Packaging Automation Market : Structure and Overview of Key Market Forces Propelling Market

Considering the presence of numerous companies, the global packaging automation market is witnessing high competition. While concentration of industries empowers buyers with improved bargaining power, it also has significant impact on the prevailing competition. While entry of new players is restricted, as it would mean hefty investments, the established players are toying various strategies to gain stronger foothold, finds Transparency Market Research (TMR) in a new study.

Strategies adopted by companies to leverage growth has a profound impact on the overall packaging automation market. According to TMR, the global packaging automation, which was valued at US$31.12 bn in 2016, is expected to reach US$69.73 bn by the end of 2025. If these figures hold true, the global packaging automation market will exhibit a CAGR of 9.7% between 2017 and 2025. By application, the palletizing segment held the dominant revenue share of 27% in 2016. Regionally, Europe accounted for the highest share of 37% based on revenue in 2016.

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Among various factors, the market is benefiting from, the rising demand for automation is primary. Industrial automation is highly recommended for manufacturers aiming to reduce human labor, thus allotting them separate tasks to improve the overall productivity. Considering this and the increasing demand for advanced packaging technologies, automation has become indispensable to the industry. Yet another factor pushing automation in the packaging industry is the need to cohere with novel packaging designs, product variants, batch manufacturing, and ensure shorter product lifecycle.

Also the implementation of automation can help the packaging industry curb the expenditure it incurs on human labor. While the demand for packaging automation is comparatively lesser in smaller and medium businesses, the larger industries where a bulk of items are packed in a minute, robotic automation is highly sought after. In addition, automation helps in reducing the machine downtime, which is a chief factor fuelling its demand in the packaging industry.

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On the flip side, deploying automation requires huge investment at the initial stage. This is a primary factor preventing smaller and medium sized packaging industries from opting it. Instead a majority of smaller businesses prefer outsourcing packaging activities that may require automation. This could be a key challenge for the market, limiting its scope for expansion especially across emerging nations.

Nevertheless, in the coming years customized packaging solutions are expected to create lucrative opportunities for the market. Besides this, the market is forecast to gain from the booming ecommerce sector as packaging is an indispensable part of the industry.

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