The parcel sortation systems market is likely to be valued at US$1.31bn by the end of 2018, reaching US$2.05bn by 2023, according to a new study by market research company ReportLinker.
The report – titled Parcel sortation systems market: Global forecast until 2023 – found that emerging application areas for parcel sorting systems and the integration of Industry 4.0 and Internet of Things with sorting systems are providing key opportunities for market players, while high deployment rates and maintenance costs proved restraining.
Among all end-user industries, the parcel sortation systems market for the e-commerce industry is expected to grow at the highest rate between now and 2023 due to an anticipated steep increase in the number of parcels ordered worldwide.
Between the two types of parcel sortation systems, the market for loop parcel sortation systems is expected to grow at a higher compound annual growth rate. This growth could be due to the benefits offered by the systems such as optimum space utilization, which makes them ideal for small and mid-sized warehouses and distribution centers.
The report also found that parcel sortation systems market in Asia-Pacific are expected to grow significantly between 2018 and 2023. China, South Korea and Australia are some of the prominent countries driving the increase of the market within the area.