Lifting the lid on the growth of smart parcel lockers

Technology is reshaping last-mile operations, allowing for quicker and more sustainable parcel delivery that benefits both customers and the environment. The trend towards automation is sparking the creation of innovative applications, including automated parcel machines (APMs). These self-service kiosks are designed to send, store, and receive parcels securely.

Smart lockers for parcel delivery, first introduced in Europe by Deutsche Post DHL Group in 2003¹, have gained popularity in countries like Poland, the United Kingdom, Germany, France, and the Czech Republic.² The global parcel locker market is projected to experience substantial growth, with a CAGR of over 13% by 2031³.

Factors fuelling this growth include:

1. Users can easily send, return, or collect a parcel by scanning a QR code and choosing the size, which opens the locker door. In addition to being fast and secure, this eliminates any problems with printing and attaching labels at home or in-store.
2. Online order pick-up and drop-off (PUDO) points are commonly located in local stores or other retail outlets with limited operating hours, unlike APMs that can be installed outdoors for round-the-clock access.
3. APMs are designed specifically for parcel collection and delivery. This service enables customers to easily drop off and pick up packages, eliminating the need to wait in queues at a counter.
4. Parcel lockers provide a touchless and smart storage and delivery solution that can minimize unnecessary physical interactions for users of the service, such as customers, couriers, and staff members. Self-service kiosks can also help with labor shortages.
5. Some in-store PUDO points might not be able to accept a parcel because they have limited space, especially during periods with fewer collections. Smart parcel lockers that have a real-time availability checker can lower the risk of failed delivery attempts.

Choice of delivery options

As the popularity of smart parcel lockers continues to rise, there is also demand for various parcel delivery solutions that complement them. For customers who are not as comfortable with technology, opting for PUDO points may be preferable as they usually offer the support of in-store associates.

Additionally, they offer the chance to purchase additional items during a face-to-face visit, while also encouraging social interactions. By offering out-of-home (OOH) services that conveniently fit into customers’ daily routes and by having couriers handle multiple parcels per trip, businesses can improve operational efficiencies and reduce costs. While selecting from nearby locations offers flexibility and reduces the potential for missed deliveries, home delivery remains a popular choice due to its convenience and speedy service.

High performance scanning

2024 marks the 50^th anniversary of the barcode, and ever since the first retail scan of a pack of chewing gum in Troy, OH in 1974⁴, barcodes have become widely used in nearly every industry.

Barcodes play a critical role in logistics, where they are used to reveal item details such as origin, current location, route, destination, and delivery instructions, both historically and in real-time. This helps facilitate the process of identifying, tracking, and managing deliveries throughout the entire supply chain. In addition, ID scanning can be used to perform verification checks for enhanced security, which is especially helpful for age-restricted and high-value items.

It is important that customers and couriers alike are able to scan their parcels quickly and accurately. But challenging environments like extreme temperatures, high humidity, low visibility, or intense sunlight can diminish barcode readability, especially if barcodes are damaged.  The ease of scanning can also be influenced by the QR code size and positioning, especially for larger QR codes that are placed close to the reader. That’s why high-performance scanning solutions in last-mile applications are critical to ensure the effectiveness of home delivery to the efficiency of in-store PUDO and self-service APM kiosks. These solutions can help streamline operations and meet customer expectations, avoiding unnecessary delays.

A global leader with 50 years of scanning innovation

Honeywell serves customers in almost every industry. We have taken a lead role in designing, engineering, and manufacturing vision solutions including optical scan engines, all-in-one modules, and decoder boards.

Our engines are designed to reduce integration time and design costs, while increasing design choice and flexibility. SwiftDecoder™ barcode software allows end-users to acquire and process data and images quickly and reliably in the most complex workflows and has capabilities beyond barcode reading, such as augmented reality (AR) and optical character recognition (OCR).

By integrating Honeywell technology into your designs, you can improve operational productivity and performance, while delivering excellent user experiences and customer satisfaction.

^{1. DHL: The rise of the smart parcel locker
2. Last Mile Experts: Out of home delivery in Europe 2024
3. Market Research Intellect: Global Parcel Smart Locker Market Size, Trends And Projections, 2024
4. Nelson, Benjamin (1997). Punched Cards to Bar Codes: A 200 Year Journey with Descriptions of over 260 Codes. Peterborough, N.H.: Helmers Publishing.}