Reasons Behind the 2022 Growth in the Smart Parcel Locker Market

According to the latest research, the trend of adopting smart locker systems and intelligent lockers by locker manufacturer US will continue to grow upwards at an astounding rate.  For instance, consider the comparative figures included in this research to understand this soaring trend of the smart parcel delivery locker market.  Beginning 2020 or during the peak of the Covid-19 pandemic, the size of the global smart parcel locker market stood at USD 644.8 million.  While this overall volume reflected a growth rate of 11.1% in the year 2020, it was still lower than the annual average growth anticipated between the years 2017-2020.  Now taking into consideration the huge potential that the smart parcel delivery locker market has shown during the pandemic, the year 2021 is expected to attain a volume of USD 718.0 million.  Following this trend, the overall size of the smart parcel delivery locker market is expected to reach USD 1,630.2 million in the year 2028. This is based on a CAGR (Compound Annual Growth Rate) of 12.4%.  Given the above figures, it is important to understand the reasons that are paving the way for this tremendous growth of the smart locker system and intelligent lockers industry.  In this article, we highlight the main reasons behind the massive 2022 growth of the smart parcel delivery locker market.

For a better perspective, we have divided the reasons into several questions to discuss the adaptability, applicability, feasibility, and convenience factors related to adopting smart locker systems.

What are the driving factors responsible for the growth of the smart parcel delivery locker market?

The rising e-commerce or online sales industry, especially during the pandemic, was seen as the main driving factor responsible for the growth of the smart parcel delivery locker market and digital locker system.  Both e-commerce stores and the adoption of smart locker systems and intelligent lockers by e-commerce wholesalers, retailers, and warehousing facilities have gained momentum during the pre-pandemic era.  However, both the e-commerce and intelligent locker facilities combinedly proved to add massive growth to the smart parcel delivery locker market during the pandemic. The use of technology by e-commerce giants in the form of smart locker systems and digital locker systems aided in key functional and operational areas. These core areas included parcel identification, sorting and classification, and ensuring proper and correct delivery to the logistic warehouse. Today, intelligent locker facilities are available at convenience stores, supermarkets, housing complexes, hotel lobbies, offices, and colleges and universities. Overall, growth in e-commerce sales amid the Covid-19 pandemic has boosted the need for digital locker systems in the logistics and warehousing markets.

What are the market opportunities for the smart parcel delivery locker market?

Smart locker systems and intelligent lockers by locker manufacturer US help in storage, sorting, and management of online parcels. The recent surge in the online retail market or e-commerce transactions even in the post-pandemic era is continuously unlocking massive opportunities for the smart parcel delivery locker market. For example, online retail giants are heavily investing in the adoption of the latest trends and innovative solutions involving smart locker systems. Similarly, places such as universities and housing complexes which usually have a large inflow of parcels are adopting the use of intelligent lockers to manage and deal with parcel management issues.

Which application-based segment has the largest market share in 2020?

Since its inception, the smart parcel delivery lockers market has continued to evolve and serve several different purpose applications. These include residential buildings and housing complexes, retail BOPIS (Buy Online, Pickup In Store), universities and colleges, supermarkets, and retail grocery stores among a few others. However, the primary focus of the smart parcel delivery locker market was to counter issues related to parcel thefts and parcel management in the residential and commercial buildings respectively. The same issues of parcel theft and parcel management also exists in universities and colleges.This is because all these places receive an enormous number of parcels daily. With smart parcel delivery locker systems in place, parcel recipients have the freedom to collect their parcels at any time of the day, and that too securely and in the most convenient manner. Moreover, smart parcel delivery locker systems ensure the proper delivery of the parcels to the entitled recipient as well. This further helps in reducing the parcel management stress of the staff.

What are the future trends for the smart parcel delivery locker market?

Just like any other market, the smart parcel delivery locker market is also adopting future trends to enhance customer and user experience.In this scenario, two of the most innovative and adaptive future trends gaining attraction and vast popularity involve using the smart cooling locker systems and BOPIL. BOPIL stands for “Buy Online, Pickup In Locker” and is a modified version of BOPIS which is “Buy Online, Pickup In Store”. Through BOPIL, online grocery sellers, pharmacies, and other retailers can sell perishable items without risking the quality of their sold-out items till the moment that the customer arrives and collects their order.

Who are the major vendors in the smart parcel delivery locker market?

By market segmentation, major vendors in the smart parcel delivery locker market can be categorized into four types.

These include –

  • modular parcel locker systems installed in residential and commercial buildings as well as colleges and universities,
  • fresh food cooling lockers used by online grocery sellers and other online retailers especially those selling perishable items,
  • postal lockers, and
  • laundry lockers.

Which region has the largest market share in the smart parcel delivery locker market?

A comparison of five regions namely North America, South America, Europe, Asia Pacific, and the Middle East & Africa shows that North America accumulates for the largest market share of the smart parcel delivery locker industry. The main reason attributed to this immense market share of the North American region globally is because of this region’s significant growth in the online shopping arena. Furthermore, this trend is likely to grow and keep the North American region in the leading position in the foreseeable future. This is because of the technological advancement and adoption of cutting-edge trends to offer convenience and a better shopping experience to the customers.