ID: MRFR/SEM/2949-CR | September 2017 | Region: Global | 100 pages
The global Automated Sortation System market is expected to reach USD 5,516.15 million by 2022, growing with approximately 4.22% of CAGR during the forecast period 2016-2022. The automated sorting machine runs with the pre-set computer instruction to sort the goods and packages and ensures that they are delivered to the specified location. The automated sortation systems are intensively used in the mechanical industry and the areas where the demand for shipping accuracy is higher. Automated sorting systems are primarily used in warehouses where the sorting of a large number of products is carried out regularly. The sorting protocol is computerized based on the type of product, destination, or color of the product. Different industrial verticals are emphasizing the automated sorting systems owing to the potential advantages such as optimal usage of stock, eliminating the delivery delays, bulk product sorting, and so on.
Since the demand for end-user industries like Food and beverages, medicines, textiles, parcels, and other industries are rapidly increasing in recent times, the supply chain and other procedures are expected to be carried out at a rapid pace.
COVID 19 Analysis:
The Pandemic has presented huge challenges for several industrial verticals and commercial sectors in recent years. However, the restrictions on the movement and other regulations imposed by the governments in several countries have stimulated the demand for online shopping. The retail and e-commerce sectors were increasingly investing in automated solutions to speed up the deliveries owing to the increasing demand. Therefore the pandemic has positively impacted the automated sortation system market growth.
Moreover, the demand for the automotive, consumer electronics, and other industries were witnessing decline during the pandemic, however, the demand for food and beverages and other essential services was constantly rising during the pandemic. Especially the demand for medicines and medical products was also higher during the pandemic. Such factors are the major driving factors for the automated Sortation system market growth.
The demand for the food and beverages and e-commerce sector is considered as the primary growth-stimulating factor of the automated sortation system market. Moreover, time and efficiency are the two primary criteria in the manufacturing and packaging sectors. Additionally, the demand for packaging and sorting accuracy are some of the factors that increase the automated sortation system market growth.
The sortation is extremely crucial in the pharmaceutical industry. The pharmaceutical companies deal with the medicines that are to be kept at the right temperature and the storage temperature range is very crucial for the pharmaceutical industries, otherwise, the company has to suffer the wastage issue, Therefore the pharmaceutical companies are rendering the IoT technology and deploy the automated sortation systems with the higher speed and greater visibility to locate the product. Such factors are propelling the overall growth of the automated sortation system market.
The E-commerce titans such as Amazon, Walmart, and others are intensively utilizing the sortation systems and are continuously showcasing inclination towards the automated sortation systems, moreover, they are partnering with the leading market players in the automated sortation systems to ensure the quality sorting and on-time delivery. Such factors are propelling the emerging online business organizations in deploying automated sortation systems.
The increasing investments in warehouse automation facilities have led to rapid development in terms of facilities and technology, moreover, the advent of Smart IT systems is improvising responsiveness and efficiently handling a larger percentage of goods while reducing the handling steps as well. Such factors present lucrative opportunities for the overall growth of the Automated Sortation system industry.
Higher installation costs and higher ownership costs are hindering the overall growth of the automated sortation system industry. Repairs and maintenance and updating the software are some of the costs incurred in deploying the automated sortation systems in the warehouses. Such factors are restraining the overall growth of the automated sortation system market.
Downtime occurrence, due to exposure to the harsh environment, other issues that might lead to downtime might permanently affect the production rate. Equipment malfunctioning, the requirement of additional equipment to handle the products are hindering the overall growth of the Automated Sortation System Market.
The automated sortation methods are suitable to carry out repetitive and regular tasks in the industrial verticals. The flexibility of changing the system is considerably lower, therefore the deployment of the automated sortation systems is not prevalent in the emerging industries, as the business plans might change based on the demand.
Requiring technically skilled personnel to handle the Automated sortation systems, and safety measures and regulations imposed by the governmental organization affect the overall growth of the Automated sortation system industry in several countries.
Cumulative Growth Analysis:
The growth of the e-commerce and retail sector is boosting the overall growth of the automated sortation system market. The emergence of the Internet of Things and consumer electronics are the primary factors that impacted the growth of e-commerce. The increasing demand for the production of food and beverages, pharmaceuticals, consumer goods, and other items are increasing the Automated Sortation System market growth in recent years. The market value of the automated sortation system industry projected to touch USD 5,516.15 million by 2022, growing with approximately 4.22% of CAGR during the forecast period 2016-2022.
Value Chain Analysis:
There are two primary types in the Automated sortation systems, however, the linear sortation systems was holding the largest market share in the year 2019 accounting for 51.48%, owing to the potential benefits such as long operational life, reliability, and improved performance comparatively. On the other hand, the loop Sortation systems were deployed in the warehouses where the space is a constraint, the optimization of the space and the better visibility is considered as the benefits of deploying the loop sortation systems.
As the loop sortation system offers higher visibility, they are intensively deployed in the pharmaceutical industries as the packages and the contents require monitoring till they reach the consignment. The Automated sortation system market growth is highly influenced by the growth of the retail and e-commerce sector as this segment held a market share of 29.86% in the year 2019 and is expected to witness steady growth. Moreover, the increasing number of internet users and the online shopping sectors are fuelling the automated sortation system market growth.
Based on Type:
Based on Application:
Based on Technology:
Based on Devices:
The Automated Sortation System market value is currently increasing in the European countries, and the Asia-pacific region owing to the emerging e-commerce sectors in both the regions. Europe was holding the highest market share of 34.73% in the year 2019 due to the presence of industrial sectors and manufacturing sectors. The presence of System Logistics and DHL International who are intensively utilizing the automated sortation systems in their warehouses are also fuelling the growth of automated sortation systems in European countries. On the other hand, the increasing demand for consumer products and e-shopping stores in countries like China and India are boosting the overall growth of the Automated Sortation System industry in recent times.
The growing economic condition in the countries like China and other Asia-pacific countries is also considered as the growth-stimulating factor of automated sortation system market growth.
A recent development in the automated sortation systems, named Eurostat sorter was introduced to the market recently. The sorter requires extremely less space when compared to other conventional sortation systems. The Eurostat sorter handles over 15,000 items a day and the sorting tray of the device are designed to handle smaller and lightweight items, and the Sweeper Sorter is capable of handling items that are lesser than 5inches in size and lesser than 5 pounds in weight.
Another innovation by GreyOrange has launched their latest modular sortation system that is designed predominantly for the logistics and retail sectors. The Flexo Robotics that are integrated with the sortation system is capable of handling over 12,000 parcels every hour.
This report has covered:
|Market Size||USD 5,516.15 million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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), Shanxi Oriental Material Handling Co Ltd (China)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global automated sortation system market is predicted to grow at a 4.22% CAGR between 2016- 2022.
The global automated sortation system market is predicted to reach USD 5,516.15 million by 2022.
Europe will lead the global automated sortation system market.
Key factors driving the global automated sortation system market include rise in shipping accuracy and increasing use in the healthcare sector.
Eminent players profiled in the global automated sortation system market include 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), Shanxi Oriental Material Handling Co Ltd (China), and others.