Parcel Sortation Systems Market Size is estimated to record a healthy CAGR of approximately 8% between 2022 and 2028 owing to the increasing adoption of automated package sorting solutions. These systems automate the sortation process from door to door in distribution centers through various solutions like automated induction and high-capacity solutions, inbound flow and automatic parcel singulation, and others. The deployment of automation technologies helps in streamlining and speeding up the process of sortation.
Considering the product type, the linear parcel sortation systems segment is projected to register commendable growth through 2028. This rise is on account of the soaring demand for different types of linear solutions including activated roller belt conveyor and sliding shoe sorter. The advantage of line sorters is that they can be configured to be extremely long, up to several hundred feet. Additionally, this type of parcel sortation technology shows considerable resemblance to regular standard belt conveyor, which is propelling its deployment over the estimated period.
By end-use, the e-commerce segment is set to account for a considerable share in the parcel sortation systems market by 2028. This is due to the mounting adoption of omnichannel order fulfillment and e-commerce across various regions. Moreover, parcel sortation systems are a vital solution for retailers, distribution centers, and warehouses for optimizing the processes that they use for handling and sorting envelopes, polybags, and other parcels. These aspects are expected to stimulate segment expansion through the projected span.
On the basis of region, the Europe parcel sortation systems market is anticipated to foresee lucrative growth through 2028. This upsurge is mainly credited to the numerous capacity expansion and acquisition strategies by regional industry players. For instance, in October 2021, Maersk acquired B2C Europe Holding B.V., to offer Europe-wide last mile rates to customers in Europe, North America, and China through a simplified interface. The acquisition will give access to an asset-light delivery product that utilizes technical integrations for the collection of parcels at customer warehouses.
Major companies in the parcel sortation systems market comprise Equinox Mhe, GBI Intralogistics, Bastian Solutions, Okura Yusoki, Solystic, Beumer Group, Viastore, Intralox, Bowe Systec, Falcon Autotech, Dematic, Vanderlande, Pitney Bowes, Fives, OCM SRL, and others. These participants are focusing on the adoption of strategic initiatives such as mergers, acquisitions, partnerships, collaborations, and product developments for establishing a strong foothold in the industry.
Some of the instances have been mentioned below:
The SARS-CoV-2 pandemic has led to the increasing adoption of online shopping by customers, creating new opportunities for the development of innovative parcel sortation equipment. This has led to an increased focus on last mile delivery services, requiring logistics companies to improve their last-mile capabilities.
Additionally, the sudden escalation in deliveries has left logistics firms, facing issues in sorting and assembling orders. This is impelling the demand for effective parcel sortation systems across various regions.
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The above information has been provided for the following regions and countries: