Global Sortation System Market Insights Forecasts to 2032

• The Sortation System Market Size was valued at USD 5.75 Billion in 2022.
• The Market is Growing at a CAGR of 4.6% from 2023 to 2032
• The Worldwide Sortation System Market Size is expected to reach USD 9.02 Billion by 2032
• Asia-Pacific is expected To Grow the fastest during the forecast period

The Global Sortation System Market is expected to reach USD 9.02 Billion by 2032, at a CAGR of 4.6% during the forecast period 2023 to 2032.

Market Overview

A sortation system is a sophisticated conveyor-based technology used in distribution centers and warehouses to automate the process of sorting and routing items for shipping. It employs various mechanisms, such as conveyor belts, sensors, and barcode scanners, to identify, classify, and sort packages based on predefined criteria, such as destination, weight, size, or SKU. Sortation systems enable high-speed and accurate sorting of packages, improving efficiency, reducing labor costs, and minimizing errors in order fulfillment. They are utilized in various industries, including e-commerce, retail, logistics, and postal services, to handle a high volume of packages and optimize order processing. Advanced sortation systems may also incorporate technologies like robotic arms and artificial intelligence for increased automation and throughput.

Report Coverage

This research report categorizes the market for sortation system market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the sortation system market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the sortation system market.

Driving Factors

The sortation system market is driven by various factors, including the growth of e-commerce and the need for efficient material handling systems to handle large volumes of online orders. Additionally, rising labor costs have increased the demand for automated solutions that can reduce reliance on manual labor. Advancements in automation technology, such as the use of robotics and artificial intelligence, are also driving the market. Other factors driving growth include the need for high throughput and accuracy in sorting, the rise of omnichannel retailing, and the demand for sustainability in supply chain operations. As more companies look to improve their supply chain operations and meet customer expectations for fast, reliable delivery, the sortation system market is expected to continue growing in the coming years.

Restraining Factors

The sortation system market faces several restraints that may hinder its growth, including the high initial investment required to implement automated systems. Many companies may find it difficult to justify the cost of automation, especially if their operations are not large enough to justify the investment. Additionally, the lack of skilled labor to operate and maintain automated systems may pose a challenge. The limited availability of space in some facilities may also make it difficult to implement sortation systems. Moreover, the adoption of automation may lead to job loss, which can be a concern for some organizations.

Market Segmentation

• In 2022, the cross-belt segment accounted for around 43.7% market share

On the basis of the product type, the global sortation system market is segmented into cross-belt, tilt-tray, sliding-shoe, narrow-belt, and others. The cross-belt segment is dominating the market with the largest market share in 2022. This is due to the benefits offered by cross-belt sorters, such as their ability to handle a wide range of products, high accuracy in sorting, and high throughput rates. Additionally, cross-belt sorters require less space compared to other types of sortation systems, making them a popular choice for facilities with limited space. The increasing adoption of automation in the logistics and manufacturing sectors is also driving the demand for cross-belt sorters, further contributing to its dominance in the market.

• In 2022, the e-commerce & retail segment dominated with more than 31.4% market share

Based on the end-user, the global sortation system market is segmented into logistics & transportation, food & beverage, e-commerce & retail, pharmaceuticals, and others. Out of this, the e-commerce & retail segment is dominating the market with the largest market share in 2022. This is due to the growing demand for efficient material handling and sorting systems to handle the increasing volume of online orders. The rise of omnichannel retailing, which requires seamless integration of online and offline sales channels, has further boosted the demand for sortation systems in the e-commerce and retail segment. Additionally, the adoption of automation technologies in the logistics and supply chain operations of e-commerce and retail companies has contributed to the dominance of this segment in the sortation system market.

Regional Segment Analysis of the Sortation System Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America dominated the market with more than 32.5% revenue share in 2022.

Based on region, North America dominated the sortation system market due to several factors, including the presence of major e-commerce players in the region and the high adoption rate of advanced automation technologies. The well-established logistics and supply chain infrastructure in North America has also contributed to the growth of the market. Additionally, the region has a high demand for sortation systems due to the large population and high volume of online orders. Moreover, government initiatives and regulations promoting automation in the manufacturing and logistics sectors have also spurred the adoption of sortation systems in North America, further boosting its dominance in the market.

Recent Developments

• In March 2021, Expanding its range of automated sortation solutions, Interroll Holding AG has recently introduced the Split Tray Sorter MT015S, which offers a system suitable for diverse users and simplifies the process of entering the e-commerce market or integrating with existing sortation solutions.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global sortation system market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Companies:

• Daifuku Co., Ltd.
• Siemens AG
• Vanderlande Industries B.V.
• Honeywell Intelligrated
• Dematic Corporation
• Fives Intralogistics
• Murata Machinery, Ltd.
• Interroll Holding AG
• BEUMER Group GmbH & Co. KG
• Bastian Solutions LLC
• Knapp AG
• TGW Logistics Group
• SSI SCHAEFER
• Swisslog Holding AG
• KION Group AG
• Okura Yusoki Co., Ltd.
• C&D Skilled Robotics, Inc.
• Material Handling Systems, Inc.
• LÖDIGE Industries GmbH
• AmbaFlex Spiral Conveyor Solutions

Key Target Audience

• Market Players
• Investors
• End-Users
• Government Authorities 
• Consulting and Research Firm
• Venture Capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2032. Spherical Insights has segmented the global sortation system market based on the below-mentioned segments:

Sortation System Market, By Product Type

• Cross-Belt
• Tilt-Tray
• Sliding-Shoe
• Narrow-Belt
• Others

Sortation System Market, By End-User

• Logistics & Transportation
• Food & Beverage
• E-Commerce & Retail
• Pharmaceuticals
• Others

Sortation System Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa