This increase in the retail market compounded with the growth of the economy of this region, the packaging market will grow rapidly. The regional demand and the export market have a high demand for packaging.
The Middle East packaging automation market is estimated to grow from USD 4.48 billion in 2016 to USD 7.75 billion by the end of 2021 at a CAGR of 9.57%. This is attributed to the steady economic growth in the region. The economy of Latin America is expected to grow from 2.9% in 2014 to 3.5% in 2015 and 3.7% in 2016. The steady growth in this region for some years and economic policies has improved the lives of millions. The poverty rate has also declined from 42% in 2000 to 25% in 2012 and the middle class has increased from 22% to 34% in the same time.
This growing demand for packaging is met by the automation packaging that helps in speeding up the process of packaging of goods. As the demand for packaging increases the, demand for automated packaging also increases.
Increasing competition is forcing manufacturers to take steps that reduce costs of their packaging processes. Those who are not moving with time are at risk of losing market share as well as the possibility of being pushed out of the marketplace. Adopting cost cutting measures means automating different manual processes and increasing the level of semi-automation process. Packaging was a completely manual process, before packaging automation made an impact.
Processes like filling, labeling, bagging, palletizing, capping and others have been automated. No more manual intervention is required for these processes. Different enterprises manufacturing products like food, pharmaceuticals, cosmetics, personal care, beverages and even warehouses are increasingly using such automation solutions to streamline their business processes as well as reduce operating costs.
The major problem with this market is the striking socioeconomic differences. The regions close to the urban areas have high GDP per capita which is very much different from the other regions. Also Brazil, Mexico and Argentina are the major driving forces of the region and the other countries are still not the major drivers in terms of economy and FDI. With this region getting a lot of investment and support from countries like the USA, the economic situation will improve and create more economic hubs across the region.
The report provides a comprehensive analysis of the market segmented on the basis of packaging material used and the end-user industry. Detailed estimates for the next five years are included along with the analysis of the major players and their strategies. There are many vendors who are manufacturing different packaging automation solutions. Some of them mentioned in the report are ABB, Mitsubishi, Schneider Electric, Rockwell Automation, Swisslog and Rockwell Automation.
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