The Packaging Automation Market is projected to reach $108.2 billion by 2030, at a CAGR of 9.8% from 2023 to 2030. The growth of the packaging automation market is mainly attributed to the rapid growth of the E-commerce sector, the increasing adoption of automated systems across industries, and stringent food safety regulations. However, the high initial costs of installing automated systems restrain the market’s growth.
The high demand for packaging automation in the logistics industry and the increasing demand for sustainable and eco-friendly packaging are expected to create market growth opportunities. However, the shortage of skilled operators is a major challenge for the players in this market. Integration of advanced technologies and smart packaging are major trends in the packaging automation market.
Increasing Adoption of Automated Systems Across Industries to Drive Market Growth
Businesses are under pressure to deliver products more efficiently, safely, and sustainably. As a result, several industries, including manufacturing, logistics, healthcare, and food processing, are adopting automated packaging solutions to streamline operations, improve efficiency, and enhance overall productivity. Packaging automation helps address labor shortages, reduces waste, and enhances customer experience.
In the manufacturing industry, packaging automation optimizes the assembly line process, ensuring that products are packaged consistently and minimizing the risk of errors. In the logistics industry, packaging automation helps enhance sorting and shipping processes, enabling faster and more accurate deliveries. In the healthcare industry, packaging automation helps maintain the quality and safety of medical supplies. Furthermore, E-commerce & logistics companies use packaging automation to sort, package, and ship goods swiftly and accurately. In the food processing industry, packaging automation helps ensure compliance with hygiene standards, reduces contamination risks, and extends product shelf life.
Major players in the packaging automation market are focusing on launching new solutions to help businesses reduce labor costs, improve product quality, and enable faster time-to-market. For instance, in January 2023, Numina Group (U.S.) launched PaktTM, a fully productized packaging and shipping automation solution that enables businesses to lower labor costs by 70%.
Key Findings in the Packaging Automation Market Study:
The Services Segment to Register the Higher CAGR During the Forecast Period
Based on offering, the packaging automation market is segmented into solutions and services. Furthermore, the solutions segment is subsegmented into case sealers & erectors, sleevers & cartoners, palletizers & depalletizers, strappers, markers & labelers, automated mailer systems, case packers, and other solutions. The services segment is subsegmented into consulting, installation & training, and support & maintenance. The services segment is projected to record the highest CAGR during the forecast period. The segment’s growth is driven by the increasing deployment of automation in various industries such as e-commerce, healthcare & pharmaceuticals, food & beverage, automotive, and chemical & refineries and the growing demand for packaging automation to speed up production, optimize warehouse space, and reduce reliance on labor to provide more value-added services to their customers.
The Secondary Packaging Segment to Register the Higher CAGR During the Forecast Period
Based on type, the packaging automation market is segmented into robotic pick & place, secondary packaging, and tertiary & palletizing. The secondary packaging segment is projected to register a higher CAGR during the forecast period. The segment’s growth is driven by the rising need to safely transport products during shipment and the growing demand for supplementary protection in the e-commerce and pharmaceutical sectors.
The E-commerce & logistics Segment to Register the Higher CAGR During the Forecast Period
Based on end-use industry, the packaging automation market is segmented into healthcare & pharmaceuticals, E-commerce & logistics, food & beverage, automotive, chemical & refineries, aerospace & defense, and other end-use industries. Furthermore, the healthcare & pharmaceuticals segment is subsegmented into healthcare & pharmaceuticals manufacturing companies and contract manufacturing organizations. The E-commerce & logistics segment is subsegmented into E-commerce, contract packaging, and logistics companies. The E-commerce & logistics segment is projected to register a higher CAGR during the forecast period. The segment’s growth is attributed to various factors, including the rise in online sales channels, the increase in online shopping among customers, the increasing adoption of automation in e-commerce & logistics to ensure timely delivery, and the rising consumer demand for convenience shopping.
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Asia-Pacific to be the Fastest-growing Regional Market
Based on geography, the global packaging automation market is segmented into North America, Europe, Latin America, and the Middle East & Africa. Asia-Pacific is projected to register the highest CAGR during the forecast period. The growth of this regional market is attributed to the increasing utilization of sustainable packaging in the food & beverage sector, supportive government initiatives aimed at promoting the adoption of automation and Industry 4.0 technologies to enhance manufacturing capabilities, the growing demand for eco-friendly packaging solutions, and the rapid expansion of the E-commerce sector in countries like China and India.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market players in the last three to four years. The key players operating in the global packaging automation market are ABB, Ltd. (Switzerland), Robert Bosch GmbH (Germany), Siemens AG (Germany), Fanuc Corporation (Japan), and Mitsubishi Electric Corporation (Japan), Swisslog Holding AG (Switzerland), Rockwell Automation, Inc. (U.S.), Schneider Electric SE (France), WestRock Company (U.S.), SATO Holdings Corporation (Japan), Krones AG (Germany), Automated Packaging Systems, Inc. (U.S.), Emerson Electric Co. (U.S.), Crawford Packaging (Canada), Fuji Machinery (Japan), Brenton LLC (U.S.), BEUMER Group GmbH & Co. KG (Germany), Barry-Wehmiller Group, Inc. (U.S.), KHS GmbH (Italy), MULTIVAC Sepp Haggenmüller SE & Co. KG (Germany), Omori Machinery Co., Ltd. (Japan), and Syntegon Technology GmbH (Germany).
Scope of the Report:
Packaging Automation Market Assessment, by Offering
- Solutions
- Palletizers & Depalletizers
- Case Packers
- Vertical/Top Load Case Packers
- Horizontal/Side Load Case Packers
- Wrap Around Load Case Packers
- Other Case Packers
- Sleeves & Cartoners
- Case Sealers & Erectors
- Wrappers
- Stretch Wrappers
- Shrink Wrappers
- Flow Wrappers
- Automated Mailer Systems
- Markers & Labelers
- Strappers
- Other Solutions
- Services
- Consulting
- Installation & Training
- Support & Maintenance
Packaging Automation Market Assessment, by Type
- Robotic Pick and Place
- Secondary Packaging Automation
- Tertiary & Palletizing Automation
Packaging Automation Market Assessment, by End-use Industry
- Food & Beverage
- E-commerce & Logistics
- E-commerce
- Contract Packaging
- Logistics Companies
- Automotive
- Healthcare & Pharmaceuticals
- Healthcare & Pharmaceutical Manufacturing Companies
- Contract Manufacturing Organizations
- Chemicals & Refineries
- Aerospace & Defense
- Other End-Use Industries
Packaging Automation Market Assessment, by Geography
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Latin America
- Middle East & Africa
Key questions answered in the report: