Parcel Sortation System Market

Parcel Sortation System Market Size, Share, Growth Analysis, By Offering(Hardware, Software), By Type(Linear Parcel Sortation Systems, Activated Roller Belt Sorters), By Application(Logistics, E-commerce), By Region(North America, US) - Industry Forecast 2024-2031

Report ID: UCMIG20R2046 | Region: Global | Published Date: Upcoming |
Pages: 165 | Tables: 55 | Figures: 60

Parcel Sortation System Market Insights

Market Overview:

The market for parcel sortation systems is anticipated to reach a value of USD 2.8 billion by 2028, growing at a CAGR of 7.0% over the forecast period from an estimated USD 2.0 billion in 2023. Growth in the e-commerce sector, rising industrial automation, and rising labor costs are all contributing to market expansion.

Parcel Sortation System Market, Forecast & Y-O-Y Growth Rate, 2020 - 2028
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This report is being written to illustrate the market opportunity by region and by segments, indicating opportunity areas for the vendors to tap upon. To estimate the opportunity, it was very important to understand the current market scenario and the way it will grow in future.

Production and consumption patterns are being carefully compared to forecast the market. Other factors considered to forecast the market are the growth of the adjacent market, revenue growth of the key market vendors, scenario-based analysis, and market segment growth.

The market size was determined by estimating the market through a top-down and bottom-up approach, which was further validated with industry interviews. Considering the nature of the market we derived the Air Freight & Logistics by segment aggregation, the contribution of the Air Freight & Logistics in Transportation and vendor share.

To determine the growth of the market factors such as drivers, trends, restraints, and opportunities were identified, and the impact of these factors was analyzed to determine the market growth. To understand the market growth in detail, we have analyzed the year-on-year growth of the market. Also, historic growth rates were compared to determine growth patterns.

Segmentation Analysis:

The Parcel Sortation System Market is segmented by Offering, Type, Application, Region. We are analyzing the market of these segments to identify which segment is the largest now and in the future, which segment has the highest growth rate, and the segment which offers the opportunity in the future.

Parcel Sortation System Market Basis Point Share Analysis, 2021 Vs. 2028
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  • Based on Offering the market is segmented as, Hardware, Software, Services
  • Based on Type the market is segmented as, Linear Parcel Sortation Systems, Activated Roller Belt Sorters, Pop Up Sorters, Shoe Sorters, Paddle Sorters, Pusher Sorters, Others, Loop Parcel Sortation System, Cross Belt Sorters, Flat Sorters, Tilt Tray Sorters, Others
  • Based on Application the market is segmented as, Logistics, E-commerce, Airports, Pharmaceuticals & Medical Supply, Food & Beverage, Others
  • Based on Region the market is segmented as, North America, US, Canada, Mexico, Europe, UK, Germany, France, Rest of Europe, Asia Pacific, China, Japan, South Korea, Rest of Asia Pacific, Rest of the World, Middle East, Saudi Arabia, UAE, Rest of Middle East, Africa, South America, KEY MARKET PLAYERS, Vanderlande, Beumer Group, Honeywell International, Bastian Solutions, Fives

Regional Analysis:

Parcel Sortation System Market is being analyzed by North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle East & Africa (MEA) regions. Key countries including the U.S., Canada, Germany, France, UK, Italy, Spain, China, India, Japan, Brazil, GCC Countries, and South Africa among others were analyzed considering various micro and macro trends.

Parcel Sortation System Market Attractiveness Analysis, By Region 2020-2028
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Parcel Sortation System Market : Risk Analysis

SkyQuest's expert analysts have conducted a risk analysis to understand the impact of external extremities on Parcel Sortation System Market. We analyzed how geopolitical influence, natural disasters, climate change, legal scenario, economic impact, trade & economic policies, social & ethnic concerns, and demographic changes might affect Parcel Sortation System Market's supply chain, distribution, and total revenue growth.

Competitive landscaping:

To understand the competitive landscape, we are analyzing key Parcel Sortation System Market vendors in the market. To understand the competitive rivalry, we are comparing the revenue, expenses, resources, product portfolio, region coverage, market share, key initiatives, product launches, and any news related to the Parcel Sortation System Market.

To validate our hypothesis and validate our findings on the market ecosystem, we are also conducting a detailed porter's five forces analysis. Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry each force is analyzed by various parameters governing those forces.

Key Players Covered in the Report:

  • 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.
  • Driver: Thriving e-commerce industry and growing adoption of parcel sortation system in the industry
  • E-commerce refers to the buying and selling of products and services over the internet, and it has experienced explosive growth in recent years. The demand for e-commerce is increasing worldwide. This is driving the growth of the parcel sortation systems market as there is an increasing need to sort and deliver a greater number of parcels. This growth can be attributed to various factors, including the increasing convenience and accessibility of online shopping, improved logistics and shipping networks, and a shift in consumer preferences towards digital platforms. According to the US Department of Commerce, e-commerce sales as a percentage of the total retail sales in the US have increased from USD 503.3 billion in 2019 to USD 856.8 billion in 2022, contributing 9% and 11.2%, respectively.
  • Restraint: Higher costs related to deployment and maintenance of parcel sortation systems
  • The expenses related to parcel sortation systems broadly include the initial capital expenditure for purchasing the sorting equipment, installation costs, ongoing maintenance, repairs, and upgrades. The set up and installation of parcel sortation systems requires high capital expenditure as it involves the installation of conveyors, actuators, and belts, among others. These costs can burden budgets and make it difficult for firms to justify the investment, especially for smaller organisations or those with limited resources. Depending on the sorting capacity of the overall system, the installation project cost can reach up to USD 2–5 million. The high costs discourage several midsized and small end users that opt for traditional/manual parcels sorting systems; this affects the overall demand for parcel sortation systems. Several companies abstain from investing in parcel sorting systems due to high initial investments and a long payback period.
  • Opportunity: Integration of emerging technologies like AI, Industry 4.0, IoT, with sorting systems
  • The evolution of traditional warehouses into smart, connected, and more efficient automated warehouses through integrating Industry 4.0 has provided huge growth opportunities for the companies in the parcel sortation systems market. The deployment of Industry 4.0-based systems creates an operational environment with optimal output through integrating, automating, and managing the logistic movement of goods inside a warehouse, a distribution center, or a fulfillment center. The increasing adoption of Industry 4.0-based systems necessitates transitioning traditional or manual ways of all operations in a supply chain, such as sorting, picking, and transporting, toward automation. This is expected to boost the adoption of parcel sortation systems.
  • The increasing adoption of Internet of Things (IoT) systems in the field of warehouse management and logistics is another trend expected to revolutionize manufacturing operations. IoT devices, along with radio-frequency identification (RFID) and sensors, offer several benefits in terms of reduced labor costs, increased shipment accuracy and operation speed, improved tracking, and enhanced visibility for retailers, among others. Moreover, Incorporating AI algorithms into parcel sortation systems can enable intelligent decision-making skills. The modular architecture of Industry 4.0 and IoT systems enables simple scaling, allowing greater package volumes and seamlessly expanding operations.
  • Challenge: Real-time technical issues during sortation
  • Real-time technical challenges related to any sensing element in a parcel sorting system could disrupt the entire sorting process. For instance, if the camera or sensor installed in a parcel sortation system is not able to read a barcode properly, it would not be able to react effectively to a given command. Camera or sensor failure can also lead to the halting of the process, resulting in a delay in the entire production process. Mechanical failure may also be the consequence of improper maintenance; it may cause decreased production and poor performance. Parcel sortation systems are designed to handle standard package sizes and shapes. However, irregularly shaped, or damaged parcels can pose challenges during sorting. Moreover, any fault in the control software may lead to the improper functioning of the parcel sortation system. Sorting errors can arise when parcels are routed incorrectly or directed to the wrong destination. This might occur as a result of technical flaws in the sorting mechanism, misalignment of diverters or conveyors, or faulty sensors that detect package qualities.
  • Parcel Sortation System Market: Key Trends
  • Vanderlande,Beumer Group, Honeywell International, Bastian Solutions, and Fives are the top players in the parcel sortation system market. These parcel sortation system companies boast sortation technology trends with a comprehensive product portfolio and solid geographic footprint.
  • Loop parcel sortation system to grow with highest CAGR during the forecast period 2023-2028.
  • Loop or circular parcel sorters are used to sort parcels or cartons in facilities with space constraints or challenging layouts. These sorters can handle tight-radius curves as well as inclines and declines, thereby maximizing space utilization. Parcel induction points and sortation destinations can be arranged in several ways enabling users to utilize space better and achieve optimal sortation system performance. Moreover,the Loop Parcel Sortation System can seamlessly integrate with existing warehouse management systems, allowing for streamlined operations and real-time tracking of parcels. This integration enables efficient inventory management, order fulfillment, and enhanced visibility throughout the supply chain.
  • 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.
  • KEY MARKET SEGMENTS
  • By Offering
  • Hardware
  • Software
  • Services
  • By Type
  • Linear Parcel Sortation Systems
  • Activated Roller Belt Sorters
  • Pop Up Sorters
  • Shoe Sorters
  • Paddle Sorters
  • Pusher Sorters
  • Others
  • Loop Parcel Sortation System
  • Cross Belt Sorters
  • Flat Sorters
  • Tilt Tray Sorters
  • Others
  • By Application
  • Logistics
  • E-commerce
  • Airports
  • Pharmaceuticals & Medical Supply
  • Food & Beverage
  • Others
  • By Region
  • North America
  • US
  • Canada
  • Mexico
  • Europe
  • UK
  • Germany
  • France
  • Rest of Europe
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • Rest of Asia Pacific
  • Rest of the World
  • Middle East
  • Saudi Arabia
  • UAE
  • Rest of Middle East
  • Africa
  • South America
  • KEY MARKET PLAYERS
  • Vanderlande
  • Beumer Group
  • Honeywell International
  • Bastian Solutions
  • Fives

SkyQuest's Expertise:

The Parcel Sortation System Market is being analyzed by SkyQuest's analysts with the help of 20+ scheduled Primary interviews from both the demand and supply sides. We have already invested more than 250 hours on this report and are still refining our date to provide authenticated data to your readers and clients. Exhaustive primary and secondary research is conducted to collect information on the market, peer market, and parent market.

Our cross-industry experts and revenue-impact consultants at SkyQuest enable our clients to convert market intelligence into actionable, quantifiable results through personalized engagement.

Scope Of Report

Report Attribute Details
The base year for estimation 2021
Historical data 2016 – 2022
Forecast period 2022 – 2028
Report coverage Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, Pricing Analysis
Segments covered
  • By Offering - Hardware, Software, Services
  • By Type - Linear Parcel Sortation Systems, Activated Roller Belt Sorters, Pop Up Sorters, Shoe Sorters, Paddle Sorters, Pusher Sorters, Others, Loop Parcel Sortation System, Cross Belt Sorters, Flat Sorters, Tilt Tray Sorters, Others
  • By Application - Logistics, E-commerce, Airports, Pharmaceuticals & Medical Supply, Food & Beverage, Others
  • By Region - North America, US, Canada, Mexico, Europe, UK, Germany, France, Rest of Europe, Asia Pacific, China, Japan, South Korea, Rest of Asia Pacific, Rest of the World, Middle East, Saudi Arabia, UAE, Rest of Middle East, Africa, South America, KEY MARKET PLAYERS, Vanderlande, Beumer Group, Honeywell International, Bastian Solutions, Fives
Regional scope North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle East & Africa (MEA)
Country scope U.S., Canada, Germany, France, UK, Italy, Spain, China, India, Japan, Brazil, GCC Countries, South Africa
Key companies profiled
  • 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.
  • Driver: Thriving e-commerce industry and growing adoption of parcel sortation system in the industry
  • E-commerce refers to the buying and selling of products and services over the internet, and it has experienced explosive growth in recent years. The demand for e-commerce is increasing worldwide. This is driving the growth of the parcel sortation systems market as there is an increasing need to sort and deliver a greater number of parcels. This growth can be attributed to various factors, including the increasing convenience and accessibility of online shopping, improved logistics and shipping networks, and a shift in consumer preferences towards digital platforms. According to the US Department of Commerce, e-commerce sales as a percentage of the total retail sales in the US have increased from USD 503.3 billion in 2019 to USD 856.8 billion in 2022, contributing 9% and 11.2%, respectively.
  • Restraint: Higher costs related to deployment and maintenance of parcel sortation systems
  • The expenses related to parcel sortation systems broadly include the initial capital expenditure for purchasing the sorting equipment, installation costs, ongoing maintenance, repairs, and upgrades. The set up and installation of parcel sortation systems requires high capital expenditure as it involves the installation of conveyors, actuators, and belts, among others. These costs can burden budgets and make it difficult for firms to justify the investment, especially for smaller organisations or those with limited resources. Depending on the sorting capacity of the overall system, the installation project cost can reach up to USD 2–5 million. The high costs discourage several midsized and small end users that opt for traditional/manual parcels sorting systems; this affects the overall demand for parcel sortation systems. Several companies abstain from investing in parcel sorting systems due to high initial investments and a long payback period.
  • Opportunity: Integration of emerging technologies like AI, Industry 4.0, IoT, with sorting systems
  • The evolution of traditional warehouses into smart, connected, and more efficient automated warehouses through integrating Industry 4.0 has provided huge growth opportunities for the companies in the parcel sortation systems market. The deployment of Industry 4.0-based systems creates an operational environment with optimal output through integrating, automating, and managing the logistic movement of goods inside a warehouse, a distribution center, or a fulfillment center. The increasing adoption of Industry 4.0-based systems necessitates transitioning traditional or manual ways of all operations in a supply chain, such as sorting, picking, and transporting, toward automation. This is expected to boost the adoption of parcel sortation systems.
