The Global Parcel Sorter Market Size Was Valued At USD 3.00 Billion In 2021. The Market Is Projected To Grow From USD 3.30 Billion In 2022 To USD 6.70 Billion By 2029, Exhibiting A CAGR Of 10.6% During The Forecast Period.

Parcel Sorter Market Overview:

The global COVID-19 pandemic has been unprecedented and staggering, with parcel sorter experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global parcel sorter market exhibited a higher growth of 9.6% in 2020 as compared to 2019.

Parcel sorter arranges packages into correct delivery areas to get them on their way to their final destination. It is a material handling system used to sort items in distribution centers. The goal of the parcel sorting systems is to reduce the time needed for human intervention and increase efficiency when dealing with large amounts of parcel. These are generally ring shaped and are driven by conveyors.

Cross belt sorter, pusher sorter, till tray sorter, and shoe sorter are a few types of parcel sorter systems. These systems are adopted in various end users such as logistics, e-commerce, pharmaceutical, airports, and others. Rising industrial automation and increasing labor costs are important factors for driving the parcel sorter market growth.

Growth in the e-commerce industry and rising need for automated sorting systems and delivery processes are the key factors that influence the growth of the global packet and parcel sorting system market. According to India Brand Equity Foundation (IBEF), the Indian E-commerce industry is projected to grow from USD 46.2 billion in 2020 to USD 188 billion by 2025. An upsurge disposable income of end users is driving the adoption of packet and sorting systems, which are gaining traction in economies such as the U.S., China, India, Germany, and others.

Packet and parcel sortation systems are largely adopted in the warehouse industry and logistics sector. Also, increasing adoption of automated parcel sorting systems boosted the market growth. An increase in labor costs and reduction in dependency on human workforces are the key factors surging the demand for packet and parcel sorting systems in pharmaceutical, food & beverages, airports, and e-commerce sectors.

Market Dynamics:

Latest Trends:

Key players are now focusing on bringing in new technologies like systems based on Artificial Intelligence (AI) and 3D machine vision to make the market competition even tougher. For example, in September 2020, the Slovakian company Photoneo s.r.o. released a new 3D machine vision that lets robots pick up 2,350 packages per hour. The machine can pick up packets as small as 3mm and gives you 3D data about their location. The machines can be used in many different industries, including logistics, e-commerce, pharmaceuticals, and others. These machines are powered by AI and make machines work better. The systems can tell the shape, material, and texture of packages, envelopes, and even bags, as well as where they are, how big they are, and which way they are facing. In the past few years, technological improvements have been made to the machines, which should help the market grow.

Driving Factors:

The growth of e-commerce is expected to drive the growth of the global parcel sorter market. With more people getting online and it being easier to shop online, more and more things are being ordered online. Also, as more people buy things online, the need for packet sorter systems grows. For example, the International Telecommunication Union (ITU) predicted that about 4.1 billion people would use the internet around the world in 2019. This was an increase of about 5.3% from the global internet penetration rate in 2018.

Also, the United Nations Conference on Trade and Development (UNCTAD) says that online sales will make up 19% of all sales by 2020, up from 16% in 2010. Morgan Stanley said in a report that the global e-commerce market will grow from 15% in 2019 to 21% in 2021. So, e-commerce is making the parcel sortation system bigger, which is what is making the global market grow.

When automation is used in end-users like logistics, e-commerce, and others, it can improve performance by cutting down on mistakes and making the quality better. IoT and robotics are also being used more and more in industrial automation, which will also help the parcel sorter market grow. Internet of Things (IoT)-based systems are used to make sorting systems work well, cost less, and be as productive as possible. It is expected that using AI and cutting-edge machines will automate the manufacturing process and help the market grow. Siemens Industrial IoT Solutions like Cloud Computing, advanced analytics, and Mind Sphere, for example, are used to automate packet and sorting systems. People think that the growth of e-commerce will help the global market grow. It makes machines work faster, handles a lot of packages, and makes sure there are no mistakes. Such things are driving the growth of the parcel sorter market around the world.

Restraining Factors:

The market for packet and parcel sorting systems is hard to break into because the initial investment is so big. Installation, maintenance, integration of smart sensors, software solutions, and aftermarket services are the main things that add to the cost of ownership. Small and medium-sized businesses also find it hard to switch from traditional packet and parcel sorting systems. This is because of low production output and return on investment, the need to redesign existing facilities, and other factors. Over the next few years, these things are likely to slow the growth of the global market.

Segmentation Analysis:

By Type:

Due to a rise in demand for packet and sorting systems in e-commerce and logistics, the shoe sorter segment is expected to grow at the fastest rate. The most packages that can go through these systems in an hour are 18,000.

Cross-belt sorters are a big part of the market because more and more people want to sort individual items for order fulfillment and shipping bags for shipping, receiving, and cross-docking.

The need for packet and parcel systems at airports and in the pharmaceutical industry is expected to drive a lot of growth in the till tray sorter market. Also, till tray sorters are very accurate and can move very quickly.

Due to a number of benefits, the pusher sorter segment is expected to grow by a lot. These include being easy to set up, flexible, requiring little maintenance, and being able to sort carbon, totes, and crates at a slow speed. Most pusher sorters are used in the logistics industry.

The paddle sorter and other things are in the "Others" section. The rise in paddle sorter use in logistics, warehouses, distribution centers, and e-commerce is a big reason for the growth of the market. A big reason why the logistics industry is growing is that more people are learning about parcel sortation systems.

By Direction:

Due to the rise of online shopping and e-commerce in places like India, Japan, the U.S., and others, the linear parcel sortation system segment is likely to lead the market. It is used a lot in the medical, e-commerce, and logistics fields. These machines are made to work as well as possible and last as long as possible.

The loop parcel sortation system segment is expected to grow quickly because of features like process transparency, improved scalability, higher productivity, error-free operation, and less reliance on skilled workers. More money is being put into automating warehouses in many different industries, which is expected to drive the growth of the parcel sorter market.

By End User:

The e-commerce segment is likely to be the most important part of the market because more and more people are buying things online. This has caused many retailers and wholesalers to automate their day-to-day tasks so they can meet the delivery time they promised. The market is likely to grow because of these things.

The food and drinks market is expected to grow a lot because distribution centers and warehouses are becoming more and more automated. Big companies like Cargill Inc., Nestle SA, and PepsiCo are putting a lot of effort into automating their warehouses. The market grows because of these things.

Because the logistics industry is growing, it is expected that the logistics segment will grow quickly. This is likely to make more people want packet sorting systems, which helps the market grow.

Due to more people needing medicine, the pharmaceutical and medical supply segment is expected to grow significantly. Market growth will also be helped by the growth of the pharmaceutical industry, which will increase the need for sortation systems in the pharmaceutical sector. For example, the India Brand Equity Foundation predicts that the pharmaceutical industry will grow at a compound annual growth rate (CAGR) of 37% from 2020 to 2025.

In the next few years, the airports segment is expected to grow at a moderate rate. This is because airport baggage check-in systems are becoming more automated in both developed and developing countries.

Others segment includes, cars and clothes are included. This segment is expected to grow a lot because more and more industries are using automation and the demand for durable goods is going up.

Regional Insights:

Asia-Pacific is expected to lead the market because customer habits are changing and end-users are getting more money. Also, more and more people are using the internet, which lets them buy things through online portals. With the use of sorting systems, the warehouse and distribution sectors are expected to become more automated, which will drive market growth.

North America is expected to grow at the fastest rate because it has strong economies and a lot of companies that make systems for sorting mail and packages. The growth of the area is being driven by the use of technologies like AI and the IoT in manufacturing units to make them more automated.

Europe is growing steadily, and more new products are coming out, which helps to improve the supply chain for these products. European manufacturers of packet sorter systems are using smart technologies like robot- and AI-based packet sorting systems more and more. For example, in September 2020, LiBiao Robot released a new parcel sorting system called "Mini Yellow" that was based on mobile robots. This was made with European economies like the UK's, Germany's, France's, and Italy's in mind.

Due to the growth of the e-commerce and logistics industries, Latin America is likely to grow. Also, the growth of the market in Latin America will be helped by the growing number of people who use the internet and the rising demand for packet sorting systems from a wide range of end users.

The Middle East and Africa area is expected to grow slowly. The rise can be attributed to the growth of e-commerce, retail, and the number of distribution centers and warehouses.

Scope Analysis

Recent Development:

• February 2022 - Korber AG acquires Siemens Logistics, a subsidiary of Siemens AG. Siemens Logistics handles the global postal and parcel business. The acquisition was valued at approximately $569 million.
• March 2021 – Interroll Group has launched a new split tray sorter called the MT015S. It is an automatic sorting system suitable for various industries such as logistics, e-commerce and pharmaceuticals. It weighs 12 kg.
• March 2020 - Beumer Group launched a new compact cross belt sorter, the BG sorter Compact CB. It has many features such as flexibility, rugged properties, easy integration and energy efficiency.
• November 2020 - Neetwk GmbH has launched the new Optisorter vertical packet and parcel sorting system. It has features such as high-performance system, space efficiency, easy operation, and smooth sorting system. This product is developed for industries such as logistics, e-commerce and warehousing.
• February 2021 - Daifuku Co Ltd signed a contract with AFT Industries AG. Based in Germany, the company deals with the manufacture and distribution of material handling systems and parcel sorting systems. The contract aimed to use a parcel sorting system for the automotive industry.

Market Segmentation

By Type:

• Cross Belt Sorter
• Shoe Sorter
• Till Tray Sorter
• Pusher Sorter
• Others

By Direction:

• Linear Parcel Sortation System
• Loop Parcel Sortation System
• Other

By End-user:

• Logistics
• E-commerce
• Pharmaceutical & Medical Supply
• Airports
• Food & Beverages
• Other

By Companies:

• Koerber AG (U.S.)
• Beumer Group (Germany)
• Pitney Bowes Inc (U.S.)
• Vanderlande Industries B.V. (Netherlands)
• Dematic (Kion Group AG) (Netherlands)
• Honeywell International Inc (U.S.)
• Interroll Group (Switzerland)
• Intralox (Netherlands)
• Fives Group (France)
• National Presort Inc (U.S.)
• Others