Parcel and Postal Machine Vision Market - Forecast(2024 - 2030)
Parcel and Postal Machine Vision Market Overview
The
market for Parcel and Postal Machine Vision market is estimated to be $415.4 million in 2021 and is analyzed to
grow at a CAGR of 5.82% during forecast period 2022-2027. Parcel sorting and
postal automation have long been important areas of application for image
processing and pattern recognition techniques. Since the early improvements in
the first part of this century, postal mechanization has increased
significantly in the 1960s and 1970s, mostly due to the initiatives of the
various national postal administrations. The requirement for uniform standards
in mail delivery compelled international collaboration, and more recently, the
elimination of national restrictions in the supply of mail services has opened
up a global competition including all of the most competent businesses in
information management system. The primary function required in the parcel and postal
sectors utilizing machine vision is certainly address reading and
interpretation. At the moment, the most difficult tasks performed by such
Vision technologies in postal automation include barcode scanning, mail sorting systems, parcel operations, handwriting cursive
identification, flats handling and reading, grey level and color image
processing, enhanced man-machine interface, and robotic material inspection and handling.
Growth in the e-commerce sector, rising labor costs, and a growing requirement
for automated sorting and delivery procedures in the postal business are the
primary reasons driving the worldwide parcel and postal machine
vision systems market.
Report Coverage
The report: “Parcel
and Postal Machine Vision Market – Forecast (2022-2027)”, by IndustryARC
covers an in-depth analysis of the following segments of the Parcel and Postal
Machine Vision market
Key Takeaways
- In June 2021, Google Cloud has announced Visual
Inspection AI, a new purpose-built service designed to assist manufacturers,
consumer packaged goods firms, and other organizations across the world in
reducing faults and delivering considerable operational savings from the
production and inspection process.
- Defects in goods such as
computer chips, automobiles, machinery, and other items now cost manufacturers
billions of dollars each year. In fact, quality-related charges can devour 15%
to 20% of sales income. Furthermore, large manufacturing quantities surpass
humans' capacity to personally check each element.
- In December 2020, online sales in Australia
increased by 55 percent over the previous year, according to data from the
Australian Bureau of Statistics. Also, according to Australia Post's Online
Shopping Report from January 2021, over 5.6 million households shopped online
in December 2020, gaining 21.3 percent from 2019.
Parcel and Postal Machine Vision Market, By Region, 2021
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Parcel and Postal Machine Vision Market Segment Analysis – By Application
Quality Assurance and Inspection held the
highest market share of 30% in 2021. Increasing customer pressures, a
competitive business, and a rising body of legislation force firms to focus
more on product quality. Visual examination is a faster and less painful process
for a machine to undertake than it is for a human. It also has a significant
advantage as it also allows firms to divert their human workforce into
considerably more important jobs while saving money on labor expenditures.
Overall, even in its current condition, machine vision-based quality assurance
is a significant component in boosting process productivity, yield, and profit.
However, the application segment of Identification is analyzed to grow at
highest CAGR of 7.7%. The growing need to identify a part or product in order
to follow it through the manufacturing or logistics process or to ensure that
the correct part is created drives market growth. Reading characters (OCR) or
barcodes is being used to identify items.
Parcel and Postal Machine Vision Market Segment Analysis – By End User
Public Parcel/Postal Service companies segment
held a significant market share in 2021 and accounted for $140.2 million in
2021. This sector is estimated to grow with a CAGR of 4.62% during 2022-2027 and reach $185.6 million by 2027. Increasing government investment and adoption
of automation solution across public postal service companies tend to bring
significant growth in the demand of machine vision solutions for public sector
companies. Machine vision solutions plays a important role in Public
Parcel/Postal service companies for various applications such as mail sorting,
address verification, weight measurement, quality assurance and many others.
With the increasing population across the globe, the requirement for high
efficient automation solution on public postal and parcel companies is analysed
to remain high for both international as well as domestic service companies.
Mail sorting and postal automation has always represented a main area of
application for Image processing and Pattern Recognition techniques. Ongoing
government initiatives of Industry 4.0 to fully automate industries is a major
driving factor for the market growth of machine vision solutions in parcel and
postal industry.
Parcel and Postal Machine Vision Market Segment Analysis – By Geography
North America held the largest market share of 37% in 2021 owing to presence of strong industrial base. Furthermore, increased import and export of products and services from the United States to other areas of the world are expected to considerably fuel demand for machine vision solutions in both private and public postal services companies, thus driving market expansion. However, APAC is analyzed to grow at highest CAGR of 7.7%. Rising online shopping and e-commerce sales have aided in the expansion of the business in this area. For instance, according to the Universal Postal Union (UPU), the overall number of permanent post offices in the United States increased from 31,107 in 2017 to 36,019 in 2019, with projections of 39,000 by 2021 due to increased infrastructure development across the area. This tends to fuel the demand for parcel and postal machine vision in this region. For instance, From June to August 2021, average exports climbed by $1.7 billion to $212.2 billion, while average imports increased by $3.2 billion to $284.4 billion, according to the United States Census Bureau. Increasing goods imports and exports are expected to fuel demand for Parcel and Postal machine vision solutions throughout the projected period in the region of North America.
