PUBLISHER: The Business Research Company | PRODUCT CODE: 1546552
PUBLISHER: The Business Research Company | PRODUCT CODE: 1546552
A parcel sortation system is an automated process designed to efficiently sort and route packages based on criteria such as destination, size, weight, or carrier. It typically involves conveyor belts, diverters, and specialized sorting equipment to handle and separate parcels into appropriate shipping lanes or destinations.
The main types of parcel sortation systems include linear parcel sortation systems, loop parcel sortation systems, and other specialized configurations. Linear parcel sortation systems, also known as shoe sorters or sliding shoe sorters, are automated systems that facilitate the sorting and distribution of parcels or packages. These systems encompass hardware, software, and associated services, and find applications across various industries including logistics, e-commerce, airports, pharmaceuticals, medical supplies, food and beverage, among others.
The parcel sortation systems market research report is one of a series of new reports from The Business Research Company that provides parcel sortation systems market statistics, including parcel sortation systems industry global market size, regional shares, competitors with a parcel sortation systems market share, detailed parcel sortation systems market segments, market trends, and opportunities, and any further data you may need to thrive in the parcel sortation systems industry. This parcel sortation systems research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The parcel sortation system market size has grown strongly in recent years. It will grow from $1.78 billion in 2023 to $1.94 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. During the historic period, growth was driven by several factors including the expansion of omnichannel retailing strategies, the rise of cross-border e-commerce, the increasing popularity of subscription box services, heightened awareness and adoption of green logistics practices, and a strong focus on minimizing delivery errors to enhance customer satisfaction and operational efficiency.
The parcel sortation system market size is expected to see strong growth in the next few years. It will grow to $2.77 billion in 2028 at a compound annual growth rate (CAGR) of 9.3%. In the forecast period, growth is expected to be driven by several factors including the escalating volume of e-commerce transactions globally, growing demand for automation in logistics operations, increasing urbanization leading to higher delivery demands, investments in enhancing logistics infrastructure, and rising consumer expectations for same-day delivery services. Key trends anticipated during this period include continuous technological advancements in parcel sortation systems, integration of artificial intelligence (AI) to enhance efficiency and decision-making, adoption of Internet of Things (IoT) for real-time tracking and management, utilization of big data for predictive analytics and operational improvements, and the adoption of cloud-based solutions for flexible and scalable sortation capabilities. These trends are set to shape the evolution of parcel sortation systems in response to the demands of modern logistics and e-commerce environments.
The parcel sortation system market is poised for growth driven by the expanding e-commerce industry. E-commerce involves buying and selling goods and services online, driven by factors such as convenience, wide product selection, competitive pricing, ease of comparison, and personalized shopping experiences. Parcel sortation systems play a critical role in e-commerce logistics by automating and optimizing the sorting and distribution of parcels, managing the high volume of shipments from online sales efficiently. For example, in the first quarter of 2024, US retail e-commerce sales reached $289.2 billion, marking a 2.1% increase from the previous quarter, as reported by the United States Census Bureau. This highlights the significant impact of e-commerce growth on the parcel sortation system market.
Leading companies in the parcel sortation system market are innovating with robot-based sorting systems and AI-driven vision technologies to improve accuracy and efficiency. Robot-based sorting systems utilize robotic technology to automate parcel handling and sorting processes in logistics and distribution centers, enhancing operational efficiency and speed. Viettel Post, for instance, launched 160 LiBiao 'Mini Yellow' autonomous guided robots in January 2024 at its distribution hub in Vietnam. These robots use AI-driven algorithms to autonomously identify, categorize, and sort parcels based on size, weight, and destination. This automation minimizes errors and increases processing speeds, optimizing overall logistics efficiency. Real-time tracking and monitoring features enable stakeholders to monitor parcel movement and status throughout the sorting process.
In July 2022, Korber AG strengthened its logistics automation capabilities by acquiring Siemens Logistics' mail and parcel business. This strategic move enhances Korber's sorting and handling solutions portfolio and expands its global market presence in the automation sector.
Major companies operating in the parcel sortation system market are Honeywell International Inc., Kawasaki Heavy Industries, FANUC America Corporation, Daifuku Co. Ltd., Yaskawa America, Vanderlande, Pitney Bowes Inc., Dematic, Korber AG, Fives, BEUMER Group, TGW Logistics, Interroll Group, Daifuku, Bastian Solutions, Murata Machinery Ltd., Siemens Logistics GmbH, Viastore Systems, National Presort Inc., Bowe Systec, Muratec America, Mantissa Corporation, Okura Yusaki Co. Ltd.
North America was the largest region in the parcel sortation system market in 2023. The regions covered in the parcel sortation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the parcel sortation system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The parcel sortation system market includes revenues earned by entities by providing services such as system design and integration, installation, upgrades and retrofits, remote monitoring and management, and maintenance and support. The market value includes the value of related goods sold by the service provider or included within the service offering. The parcel sortation system market consists of sales of RFID systems, conveyor systems, automated sortation systems, and weighing and dimensioning systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Parcel Sortation System Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on parcel sortation system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for parcel sortation system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The parcel sortation system market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.