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The smart parcel locker market size was valued at USD 806.6 million in 2022 and is projected to grow from USD 902.6 million in 2023 to USD 2,073.4 million by 2030, exhibiting a CAGR of 12.6% during the forecast period.
A smart parcel locker is an autonomous container technology used for storing online delivered parcels or packages. This technology offers a secure and convenient way of managing packaged deliveries. The increasing e-commerce and online shopping platforms are expected to drive the market. Commercial buildings and multi-tenant apartments are highly adopting this technology to manage high stacks of parcels of multiple recipients. Similarly, logistics and e-commerce companies are shifting toward adopting smart technologies. For instance,
Extensive Growth in Online Shopping & E-commerce Amid COVID-19 Pandemic to Boost Market Growth
The COVID-19 pandemic has drastically changed the retail industry. The early onset of the coronavirus has alarmed the brick-and-mortar retailers for opting for digital platforms and accelerating the integration of multichannel strategies to ensure growing deliveries. Customers got more comfortable with online shopping, owing to convenient services such as easy returns, free deliveries, and cash-on-delivery payment, among others. Thus, with exponential growth in online shopping and rapidly rising e-commerce amid the pandemic, this quick transformation fueled the demand for smart lockers across nations.
According to the key players of the market, the convenience, contact-free, and faster deliveries through smart lockers surge its demand during the pandemic crisis. In the initial three quarters of the fiscal year 2020, Quadient witnessed a 78% rise in smart locker-based package deliveries. The end-users, such as universities, large retailers, multi-family properties, and corporate campuses, among others, have installed a major share of a number of lockers amid the pandemic. For instance, the number of lockers installed is extensively increasing across countries with the surge in demand amid the pandemic.
Thus, the significant rise in parcel deliveries during the pandemic crises surged the adoption of smart parcel lockers.
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Green Technology-enabled Smart Lockers to Boost Market Expansion
Today, various studies are pointing toward a significant impact of climate change on the planet. As the world is running out of resources, rapid changes and quick actions across industries and at individual levels are required for a sustainable future. As per the CarbonCare study of WildVenture GmbH, the logistics industry contributes 24% of greenhouse gases. Similarly, the rise in e-commerce is expected to increase greenhouse gases by 78% by 2030, resulting in a rise in carbon emissions by 30%. Thus, today's companies' most important characteristic is to bring sustainability to logistics and e-commerce.
The adoption of smart lockers is an efficient option for reducing the environmental impact caused by increasing logistics. The smart lockers track the usage patterns and accordingly optimize energy consumption. For instance, when no parcel is present in the locker, it switches off the lights and sensors till the other parcel arrives. Thus, considering the advantages, various companies are offering green technology lockers. For instance,
Thus, the growing awareness regarding increasing carbon footprint is expected to fuel the expansion of the smart parcel locker market share.
Rise in E-Commerce Deliveries to Drive Market Growth
The exponentially growing online retailing trends are escalating e-commerce demand. Over the years, many companies witnessed a rise in delivery volumes. Considering the increase in business to customer parcel deliveries, the parcel shops or parcel locker outlets increased substantially. For instance, the Deutsche Post Group has stated that it will increase the number of its parcel lockers from approximately 7,000 in 2021 to 15,000 in 2023.
The industry sectors, such as food and beverages, personal care, apparel and accessories, and consumer electronics goods, have witnessed a sharp rise in parcel delivery volume. Brick and mortar retail stores are now shifting to e-commerce and digital platforms to deliver products to customers. According to the Quantum Metric data, brick and mortar retailers availed e-commerce platforms to witness 52% increase in conversion rates.
The important assistance of e-commerce is fast parcel deliveries. The enhanced next-day delivery standard has been able to gain more customers. As per the 2021 European Regulators Group for Postal Services (ERGP) report, the total number of parcel delivery has increased by 9.2% per annum on an average from 2015 to 2021. Thus, increasing e-commerce delivery is expected to drive the market growth.
Locker Capacity Constraint is Expected to Limit Market Expansion
Smart parcel locker providers are facing challenges in providing high-capacity and bigger size lockers. Although the manufacturers are offering customized and all-size capacity lockers, the limited availability of huge-size smart lockers is likely to hinder the growth of the market. For instance, in the U.K., Amazon Inc. offers a restricted locker capacity with a weight limitation of 4.5 kilograms. Thus, if any parcel exceeds both the dimension and weight restrictions, the parcel is removed or shipped to other locations. This is expected to cause inconvenience to the product supplier and customers.
Growing E-commerce and Logistics to Escalate Hardware Demand
Based on component, the market is categorized into hardware and software.
Hardware captured maximum market share in 2021 and is expected to maintain its dominance during the forecast period. With growing preference of consumers for flexibility and convenience in the way, packages are picked up or ordered online, and thus retailers and societies are recognizing the benefits of deploying a smart locker in their stores and professional or residential properties.
Software is anticipated to grow at the highest CAGR during the forecast period. The growing need to track the drop-off and pick-up of parcels in real-time is predicted to boost the demand for software.
Maximum Security and Ease of Access to Drive Indoor Locker Demand
Based on deployment, the market is categorized into indoor and outdoor.