Parcel and Postal Machine Vision Market Drivers
The growth of the parcel and postal machine vision market is aided by rising technological advancements
Sensors,
cameras, and area scanners, as well as fingerprint technology based on package
pictures and software identification, have all helped to speed up sorting.
Radio-frequency identification (RFID) is a strong technology that allows for
even quicker remote processing. It is utilized in several express and special
logistics goods. Robots are rapidly being utilized in package sorting and
warehousing activities, such as loading and unloading procedures, to reduce
labour workload. Significant technological improvements are expected in the
next few years. Self-service parcel lockers provide access 24 hours a day,
seven days a week, and improve carrier efficiency by preventing missed
deliveries. InPost and Amazon are increasingly introducing parcel lockers in
the U.K., although they are still in the minority compared to different
carriers' vast 'low-tech' parcel store networks.
There
have been other technical advancements in the parcel and postal industry.
For instance, web-based re-sellers maintain portals that allow consumers and
small companies to compare pricing and services, and they can provide prices
that are lower than official rates by aggregating volumes and negotiating
discounts with parcel carriers. This raises the level of market transparency.
Meanwhile, in response to public and consumer demand, some operators are making
their operations more sustainable and lowering emissions by introducing
environmentally-friendly vehicles.
Growing E-Commerce Industry Fuels the Growth of the Global Parcel and Postal Machine Vision Market
The growing popularity of e-commerce is bringing
an increasing number of people online, and the e-commerce and logistics
industries have a difficult challenge in processing millions of orders every
day. By 2020, worldwide electronic retail sales will have surpassed USD 4
trillion, accounting for about 15% of all retail expenditure. Forbes predicts
USD 6.7 trillion in B2B e-commerce sales by the year 2020. Furthermore,
according to the Wall Street Journal, these online sales necessitate reverse
logistics since around one-third of all items are returned by customers, with
the percentage reaching to around 40% in the garment business. A rising number
of package transfers has definitely spurred postal operators' desire to
automate parcel and mail processing in order to deliver products more
efficiently. E-commerce is a booming market and more sales means many more
packages to ship. For instance, according to the US Department of Commerce, in
the first quarter of 2019, the share of e-commerce in total U.S. retail sales
was 10.7%, which increased as compared to 9.8% in the first quarter in 2018. As
of that quarter, retail e-commerce sales in the United States amounted to
almost USD 146.2 billion. According to IBEF, Indian e-commerce is projected to
increase from 4% of the total food and grocery, apparel and consumer
electronics retail trade in 2020 to 8% by 2025. India's e-commerce orders
volume increased by 36% in the last quarter of 2020, with the personal care,
beauty and wellness (PCB&W) segment being the largest beneficiary. The
rising complexity of cross-border e-commerce is one of the main drivers driving
market growth. Compliance, tariffs and taxes, as well as the issue of
satisfying consumer expectations for rapid and cheap delivery throughout the
globe, are all factors to consider when shipping cross-border. Shippers can
save time and money by optimizing parcel sorting management, increasing
fulfillment efficiency and improving shipment accuracy, as well as tracking and
visibility, which is boosting the parcel and postal machine vision industry.
Parcel and Postal Machine Vision Market Challenges
High initial investment is analyzed to hinder the market growth
The initial expenditure required to automate the
parcel and postal system is considerable. Because the entire process will be
digitalized, as well as the installation of various gear and software, a huge
sum of money will be necessary to automate the entire postal system.
Furthermore, once the automated system is in place, it will need to be
maintained, serviced, and renewed on a regular basis, adding to the variable
cost. As a result of the high costs involved with the installation and
maintenance of the parcel and postal automation system, market development may
be hampered during the projection period as firms seek to reduce or avoid this
additional expense. For instance, robots are rapidly being employed in package
sorting and warehousing activities, such as loading and unloading procedures,
to reduce labour workload. In the coming years, significant technical
advancements are predicted. A prerequisite for successful adoption is long-term
standardization on a global scale. Although robots have the potential to save
money, the hefty upfront costs restrict smaller parcel companies from investing
in research and development. Additionally, due to high costs and a restricted
product selection, 3D printing is projected to remain mostly for industrial
manufacturing. The manufacture and sale of 3D items will have a marginally
favourable volume effect on shipping. There is theoretical potential to shift
mass production or production of specialized products to local facilities,
hence lowering parcel quantities. However, significant technology advancements
and cost reductions would be necessary in the future years.
Parcel and Postal Machine Vision Market Landscape
Technology
launches, acquisitions, and R&D activities are key strategies adopted by
players in the Parcel and Postal Machine Vision market. In 2020, the market of Parcel
and Postal Machine Vision market has been consolidated by the top players
- Keyence
- Cognex
- Omron
- Beumer
- Teledyne
- NEC
- Siemens
- Sick AG
- Basler
- Stemmer Imaging
Recent Developments
- In March 2021, Cognex
Corporation, a leader in industrial machine vision, has introduced the DataMan
8700 Series of handheld barcode scanners. This latest generation of portable
readers, built on a newly rebuilt platform, promises cutting-edge performance
and convenience of use with no tweaking or operator training required.
- In January 2021, Cognex Corporation unveiled the In-Sight 3D-L4000 embedded vision system. This first-of-its-kind smart camera, which uses 3D laser displacement technology, enables engineers to rapidly, precisely, and cost-effectively address a variety of checks on automated manufacturing lines.