As per MRFR Analysis, the Global Automated Sortation System Market was valued at USD 4.48 Billion in 2023 and is projected to reach USD 6.24 Billion by 2032, growing at a CAGR of 3.69% from 2024 to 2032. Key drivers include the adoption of IoT technology, advancements in product offerings, and increased R&D activities. The market is significantly influenced by the rising demand for e-commerce, which necessitates efficient parcel sortation systems. Major players are focusing on innovative solutions and strategic partnerships to enhance their market presence.
The integration of emerging technologies is pivotal in driving market growth.
Key players include Interroll, Vanderlande Industries, Daifuku Co. Ltd, Siemens AG, and KION Group.
Source: Primary Research, MRFR Database, Secondary Research and Analyst Review
Market CAGR for automated sortation systems is being driven by the rising adoption of Internet of Things (IoT) systems in warehouse management and logistics, which is another trend expected to revolutionize manufacturing operations. IoT devices, along with radio-frequency identification (RFID) and sensors, offer several benefits: reduced labor costs, increased shipment accuracy and operation speed, improved tracking, and enhanced visibility for retailers, among others. Furthermore, Incorporating Al algorithms into parcel sortation systems can enable intelligent decision-making skills. The modular architecture of Industry, 4.0 and loT systems enables simple scaling, allowing greater package volumes and seamlessly expanding operations.
The major firms operating in the industry are highly inclined towards adopting different growth strategies, such as capacity expansion, partnerships, geographical expansion, mergers and acquisitions, new product establishment, and product innovation, to remain competitive in the marketplace. This is anticipated to positively impact significant market growth. Hence, the development and manufacturing of innovative solutions in the automated sortation system market is augmenting the growth over the forecast period. For instance, in June 2021, Interroll launched its MX 018V Vertical Crossbelt Sorter, which is set to help parcel and courier service providers, logistics service providers, and e-commerce providers in gaining the ability to handle an extensive variety of goods in an energy-efficient and space-saving manner.
The demand for e-commerce is increasing worldwide. This is driving the growth of the parcel sortation systems market as there is an increasing need to sort and deliver a greater number of parcels. This growth can be due to multiple factors, including the increasing convenience and accessibility of online shopping, improved logistics and shipping networks, and a shift in consumer preferences toward digital platforms. According to the US Department of Commerce, e-commerce sales as a share of the entire retail sales in the US have increased from USD 503.3 billion in 2019 to USD 856.8 billion in 2022, contributing 9% and 11.2%, respectively.
Moreover, adopting Internet of Things (IoT) technology covers market growth over the forecast period. The prominent players in the market are focusing on utilizing technology to enhance their product offerings and meet the various requirements of different end-users. Sortation plays a huge role in pharmaceutical firms. These companies face wastage problems because their products sorted outside their storage temperature field for a long time are generated unusable. To overcome this challenge, key market players utilize IoT connectivity and deliver sortation at high speed and adequate visibility related to the product's location, driving the automated sortation system market revenue.
The Automated Sortation System Market segmentation, based on type, includes linear sortation and loop sortation. The linear sortation category generated the most income (70.4%). In developing economies, category growth is driven by potential benefits such as reliability, long operational life, and enhanced performance comparatively. However, loop sortation is the fastest-growing category owing to the growing optimization of the space, and better visibility is considered the benefit of deploying the loop sortation systems.
Figure 1: Automated Sortation System Market, by Distribution Channel, 2022 & 2032 (USD Billion)
Source: Primary Research, MRFR Database, Secondary Research and Analyst Review
The Automated Sortation System Market segmentation, based on distribution channel, includes retail & e-commerce, post & parcel sector, food & beverage, pharmaceuticals & medical supply, large airports, and others. The retail & e-commerce segment dominated the market, accounting for 35% of market revenue (1.57 Billion). This is due to the growing number of internet utilizers coupled with the ease of online shopping has led to an expansion in the number of products ordered online. However, food & beverage is the fastest-growing category due to the growing adoption of warehouse automation technology in the sector. Major firms in this sector, including PepsiCo, and Nestle S.A., are concentrating on automating their warehouse processes to satisfy the ever-growing demand.
By region, the study delivers market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American automated sortation system market will dominate this market, owing to the growing adoption of Internet of Things (IoT) technology. The prominent players in the region are focusing on using the technology to improve their product offerings and meet the various requirements of different end-users will boost the market growth in this region. Further, the US automated sortation system market held the largest market share, and the Canadian automated sortation system market was the fastest-growing market in the North American region.
Further, the prominent countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Automated Sortation System Market SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, MRFR Database, Primary Research, and Analyst Review
Europe automated sortation system market accounts for the second-largest market share owing to the presence of prominent market players such as KNAPP AG, Siemens AG, and Beumer Group Gmbh in this region. Further, the German automated sortation system market held the largest market share, and the UK automated sortation system market was the fastest-growing market in the European region.
The Asia-Pacific automated sortation system market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the increasing adoption of online shopping among developing countries. Moreover, China’s automated sortation system market held the largest market share, and the Indian automated sortation system market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the automated sortation system market grow even more. Market participants are also undertaking numerous strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the automated sortation system industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global automated sortation system industry to benefit clients and increase the market sector. Major players in the automated sortation system market, including General Mills Inc., Amway, Conagra Brands Inc., Cargill Incorporated, Abbott Laboratories, Kraft Foods Group Inc., and others, are attempting to expand market demand by investing in research and development operations.
Interroll Holding AG is a provider of material handling solutions. The company provides conveyor rollers, motors, and drives for conveyor systems, conveyors and sorters, drives and controls, pallet handling and flow storage systems for system integrators and OEMs. Interroll also includes a modular pallet platform, stacker crane, transfer car, pallet flow and smart pallet mover. It serves postal services, e-commerce, food and beverage, fashion, airports, automotive and other manufacturing industries. In August 2019, Interroll Group acquired components of the business movements and investments of its IBH ehf, the firm's sales agent in Iceland and the Faroe Islands. The acquisition was accomplished to strengthen the former firm's sales and service delivery in the food and beverage sector.
Vanderlande Industries BV is a provider of automatic material handling systems and services. It delivers baggage handling solutions, parcel and postal sorting solutions, logistics systems, spares management, warehouse automation, customer services and process monitoring. Vanderlande focuses on the parcel, postal sorting and material handling solutions, hold baggage screening, and individual carrier systems at airports. The company serves warehouse and distribution centers, airports, food and beverages, and the post and parcel industry. In March 2022, Vanderlande announced a new automated piece-picking robot as an expansion to its smart item robotics portfolio of technologies, which works with Vanderlande's strategy of accelerating robotics for warehousing.
Daifuku Co. Ltd (Japan)
Vanderlande Industries B.V (Netherland)
OKURA YUSOKI (Japan)
Murata Machinery (Japan)
Interroll (Switzerland)
KION Group (Germany),
TGW Group (Austria)
Siemens AG (Munich)
Mitsubishi Electric Corporation (Japan)
BEUMER (Germany)
Fives in Intralogistics (U.S.)
SSI Schaefer (Germany)
Equinox (Netherlands)
June 2021: Dematic announced its automation of a small elements warehouse for the Siemens System Engineering Plant based in Germany. The solution improves warehouse space usage while automating material flow and picking for the production process.
June 2021: Satake has declared the debut of its most delinquent and largest optical sorter in size and ability, the "NIRAMI series." "NIRAMI" is designed to efficiently sort pulses, seeds, grains, and many other products. With numerous sizes available, all featuring extra-wide pipes and flexible configurations, Nirami ideally serves a broad variety of applications and processing capacities. These recently designed optics notice and differentiate subtle color differences using RGB full-color cameras and optional infrared (IR) cameras.
Linear Sortation
Loop Sortation
Retail & E-Commerce
Post & Parcel Sector
Food & Beverage
Pharmaceuticals & Medical Supply
Large Airports
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Attribute/Metric | Details |
| Market Size 2023 | USD 4.48 Billion |
| Market Size 2024 | USD 4.66 Billion |
| Market Size 2032 | USD 6.24 Billion |
| Compound Annual Growth Rate (CAGR) | 3.69% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Market Competitive Landscape, Growth Factors, Revenue Forecast, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Daifuku Co. Ltd (Japan), Vanderlande Industries B.V (Netherland), OKURA YUSOKI (Japan), Murata Machinery (Japan), Interroll, KION Group (Germany), TGW Group (Austria), Siemens AG (Munich), Mitsubishi Electric Corporation (Japan), BEUMER (Germany), Fives in Intralogistics (U.S.), SSI Schaefer (Germany), Equinox (Netherland), and Shanxi Oriental Material Handling Co Ltd (China) |
| Key Market Opportunities | Increase in the adoption of Internet of Things (IoT) technology by organizations. |
| Key Market Dynamics | Increase in use of the technology to improve their product offering. |
Frequently Asked Questions (FAQ) :
The Automated Sortation System Market size was valued at USD 4.48 Billion in 2023.
The global market is projected to grow at a CAGR of 3.69% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are KION Group (Germany), TGW Group (Austria), Siemens AG (Munich), Mitsubishi Electric Corporation (Japan), Equinox (Netherlands), and Shanxi Oriental Material Handling Co Ltd (China).
The linear sortation category dominated the automated sortation system market in 2022.
Retail & e-commerce had the largest Automated Sortation System Market share.
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Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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