Indoor deployment of smart lockers is the highest compared to outdoor deployment as the cost of an outdoor locker is three times higher compared to an indoor model. The maintenance of outdoor lockers is challenging and expensive due to exposure to the weather, which reduced their lifespan to almost half. This is one of the major factors for operators when calculating their long-term investment return as it can result in unforeseen costs and ultimately lost business.
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Increasing Scalability to Fuel Modular Parcel Lockers Segment Share
Based on type, the market is divided into modular parcel lockers, cooling lockers for fresh food, postal lockers, and laundry lockers.
The modular parcel locker segment accounts for the largest market share, whereas cooling lockers for the fresh food segment is expected to be the fastest-growing locker type. Modular lockers are highly adopted as they improve the utilization of parcel lockers. These lockers function like fixed lockers; however, the number of locker spaces can be adjusted depending on the demand. Increasing orders of specific food/fruits, temperature-sensitive goods, such as electronic devices, cosmetics, and heat-sensitive medicines, are urging the need to install cooling lockers.
Growing Online Shopping to Boost the Commercial Building Segment Share
Based on application, the market is divided into commercial buildings, condos & apartments, retail BOPIS, universities and colleges, and others (post offices, parking areas).
The deployment of innovative parcel lockers is highest in and around commercial buildings, whereas the retail Buying Online and Picking Up In-store (BOPIS) application is predicted to increase the deployment of smart lockers on their premises in the coming years. The booming trend of BOPIS is on the rise, with almost 50% of consumers selecting BOPIS in the past 12 months.
With the upsurge in online shopping, concerns associated with package theft and porch pirates are also increasing. As per the August Home Study, around 53% of employees across the world are worried about package theft at the workplace. Companies, such as Goodman Real Estate, are providing parcel lockers for their workforces, making it convenient for their employees to manage their parcels while at work.
Delivering, sorting, and retrieving parcels to residents not only require manpower and time but also leave property managers liable for theft and damage. Smart parcel lockers for apartments and condos provide a streamlined process for delivery and courier services, thereby reducing liability for administration and owners. Similarly, research by Parcel Pending by Spaces4Learning and Quadient stated that over 42% of college administrators have already invested in smart lockers.
North America Smart Parcel Locker Market Size, 2022 (USD million)
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The global market scope is classified across North America, South America, Europe, the Middle East & Africa, and Asia Pacific.
North America captures the maximum market share, due to the surge in the number of parcel deliveries, as a result of substantial growth of online shopping across the region. In addition, leading e-commerce companies are implementing cutting-edge technologies to develop a convenient shopping experience for their customers.
Asia Pacific is predicted to grow at a rapid pace due to the increasing number of online buyers and government initiatives to develop smart cities. China is projected to lead in the forthcoming years, owing to the presence of top e-commerce companies such as Alibaba, JD.com, and Pinduoduo. However, India's use of parcel lockers is projected to grow with the highest CAGR, owing to a surge in government initiatives for advanced technology adoption for post offices.
Smart parcel lockers represent an important, nationwide, emerging digital infrastructure of the future, and Germany and the U.K. are about to become the largest parcel locker nations in Europe as a result of millions of pounds of investment. Across Europe, retailers have partnered with many logistics firms for delivery to lockers. More than a thousand parcel lockers are currently located in the U.K., France, Poland, Germany, Finland, and Italy, with 8,000 people per parcel locker density in Spain.
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The increasing logistics and e-commerce industries in South America are expected to drive market growth in the forthcoming years. The rising rate of package delivery theft in the region is fueling the demand for secure, intelligent parcel lockers. For example, more than 22,000 cargo thefts were reported in Brazil in 2018. Similarly, with the development of the transportation and logistics industries, the Middle East & Africa market is growing at a steady rate.
Focus on Global Expansion with Innovative Solution to Boost Market Share
The key smart parcel locker players are expanding their business through collaboration and partnership. The rapidly growing online platforms and websites are looking for smart solutions for their product delivery. Also, these channels are witnessing higher demand for home deliveries. Thus, the key providers are strategically collaborating with companies that are handling large parcel volumes. Further, these players are focused on offering advanced and next-generation parcel storage options catering to the needs of industries such as food and beverages, healthcare and pharmaceuticals, retailers, education, and logistics, among others.
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The report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry & smart parcel locker market trends and competitive landscape and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
CAGR of 12.6% from 2023 to 2030
Value (USD million)
By Component, Deployment, Type, Application, and Region
Fortune Business Insights says that the market was valued at USD 806.6 million in 2022.
Fortune Business Insights says that the market is expected to reach USD 2,073.4 million in 2030.
Growth of 12.6% CAGR will be observed in the market during the forecast period (2023-2030)
Modular parcel lockers segment is likely to lead the market in 2022.
Rise in e-commerce deliveries to drive market growth.
Some of the top players in the market are Ricoh Group, Quadient SA, TZ Limited, Pitney Bowes Inc., KEBA Group AG, Cleveron, and LUXER Corporation.
Asia Pacific is expected to grow with a remarkable CAGR.
Locker capacity constraint is expected to limit market expansion.
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