Packet and Parcel Sorting System Market Size, Share, Growth, And Industry Analysis, By Type (Cross Belt Sorter, Shoe Sorter, Tilt Tray Sorter), By Application (E-commerce, Third-party Logistic Companies, Postal Operators, Airport, Food and Beverage ), Regional Forecast By 2031

Updated On: 08 April 2024

Packet and Parcel Sorting System Market Report Overview

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The global packet and parcel sorting system market size was USD 4067.8 million in 2022, as per our research, the market is expected to reach USD 11931.01 million by 2031, exhibiting a CAGR of 12.7% during the forecast period. 

The global COVID-19 pandemic has been unprecedented and staggering, with the packet and parcel sorting system market experiencing lower-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 once the pandemic is over. 

A packet and parcel sorting system is a set of equipment and technologies used in sorting and distributing packets and parcels to their destinations in an efficient and automated way. These systems typically include various types of sorters, such as cross belt sorters, shoe sorters, tilt tray sorters, and others, which are designed to handle different types and sizes of packets and parcels. The sorting process may involve scanning, weighing, labeling, and routing packets and parcels based on their destination addresses. They are commonly used in logistics, e-commerce, retail, and other industries that handle high volumes of packages and parcels.

Packet and parcel sorting systems are designed to automate the process of sorting packages and parcels in a sorting center. These systems use advanced technologies such as sensors, scanners, and conveyors to sort packages and parcels based on their destination address, weight, and other parameters. It significantly improves efficiency compared to manual sorting processes by automating the sorting process. One of the key benefits is their ability to handle high volumes of packages and parcels with speed and accuracy. Sorting systems can process hundreds or even thousands of packages and parcels per hour, reducing the time required to sort and distribute shipments. This speed not only helps to improve customer satisfaction by enabling faster deliveries but also helps logistics companies to handle larger volumes of shipments with greater ease and efficiency. They also offer greater accuracy compared to manual sorting processes. Sorting systems use advanced scanning and tracking technologies to ensure that packages and parcels are accurately sorted and routed to their destination addresses. This helps to minimize errors and reduce the number of lost or misrouted shipments, which can be costly and damaging to customer relationships. The increased efficiency offered by sorting systems helps to streamline logistics operations and improve the bottom line for logistics companies. These systems offer a competitive advantage in the fast-paced and rapidly growing e-commerce industry by reducing the need for manual labor and improving accuracy and speed.

COVID-19 Impact: Pandemic led to increased e-commerce demand and investment in automation, highlighting the need for sustainability

With the increase in e-commerce demand due to lockdowns and restrictions, logistics companies have experienced a surge in parcel volumes, leading to a need for more efficient and reliable sorting systems. This has led to increased investment in automation and advanced sorting technologies. The pandemic has also caused disruptions in global supply chains and logistics operations, leading to delays and logistical challenges. Many logistics companies have had to adapt to new safety protocols and work remotely, which has added to the complexity of logistics operations.  The pandemic has highlighted the importance of sustainability in logistics operations, leading to an increased focus on environmentally-friendly solutions. The COVID-19 pandemic has both accelerated the growth of the packet and parcel sorting systems market due to increased e-commerce demand and highlighted the need for more efficient and sustainable logistics operations.

Latest Trends

"Automated efficiency results in faster, more reliable delivery and increased customer satisfaction"

Improved customer service is a growing trend in the market. With the rise of e-commerce and online shopping, customers expect fast and reliable delivery of their packages and parcels. These systems help to meet these expectations by automating the sorting process and enabling faster and more efficient processing of shipments. By reducing the time required to sort and distribute packages and parcels, sorting systems enable faster delivery times, which can significantly improve customer satisfaction. In addition, the tracking and monitoring capabilities of sorting systems provide customers with greater visibility and control over their shipments, further enhancing the customer experience. To meet the growing demand for improved customer service, sorting system providers are investing in advanced technologies such as artificial intelligence (AI) and machine learning (ML) to improve operational efficiency and accuracy. These technologies can help to identify and address potential delivery issues before they occur, further improving the reliability of delivery services and customer satisfaction. The trend towards improved customer service in the market is driven by the need to meet customer expectations and remain competitive in a rapidly growing industry. As technology continues to advance, we can expect to see further improvements in the speed, accuracy, and reliability of sorting systems, which will further enhance the customer experience and drive growth in the market.

Packet and Parcel Sorting System Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into cross belt sorter, shoe sorter, and tilt tray sorter.

• By Application Analysis

Based on application, the market can be divided into e-commerce, third-party logistic companies, postal operators, airport, and food and beverage.

