Northbrook, IL 60062 -- (SBWire) -- 11/22/2023 --The global Parcel Sortation System Market Size is estimated to be worth USD 2.0 Billion in 2023 and is projected to reach USD 2.8 Billion by 2028, at a CAGR of 7.0% during the forecast period.
The market is expanding due to several factors. Significantly growing e-commerce industry and growing adoption of parcel sortation system in industry, labor cost inflation and increase in industrial automation. Additionally, rising demand for faster delivery is driving the growth of the market.
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Logistics application of parcel sortation system to account for the largest share in the market during forecast period
The rising demand for faster delivery is a key driver for the expansion of the Logistics application market. Logistics companies are facing challenges in terms of delivery of parcels, such as increasing volume of parcels or cartons, growing pressure to meet service level demands, shorter order delivery time, smaller orders, and rising need to provide accuracy in terms of order delivery. These all challenges can be resolved by adoptiong the parcel sortation systems. These systems ensure precise and effective parcel routing by automating the sorting procedure. They identify and sort parcels according to their destination, size, weight, or other specifications by scanning barcodes or using cutting-edge technology like optical character recognition. These companies use parcel sortation systems to expedite the delivery of parcels to their respective destinations while maintaining a high level of customer service.
Software segment to grow with a highest CAGR in the market during forecast period
Software in a parcel sortation system is used for analyzing the data about a parcel's parameters generated via sensors and cameras. It is also used to make logical reasoning to sort packages and forward them to their respective destinations, through diverters and conveyor systems, It enables automation, tracking, and coordination of various components within the system, ensuring smooth package flow, accurate sorting, and real-time monitoring. Earlier, companies used historical data for decision making and sorting; however, with the adoption of Industry 4.0 and IoT applications, a large volume of data is generated to make decisions through the software installed in the parcel sortation systems.
North America held the largest share of the parcel sortation system market in 2022
The parcel sortation market in North America is a rapidly growing market for the logistics and e-commerce industries. North America, comprising countries like the US and Canada, has a robust and highly developed logistics infrastructure, propelling the demand for efficient parcel sortation systems. North America also has a thriving logistics industry driven by critical factors such as extensive supply chains and warehousing and distribution networks. Parcel sortation systems play a crucial role in optimizing the flow of packages through these complex logistics networks and ensuring accurate and timely deliveries.
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Key Market Players
The major companies in the parcel sortation system market include Vanderlande (Netherlands), Beumer Group (Germany), Honeywell International (US), and Bastian Solutions (US), Fives (France). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the parcel sortation system companies.
Parcel Sortation System Market Size, Share, Industry Report, Revenue Trends 2028