WorldWide Packaging Automation Market, Industry / Sector Analysis Report, Regional Outlook & Competitive Market Share & Forecast, 2019 - 2025 (Includes Business Impact of COVID-19)

                                          
Packaging Automation Market size is predicted to grow lucratively from 2019 to 2025 due to rising adoption of automation in the manufacturing sector. The automated machines increase the efficiency and productivity in the manufacturing processes. Manufacturers are highly implementing automated machines for packaging goods and products due to their effectiveness and the ability to reduce labor time and cost. Automation provides several benefits such as improved flexibility, safer working conditions, meticulous quality, waste reduction, and low costs, thus increasing its adoption in the manufacturing sector. Moreover, the implementation of the programming feature in these machines offers variability and non-repetitiveness of the tasks and activities depending on the requirements of product labeling and its presentation.
 

The rise in the disposable incomes coupled with the increase in the standard of living has augmented the demand for sturdy packaging solutions to ensure the durability and longevity of the products during transit. These factors are encouraging manufacturers in the field of healthcare, e-commerce & logistics, and food & beverage industries to implement advanced packaging solutions to increase the speed of their production and to implement the concept of mass production. Moreover, the companies are now adopting smart technologies in the packaging of goods due to the rise in the need for supply chain integration. The integration of these technologies provides the ability to interact with stakeholders and optimize the complicated logistics schedule. For instance, in May 2019, Amazon Inc. announced the adoption of automated packaging technology in its warehouses for maintaining and packaging of goods. The machine enables faster packaging of orders, which is five times faster than humans, processing up to 700 orders an hour, equivalent to around 24 workers. Such factors are anticipated to propel the packaging automation market growth.
 

High development and maintenance costs associated with these machines are restraining the packaging automation market growth. The integration of advanced technologies and the requirement for skilled labor will increase the overall costs for these machines. Moreover, regular and continuous operation of the machines requires proper and periodic maintenance, resulting in additional costs. In addition, the presence of stringent government regulations related to workers safety during the usage of automated packing techniques in the industry are hampering the industry growth.
 

With the growing technological advancements, the need and requirement for machines enabled with intelligent packing, IoT technology, and smart sensors are increasing. IoT enabled packaging automation machines enable remote monitoring, evaluation, and control of the processes and functions that can be operated using smartphones, personal computers, and laptops. This technology enables managers and operators to estimate the effectiveness and reliability in the process of these automated products. Moreover, they aid in detecting the faults and rectifying them by remote controlling of the machines and providing important commands to activate or deactivate a function of the machine.
 

Cappers in the packaging automation market will account for the majority of the industry share in the coming years. This equipment is experiencing high demand in the pharmaceutical and food & beverage industry for packing small plastic parts. Companies operating in these industries are installing automatic capping machine in their production facilities to speed up the production process and to gain accuracy in their systems. Manufacturers are developing products, which can handle various caps such as metal, flat, round, Yorker, and sport caps. For instance, Liquid Packaging Solutions, Inc., offers automatic spindle capper machine, which provides continuous capping for a wide variety of cap and containers sizes & types. Moreover, rising personal care and beauty product sales in countries including the U.S. and Canada are encouraging players to implement automated packaging systems, particularly for lotions, soaps, and other skincare products, thus driving the packaging automation market growth.
 

Automated packaging machines are highly used for sorting and tracking tasks in the manufacturing industry for speeding up the production process. The implementation of automated conveyors in the production line helps in the efficient transportation of equipment or materials to each production station. Moreover, the usage of these automated belts can sort, weigh, and monitor heavy loads and also provides a smooth packaging flow management, and ensuring the quality of packaging. With the increase in the usability of these machines, the demand for packaging automation market will increase. Companies are adopting these advanced solutions in the warehouse and distribution processes for packaging goods and to improve the quality and speed. For instance, in March 2019, Flipkart Pvt. Ltd., an Indian e-commerce company, announced the adoption of robot-based sortation technology to increase the efficiency in sorting &scanning processes to ensure faster delivery and an enhanced experience for its customers.
 

The rapid growth of the pharmaceutical industry will increase the demand for sustainable packaging solutions in the coming years. According to the International Federation of Pharmaceutical Manufacturers and Association (IFPMA), the global pharmaceutical market is estimated to reach USD 1,430 billion by 2020. With the constant growth of the industry, the demand for sophisticated packaging for protecting pharmaceutical drugs from environmental conditions and to prevent modification of their chemical properties will increase. The pharmaceutical manufacturers are investing highly in packaging robots to improve operations and services. The implementation of automated machines for packaging small plastic parts such as bottles, caps & closures, catheters, syringes, inhalers, disposables, and other medical devices reduces operator failures and increases the product quality and patient safety. These factors will spur the demand for packaging automation market.
 

The Asia Pacific packaging automation market accounted for the majority of the industry share owing to the rising industrialization and increasing penetration of these devices in the manufacturing activities in countries including China, India, Australia, Singapore, and Japan. Favorable government initiatives for the development of infrastructure and the adoption of advanced technologies will further propel the market growth. For instance, the Chinese government announced the 12th Five-Year Plan for advanced manufacturing, which includes restructuring the industrial sector with a strong focus on moving toward high-end machinery. Moreover, the presence of established players and easy availability of raw material are boosting technological innovations of the market in this region.
 

Key players operating in packaging automation market include BEUMER Group GmbH & Co., Rockwell Automation, Mitsubishi Electric Corp., Automated Packaging Systems, Linkx Packaging, Siemens AG, Swisslog Holding AG, SATO Holdings, Kollmorgen Corporation, ABB Ltd, Schneider Electric SE, and Emerson Electric Co., among others. These players are focusing on product development strategies through various partnerships and long-term collaborations & acquisitions. For instance, in March 2019, WestRock, manufacturer of paper and packaging products announced the acquisition of Linkx Packaging, which provides automated packaging systems. With this acquisition, the company plans to expand its product portfolio in the market, ranging from single-order dispatch systems to fully integrated automated systems.