  • The increasing adoption of Internet of Things (IoT) systems in the field of warehouse management and logistics is another trend expected to revolutionize manufacturing operations. IoT devices, along with radio-frequency identification (RFID) and sensors, offer several benefits in terms of reduced labor costs, increased shipment accuracy and operation speed, improved tracking, and enhanced visibility for retailers, among others. Moreover, Incorporating AI algorithms into parcel sortation systems can enable intelligent decision-making skills. The modular architecture of Industry 4.0 and IoT systems enables simple scaling, allowing greater package volumes and seamlessly expanding operations.
  • Challenge: Real-time technical issues during sortation
  • Real-time technical challenges related to any sensing element in a parcel sorting system could disrupt the entire sorting process. For instance, if the camera or sensor installed in a parcel sortation system is not able to read a barcode properly, it would not be able to react effectively to a given command. Camera or sensor failure can also lead to the halting of the process, resulting in a delay in the entire production process. Mechanical failure may also be the consequence of improper maintenance; it may cause decreased production and poor performance. Parcel sortation systems are designed to handle standard package sizes and shapes. However, irregularly shaped, or damaged parcels can pose challenges during sorting. Moreover, any fault in the control software may lead to the improper functioning of the parcel sortation system. Sorting errors can arise when parcels are routed incorrectly or directed to the wrong destination. This might occur as a result of technical flaws in the sorting mechanism, misalignment of diverters or conveyors, or faulty sensors that detect package qualities.
  • Parcel Sortation System Market: Key Trends
  • Vanderlande,Beumer Group, Honeywell International, Bastian Solutions, and Fives are the top players in the parcel sortation system market. These parcel sortation system companies boast sortation technology trends with a comprehensive product portfolio and solid geographic footprint.
  • Loop parcel sortation system to grow with highest CAGR during the forecast period 2023-2028.
  • Loop or circular parcel sorters are used to sort parcels or cartons in facilities with space constraints or challenging layouts. These sorters can handle tight-radius curves as well as inclines and declines, thereby maximizing space utilization. Parcel induction points and sortation destinations can be arranged in several ways enabling users to utilize space better and achieve optimal sortation system performance. Moreover,the Loop Parcel Sortation System can seamlessly integrate with existing warehouse management systems, allowing for streamlined operations and real-time tracking of parcels. This integration enables efficient inventory management, order fulfillment, and enhanced visibility throughout the supply chain.
  • 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.
  • KEY MARKET SEGMENTS
  • By Offering
  • Hardware
  • Software
  • Services
  • By Type
  • Linear Parcel Sortation Systems
  • Activated Roller Belt Sorters
  • Pop Up Sorters
  • Shoe Sorters
  • Paddle Sorters
  • Pusher Sorters
  • Others
  • Loop Parcel Sortation System
  • Cross Belt Sorters
  • Flat Sorters
  • Tilt Tray Sorters
  • Others
  • By Application
  • Logistics
  • E-commerce
  • Airports
  • Pharmaceuticals & Medical Supply
  • Food & Beverage
  • Others
  • By Region
  • North America
  • US
  • Canada
  • Mexico
  • Europe
  • UK
  • Germany
  • France
  • Rest of Europe
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • Rest of Asia Pacific
  • Rest of the World
  • Middle East
  • Saudi Arabia
  • UAE
  • Rest of Middle East
  • Africa
  • South America
  • KEY MARKET PLAYERS
  • Vanderlande
  • Beumer Group
  • Honeywell International
  • Bastian Solutions
  • Fives
Customization scope Free report customization (15% Free customization) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options Reap the benefits of customized purchase options to fit your specific research requirements.

Objectives of the Study

  • To forecast the market size, in terms of value, for various segments with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle East & Africa (MEA)
  • To provide detailed information regarding the major factors influencing the growth of the Market (drivers, restraints, opportunities, and challenges)
  • To strategically analyze the micro markets with respect to the individual growth trends, future prospects, and contribution to the total market
  • To provide a detailed overview of the value chain and analyze market trends with the Porter's five forces analysis
  • To analyze the opportunities in the market for various stakeholders by identifying the high-growth Segments
  • To identify the key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing the competitive landscape for the market leaders
  • To analyze competitive development such as joint ventures, mergers and acquisitions, new product launches and development, and research and development in the market

What does this Report Deliver?

  • Market Estimation for 20+ Countries
  • Historical data coverage: 2016 to 2022
  • Growth projections: 2022 to 2028
  • SkyQuest's premium market insights: Innovation matrix, IP analysis, Production Analysis, Value chain analysis, Technological trends, and Trade analysis
  • Customization on Segments, Regions, and Company Profiles
  • 100+ tables, 150+ Figures, 10+ matrix
  • Global and Country Market Trends
  • Comprehensive Mapping of Industry Parameters
  • Attractive Investment Proposition
  • Competitive Strategies Adopted by Leading Market Participants
  • Market drivers, restraints, opportunities, and its impact on the market
  • Regulatory scenario, regional dynamics, and insights of leading countries in each region
  • Segment trends analysis, opportunity, and growth
  • Opportunity analysis by region and country
  • Porter's five force analysis to know the market's condition
  • Pricing analysis
  • Parent market analysis
  • Product portfolio benchmarking

Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Parcel Sortation System Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Parcel Sortation System Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)
  • 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.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • 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.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Driver: Thriving e-commerce industry and growing adoption of parcel sortation system in the industry
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • E-commerce refers to the buying and selling of products and services over the internet, and it has experienced explosive growth in recent years. The demand for e-commerce is increasing worldwide. This is driving the growth of the parcel sortation systems market as there is an increasing need to sort and deliver a greater number of parcels. This growth can be attributed to various factors, including the increasing convenience and accessibility of online shopping, improved logistics and shipping networks, and a shift in consumer preferences towards digital platforms. According to the US Department of Commerce, e-commerce sales as a percentage of the total retail sales in the US have increased from USD 503.3 billion in 2019 to USD 856.8 billion in 2022, contributing 9% and 11.2%, respectively.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Restraint: Higher costs related to deployment and maintenance of parcel sortation systems
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • The expenses related to parcel sortation systems broadly include the initial capital expenditure for purchasing the sorting equipment, installation costs, ongoing maintenance, repairs, and upgrades. The set up and installation of parcel sortation systems requires high capital expenditure as it involves the installation of conveyors, actuators, and belts, among others. These costs can burden budgets and make it difficult for firms to justify the investment, especially for smaller organisations or those with limited resources. Depending on the sorting capacity of the overall system, the installation project cost can reach up to USD 2–5 million. The high costs discourage several midsized and small end users that opt for traditional/manual parcels sorting systems; this affects the overall demand for parcel sortation systems. Several companies abstain from investing in parcel sorting systems due to high initial investments and a long payback period.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Opportunity: Integration of emerging technologies like AI, Industry 4.0, IoT, with sorting systems
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • The evolution of traditional warehouses into smart, connected, and more efficient automated warehouses through integrating Industry 4.0 has provided huge growth opportunities for the companies in the parcel sortation systems market. The deployment of Industry 4.0-based systems creates an operational environment with optimal output through integrating, automating, and managing the logistic movement of goods inside a warehouse, a distribution center, or a fulfillment center. The increasing adoption of Industry 4.0-based systems necessitates transitioning traditional or manual ways of all operations in a supply chain, such as sorting, picking, and transporting, toward automation. This is expected to boost the adoption of parcel sortation systems.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • The increasing adoption of Internet of Things (IoT) systems in the field of warehouse management and logistics is another trend expected to revolutionize manufacturing operations. IoT devices, along with radio-frequency identification (RFID) and sensors, offer several benefits in terms of reduced labor costs, increased shipment accuracy and operation speed, improved tracking, and enhanced visibility for retailers, among others. Moreover, Incorporating AI algorithms into parcel sortation systems can enable intelligent decision-making skills. The modular architecture of Industry 4.0 and IoT systems enables simple scaling, allowing greater package volumes and seamlessly expanding operations.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Challenge: Real-time technical issues during sortation
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Real-time technical challenges related to any sensing element in a parcel sorting system could disrupt the entire sorting process. For instance, if the camera or sensor installed in a parcel sortation system is not able to read a barcode properly, it would not be able to react effectively to a given command. Camera or sensor failure can also lead to the halting of the process, resulting in a delay in the entire production process. Mechanical failure may also be the consequence of improper maintenance; it may cause decreased production and poor performance. Parcel sortation systems are designed to handle standard package sizes and shapes. However, irregularly shaped, or damaged parcels can pose challenges during sorting. Moreover, any fault in the control software may lead to the improper functioning of the parcel sortation system. Sorting errors can arise when parcels are routed incorrectly or directed to the wrong destination. This might occur as a result of technical flaws in the sorting mechanism, misalignment of diverters or conveyors, or faulty sensors that detect package qualities.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Parcel Sortation System Market: Key Trends
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Vanderlande,Beumer Group, Honeywell International, Bastian Solutions, and Fives are the top players in the parcel sortation system market. These parcel sortation system companies boast sortation technology trends with a comprehensive product portfolio and solid geographic footprint.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Loop parcel sortation system to grow with highest CAGR during the forecast period 2023-2028.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Loop or circular parcel sorters are used to sort parcels or cartons in facilities with space constraints or challenging layouts. These sorters can handle tight-radius curves as well as inclines and declines, thereby maximizing space utilization. Parcel induction points and sortation destinations can be arranged in several ways enabling users to utilize space better and achieve optimal sortation system performance. Moreover,the Loop Parcel Sortation System can seamlessly integrate with existing warehouse management systems, allowing for streamlined operations and real-time tracking of parcels. This integration enables efficient inventory management, order fulfillment, and enhanced visibility throughout the supply chain.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Logistics application of parcel sortation system to account for the largest share in the market during forecast period.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • 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.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Software segment to grow with a highest CAGR in the market during forecast period
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • 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.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • North America held the largest share of the parcel sortation system market in 2022.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • 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.
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • KEY MARKET SEGMENTS
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Offering
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Hardware
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Software
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Services
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Type
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Linear Parcel Sortation Systems
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Activated Roller Belt Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Pop Up Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Shoe Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Paddle Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Pusher Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Others
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Loop Parcel Sortation System
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Cross Belt Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Flat Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Tilt Tray Sorters
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Others
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Application
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Logistics
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • E-commerce
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Airports
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Pharmaceuticals & Medical Supply
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Food & Beverage
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Others
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • By Region
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • North America
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • US
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Canada
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Mexico
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Europe
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • UK
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Germany
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • France
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Rest of Europe
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Asia Pacific
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • China
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Japan
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • South Korea
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Rest of Asia Pacific
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Rest of the World
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Middle East
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Saudi Arabia
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • UAE
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Rest of Middle East
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Africa
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • South America
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • KEY MARKET PLAYERS
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Vanderlande
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Beumer Group
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Honeywell International
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Bastian Solutions
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments
  • Fives
    • Exhibit Company Overview
    • Exhibit Business Segment Overview
    • Exhibit Financial Updates
    • Exhibit Key Developments

Methodology

For the Parcel Sortation System Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Parcel Sortation System Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

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Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Parcel Sortation System Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Parcel Sortation System Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

The global market for Parcel Sortation System was estimated to be valued at US$ XX Mn in 2021.

The global Parcel Sortation System Market is estimated to grow at a CAGR of XX% by 2028.

The global Parcel Sortation System Market is segmented on the basis of Offering, Type, Application, Region.

Based on region, the global Parcel Sortation System Market is segmented into North America, Europe, Asia Pacific, Middle East & Africa and Latin America.

The key players operating in the global Parcel Sortation System Market are 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. , Driver: Thriving e-commerce industry and growing adoption of parcel sortation system in the industry , E-commerce refers to the buying and selling of products and services over the internet, and it has experienced explosive growth in recent years. The demand for e-commerce is increasing worldwide. This is driving the growth of the parcel sortation systems market as there is an increasing need to sort and deliver a greater number of parcels. This growth can be attributed to various factors, including the increasing convenience and accessibility of online shopping, improved logistics and shipping networks, and a shift in consumer preferences towards digital platforms. According to the US Department of Commerce, e-commerce sales as a percentage of the total retail sales in the US have increased from USD 503.3 billion in 2019 to USD 856.8 billion in 2022, contributing 9% and 11.2%, respectively. , Restraint: Higher costs related to deployment and maintenance of parcel sortation systems , The expenses related to parcel sortation systems broadly include the initial capital expenditure for purchasing the sorting equipment, installation costs, ongoing maintenance, repairs, and upgrades. The set up and installation of parcel sortation systems requires high capital expenditure as it involves the installation of conveyors, actuators, and belts, among others. These costs can burden budgets and make it difficult for firms to justify the investment, especially for smaller organisations or those with limited resources. Depending on the sorting capacity of the overall system, the installation project cost can reach up to USD 2–5 million. The high costs discourage several midsized and small end users that opt for traditional/manual parcels sorting systems; this affects the overall demand for parcel sortation systems. Several companies abstain from investing in parcel sorting systems due to high initial investments and a long payback period. , Opportunity: Integration of emerging technologies like AI, Industry 4.0, IoT, with sorting systems , The evolution of traditional warehouses into smart, connected, and more efficient automated warehouses through integrating Industry 4.0 has provided huge growth opportunities for the companies in the parcel sortation systems market. The deployment of Industry 4.0-based systems creates an operational environment with optimal output through integrating, automating, and managing the logistic movement of goods inside a warehouse, a distribution center, or a fulfillment center. The increasing adoption of Industry 4.0-based systems necessitates transitioning traditional or manual ways of all operations in a supply chain, such as sorting, picking, and transporting, toward automation. This is expected to boost the adoption of parcel sortation systems. , The increasing adoption of Internet of Things (IoT) systems in the field of warehouse management and logistics is another trend expected to revolutionize manufacturing operations. IoT devices, along with radio-frequency identification (RFID) and sensors, offer several benefits in terms of reduced labor costs, increased shipment accuracy and operation speed, improved tracking, and enhanced visibility for retailers, among others. Moreover, Incorporating AI algorithms into parcel sortation systems can enable intelligent decision-making skills. The modular architecture of Industry 4.0 and IoT systems enables simple scaling, allowing greater package volumes and seamlessly expanding operations. , Challenge: Real-time technical issues during sortation , Real-time technical challenges related to any sensing element in a parcel sorting system could disrupt the entire sorting process. For instance, if the camera or sensor installed in a parcel sortation system is not able to read a barcode properly, it would not be able to react effectively to a given command. Camera or sensor failure can also lead to the halting of the process, resulting in a delay in the entire production process. Mechanical failure may also be the consequence of improper maintenance; it may cause decreased production and poor performance. Parcel sortation systems are designed to handle standard package sizes and shapes. However, irregularly shaped, or damaged parcels can pose challenges during sorting. Moreover, any fault in the control software may lead to the improper functioning of the parcel sortation system. Sorting errors can arise when parcels are routed incorrectly or directed to the wrong destination. This might occur as a result of technical flaws in the sorting mechanism, misalignment of diverters or conveyors, or faulty sensors that detect package qualities. , Parcel Sortation System Market: Key Trends , Vanderlande,Beumer Group, Honeywell International, Bastian Solutions, and Fives are the top players in the parcel sortation system market. These parcel sortation system companies boast sortation technology trends with a comprehensive product portfolio and solid geographic footprint. , Loop parcel sortation system to grow with highest CAGR during the forecast period 2023-2028. , Loop or circular parcel sorters are used to sort parcels or cartons in facilities with space constraints or challenging layouts. These sorters can handle tight-radius curves as well as inclines and declines, thereby maximizing space utilization. Parcel induction points and sortation destinations can be arranged in several ways enabling users to utilize space better and achieve optimal sortation system performance. Moreover,the Loop Parcel Sortation System can seamlessly integrate with existing warehouse management systems, allowing for streamlined operations and real-time tracking of parcels. This integration enables efficient inventory management, order fulfillment, and enhanced visibility throughout the supply chain. , 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. , KEY MARKET SEGMENTS , By Offering , Hardware , Software , Services , By Type , Linear Parcel Sortation Systems , Activated Roller Belt Sorters , Pop Up Sorters , Shoe Sorters , Paddle Sorters , Pusher Sorters , Others , Loop Parcel Sortation System , Cross Belt Sorters , Flat Sorters , Tilt Tray Sorters , Others , By Application , Logistics , E-commerce , Airports , Pharmaceuticals & Medical Supply , Food & Beverage , Others , By Region , North America , US , Canada , Mexico , Europe , UK , Germany , France , Rest of Europe , Asia Pacific , China , Japan , South Korea , Rest of Asia Pacific , Rest of the World , Middle East , Saudi Arabia , UAE , Rest of Middle East , Africa , South America, KEY MARKET PLAYERS , Vanderlande , Beumer Group , Honeywell International , Bastian Solutions , Fives .

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