Wednesday, 20 March 2019

Parcel Sortation Systems Market: Key insights on Major Players | Global Forecast to 2023

The parcel sortation systems market was valued at USD 1.21 Billion in 2017 and is expected to reach USD 2.05 Billion by 2023, at a CAGR of 9.3% during the forecast period. The base year considered for the study is 2017, and the forecast period is between 2018 and 2023. Factors such as increasing labor costs, rising industrial automation, and growth in e-commerce are expected to drive the growth of the market during the forecast period.

Parcel sortation systems offer a highly efficient and accurate means of routing, sorting, consolidating, and diverting a wide range of parcel types to unique destinations for the purposes of packaging, palletizing, storing, and shipping, among others. A parcel sortation system comprises several sub-components working together under the direction of a warehouse execution system or warehouse control system and machine controllers. Parcel sortation systems enable automated sorting of a parcel; parcel sortation can be done on the basis of several parameters, including size, volume, bar code reading, or fragility of the items in the parcel. Parcel sortation systems are used to sort parcels that differ in volumes, carrying pharmaceuticals, or other fragile products.

These systems also enable the next/same day delivery of parcels to consumers. Earlier, parcel sorting was done manually, which is time consuming and costly. Manual way of sorting parcels is prone to errors and is not an ideal solution to sort large volumes of parcels. Automated parcel sortation systems can sort large volumes of parcels efficiently and provide a long-term solution to end users. Moreover, these systems have a higher throughput capacity, provide higher cost benefits, and are a safer and more secure option to sort parcels. The parcel sortation systems market is expected to be valued at USD 1.31 Billion in 2018 and is likely to reach USD 2.05 Billion by 2023, at a CAGR of 9.3% between 2018 and 2023. The growth of the parcel sortation systems market is propelled by increasing labor costs, rising industrial automation, and growth in e-commerce. Factors such as emerging application areas of parcel sorting systems and integration of Industry 4.0 and IoT with sorting systems are creating huge growth opportunities for the players in the parcel sortation systems market.

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Among all end-user industries, the parcel sortation systems market for the e-commerce industry is expected to register the highest CAGR between 2018 and 2023. The growth of the parcel sortation systems market for this industry can be attributed to the exponential increase in the number of parcels to be sorted and delivered to customers worldwide.

Between the 2 types of parcel sortation systems, the market for loop parcel sortation systems is expected to grow at a higher CAGR between 2018 and 2023. The growth of the market for loop parcel sortation systems can be attributed to the benefits offered by these systems in terms of optimum space utilization, which makes them ideal for small and midsized warehouses and distribution centers.

Among all offerings, the parcel sortation systems market for services is expected to grow at the highest CAGR between 2018 and 2023. Frequent servicing requirements, in terms of hardware and software upgrades or capacity expansion, is the major factor driving the growth of the parcel sortation systems market for services.

Among all regions, the parcel sortation systems market in APAC is expected to grow at the highest CAGR between 2018 and 2023. China, South Korea, and Australia are some of the prominent countries driving the growth of the parcel sortation systems market in this region. Increasing penetration of e-commerce and logistics companies and new airport construction projects in several countries in this region are driving the growth of the parcel sortation systems market in APAC.

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