Driving Factors

"Enhanced tracking technologies drive customer satisfaction and optimize logistics operations, fueling the market growth"

Packet and parcel sorting systems are equipped with advanced tracking technologies such as RFID tags, GPS, and barcodes that enable real-time tracking and monitoring of packages. These technologies provide customers with greater visibility and control over their shipments, allowing them to track the location and status of their packages at every stage of the delivery process. This enhanced tracking and visibility not only improve customer satisfaction but also helps logistics companies to optimize their operations and ensure timely deliveries. One of the key factors driving the packet and parcel sorting system market growth is the rapid expansion of e-commerce and online shopping. With more customers shopping online, the demand for reliable and efficient delivery services has increased significantly. Sorting systems with enhanced tracking and visibility capabilities help logistics companies to meet this demand by providing customers with accurate and up-to-date information about their shipments. The enhanced tracking and visibility capabilities are driving market growth by improving customer satisfaction, optimizing logistics operations, and reducing environmental impact. As the demand for reliable and efficient delivery services continues to grow, we can expect to see further advancements in sorting system technologies that will further enhance the efficiency and accuracy of logistics operations.

"Increased demand for customized delivery options drives the adoption of flexible and scalable sorting systems"

Flexibility is a significant advantage, as they can be customized to handle a wide range of package and parcel sizes and types. This customization allows logistics companies to handle different types of shipments more efficiently and effectively, reducing the time and resources required to sort and distribute packages. Sorting systems with increased flexibility are becoming increasingly important in the logistics industry, as the demand for customized delivery options continues to grow. Customers today expect more flexibility in their delivery options, such as same-day or next-day delivery, as well as options for delivery to a specified location or even inside the recipient's home. One factor driving the market growth of flexible sorting systems is the increasing demand for customized delivery options. Sorting systems with greater flexibility allow logistics companies to offer a wider range of delivery options to customers, meeting their needs and preferences more effectively. The adoption of modular and scalable sorting systems that can be easily customized and expanded as needed. These systems allow logistics companies to add or remove sorting modules as their needs change, providing greater flexibility and adaptability in the face of shifting market demands.

Restraining Factors

"Integration challenges hinder the market impacting efficiency and customer satisfaction"

One of the restraining factors for the adoption of sorting systems is the difficulty in integrating them with existing logistics infrastructure and systems. Many logistics companies have established processes and systems in place, and integrating new sorting systems into these can be challenging. In some cases, it may require significant changes to existing infrastructure, which can be time-consuming and costly. Integrating new sorting systems with existing logistics infrastructure can also be complicated by the need to ensure compatibility between different systems and technologies. This may require custom software development or the use of middleware to facilitate communication between different systems. The sorting systems are just one part of the larger logistics process, which includes transportation, warehousing, and last-mile delivery. Effective integration of sorting systems with other parts of the logistics process is essential to ensure seamless and efficient operations. Failure to do so can result in delays, errors, and other logistical challenges that can negatively impact customer satisfaction and the overall effectiveness of the logistics operation.

Packet and Parcel Sorting System Market Regional Insights

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"North America's leading position market is driven by a highly developed e-commerce industry and advanced technological infrastructure"

North America holds the largest packet and parcel sorting system market share and this trend is expected to continue in the coming years. One of the factors driving market growth in North America is the presence of a highly developed e-commerce industry, which has led to an increase in demand for efficient and reliable parcel delivery services. The region is also home to several major logistics companies that are investing in advanced sorting systems to improve their operations and meet the growing demand for faster and more reliable delivery services. The North American region has a highly developed technological infrastructure and is home to several leading sorting system manufacturers, which further drives the growth of the market. The adoption of advanced technologies such as automation, artificial intelligence, and the Internet of Things (IoT) is also fueling the growth of the packet and parcel sorting systems market. North America is expected to remain the leading region in the packet and parcel sorting systems market in the coming years, driven by factors such as a robust e-commerce industry, advanced technological infrastructure, and a focus on sustainability in logistics operations.

Key Industry Players

"Key market players innovate, acquire, and expand to remain competitive and meet the demand"

The market players are adopting various strategies to drive growth. These strategies include a focus on innovation and the development of new and advanced sorting technologies, expanding product portfolios through mergers and acquisitions, increasing geographical reach through partnerships and collaborations, and developing environmentally-friendly solutions to reduce carbon footprint. Companies are also investing in automation, artificial intelligence, and machine learning to develop smarter and more efficient sorting systems. These players are striving to remain competitive in the fast-growing market by focusing on innovation, expansion, and sustainability.

List of Market Players Profiled

• Interroll (Europe)
• Honeywell (US)
• Vanderlande Industries (Europe)
• Dematic (KION) (Europe)
• Beumer Group (Europe)
• Siemens (Europe)
• Intralox (US)

Report Coverage

The market report analyzes the current and future trends of the market. The report provides an overview of the market, including its definition, applications, and classifications. It also includes the market size, growth rate, and revenue of the market. The report further analyzes the market based on product type, application, and geography. The report covers the key players and analyzes their market share, product portfolio, and strategies for growth. The report provides market size and growth rate data for each region. The report provides a comprehensive analysis of the market, including its drivers, challenges, and opportunities. The report is a valuable resource for industry stakeholders, including manufacturers, distributors, and suppliers, as well as investors and analysts.