Global Packaging Automation Solution Market - 2023-2030

Overview

Global Packaging Automation Solution Market reached US$ 51.5 billion in 2022 and is expected to reach US$ 98.7 billion by 2030, growing with a CAGR of 8.5% during the forecast period 2023-2030.

Automation solutions range from basic capabilities used for decades, such as stretch wrapping, case erecting and sealing, coding and labelling, bagging and shrink wrapping, to industrial robots and autonomous systems that perform pick and place, boxing and palletizing efficiently. Sensors and machine vision systems that outperform human capabilities are emerging, as are touchscreen controls that are easier to learn and use and communications capabilities (including IoT) that enable remote system monitoring, preventative maintenance and performance analysis.

Manufacturers in U.S. are focusing on the development of new packaging automation lines. For instance, on September 6, 2023, Emerson, a global leader in technology, software and engineering, have showcased its Floor to Cloud packaging solutions at PACK EXPO Las Vegas, September 11-13, 2023. Floor to Cloud solutions, as the future of automation, enable smarter packing lines and more efficient processes, allowing businesses to continuously increase plant productivity. Therefore, U.S. drives the growth of the North American packaging automation solution market, accounting with more than 78.9% of the regional shares.

Dynamics

ROI for Packaging Automation

The increasing adoption of automation is driven more by corporate needs and present economic conditions than by technological developments. When human operations are replaced by partially mature automation technologies, the return on investment can be the highest.

Automation provides various direct and indirect advantages:

While the cost of labor has always been a major motivator for further automation, it has become increasingly difficult in recent years to find accessible, dependable labor with the fundamental skills required to operate their shipping and manufacturing facilities and keep operations operating effectively. Packaging machinery that is automated is substantially faster than manual packaging. The increased speed increases throughput while also providing much-needed flexibility (think faster changeovers and responsiveness to erratic demand spikes). Therefore, the growing ROI in packaging automation drives the growth of the global packaging automation solution market.

Labor Challenges Drives the Packaging Automation

Packaging automation is being used by many types of manufacturers and distributors to relieve stress. The recent commercial issues - labor shortages, supply chain interruptions and inflation - have hastened the long-term trend toward packaging automation. Packaging automation is being used by all types of manufacturers and distributors, including food and beverage, pharmaceutical, automotive and e-commerce enterprises, to relieve stress on their businesses and staff.

However, the significant acceleration in the deployment of automation is driven more by corporate needs and present economic conditions than by technological improvements. The challenges and possibilities differ depending on the industry sector. Labor shortages have impacted businesses of all kinds and labor-saving automation is frequently a business need. The requirement for increased throughput, to compensate for extended lead times caused by supply chain interruptions or to scale up production in response to surges in market demand, is the primary driver of packaging automation for some organizations.

High Initial Investment Cost

Medium-sized and small enterprises frequently operate on shoestring budgets. The significant initial expenditure required for packaging automation systems may discourage these companies from viewing automation as a viable option. It reduces market potential, particularly in sectors where SMEs play an important role.

Because of the large initial expenses, firms must wait longer to get a significant return on investment. When the payback period is lengthened, companies may be hesitant to commit to such huge investments, impacting their desire to embrace packaging automation technologies.

Rapidly Growing Automation in Packaging

A new packaging automation solution will provide capabilities and functions that older platforms or manual solutions do not. However, as part of your automation investment, this is also an excellent moment to target operational gains by altering existing procedures and practices. Replacing like-for-like is a massive waste of time. Trading in your historical approach for modern automation that is easier to manage and maintain results in not only improved cost efficiencies but also helps minimize human risk factors that affect both product and safety.

Over the last decade, technological developments in robotics have led many food processors to embrace automation for traditionally manual-intensive tasks. While the initial expense of robotics may make the business case more difficult to establish in the short term, the flexibility of software-driven robotics adds value by enabling re-configuration of handling systems considerably easier. Easier re-configuration contributes to these systems being cost-effective long-term investments. Therefore, the advancements in robotics and the improved target operational will offer the lucrative growth opportunities in the forecasting period.

Segment Analysis

The global packaging automation solution market is segmented based on product, application, end-user and region.

