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

1. Keyence
2. Cognex
3. Omron
4. Beumer
5. Teledyne
6. NEC
7. Siemens
8. Sick AG
9. Basler
10. 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.

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