Global parcel sortation systems market is projected to witness significant growth in the coming years, driven by the increasing demand for efficient logistics operations. Fairfield Market Research’s latest report highlights the market’s expected expansion, fueled by technological advancements and eCommerce proliferation. The study expects this market to reach US$5.9 Bn by 2030-end, from US$3.2 Bn attained in 2023.
The parcel sortation systems market is anticipated to experience robust growth, with an estimated CAGR of 8.9% during the forecast period. This growth trajectory is attributed to several key factors. The escalating demand for streamlined logistics operations across various industries is propelling the adoption of parcel sortation systems.
REPORT SCOPE
| Report Attributes | Details | |
| Base Year | 2022 | |
| Forecast Year | 2023 – 2030 | |
| Market Size in 2022 | US$3.2 Bn | |
| Estimated Market Size in 2030 | US$5.9 Bn | |
| CAGR | 8.9% | |
| Growth Drivers |
|
|
| Segmentation |
|
|
| Regional Coverage |
|
|
With businesses striving to optimise their supply chain networks and enhance operational efficiency, the integration of advanced sorting technologies becomes imperative. Moreover, the rapid expansion of the eCommerce sector is significantly contributing to market growth.
The exponential growth of eCommerce, fueled by changing consumer preferences and digitalisation, is a major catalyst for market expansion. With consumers demanding faster delivery options, retailers and logistics companies are investing in robust parcel sortation systems to meet evolving customer expectations and gain a competitive edge in the market.
The convergence of robotics and AI technologies is driving innovation in parcel sorting systems. Automated guided vehicles (AGVs), and robotic arms are being integrated into sorting lines to automate material handling tasks and improve operational efficiency.
The market is witnessing a paradigm shift towards automation in logistics and warehouse operations. Automated parcel sortation systems, equipped with cutting-edge technologies such as Artificial Intelligence (AI) and Internet of Things (IoT), are gaining traction due to their ability to enhance sorting accuracy and efficiency.
The exponential rise in online shopping activities has led to a surge in parcel volumes, necessitating sophisticated sorting solutions to manage the influx effectively. Parcel sortation systems play a pivotal role in facilitating timely and accurate order fulfilment, thereby bolstering customer satisfaction and loyalty.
For More Industry Insights Read: https://www.fairfieldmarketresearch.com/report/parcel-sortation-systems-market
Key Research Insights
- Linear sortation systems take the lead with around 45% market share.
- With nearly 55% market value share, the software segment are at the forefront.
- North America’s parcel sortation systems market spearheads with a share of 55%.
Insights into Segmentation Analysis
Linear Parcel Sortation Systems Lead
Automated parcel sortation systems are witnessing high demand owing to their ability to handle large volumes efficiently while minimising manual intervention.
Linear parcel sortation systems, although traditional, remain popular due to their simplicity, reliability, and cost-effectiveness.
Loop parcel sortation systems are gaining prominence in high-volume sorting applications, thanks to their high-speed operation and continuous flow design.
eCommerce to be the Prime End-Use Sector
The eCommerce segment dominates the market, driven by the rapid growth of online retail and the need for rapid order fulfilment.
The logistics and transportation sector represents a significant market opportunity, with companies investing in parcel sortation systems to streamline distribution operations and reduce turnaround times.
The food and beverage industry is also adopting parcel sortation systems to ensure efficient inventory management and delivery of perishable goods.
Key Report Highlights
- The proliferation of cross-border eCommerce is opening new avenues for market growth. As businesses expand their reach globally, there is a growing demand for advanced parcel sortation systems capable of handling international shipments and customs clearance procedures seamlessly.
- Sustainability is emerging as a key focus area for market players. Eco-friendly sorting solutions, such as recyclable materials and energy-efficient conveyor systems, are gaining traction as businesses strive to minimise their environmental footprint and adhere to stringent regulatory norms.
Insights into Regional Analysis
North America Marches Ahead
Dominates the parcel sortation systems market, fueled by the presence of major eCommerce players and advanced logistics infrastructure.
The US, in particular, is witnessing robust market growth, driven by the proliferation of online shopping platforms and the increasing demand for same-day and next-day delivery services.
Europe Picks Pace as Embraces Automation
Europe is experiencing significant market growth, propelled by the expansion of eCommerce and the adoption of automation technologies in logistics operations.
Countries such as Germany, the UK, and France are at the forefront of market expansion, with a strong emphasis on enhancing supply chain efficiency and customer satisfaction.
Asia Pacific’s Pace Attributes to eCommerce Boom
Emerging as a lucrative market for parcel sortation systems, driven by rapid urbanisation, digitisation, and the burgeoning eCommerce sector.
China, and India are key contributors to market growth in the region, supported by government initiatives to develop robust logistics infrastructure and promote technological innovation in the logistics sector.
For more such updates, follow us on Google News Martech News