At 4.1% CAGR, the Middle East & Africa Parcel Sortation System Market is projected to be worth US$ 97.88 million by 2030, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa parcel sortation system market was valued at US$ 70.95 million in 2022 and is expected to reach US$ 97.88 million by 2030, registering a CAGR of 4.1% from 2022 to 2030. Significant rise in e-commerce business and growing demand for high-performance hardware units are among the critical factors attributed to the Middle East & Africa parcel sortation system market expansion.             

There is a constant increase in parcel volumes; as a result, parcel sorting is becoming increasingly vital for postal operators. The existing hardware devices are incapable of handling the ever-increasing load. These devices experienced throughput constraints caused by performance difficulties in which data transmission rates were insufficient to keep up with process speeds. Hence, to sort the increasing parcel volume, new automatic sortation methods are being developed to replace the traditional methods. The majority of parcel sorting equipment employs "embedded" or "custom-built" hardware pieces, which cannot be easily modified or expanded in terms of software functionality or processing capacity. To overcome this issue, operators need to replace their old systems, which can lead to huge expenses. Hence, the demand for high-performance hardware units capable of storing huge databases and executing order sorting functions, weighing parcels, and scanning barcodes at rapid speeds is increasing, allowing operators to sort more packages per hour while maintaining low operating costs. Thus, the growing demand for high-performance hardware units in parcel sortation systems is driving the market growth.

On the contrary, technological, and technical complexities hampers on the growth of Middle East & Africa parcel sortation system market. 

Based on product type, the Middle East & Africa parcel sortation system market is segmented into pop-up sorters, shoe sorters, cross belt sorters, tilt tray sorters, pushtray, and others. The cross belt sorters segment held 30.5% share of Middle East & Africa parcel sortation system market in 2022, amassing US$ 21.63 million. It is projected to garner US$ 27.67 million by 2030 to expand at 3.1% CAGR during 2022–2030.

Based on application, the Middle East & Africa parcel sortation system market is segmented into logistics industry, e-commerce industry, food & beverages industry, post and parcel services, airports, pharmaceutical industry, and others. The others segment held 27.4% share of Middle East & Africa parcel sortation system market in 2022, amassing US$ 19.43 million. It is projected to garner US$ 25.46 million by 2030 to expand at 3.4% CAGR during 2022–2030.

Based on country, the Middle East & Africa parcel sortation system market has been categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the UAE captured 41.8% share of Middle East & Africa parcel sortation system market in 2022. It was assessed at US$ 29.66 million in 2022 and is likely to hit US$ 38.27 million by 2030, exhibiting a CAGR of 3.2% during 2022–2030.            

Key players operating in the Middle East & Africa parcel sortation system market are BEUMER Group GmbH & Co KG, Honeywell International Inc, Interroll Holding GmbH, and Siemens Logistics GmbH, among others.

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