Market Trends of Asia Pacific Sortation Systems Industry
Growing e-commerce Market and Rapid Industrialization are Expected to Drive the Market
- Industrialization is often associated with higher average incomes and improved living standards. Various strategies have been attempted over time, with varying degrees of success. Industrialization leads to economic growth, a more efficient division of labor, and a surge in technological innovation.
- In the Asia-Pacific region, the so-called Asian Tigers - Hong Kong, South Korea, Taiwan, and Singapore - contributed to economic growth by manufacturing goods for global customers. In February 2023, China's manufacturing activity expanded at its fastest pace in more than a decade.
- Governments in developing nations are taking initiatives to encourage the development of communication infrastructure in their countries. Due to cheap labor and the high adoption rate of Industry 4.0, Asia-Pacific is increasingly becoming a hub for manufacturing for many companies.
- India has followed a unique growth trajectory and is poised to be the fastest-growing large economy in the coming years. The country plans to achieve a robust position in the industrial sector by adopting AI and leveraging the next generation of smart industrial clusters, connected factories, and high-productivity assets.
- The B2C ecommerce market in Asia Pacific is predicted to reach 3,758.4 billion USD in 2023, driven by increasing access to smartphone devices, growing internet penetration, and rising disposable income. In Southeast Asia, e-commerce marketplace sellers have experienced strong growth in sales amid the growing shift to online sales channels.
- In August 2022, Buhler launched color sorters for a manufacturing facility in Bangalore. These color sorters are manufactured in a renewable energy facility and will optimize the carbon footprint.
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Post and parcel is expected to hold the largest market share
- Automated sortation can significantly reduce manpower and costs, improve label read rates, and enhance product identification. It is crucial for logistics facilities to effectively process their throughput while improving productivity rates at high speeds. However, the adoption of automated parcel sortation processes can accurately handle high volumes at high speeds.
- E-commerce is driving cross-border package deliveries from Asian countries to nations around the world. Online purchasing from foreign websites contributes the most to the post and parcel industry.
- Logistics companies are investing in parcel sortation at local and regional distribution centers. For instance, Cainiao partnered with Thailand's Flash Express to launch the largest smart warehouse in Southeast Asia.
- In December 2023, DTDC EXPRESS partnered with Falcon Autotech, the supplier of intralogistics automation solutions, to automate parcel sorting operations at its super hub in Chennai, Tamil Nadu. Using its cross-belt sorter technology, the intralogistics automation company has designed DTDC's parcel sorting system, which can handle 9,000 packages per hour, operate in a 24/7 environment, and expand to help grow operations.
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