NA Packaging Automation Market Size

North America Packaging Automation Market Analysis

The North America Packaging Automation Market is expected to witness growth at a CAGR of 4.20 % over the forecast period (2021-2026). The global outbreak of COVID-19 significantly impacted North American Packaging Automation as the business saw a decrease in orders due primarily to decreases in the transportation systems and reconsideration of the capital expenditure plans by the organizations that happened in stagnation caused by the impact of COVID-19. However, the demand for automation solutions is expected to increase as organizations are now prioritizing digital transformation with a focus on automation.

• With the increasing globalization of production and the intensely competitive nature of the packaging industry, cost-cutting becomes imperative as companies are striving to maximize profits; but compromising on quality is not an option as the consumers are increasingly being aware and conscious of the products they use. This has created a great need for automation to be employed in packaging.
• North America is among the leaders in the packaging automation market. The growth in this region is attributed to factors like the culture of e-commerce and packaged food industry in North America. Furthermore, companies in this region are now adopting industry 4.0, and it is coupled with the rise in the need for supply chain integration which is driving the manufacturers towards packaging automation solutions due to their ability to interact with the stakeholders and the optimization of complicated logistics schedules.
• The manufacturing sector is amongst the highest contributor to the United States' GDP. In 2020, it contributed USD 2345.85 billion and drove 10.94% of the United States manufacturing output, according to the National Association of Manufacturers (NAM). As most of the U.S based manufacturing companies operate globally, the rising cost of labor, along with the pressure to meet deadlines, has resulted in the increased adoption of automation in factories.
• The Surging demand for packaged food is a substantial opportunity for the manufacturers in this region to carve out greater market share. The majority of food production companies are trying to engage consumers with revamped packaging better. The manufacturers are likely to lag if they do not modify their products according to the latest packaging trends, as the economy of the countries in the North American region is flourishing, which is expected to drive the growth of the packaging automation market in this region during the forecast period.