Packet and Parcel Sorters Market Size, Share, Growth, and Industry Analysis, By Type (Linear Sorters, Loop Sorters), By Application (E-commerce, Third-party Logistic Companies, Postal Operators, Others), and Regional Forecast to 2028

Updated On: 20 November 2023

Report Overview

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The global packet and parcel sorters market size was USD 4067.8 million in 2022. As per our research, the market is expected to reach USD 8224.7 million by 2028, exhibiting a CAGR of 12.5% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with the packet and parcel sorters market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels.

Packet and parcel sorters are advanced machinery and equipment used to sort and categorize packets and parcels efficiently. They play a crucial role in the logistics and supply chain industries, facilitating the seamless sorting of goods based on size, destination, and other criteria. These sorters have widespread applications across various sectors, including e-commerce, third-party logistics companies, postal operators, and others, making them indispensable in the modern-day movement of goods.

This market is witnessing substantial growth due to several factors. Firstly, the booming e-commerce industry has led to a surge in online shopping, resulting in increased parcel volumes that need efficient sorting and processing. Secondly, the growing demand for quicker and more reliable delivery services has pushed logistics companies and postal operators to invest in automated sorting solutions to improve operational efficiency. Additionally, advancements in sorting technologies, such as robotics, have enhanced the capabilities of these sorters, driving their adoption in the market.

COVID-19 Impact: Surge in Demand Due to Increased Awareness of Efficient Sorting Systems

The COVID-19 pandemic had a significant impact on the market. During the pandemic, there was an initial dip in demand for sorting equipment due to supply chain disruptions and reduced commercial activities. However, as lockdown restrictions eased, e-commerce and online shopping witnessed a massive surge, leading to a substantial increase in parcel volumes. This sudden spike in demand highlighted the importance of efficient sorting systems, leading to the rapid adoption of the product by logistics companies and e-commerce businesses. The pandemic acted as a catalyst, accelerating the automation of sorting processes to cope with the surge in parcel volumes and meet customer expectations for fast and reliable deliveries.

Latest Trends

"Automation and Robotics to Revolutionize Sorting Processes"

The market is witnessing several trends that are reshaping the industry. One of the most significant trends is the increasing adoption of automation and robotics in sorting facilities. Automated sorters can process a large number of parcels quickly and accurately, reducing human errors and increasing efficiency. Moreover, robotic systems integrated into sorters can handle packages of various sizes and shapes, further enhancing the sorting process. These advanced technologies not only improve the speed and accuracy of the sorting process but also optimize resource utilization, resulting in cost savings for logistics companies and e-commerce businesses. As the demand for faster and more streamlined parcel processing continues to grow, automation and robotics are poised to play a pivotal role in revolutionizing the packet and parcel sorters industry.

Segmentation

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•  By Type Analysis

The market can be segmented into two main types: linear sorters and loop sorters.

Linear sorters are preferred for handling high parcel volumes due to their efficiency, while loop sorters offer better flexibility and adaptability, making them suitable for handling parcels of varying sizes and weights.

• By Application Analysis

The market can be divided based on applications into e-commerce, third-party logistics companies, postal operators, and others.

Among these segments, the e-commerce sector emerged as the dominant application area for these sorters. The rapid growth of the e-commerce industry and the need for seamless order fulfillment processes have driven the demand for efficient sorting solutions.

Driving Factors

"Advancements in Automation Technology to Propel Market Growth"

The market is experiencing a growing emphasis on automation technology, which serves as a key driving factor. With the increasing demand for faster and more efficient parcel sorting and processing, particularly in the e-commerce sector, logistics companies and retailers are investing in advanced automated sorting solutions. As automation technology continues to evolve and improve, it is anticipated to witness wider adoption across various industries. The integration of automation not only enhances sorting speed and accuracy but also streamlines operations, leading to cost-effectiveness for businesses in the logistics and supply chain domains.

"Exponential Growth of E-commerce Fuels Demand for the Product"

The remarkable and exponential growth of the e-commerce sector has become a major driving force behind the soaring demand for the product. With the ever-increasing number of online shoppers and the insatiable desire for quick and reliable deliveries, parcel volumes have witnessed an unprecedented surge, putting immense pressure on logistics and supply chain operations. In this scenario, these sorters have emerged as indispensable tools, playing a vital role in streamlining the complex order fulfillment process and ensuring timely deliveries to customers' doorsteps.

The surge in e-commerce activities has resulted in a paradigm shift in consumer behavior, with customers expecting instant gratification and fast delivery options. In this hyper-competitive landscape, businesses are under immense pressure to meet these soaring expectations while maintaining operational efficiency. Packet and parcel sorters, through their automated and efficient sorting capabilities, have risen to the challenge, becoming the backbone of modern-day logistics and supply chain management.

Restraining Factors

"Ongoing Maintenance Expenses Increases Operational Costs"

While the adoption of packet and parcel sorters has proven to be beneficial for businesses, ongoing maintenance expenses can significantly impact operational costs and, in turn, influence market growth to some extent. As companies invest in automated sorting solutions to optimize their logistics and supply chain operations, they also need to allocate resources for the regular maintenance and servicing of these sophisticated machines.

The continuous and proper functioning of these sorters is crucial to ensuring uninterrupted operations and efficient parcel processing. To achieve this, companies need to conduct regular inspections, undertake preventive maintenance, and promptly address any technical issues that may arise. These maintenance activities may incur additional expenses in terms of labor, spare parts, and service contracts.

Regional Insights

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"North America Leads Due to Strong Logistics Infrastructure"

North America is the leading region in the market, driven by a well-established e-commerce industry and a strong logistics infrastructure. The region witnessed higher-than-anticipated demand for packet and parcel sorters due to the surge in online shopping during the pandemic. The United States, in particular, holds a significant share of the market.

Europe is a rapidly growing market, primarily attributed to the increasing adoption of automation in the logistics and e-commerce sectors. Countries like Germany and the United Kingdom are at the forefront of adopting advanced sorting technologies, contributing to the market's growth in the region.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Interroll (Switzerland)
• Honeywell (U.S.)
• Vanderlande Industries (Netherlands)
• Dematic (KION) (Germany)
• Beumer Group (Germany)
• Siemens (Germany)
• Intralox (U.S.)
• Damon Technology (China)
• Okura Yusoki (Japan)
• Fives Group (France)
• Murata machinery (Japan)
• OMH (China)
• TGW (Austria)
• Toshiba (Japan)
• NEC Corporation (Japan)
• Bastian Solutions (U.S.)
• Hytrol (U.S.)
• SOLYSTIC SAS (France)
• Böwe Systec GmbH (Germany)
• National Presort Inc. (U.S.)
• Viastore (Germany)
• Invata Intralogisitcs (U.S.)
• MHS (U.S.)
• Kengic (China)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.