Asia Pacific Sortation Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia Pacific Sortation Systems Market is Segmented By End-User (Post and Parcel, Airport, Food and Beverages, Retail, Pharmaceuticals), and Country.

Market Snapshot

Asia Pacific Sortation Systems Market
Study Period: 2019-2026
Base Year: 2021
CAGR: 5.86 %

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Market Overview

The Asia Pacific Sortation Systems Market is expected to grow by a CAGR of 5.86% over the forecast period (2021-2026). The COVID-19 pandemic has accelerated a new wave of automation. The fallout from the COVID-19 led end-user industries to focus on the need to automate faster in the medium term. Projects like Industry 4.0 have an important role in the adoption of sortation systems. Amidst the gradual re-opening, sortation systems demand is expected to grow.

  • There is a high demand for end-user sortation systems, such as post and parcel services, food and beverages, and the e-commerce industry. Factors such as increasing labor costs and changing consumer buying behavior have bolstered the demand for faster and more accurate delivery operations, which have, in turn, developed a considerable demand for automated sortation systems.
  • Vendors in the market are offering tailored solutions that enable their customers to sustain competitiveness in their respective industries. This is more relevant to the post and parcel (lead by e-commerce) and food and beverage industries. With a rapid change in operational requirements across these industries, manufacturers find the need to implement sortation systems that can be reconfigured to accommodate those needs.
  • China is the world's biggest user of industrial robots and automation technologies. According to the International Federation of Robotics 2021 report, China installed 168,400 industrial robots in 2020. Along with China, East Asian countries such as Japan and South Korea are also embracing robotics and automation. For instance, in September 2021, DHL Express introduced DHLBot, an AI-powered robotic arm to automate parcel solutions in Japan and South Korea.
  • In India, the product consumption pattern is changing at a significant rate, and the increasing middle-class population is likely to drive the demand for sortation systems to cater to the rising demand across the retail sector. There is an increasing demand for international brands and foreign products among digitally connected Indian shoppers, creating significant demand for automated warehouses to handle the increased inflow of parcel volumes. E-Retail has been a boon during the COVID-19 pandemic. According to Flipkart's 'How India Shops Online 2021' report, the e-retail market is expected to grow to USD 120-140 billion by 2026, growing at approximately 25-30% CAGR over the next five years.
  • To ensure that the entire process of the food and beverages industry, from raw materials to finished products, is safe and controllable, food processing companies are investing heavily in technologies. With rising hygiene standards and continuous development in the food processing industry, material-handling solutions such as sortation systems are being upgraded to meet the latest food safety requirements better and respond to market challenges in the region. For instance, Charoen Pokphand Foods (CPF), a Thailand-based one of the largest feed and shrimp producers worldwide, installed a set of conveying solutions for its facility in Bình Phước, Vietnam, to help the company better respond to the challenges faced by the food industry, with hygiene and efficiency at the core.

Scope of the report

A sortation system (hardware) identifies, inducts, merges, separates, and conveys products to specific destinations. Sortation systems enable more efficient wholesale, retail, and manufacturing distribution and are used across industries, such as post and parcels, food and beverages, airports, retail, and pharmaceuticals. These end-user applications have been considered to arrive at the market estimates. Moreover, the country-level analysis has been covered in the report. Further, the scope of the study considers the impact of COVID-19 in the market.

By End-User
Post and Parcel
Airport
Food and Beverages
Retail
Pharmaceuticals
By Country
China
India
Indonesia
Japan
Malaysia
Singapore
South Korea
Taiwan
Thailand

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Key Market Trends

Growing e-commerce market and rapid industrialization are expected to drive the market

  • The growing middle-class is making a major contribution to the growth of e-commerce across the Asia Pacific. According to the Brrokings Institution, in 2020, an estimated 2 billion Asians were part of the middle-class, and that number is expected to increase to 3.5 billion by 2030, with China, India, and Indonesia witnessing the greatest growth. The middle-class drives higher levels of economic growth as millions of Southeast Asians ascend from poverty.
  • Penetration of mobile phone services is also driving the e-commerce market in the region. According to the GSMA's 'The Mobile Economy Asia Pacific 2021' report, By the end of 2020, 1.6 billion people subscribed to mobile services, representing almost 60% of the Asia Pacific population. Moreover, there will be around 200 million new subscribers by 2025, taking the total number of subscribers to 1.8 billion (62% of Asia Pacific's population). Most of the growth is expected to come from South Asia, with India accounting for more than half of the new subscribers by 2025.
  • The disruption from the COVID-19 pandemic to business models and supply chains has increased the urgency of digitization and automation in enterprises and bolstered the commitment of governments to achieve their Industry 4.0 ambitions in the Asia Pacific. 5G is expected to play an important role in the digital transformation of business processes and in allowing new solutions to increase productivity. Mobile operators around the Asia Pacific are collaborating with enterprises from various industries to develop relevant solutions and applications.
  • Governments across the region are also helping to pave the way for digitization and automation in the industries. For instance, In October 2020, the Australian government announced an investment of AUD 30 million (nearly USD 21.2 million) to accelerate the adoption of 5G in industries, including 5G commercial trials and testbeds in major sectors such as mining, logistics, agriculture, and manufacturing.
  • Due to increased internet penetration, mobile use, and post-pandemic lockdowns, a sharp rise in online shopping, specifically in the grocery market, is occurring in the region. As vendors respond to this challenge, investing in warehouse automation has become pre-eminent for attracting and retaining customers. Automated systems that handle small to large individual orders, as opposed to bulk transportation models, are witnessing more investment, shaping warehouses of the future.
Asia Pacific Market Trend 1.png

