Automated Sortation System Market Research Report Information By Type (Linear Sortation and Loop Sortation), By Application (Post & Parcel Sector, Retail & E-Commerce, Food & Beverage, Pharmaceuticals & Medical Supply, Large Airports, and Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Industry Forecast Till 2032

Global Automated Sortation System Market Overview:

The Automated Sortation System Market size was valued at USD 4.48 Billion in 2023. The automated sortation system industry is projected to grow from USD 4.66 Billion in 2024 to USD 6.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.69% during the forecast period (2024 - 2032). An increase in the adoption of Internet of Things (IoT) technology by organizations, an increase in the use of technology to improve their product offering, and an increase in research and development activities are the key market drivers improving market growth.

Source: Primary Research, MRFR Database, Secondary Research and Analyst Review

Automated Sortation System Market Trends

• Integration of emerging technologies like Al is driving the market growth

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.

Automated Sortation System Market Segment Insights:

Automated Sortation System Type Insights

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

Automated Sortation System Distribution Channel Insights

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.

Automated Sortation System Regional Insights

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.

Automated Sortation System Key Market Players & Competitive Insights

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.

Key Companies in the Automated Sortation System market include

• 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)

Automated Sortation System Industry Developments

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.

Automated Sortation System Market Segmentation:

Automated Sortation System Type Outlook

• Linear Sortation




• Loop Sortation

Automated Sortation System Application Outlook

• Retail & E-Commerce




• Post & Parcel Sector




• Food & Beverage




• Pharmaceuticals & Medical Supply




• Large Airports




• Others

Automated Sortation System Regional Outlook

• 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.