Global Parcel Sortation Systems Market Overview
The key driver impacting the parcel sortation systems market is the rapidly expanding e-commerce sector across the world. The growing e-commerce sector creates the need for automated sorting systems that offer adequate distribution within a limited period. For instance, the most recent UN’s trade and development body (UNCTA- 2020) report shows that global e-commerce sales account for $25.6 trillion in 2018, which increased by 8% from 2017. Around 1.4 billion people shopped online in 2018. The countries such as the UK, US, and China lead e-commerce sales to consumers. B2C e-commerce was recorded at $4.4 trillion, rose by 16% from 2017. These systems provide various benefits in the e-commerce industry such as error-free operations, process transparency, high scalability, low processing time, little dependency on a skilled workforce, and improved process visibility, among others. Moreover, increasing labor costs, along with rising industrial automation, contribute to market growth.
According to Value Market Research, the global parcel Sortation systems market size was valued at around USD 1650 million in 2020 and is estimated to grow at a CAGR of about 9.3% during the forecast period 2021 to 2027.
The growing industrial shift towards automation globally to increase productivity, energy efficiency, and to reduce lower labor costs, is estimated to augment parcel sortation systems demand in the forecast period. For instance, as per the World Economic Forum, only 35% of the time will be spent on manual routine work, and over 60% work process is estimated to be automated by 2030. By 2035, jobs with high automation potential will be closer to 35-50% for manufacturing, transportation and storage, and retail trade sectors. However, high parcel sortation systems costs may hamper the global parcel sortation systems market in the long run. Also, the real-time technical challenges are negatively impacting the market. The current industry trends, such as the emerging application areas of parcel sorting systems and integration of industry 4.0 and IoT with sorting systems, are expected to provide market players with new market opportunities.
The parcel sortation systems market is vast, with many local and global players. The parcel sortation systems market is extensive, with many local and international players. The key leaders follow different strategies to advance their market position, such as extending product portfolio, amalgamation, contracts, product upgrades, and acquisitions, to enlarge their market share across the globe.The significant players studied in the report are Vanderlande, Dematic, Muratec, Intelligrated, BEUMER Group Fives, Siemens, Bastian Solutions, Interroll, and Invata Intralogistics.
In this research report, the parcel sortation systems market is segmented by component, type, end-user, and region.
Analysis by Component:
By component, the report is segmented into hardware and software. The hardware segment dominates the component segment with a 40% share in 2020. The growing usage of various hardware components such as sensors, processors, cameras, sensors, pressure sensors, and Optical sensors for tracking and tracing activities creates demand for hardware components. Moreover, the high adoption of sorters systems to distribute high volumes of small cartons to a large set of locations drives demands for hardware components in the forecast period.
Analysis by Type:
By type, the report is categorized into linear parcel sortation systems and loop parcel sortation systems. The linear parcel sortation systems segment dominates the type segment with over 55% share in 2020. It is due to the various benefits provided by linear parcel sortation systems such as higher throughput capacity, low noise, superior reliability, optimized layout, ease of maintenance, and ability to sort different kinds of parcels with low operating costs that lead to its more adoption. Moreover, the increasing popularity among end-users companies that deal in parcels of diverse shapes and sizes thus driving demand for linear parcel sortation systems in the forecast period.
Analysis by End-User:
By end-user, the report is categorized into logistics, e-commerce, airports, pharmaceuticals and medical supply, food & beverages, and others (footwear apparel). The logistics segment dominates the end-user segment with a 30% share in 2020. It is due to the exponential increase in the number of parcels to be sorted and delivered to customers worldwide. Moreover, the growing penetration of e-commerce and logistics companies contributes to the enormous demand from the logistics sector in the forecast period.
Analysis by Region:
In the regional outlook of the global parcel sortation systems market, the North America region dominates with over 30% market share during the forecast period. It is due to the early technology adoption, presence of advanced logistics and e-commerce companies. Moreover, the growing usage of IoT technology in several industries of the U.S. is compelling manufacturers to integrate advanced automation technology with their offerings to supply efficient and effective value to their industrial operations and processes, contributes to the growth of the market across North America.
Market Segmentation covered in the Report:
- Linear Parcel Sortation Systems
- Loop Parcel Sortation Systems
- Pharmaceuticals and Medical Supply
- Food & Beverages
- Others (Footwear Apparel)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.