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Parcel Sorting System Market Size

Report ID: GMI6461
Published Date: Aug 2023
Report Format: PDF

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Parcel sorting system Market Size

Parcel Sorting System Market size was valued at USD 1.9 billion in 2022 and is anticipated to grow at a CAGR of over 7% between 2023 and 2032. Global parcel sortation system industry growth is driven by the increasing market competition and differentiation.

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As competition in the e-commerce and logistics sectors intensifies, companies seek to differentiate themselves through efficient and reliable parcel sortation systems that streamline their supply chain operations. For instance, Vanderlande AutoSort Pro, launched in February 2023, is a high-speed parcel sortation system that can sort up to 10,000 parcels per hour. It is equipped with advanced features, such as barcode scanning and weight detection, that allow it to sort parcels accurately and efficiently. The changing technological landscape will help create a healthy growth trajectory for the parcel sortation system business.

Parcel Sorting System Market Report Attributes
Report Attribute	Details
Base Year:	2022
Parcel Sorting System Market Size in 2022:	USD 1.9 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	7%
2032 Value Projection:	USD 3.7 Billion
Historical Data for:	2018 to 2022
No. of Pages:	300
Tables, Charts & Figures:	271
Segments covered:	Component, Type, End-Use
Growth Drivers:	The rapid growth of e-commerce industry Increasing focus on warehousing and distribution automation Technology innovations in parcel sorting system Rising consumer focus on supply chain management
Pitfalls & Challenges:	High initial cost

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Consumer preferences for online shopping and the convenience of home delivery have significantly contributed to the demand for efficient parcel sortation systems. According to Eurostat, 87% of individuals aged between 25 and 34 years in Europe bought or ordered goods or services online in 2022. However, implementing advanced parcel sortation systems requires a significant upfront investment in terms of capital, technology, and infrastructure. This initial cost can be a barrier for some businesses, particularly smaller and mid-sized companies. Besides, integrating new parcel sortation systems with existing logistics and warehouse management systems can be complex and time-consuming. Compatibility issues, data migration, and operational disruptions during integration can pose challenges for businesses looking to adopt these systems.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size for parcel sorting system was valued at USD 1.9 billion in 2022 and is anticipated to grow at a CAGR of over 7% between 2023 and 2032m driven by the increasing competition and focus on differentiation.

The retail & e-commerce segment held around 20% market share in 2022, on account of the ability of parcel sorting systems to meet the fast-paced demands of online retail, expedite order fulfillment, and offer reliable shipping options.

North America accounted for over 30% market share in 2022 and expected to grow at a significant CAGR through 2032, due to the region's robust e-commerce landscape and technological advancements.

Beumer Group, Daifuku Co. Ltd, Dematic, Equinox, Honeywell International Inc, Interroll Group, Koerber AG, Pitney Bowes Inc, and Vanderlande Industries B.V.