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Packaging Automation Market size is anticipated to witness healthy growth during 2023 to 2032, due to robust usage of automation in the manufacturing sector. Automated machines can help end-users boost the efficiency and productivity of their manufacturing processes. Manufacturers are installing automated systems to package goods due to their effectiveness and ability to decrease labor time and overall cost.
Since automation provides several benefits, such as improved flexibility, high product quality, safer working conditions, low costs, and waste reduction, it is gaining notable traction in the manufacturing sector.
Disposable income of the global population is increasing at a steady rate every year. This has improved their standard of living, thereby augmenting the need for sturdy packaging solutions to ensure the longevity and durability of products during transportation. These factors are encouraging end-users in e-commerce, logistics, food & beverage, and healthcare sectors to use innovative packaging techniques to accelerate their production processes. Many companies are also adopting smart packaging technologies to cater to the demand for supply chain integration.
However, high development & maintenance costs associated with these machines might restrain packaging automation market progress. The integration of cutting-edge technologies and hiring of skilled labor force will cause a major surge in the costs of these equipment. Also, since these machines are operated on a regular and continuous basis, the need for proper and periodic maintenance might incur additional expenses. The enforcement of strict government regulations related to workers safety while using automated packing solutions may hamper the industry forecast.
Based on application, the global packaging automation market from the capping application segment is predicted to register a strong CAGR through 2032. Cappers are witnessing robust usage in the pharmaceutical and food & beverage sectors as they are useful in packing small plastic parts. Companies involved in these industry verticals are installing automated capping machines in their production factories to accelerate their manufacturing processes and enhance the accuracy of their systems.
Manufacturers are developing novel machines, which can handle different types of caps, such as flat, metal, Yorker, round, and sport caps. For instance, in June 2022, British packaging company Shemesh Automation announced the launch of ATTILUS, a first-to-market continuous motion capping machine equipped with robotic technologies and an advanced vision system. The sales of beauty & personal care products are rising in nations, such as the U.S. and Canada, encouraging firms to use automated packaging systems for soaps, lotions, and other skincare items.
In terms of product, packaging automation market from the automated packagers segment is likely to account for a sizeable revenue share during the forecast timeline, as they are used for sorting and tracking various activities in the manufacturing plant to speed up the production process.
New product launches will play a vital role in improving the adoption of these packaging systems. For example, in July 2022, Ranpak, a paper-based packaging solution provider, launched ‘Flap’it!’, an automated packaging machine that can efficiently pack a wide range of small products.
Asia Pacific packaging automation market share is estimated to show tremendous growth till 2032. Factors, such as large-scale industrialization and increasing penetration of these machines in the manufacturing sector of countries including India, Australia, China, Japan, and Singapore will augment the product usage.
Governments are also introducing various initiatives to enhance the performance of their manufacturing sector. For example, in January 2021, the Singaporean government introduced the ‘Singapore Manufacturing 2030 vision’ which aims to grow its manufacturing sector by 50% in the next 10 years. Such programs are expected to spur the regional industry progress.
Some of the major companies operating in packaging automation market include Mitsubishi Electric Corp., Rockwell Automation, BEUMER Group GmbH & Co., Automated Packaging Systems, Siemens AG, Linkx Packaging, Emerson Electric Co., SATO Holdings, Swisslog Holding AG, ABB Ltd, Schneider Electric SE, and Kollmorgen Corporation. These companies are implementing product development strategies through various partnerships and long-term mergers & acquisitions.
For example, in November 2022, Norwegian CEP provider Helthjem selected BEUMER Group to automate its new parcel terminal. The new automation system will optimize Helthjem’s sortation and distribution of parcels.
The Russia-Ukraine conflict negatively impacted packaging automation market trends as manufacturing activities were halted in these countries. Since the war caused severe supply chain disruptions, production plants were forced to shut down, which consequently slowed the demand for automated packaging solutions.