Parcel Sortation System Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

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Parcel sortation system market was valued at USD 2.1 billion in 2022, and CAGR of 7.1% is expected during the forecast period. Rising demand for faster delivery is driving the growth in the market significantly. Increase in industrial automation and rising urbanization are the key factors behind the significant growth in the market. Progress in the e-commerce industry is positively impacting the growth in this market. Increasing convenience and accessibility in online shopping and improved logistics and shipping networks are driving growth in the market significantly.

Innovations in artificial intelligence and machine learning are enhancing the efficiency and accuracy of sortation systems. Increasing growth in food and pharmaceuticals, retail, and e-commerce is witnessing significant growth during the forecast period. Technological advancements and increasing growth in artificial intelligence are driving growth in the market.


Growth Drivers

Investments in logistics infrastructure and a rise in the e-commerce sector, due to which people want to buy the goods online, are driving growth in the market. Automated sortation systems help reduce labor costs and operational inefficiencies, making them attractive to businesses aiming to cut expenses. The increasing number of warehouses and distribution centers is driving growth in the sortation systems market. With growing international trade, there is a need for efficient parcel handling and sorting to manage cross-border shipments. Increasing demand for quicker delivery by the customers is a major factor driving the growth in the market. The surge in online shopping is increasing the volume of parcels and thus growing the market significantly.

Rising disposable income and increasing urbanization leading to growth in e-commerce are driving the market towards significant growth. Increasing growth in the food sector is another reason behind the significant growth in the market. Increasing demand for the online shopping and retail sectors is driving growth in the market. The pharmaceuticals sector is witnessing significant growth due to increasing growth in the market, and an increasing number of patients all over the world is fueling growth in the market.

Segmentation

End-User Industry

·         Food and Beverages

·         Retail and Pharmaceuticals

·         Post and Parcels

·         Airports

·         Others

Type of Sorters

·         Pusher Sorters

·         Paddle Sorters

Regional Outlook

·         North America

·         Asia Pacific

·         Europe

·         Latin America

·         Middle East and Africa

Parcel Sortation System Market End-User Industry

On the basis of the end-user, the parcel sortation systems are segmented into food and beverages, retail and pharmaceuticals, posts and parcels, airports, and others. Post and parcels are the leading segment in the market and are expected to dominate the market during the forecast period. Significant volume of mail and packages requiring sorting boosts demand for advanced systems. A surge in online shopping contributes to a higher number of parcels being processed. A stronger need for quick and accurate sortation to meet delivery deadlines and improve operational efficiency is driving growth in the market significantly.


The food and beverage industry require quick and efficient sorting to meet consumer demand and reduce delivery time. Advanced sortation systems are used to manage temperature-sensitive goods, ensuring proper handling and storage. These systems help in managing inventory levels and ensuring product freshness. Increasing demand for highly accurate sortation systems is needed in the pharmaceutical industry. Increasing demand to ensure the correct handling of sensitive and often high-value products is the need of the time. Sortation systems in this sector often have enhanced security features to prevent tampering and ensure product integrity. Advanced sortation systems provide detailed tracking and traceability, which is crucial for compliance and safety.

Parcel Sortation System Market type of Sorters Segmentation

On the basis of the sorters the parcel sortation system is segmented into paddle sorters and pusher sorters. Paddle sorters are the leading segment and are expected to dominate during the forecast period. Paddle sorters are highly versatile and handle a wide range of package sizes and types, making them suitable for various applications. They are designed for high-speed sorting operations, which is crucial for handling large volumes of parcels efficiently. Paddle sorters provide precise sorting capabilities, which helps in reducing errors and improving delivery accuracy. Increasing growth in e-commerce, pharmaceuticals, and retail is driving growth in the market.

Regional Outlook

On the basis of the regions, the parcel sortation system market is segmented into 5 parts: Asia Pacific, North America, Latin America, and Europe. North America is the leading segment, and the Asia Pacific region is expected to dominate the market during the forecast period because both regions have experienced significant growth in e-commerce, which drives demand for an efficient parcel sortation system to handle large volumes of packages.

North America with its high-tech infrastructure and Asia Pacific, including the emerging economies like China, India, and South Korea with their rapid technological advancements and adoption, are investing heavily in modern sortation systems. High levels of economic development and consumer spending in these regions contribute to a higher demand for parcel delivery and consequently sortation systems. Companies in these regions are investing in innovative sortation technologies, such as robotics and automation, to enhance efficiency and scalability.

 The European region, including the countries Germany, France, Denmark, Italy, England, and Russia, is witnessing significant growth during the forecast period due to rising growth in the e-commerce sector, and it has well-established logistics and transportation infrastructure that supports the integration of advanced sortation systems. European companies are known for their technological advancements and automation in logistics, leading to high adoption rates of modern sortation technology. Strong emphasis on sustainability and efficiency in European logistics, prompting investment in technologies that improve operational efficiency and reduce environmental impact.

European Union regulations and standards often encourage the adoption of advanced and efficient logistics solutions. The presence of key players in North America and Europe is one of the key factors behind the significant growth in the market. The Middle East, Africa, and Latin America are witnessing significant growth during the forecast period due to the increasing growth in e-commerce, and high levels of economic development, and high demand for parcel delivery.


Key Players

·         Vanderlande Industries

·         Honeywell International

·         Siemens Logistics

·         Fives

·         Bastian Solutions

·         Beumer Group

·         Dematic

·         Interroll

·         Kuka AG

·         Fanuc Corp

·         Kawasaki Heavy Industries Ltd.

·         Yaskawa America Inc.

·         Other Players

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