The key players operating in the 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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