector to Drive Growth of Parcel Sortation Systems Market
The demand for Parcel Sortation Systems is expected to increase rapidly, as the number of consumers using e-commerce platforms increases. With growing internet penetration rates in developing countries, particularly in Asia Pacific and Latin America, the acceptance of online retailing has also been increasing at a significant rate. As internet penetration continues to grow across developing economies, the demand for Parcel Sortation Systems will see substantial growth over the forecast period. The rise in consumer spending power along with high disposable income levels has led to an increased demand for luxury products among consumers which could be fulfilled over e-commerce platforms or through conventional offline channels. This is expected to drive the demand for express and courier delivery channels across various end-user segments such as manufacturing and services, government and public sector, retail and wholesale distribution, transportation and logistics.
The Parcel Sortation Systems market is segmented into type, offering, end-user industry, and region. Based on type, the market is bifurcated into linear Parcel Sortation Systems and loop Parcel Sortation Systems. Based on offering, the market is bifurcated into hardware, software, and service. Based on end-user industry, the market is bifurcated into logistics, e-commerce, airports, pharmaceuticals and medical supply, food & beverages, and others.
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Growing Demand for High-performance Hardware Units to Drive Growth of Parcel Sortation Systems Market
Parcel sorting is becoming more and more important for postal operators because of the continuous increase in parcel volumes to be delivered. New automated sortation systems are being developed to handle the growing demand. Also, new systems are being looked at to replace aging equipment. As such, there is demand for high-performance hardware devices capable of storing large databases, performing order sorting functions, weighing parcels, scanning barcodes and performing other functions. It has been found that the existing hardware devices are not able to handle the amount of work required. Some have reported bottlenecks in throughput caused by performance issues where data transmission rates are too low to keep up with process speeds.
The majority of parcel sorting equipment is currently using "embedded" or "custom-built" hardware units that thus cannot be easily upgraded or expanded either for software functions or processing power. This might force operators to replace their existing systems at significant costs. As such, there is demand for high-performance hardware units capable of storing large databases and performing order sorting functions, weighing parcels and scanning barcodes at high-speed allowing operators to sort more packages per hour while keeping running costs down.
Asia Pacific is the Fastest Growing Market for Parcel Sortation System
The Asia-Pacific region is expected to show strong growth during forecast period. Currently, it is the fastest growing market for parcel sortation system due to rapidly expanding retail and e-commerce industry in developing countries like India and China. The growth is further supported by increasing penetration smart phones and internet connectivity. As per our findings, around 34 million parcels are sorted every day across Asia Pacific. With economies like India and China consolidating their position as global/regional hubs for e-commerce activity, the demand for automated warehousing solutions including PSS has been increasing significantly over the past few years.
China, Japan, India and Indonesia are the leading countries in Asia Pacific for parcel sortation system market. The retail industry is one of the key drivers for development of this automated warehousing solutions across the region. With the rise in online shopping portals, retailers have been facing difficulty to manage huge volumes of growing parcels which need to be delivered on time at their customers' doors. PSS provides an advantage by sorting out parcels and automating multiple processes within a warehouse and supply chain management process such as order fulfillment and re-allocation while integrating with existing e-commerce platforms seamlessly.
Some of the key players in the global parcel sortation system market are Muratec (Japan), ematic (US), BEUMER Group (Germany), Vanderlande (Netherlands), Bastian Solutions (US), Siemens (Germany), Invata Intralogisitcs (US) and Interroll (Germany).
The Parcel Sortation Systems is Segmented as Follows:
Regions & Countries Covered
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST
analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market
attractiveness analysis by segments and North America, company market share analysis, and COVID-19
Frequently Asked Question
What is the global demand for Parcel Sortation Systems in terms of revenue?
The global Parcel Sortation Systems valued at USD 1.09 Billion in 2022 and is expected to reach USD 2.22 Billion in 2030 growing at a CAGR of 9.40%.
Which are the prominent players in the market?
The prominent players in the market are Muratec (Japan), ematic (US), BEUMER Group (Germany), Vanderlande (Netherlands), Bastian Solutions (US), Siemens (Germany), Invata Intralogisitcs (US) and Interroll (Germany)..
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 9.40% between 2023 and 2030.
What are the driving factors fueling the growth of the market.
The driving factors of the Parcel Sortation Systems include
- Growing Demand for High-performance Hardware Units to Drive Growth of Parcel Sortation Systems Market
Which region accounted for the largest share in the market?
Asia Pacific was the leading regional segment of the Parcel Sortation Systems in 2022.