Parcel Sorting System Market Size

Parcel sorting system Market Size

Parcel Sorting System Market size was valued at USD 1.9 billion in 2022 and is anticipated to grow at a CAGR of over 7% between 2023 and 2032. Global parcel sortation system industry growth is driven by the increasing market competition and differentiation.

As competition in the e-commerce and logistics sectors intensifies, companies seek to differentiate themselves through efficient and reliable parcel sortation systems that streamline their supply chain operations. For instance, Vanderlande AutoSort Pro, launched in February 2023, is a high-speed parcel sortation system that can sort up to 10,000 parcels per hour. It is equipped with advanced features, such as barcode scanning and weight detection, that allow it to sort parcels accurately and efficiently. The changing technological landscape will help create a healthy growth trajectory for the parcel sortation system business.

Consumer preferences for online shopping and the convenience of home delivery have significantly contributed to the demand for efficient parcel sortation systems. According to Eurostat, 87% of individuals aged between 25 and 34 years in Europe bought or ordered goods or services online in 2022. However, implementing advanced parcel sortation systems requires a significant upfront investment in terms of capital, technology, and infrastructure. This initial cost can be a barrier for some businesses, particularly smaller and mid-sized companies. Besides, integrating new parcel sortation systems with existing logistics and warehouse management systems can be complex and time-consuming. Compatibility issues, data migration, and operational disruptions during integration can pose challenges for businesses looking to adopt these systems.