Post and parcel is expected to hold the largest market share

  • Post and parcels in the Asia Pacific region are principally driven by increasing internet penetration and strong economic growth. Besides this, rapid urbanization is encouraging manufacturers to trade across the world, creating a significant demand for post and parcel services—furthermore, the growing trend of cross-border purchases in the Asia Pacific fueling the market growth. Moreover, as on-time delivery plays an important role in the e-commerce industry, post and parcel services have gained importance across the region.
  • After the COVID-19 pandemic, countries in the region are increasingly adopting sortation systems for post and parcel applications. For instance, in March 2021, Vietnam Post Corporation launched an automated packages sorting system at the organization's logistics center in the central region. Using image analyzing and bar code reading technologies, the new system is can sort packages based on addresses to the district, communal level, with a capacity of handling tens of thousands of parcels every hour.
  • Post and parcel companies in the region are increasingly adopting innovative sortation system solutions. For instance, in January 2021, Yamato, Japan's leading parcel delivery company, installed the LiBiao Robot autonomous sorting solution at four of the company's parcel hubs. The cross-belt robots have 30kg of capacity and have been deployed at the Yamato's facilities which are strategically located to process parcels for the major Japanese cities, as well as other countries across the Asia region. The LiBiao's 'Mini Yellow' range has been specially developed to be a flexible and cost-effective alternative to the traditional fixed tilt-tray and cross-belt conveyor-based sortation systems.
  • Global post and parcel companies are increasing their presence and launching new operations in the region. For instance, in August 2021, FedEx Express announced the launch of four new intercontinental flights from the Asia Pacific. These flights will provide enhanced connectivity, with a weekly capacity of nearly 1,400 tons (1,390,000 kgs) and greater access to Asia-Pacific customers on the intra-Asia, trans-Pacific, and Europe lanes.
  • Furthermore, in July 2021, DHL Express, a leading express service provider, announced a 40% increase in its workforce at the company's Asia Pacific Export Compliance Center (APECC) in Malaysia by the end of 2021.
Asia Pacific Sortation Systems Market

Competitive Landscape

The Asia Pacific Sortation Systems Market is fragmented and highly competitive. Frequent Product launches, partnerships, and acquisitions, high expense on research and development, etc., are the major growth strategies adopted by the companies to sustain the intense competition. Some of the recent developments in the market are -

  • March 2021 - Körber and Libiao Robotics, global providers of autonomous mobile robots specializing in sortation, have partnered to deliver modern robotics technologies to Asia-Pacific, Europe, and Latin America. The main business of Libiao Robotics is concentrated on parcel sorting after order picking. The company leads in research and innovation in automation and artificial intelligence for logistics. It has developed and installed a range of sorting robots.
  • March 2021 - The Cotton On Group, one of Australia’s largest retailers, selected Vanderlande’s flexible TRAYSORTER solution to optimize the processes within its distribution center in Avalon, Victoria. The Group’s DC serves Australian retail stores as well as online customers. TRAYSORTER is a flexible flat sorter, which is suitable for handling a wide range of products, from apparel, small parcels, and accessories, to shoe boxes and multimedia items.

Recent Developments

  • March 2021 - Interroll launched a new sorting system, Slit Tray Sorter MT015S. The new Split Tray Sorter is suitable for the automatic sortation of conveyed goods weighing up to 12kg. It is specially designed to make it easier for the companies to enter the e-commerce market as well as as it can be installed as a flexible addition to existing sortation solutions in the industries such as the pharmaceutical industry, fashion industry, and parcel service providers.
  • July 2021 - As part of the network optimization strategy to increase competitiveness in the pharmaceutical industry, a leading Australian pharmaceutical wholesaler, Sigma Healthcare, automated operations at its new Brisbane and Perth distribution centers (DCs) with the Dematic solutions.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

  6. 6. MARKET SEGMENTATION

    1. 6.1 By End-User

      1. 6.1.1 Post and Parcel

      2. 6.1.2 Airport

      3. 6.1.3 Food and Beverages

      4. 6.1.4 Retail

      5. 6.1.5 Pharmaceuticals

    2. 6.2 By Country

      1. 6.2.1 China

      2. 6.2.2 India

      3. 6.2.3 Indonesia

      4. 6.2.4 Japan

      5. 6.2.5 Malaysia

      6. 6.2.6 Singapore

      7. 6.2.7 South Korea

      8. 6.2.8 Taiwan

      9. 6.2.9 Thailand

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Invata Intralogistics, Inc.

      2. 7.1.2 Interroll Holding AG

      3. 7.1.3 Dematic Corp.(KION GROUP)

      4. 7.1.4 Daifuku Co. Ltd.

      5. 7.1.5 Equinox

      6. 7.1.6 Bastian Solutions Inc.

      7. 7.1.7 Murata Machinery Ltd.

      8. 7.1.8 Honeywell Intelligrated

      9. 7.1.9 Fives Group

      10. 7.1.10 Vanderlande Industries B.V.

      11. 7.1.11 Beumer Group GmbH

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Asia Pacific Sortation Systems Market market is studied from 2019 - 2026.

The Asia Pacific Sortation Systems Market is growing at a CAGR of 5.86% over the next 5 years.

Dematic Corp. (KION GROUP), Daifuku Co. Ltd., Vanderlande Industries B.V., Beumer Group GmbH, Honeywell Intelligrated are the major companies operating in Asia Pacific Sortation Systems Market.

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