Global Parcel Sorting System Market Forecast, Trend Analysis And Competition Tracking - Global Market insights 2015 to 2031

Parcel Sorting System Market Overview:

The Global Parcel Sorting System Market was valued at US$ 1.6 Bn in 2020 and is projected to register а САGR of 9.1% by 2031.

Request Covid - 19 Impact

A parcel sorting system is a package handling and mail sorting process in which parcels are arranged by destination and then delivered to their appropriate post office for departure.

Parcel sorting systems may be manual, semi-automated, or automated. The goal of the parcel sorting system is to reduce the time needed for human intervention, increase efficiency when dealing with large amounts of parcels, and lower labor costs.

The growing application of these systems in the e-commerce industry is having a positive impact on the parcel sorting system market.

As the e-commerce industry witnessed a large number of customer orders, the demand for e-commerce products is growing rapidly, thereby driving the demand for automatic sorting systems that provide sufficient distribution within a limited time.

The advantages of these systems in the e-commerce industry include process transparency, error-free operation, increased scalability, short processing time, low dependence on skilled labor, and improved process visibility.

Unit sorters, such as tilt-tray and cross-belt sorters, are very effective in performing batch picking operations and help separate discrete orders. With the development of the e-commerce industry, the demand and requirements for advanced sorting systems will increase, providing opportunities for market revenue growth.

Market Drivers: Global Parcel Sorting System Market

Parcel sorting systems are a way of sorting packages by destination. Parcels can be sorted by a specific post office, route, or geographical location. This sorting system simplifies the process of sending mail to any one area.

The benefits of parcel sorting systems are that they help save time for the sender and the receiver because it is easy to know where your package will go before sending it.

The growing demand for IoT technology provides manufacturers with new developments in the parcel sorting system market. Integrating IoT technology into these systems is a breakthrough in the growth and development of the industry.

This technology can provide better product location visibility. It provides an effective connection for the various departments of sorting (such as packaging, labeling, and other departments), and provides efficient data and information processing.

The main advantages of integrating IoT technology into the parcel sorting system are monitoring individual products and processes, setting standards, and controlling the performance parameters of these systems.

COVID-19 impact on the Parcel Sorting System Market

The COVID-19 pandemic has surged the adoption of automated systems. Multiple suppliers are involved in restructuring business models, adopting new distribution strategies (including outsourcing), and improving delivery capabilities to improve organizational efficiency, customer experience, and last-mile delivery.

In the first and second quarters of 2020, high consumption of basic commodities caused disruptions in the global supply chain. The closure of local retailers, manufacturing plants, and operational processes disrupted merchandise distribution and enhanced e-commerce channels.

The COVID-19 pandemic has also led to a widespread economic recession as some countries have implemented strict lockdowns to control infections, leading to the closure of manufacturing industries and disruption of supply chains and production plans.

However, the COVID-19 pandemic has had a major positive impact on the online retail industry.

Market restraints that may limit the revenue growth of the target market

The parcel sorting system is one of the most important components of a mail delivery service. This system has many disadvantages; the first is that the process is not as quick as possible. Parcel sorting usually requires human input to aid machines in determining which parcel should go where.

Some government regulations for industry automation are affecting the growth of the parcel sorting system market. The main concern of government agencies about industrial automation is rising unemployment.

As the degree of automation increases, manpower in these industries will be reduced, and some processes and roles will be completed with the help of automated machines, which will increase the unemployment rate in this industry.

Government agencies are enacting new regulations and policies to force industry recruitment and eliminate unemployment. These regulations and policies are mandatory for operating in various industries.

Key opportunities for revenue growth of the Global Parcel Sorting System Market

The market for parcel sorting systems is experiencing a significant increase in demand, which has been attributed to the development of new technologies.

Laser-based barcode readers and wireless technology have made it easier for companies to track packages, improving efficiency.

Other critical factors include the pressure to reduce delivery times and increase efficiency in distribution networks and high-speed modes of transportation like aircraft and bullet trains.

Regional Analysis

North America region is expected to have a significant market share, among others

The North American region in the global parcel sorting system market is the leading region. It is leading because of the wide variety of parcel sorting systems available to both large and small businesses.

This variety allows companies to find a system that suits their needs. Many parcels need to be sorted quickly and efficiently, while some may have a slower turn-around time for larger shipments so they can sort through them at their own pace.

In addition, the rapid refurbishment of existing postal automation systems and additional installations or capacity expansions, the U.S. Postal Service (USPS)'s massive investment in postal automation systems, and the high inorganic growth strategy adopted by companies operating in this market to expand automated installations satisfy The growing package volume system is one of the factors driving the growth of the market in this region.

Competitive Landscape

Some of the leading players operating in the Global Parcel Sorting System Market are mentioned below:

• Dematic
• Muratec
• Vanderlande
• BEUMER Group
• Intelligrated
• Fives
• Bastian Solutions
• Siemens
• Interroll
• Invata Intralogisitcs
• Other Key Industry Players

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Segments Covered

Parcel Sorting System Market, By Type

• Linear Parcel Sortation Systems
• Loop Parcel Sortation Systems

Parcel Sorting System Market, By Offering

• Hardware
• Processors
• Cameras
• Sensors
• Others
• Software
• Services

Parcel Sorting System Market, By Industry Vertical

• Logistics
• Pharmaceuticals & Medical Supply
• Airports
• E-Commerce
• Food & Beverages