Parcel Sortation Systems Market to Reach Valuation of USD 3.29 Billion by 2028; Increasing Demand for Industrial Automation and Labor Cost Reduction is Driving the Market

Vantage Market Research

Jan 11, 2022

In terms of revenue, the Global Parcel Sortation Systems Market is expected to reach USD 3.29 Billion by 2028, growing at a CAGR of 9.40% from 2022 to 2028. Parcel sortation systems are currently gaining huge potential in industries due to increasing production quantities and demanding on-time deliveries. Various parcel system includes pneumatic drives, cross belt sorters, tilt-tray sorters, activated roller belt sorters, and many more. The maximum use of Parcel Sortation Systems is utilized in logistic industries as sortation system includes the process of identification and conveys systems. Therefore, high demand in automation and cost reduction on labor is driving the Parcel Sortation Systems Market.

Key Findings

  • Under the offering segment hardware, sub-segment is anticipated the substantial growth of Parcel Sortation Systems Market. This is attributed due to the increasing hardware devices needed for Parcel Sortation System.

  • Linear Parcel Sortation System sub-segments held a substantial market share in 2021. This is the fastest segment growing in Parcel Sortation Systems Market.

  • Asia Pacific is expected to grow at the fastest CAGR from 2022 to 2028. This region is growing due to high demand in CEP industries and less availability of labor in logistic companies.

  • Restraining factors for Parcel Sortation Systems Market are the high cost of equipment and the necessity of skilled manpower.

Some of the key players dominating the Parcel Sortation Systems Market include - Muratec (Japan), ematic (US), BEUMER Group (Germany), Vanderlande (Netherlands), Bastian Solutions (US), Siemens (Germany), Invata Intralogisitcs (US) and Interroll (Germany)..

Warehouses, distribution centers, and retailers are all always in need to find ways that can optimize the processes. They use the material to sort such as handle polybags, bundles of envelopes, objects for packaging, and other parcels. Any inefficiency in the process will lead to wasted time and effort, both of which hurt your bottom line by eating into your profit margins. Through automation, one can be able to improve Parcel Sortation System and reduce efforts. The major utilization of the Parcel Sortation System can be used in Couriers & Express Parcel (CEP) Services as they need to handle increased volumes of parcels and a greater variety of sizes and shapes with aiming to slash delivery times and bolster their customer service offerings. The CEP industry has significantly changed in the last decade. There have been markedly increased parcel volumes, the surge in odd-shaped parcels, and the daily occurrence of peak periods. The increased physical labor and its associated focus on ergonomic workplaces have increased the demand for Parcel Sortation System Market to flourish.

Asia Pacific is expected to grow at the fastest CAGR in coming years due to increasing demand in Parcel Sortation System. The need has increased due to the high cost of labor and the rising need for on-time deliveries. The majority of the Parcel Sortation Systems are installed in logistic and CEP industries. Parcel Sortation System & automation manufacturers are investing huge funds for finding solutions to make the sortation system faster and fulfill delivery time. This will also benefit the companies to gain profit.

Parcel Sortation Systems Market 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), by Regions (North America, Europe, Asia Pacific, Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)