Parcel Sortation System Market Size, Share, Growth by 2030

The parcel sortation system market is projected to increase from US$ 2.34 billion in 2022 to US$ 4.07 billion by 2030, reflecting a compound annual growth rate (CAGR) of 7.1% from 2022 to 2030.

The global manufacturing sector is experiencing robust growth as various regions invest in establishing manufacturing facilities. This growth is anticipated to incorporate technological innovations aimed at improving productivity, enhancing customer relations, and securing a competitive edge.

The surge in the manufacturing sector is primarily fueled by worldwide economic development. The technological advancements within factories are prompting manufacturing industries to invest in new technologies to boost productivity and streamline production processes. Consequently, the significant growth in manufacturing is expected to elevate the demand for parcel sortation systems on a global scale.

Emerging economies in the Asia-Pacific (APAC) region are witnessing rapid growth due to favorable foreign direct investment (FDI) regulations, government incentives, and proactive initiatives from market players. For instance, India allows 100% FDI in B2B e-commerce through an automatic route, creating vast opportunities for e-commerce enterprises. The Asia-Pacific region is poised for considerable industrial expansion, particularly in logistics, which will enhance the demand for parcel sorting systems and contribute to the growth of the APAC parcel sortation system market. Additionally, the booming e-commerce sector in APAC, supported by increasing disposable incomes, is driving the demand for luxury goods and services, further propelling the parcel sortation system market in this region. The logistics sector is also embracing advanced solutions to ensure timely parcel deliveries. The growth of logistics, including distribution networks, and the increasing requirement for sorting systems at airports are motivating stakeholders to implement parcel sortation systems, thereby enhancing the growth of the APAC parcel sortation system market.

In 2022, Europe held the largest share of the parcel sortation system market. This region is home to numerous key manufacturing sectors, including aerospace, machinery, automotive, shipbuilding, and military vehicles. The automotive industry in Europe is particularly significant, contributing substantially to the region's GDP. Europe stands as a leading producer of motor vehicles, with a multitude of premium automotive manufacturers present, which is a crucial factor driving the demand for parcel sortation systems in manufacturing facilities. The vehicle manufacturing sector is strategic, producing approximately 19.2 million cars, vans, buses, and trucks annually, with over 300 assembly and manufacturing plants spread across 26 European countries. Thus, a robust manufacturing landscape bolsters the demand for collaborative robots and stimulates the growth of the parcel sortation system market.

Moreover, a project named 'VALERI', which stands for "Validation of Advanced, Collaborative Robots for Industrial Applications," is being coordinated by the Fraunhofer Institute for Factory Operation and Automation (IFF) in Germany, in collaboration with industrial partners such as FACC, IDPSA, Airbus DS, and KUKA Laboratories GmbH, along with research partners PRODINTEC and Profactor GmbH. This initiative is promoting the adoption of collaborative robots, thereby contributing to market growth.

Key players in the parcel sortation system market include Kuka AG, Yaskawa America Inc, Aubo (Beijing) Robotics Technology Co Ltd, Doosan Robotics Inc, Fanuc Corp, ABB Ltd, Rethink Robotics GmbH, Universal Robots AS, Techman Robot Inc, and Kawasaki Heavy Industries Ltd. A comprehensive analysis of several other significant market players was conducted to provide a well-rounded perspective of the market and its ecosystem.

The overall size of the parcel sortation system market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the parcel sortation system market. This approach was essential for developing an overview and market forecast regarding the growth of the parcel sortation system market across various segments. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the findings and gain deeper analytical insights. The primary respondents included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like research analysts, valuation experts, and key opinion leaders specializing in the parcel sortation system market.