Delivering Innovative, Efficient and Intelligent Packaging Machinery to the Food Industry

Food packaging machinery is increasingly important in the market and packaging machinery competition is fierce. Its is why low-consumption, high-efficiency, multi-functional, intelligent, automatic packing equipment is becoming increasingly popular in the business. Automatic food packaging gear for leisure food businesses makes extensive use of computer design and mechatronics control. It is continually assisting firms in increasing production efficiency and ensuring food safety. As a result, the global packaging automation solution product market is dominated by the food and beverages end-user segment with more than one third of the total global segmental share.

Geographical Penetration

Growing Demand of Germany and Other European Packaging Machinery Drives the Market Growth

The best packaging equipment in the world is German. Germany is the source of one in three packaging machines used globally. Asia and North America are the two biggest markets for German packaging technology after Europe. For instance, Omori Europe offers a wide range of packaging solutions, including horizontal flowpackers (HFFS), stretch wrappers, preformed bag filling and sealing machines and entire tea bag production lines. A skilled and highly experienced staff assembles the packaging machinery and packaging lines in our workshop. Therefore, the Europe captures more than one third of the global shares in the product market.

COVID-19 Impact Analysis

Food manufacturers are now more aware of the way automation might boost efficiency in such procedures as a result of the increased focus on sanitation and safety during the pandemic. There is potential to improve production, particularly of ready-to-eat foods, while decreasing waste. The primary objectives of the food business are to eliminate contamination risks and human errors through automation, streamlining efficiency while maintaining the ethical requirement of human work. Lean manufacturing techniques can improve the predictability and traceability that automation provides.

Prior to the epidemic, rising nations like China and India were already witnessing faster population and economic expansion. The world's population is still growing and in these developing nations, rising consumer incomes are encouraging greater spending on consumer products and a desire to interact with international brands.

Russia-Ukraine War Impact Analysis

The supply chain for packaging automation solutions can be affected by the dispute. Both Russia and Ukraine are engaged in the production and supply of different automation-related raw materials, parts or machinery. Global production and delivery delays for packaging automation solutions could result from any supply chain disruptions.

The cost of commodities, particularly the metals and plastics used in packing machines, might fluctuate as a result of unrest and conflict. It could lead to higher manufacturing costs for packaging automation equipment, which would affect overall pricing and profitability for producers and customers.

By Product

• Automated Packagers
• Packaging Robots
• Automated Conveyors and Sortation Systems

By Application

• Case Packaging
• Palletizing
• Labelling
• Bagging
• Filling
• Capping
• Wrapping
• Others

By End-User

• Food and Beverages
• Healthcare
• Chemical
• Retail
• Electricals and Electronics
• Aerospace and Defence
• Automotive
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In June 2023, The BuckIT TKS25 packaging line, the newest offering from automation solutions vendor Shemesh Automation, was just launched. It state-of-the-art system provides an all-encompassing, end-to-end packaging solution for both liquid and solid items housed in buckets. The BuckIT TKS25 is slated to transform the packaging sector thanks to its innovative features and automation capability.
• On August 16, 2023, Duravant LLC ("Duravant"), a provider of engineered equipment and automation solutions to the food processing, packaging and material handling industries, announced that it has acquired National Presort, LP ("NPI"), a renowned producer of automated parcel sortation systems with its headquarters in Fort Worth, Texas.
• On February 8, 2022, In order to meet the constantly expanding demand for big, automated packaging systems as well as classic JLS equipment, JLS Automation has announced plans to expand its headquarters. The plans almost entirely center on boosting manufacturing space.

Competitive Landscape

major global players in the market include: Rockwell Automation, ABB Ltd., Mitsubishi Electric Corp., Schneider Electric SE, Emerson Electric Co., Swisslog Holding AG, Siemens AG, Automated Packaging Systems, Inc., Kollmorgen and BEUMER Group GmbH & Co.

Why Purchase the Report?

• To visualize the global packaging automation solution market segmentation based on product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of packaging automation solution market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global packaging automation solution market report would provide approximately 61 tables, 66 figures and 182 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies