Parcel Sorter Market Size, Share & COVID-19 Impact Analysis, By Type (Cross Belt Sorter, Shoe Sorter, Till Tray Sorter, Pusher Sorter, and Others), By Direction (Linear Parcel Sortation System and Loop Parcel Sorting System), By End-user (Logistics, E-Commerce, Pharmaceutical & Medical Supply, Airports, Food & Beverages, and Others), and Regional Forecast, 2022-2029

The global parcel sorter market size was valued at USD 3.00 billion in 2021 and 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. The Asia-Pacific dominated the parcel sorter market with a share of 40.66% in 2021.

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.

COVID-19 IMPACT

Rise in Purchase of Essentials from E-commerce Platforms During the COVID-19 Pandemic Fuels the Market Growth

The partial or global complete lockdown due to COVID-19 outbreak resulted in the downfall of many manufacturing processes. In addition, halted construction related activities, manufacturing facilities, and disruption in supply chain negatively impacted the market growth.

The major parcel sorter players witnessed a substantial increase in the revenue generated during 2020. For instance, the net sales of KION Group increased by around 3.6% in 2020 as compared to 2019. In the long term, the COVID-19 pandemic had a positive effect on the global market. According to different sources, from the second quarter of 2020, the demand for these products kept on rising and is set to register a significant growth. Furthermore, technologically advanced products and work on research & development are projected to hold the process of long-term growth in the market.

Furthermore, introduction of COVID-19 vaccines and safety measures taken by various governments across the globe are anticipated to recover the growth of the market by mid 2022 at full pace.

LATEST TRENDS

Technological Advancements in the Product to Positively Boost Market Growth

Nowadays, key players are focusing on introducing technological advancements with Artificial Intelligence (AI) based systems, 3D machine vision to intensify the market competition. For instance, in September 2020, Photoneo s.r.o, based in Slovakia, launched a new 3D machine vision which enables robots to pick 2,350 parcels per hour. The machine provides 3D data and enables precise location with gripping capacity of up to 3mm packet sizes. The machines can be used across various industry verticals such as logistics, e-commerce, pharmaceuticals, and among others. These machines are AI powered and increase the productivity of machines. The systems can recognize parcels, envelopes, and even bags of any shapes, materials, and texture as well as their position, dimension, and orientation. In the past few years, the machines have been introduced with technological advancements, which is projected to boost the market growth

DRIVING FACTORS

Growth in E-commerce Industry to Trigger Market Growth

A growth in e-commerce industry is projected to impel the expansion of the global market of parcel sorter. The increasing internet penetration with the ease of online shopping have led to an increase in the number of products ordered online. Also, with the rise in focus of individuals to purchase products through online platforms, the demand for packet sorter systems increases. For instance, according to the International Telecommunication Union (ITU), it was projected that around 4.1 billion people used the internet globally in 2019, which grew by around 5.3% as compared to the global internet penetration rate in 2018.

Further, according to the United Nations Conference on Trade and Development (UNCTAD), the online e-commerce sale shares increased from 16% to 19% in 2020. According to a report by Morgan Stanley, the global e-commerce industry grew from 15% in 2019 to 21% in 2021. Thus, the e-commerce sector is increasing the parcel sortation system driving the growth of the global market.

Increasing Industrial Automation and Rise in Labor Cost to Fuel the Market Growth

The use of automation in end-users such as logistics, e-commerce, and others allows improving performance by decreasing the errors and improving the quality. In addition, increasing implementation of IoT and robotics in industrial automation will also boost the market growth of parcel sorter. Internet of Things (IoT) based systems are used for effective, affordable, and maximize the productivity of sorting systems. The use of AI and state of the art machines is projected to automate the manufacturing process, fueling the growth of the market. For instance, Siemens Industrial IoT Solutions, such as Cloud Computing, advanced analytics, Mind Sphere, are used in packet and sorting systems to bring automation in these systems. The growth in e-commerce is projected to drive the expansion of the global market. It increases the productivity of machines, handles large amounts of parcels, and provides error free accuracy. Such factors are driving the global market growth of parcel sorter.

RESTRAINING FACTORS

High Installation and Maintenance Costs of Packet and Parcel Sorting Systems are Projected to Hamper Market Growth

The challenging factor for the packet and parcel sorting system market is the huge investment required in the initial phase. The associated cost mainly includes installation, maintenance costs, integration of intelligent sensors, software solutions, and aftermarket services, which increases the overall ownership costs. In addition, small as well as medium enterprises find it difficult to switch from conventional packet and parcel sorting systems, owing to low production output and return on investment, restructuring of existing facility designs and others. Such factors are anticipated to hamper the growth of the global market over the forecast period.  

SEGMENTATION

By Type Analysis

Shoe Sorter to Portray Substantial Growth Due to Surging Demand in E-Commerce

Based on type, the market is classified into cross belt sorter, shoe sorter, till tray sorter, pusher sorter, and others.

The shoe sorter segment is expected to witness the highest growth rate due to rise in demand for packet and sorting systems in the e-commerce and logistics sectors. These systems have a maximum throughput capacity of up to 18,000 parcels per hour. 

The cross belt sorter segment is a major contributor in the market owing to rising demand for sorting individual items for order fulfillment and shipping bags for shipping, receiving, and cross docking.  

The till tray sorter segment is projected to exhibit significant growth owing to a rise in the need for packet and parcel systems at airports and pharmaceutical sectors. Also, till tray sorters are highly accurate and operate with a high speed capability.

Pusher sorter segment is anticipated to witness a significant growth due to a range of benefits. These comprise easy installation, flexibility, minimal maintenance, and suitability for low speed sorting of carbon, totes, and crates. Pusher sorter is largely used in logistics sectors.  

Others segment includes paddle sorter and others. The market growth can be attributed to the rise in use of paddle sorter in logistics, warehouses, distribution centers, and e-commerce sectors. An increase in awareness about parcel sortation systems among the logistics sector is a major factor impelling industry growth.  

By Direction Analysis

Linear Parcel Sortation System to Dominate the Market Owing to Growing Adoption of Online Shopping

Based on direction, the market is categorized into linear parcel sortation system and loop parcel sortation system.

The linear parcel sortation system segment is set to dominate the market owing to increasing adoption of online shopping and e-commerce in countries such as India, Japan, U.S., and others. It is largely used in logistics, e-commerce, and medical sectors. These machines are designed for providing maximum performance and long operational life.

The loop parcel sortation system segment is anticipated to witness strong growth, due to the features such as process transparency, increased scalability, improving productivity, error free operation, and low dependence on skilled labors. An increasing investment in warehouse automation in various sectors, which is set to drive the market growth of parcel sorter.

By End-user Analysis

Logistics Segment Set to Observe Significant Growth Owing to Growth in E-commerce Sector

Based on end-user, the market is categorized into logistics, e-commerce, pharmaceutical & medical supply, airports, food & beverages, and others. 

The e-commerce segment is poised to dominate the market due to an increase in the number of internet users purchasing products through online platforms. This has led to various retailers or wholesalers to automate their daily operations to meet the scheduled delivery time. These factors are expected to drive the growth of the market.

The food & beverages segment is projected to exhibit substantial growth owing to increase in automation in distribution centers and warehouses. Major players, such as Cargill Inc, Nestle S.A., and PepsiCo, are focusing on bringing automation in their warehouses centers. Such factors drive the growth of the market.

Logistics segment is anticipated to witness robust growth owing to the expanding nature of the logistics industry. This is expected to favor the demand for packet sorting systems, which fuels the growth of the market.

The pharmaceutical & medical supply segment is set to exhibit a significant growth, owing to the rise in demand for medicine among individuals. Also, growth in the pharmaceutical industry, which increases demand for sortation systems in the pharma sector, will boost the market growth. For instance, according to the India Brand Equity Foundation, the pharmaceutical industry is expected to grow at a CAGR of 37% from 2020 to 2025.

The airports segment is expected to grow at a moderate rate in the coming years owing to increasing automation in airports baggage checking systems across developed as well as developing countries.

Others segment includes automotive and apparels. This segment is projected to witness substantial growth owing to the rising adoption of automation in industries and the escalating demand for durable goods.

REGIONAL INSIGHTS

The global market is fragmented into five regions, Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa.

Asia Pacific is set to lead the market owing to changing customer behaviors and increasing disposable income of end-users. Also, increasing number of internet users allows them to purchase products through online portals. An increasing automation in warehouse and distribution sectors is anticipated to impel market growth with the adoption of sorting systems. .

The North America region is projected to grow with the highest growth rate owing to strong economies and the strong presence of manufacturers of packet and parcel sorting systems. The regional growth is being driven by the adoption of automation in manufacturing units, with technologies such as AI and the IoT.

Europe is growing with steady growth with an increase in product launches that help in improving the supply chain of these products. There is a rise in use of smart technologies, such as robot based and AI based, packet sorting systems adopted by European manufacturers of packet sorter systems. For instance, in September 2020, LiBiao Robot launched a new mobile robot based “Mini Yellow” parcel sortation system. This was specifically designed for European economies such as the U.K., Germany, France, and Italy.

Latin America is expected to witness potential growth owing to the growth in e-commerce and logistics sectors. Also, the increasing penetration of internet users and the surging demand for packet sorting systems across various end-users are set to fuel the growth of the market in Latin America.

The Middle East & Africa region is poised to exhibit moderate growth. The surge can be credited to the rising e-commerce industry, growing retail industry, and increasing number of distribution centers and warehouses.     

KEY INDUSTRY PLAYERS

Key Players are Expanding Product Portfolio in Logistics Business Solutions to Secure Competitive Edge

Key parcel sorter players have adopted strategies, such as product launches, acquisitions, and business expansion, to improve the product footprint of parcel sorters and improve the geographical location of manufacturers globally. For instance, in October 2021, Equinox launched a new LR-sorter system at Parcel Post Expo, Germany. The system was designed to increase the demand for parcel shipping across the e-commerce and logistics industries. These machines increase the maximum throughput up to 10,000 items per hour. They have features such as faster operation, improved efficiency, and error-free operation. These systems are adopted in logistics, e-commerce, and airport industries. Such instances drive the growth of the market.

LIST OF KEY COMPANIES PROFILED:

• 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.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 – Korber AG acquired Siemens Logistics, a subsidiary of Siemens AG. Siemens Logistics deals in the global mail and parcel business. The acquisition was done for approximately USD 569 million.


• March 2021 – Interroll Group launched a new split tray sorter named MT015S. It is an automated sortation system, which is suitable for various industry verticals such as logistics, e-commerce, and pharmaceuticals. It has a weighing capacity of 12 kg.  


• March 2020 - Beumer Group launched BG sorter Compact CB, a new compact cross belt sorter. It has a range of features such as flexibility, robust nature, easy integration, and energy efficiency.


• November 2020 - Neetwk GmbH launched a new Optisorter Vertical Packet and parcel sorting system. It has features such as high performance system, space efficiency, easy operation, and smooth sorting system. The product was developed for industries such as logistics, e-commerce, and warehouse.


• February 2021 - Daifuku Co Ltd signed an agreement with AFT Industries AG. Based in Germany, the company deals in the manufacturing and distribution of material handling systems and parcel sortation systems. The agreement was aimed at using parcel sortation systems for the automotive industry.

REPORT COVERAGE

The report focuses on leading regions across the globe to offer a better understanding to end-users. Moreover, the report offers insights into the industry dynamics and analyzes technologies utilized at a rapid pace across the world. It also displays some of the key factors and restraints to help the readers gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2018 – 2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022 – 2029
Historical Period	2018 – 2020
Unit	Value (USD billion)
Segmentation	By Type, Direction, End-user, and Region
By Type	Cross Belt Sorter Shoe Sorter Till Tray Sorter Pusher Sorter Others (Paddle Sorter, Parcel Singulator)
By Direction	Linear Parcel Sortation System Loop Parcel Sortation System
By End-user	Logistics E-commerce Pharmaceutical & Medical Supply Airports Food & Beverages Others
By Region	North America (Type, Direction, End-user, and Country) U.S. (By Direction) Canada (By Direction) Mexico (By Direction) Europe (Type, Direction, End-user, and Country) Germany (By Direction) U.K. (By Direction) France (By Direction) Italy (By Direction) Rest of Europe Asia Pacific (Type, Direction, End-user, and Country) China (By Direction) Japan (By Direction ) India (By Direction ) South Korea (By Direction) Rest of Asia Pacific Middle East and Africa (Type, Direction, End-user, and Country ) GCC Countries (By Direction ) South Africa (By Direction ) Rest of Middle East and Africa Latin America (Type, Direction, End-user, and Country ) Brazil (By Direction ) Argentina (By Direction) Rest of Latin America