Sortation Systems Market Forecasts to 2030 – Global Analysis By Product Type (Cross Belt Sortation Systems, Tilt Tray Sortation Systems, Conveyor Sortation Systems, Push Tray Sortation Systems, Vertical Sortation Systems and Other Product Types), Weight (

Sortation Systems Market Forecasts to 2030 – Global Analysis By Product Type (Cross Belt Sortation Systems, Tilt Tray Sortation Systems, Conveyor Sortation Systems, Push Tray Sortation Systems, Vertical Sortation Systems and Other Product Types), Weight (20-35 kg, 5-20 kg and Up to 5 kg), Throughput, End User and By Geography

According to Stratistics MRC, the Global Sortation Systems Market is accounted for $6.16 billion in 2023 and is expected to reach $10.03 billion by 2030 growing at a CAGR of 7.2% during the forecast period. A sortation system is a procedure for identifying items and sending them to a particular location, area, or operation within the framework of most supply chains. These systems utilize a combination of technologies including conveyors, sensors, barcode scanners, and software algorithms to efficiently categorize and route items to their respective destinations. Market players continuously innovate to offer solutions that cater to the evolving needs of industries dealing with high volumes of goods.

According to Flipkart's 'How India Shops Online 2021' report, the e-retail market is expected to grow to USD 120-140 billion by 2026.

Market Dynamics:

Driver:

Demand for faster order fulfillment

As consumer expectations for expedited delivery continue to rise in the era of e-commerce dominance, businesses face immense pressure to streamline their logistics and distribution processes. Sortation systems play a pivotal role in meeting this demand by automating the sorting and routing of products within warehouses and distribution centers. Furthermore, by leveraging advanced technologies such as conveyor belts, robotic arms, and machine learning algorithms, these systems enable companies to efficiently organize and dispatch orders, significantly reducing turnaround times.

Restraint:

High initial investment

The cost encompasses not only the purchase of sortation equipment but also installation, integration with existing systems, and potentially, facility modifications. This substantial upfront expense can be a barrier for many businesses, particularly small and medium-sized enterprises with limited capital resources. The need for specialized equipment tailored to the unique requirements of each operation further contributes to the cost. However, companies may hesitate to make such a significant financial commitment without a guaranteed return on investment, especially if they perceive the benefits of sortation systems as uncertain or long-term.

Opportunity:

Technological advancements

With ongoing innovations in sensor technology, artificial intelligence, and robotics, sortation systems have become increasingly sophisticated and efficient. Advanced sensors enable precise detection and sorting of items, while AI and machine learning algorithms optimize sorting processes by analyzing data in real-time, improving accuracy and throughput. Robotics integration automates manual tasks, such as picking and packing, further enhancing operational efficiency and reducing labor costs. Moreover, the integration of Internet of Things (IoT) technologies allows for seamless connectivity and communication between different components within the sorting system, enabling better coordination and control.

Threat:

Regulatory compliance

Implementing sortation systems requires adherence to various regulations governing workplace safety, equipment operation, and product handling practices. Compliance with these regulations necessitates investment in equipment modifications, employee training programs, and ongoing monitoring to ensure adherence. Industries with stringent data protection regulations, such as healthcare and finance, face challenges in integrating sortation systems while maintaining compliance with privacy laws. However, international trade regulations and customs requirements impose additional complexities, particularly for companies operating across borders.

Covid-19 Impact

The risk of manual processes was highlighted by the COVID-19 pandemic. A number of businesses that were having trouble attracting workers began utilizing warehouse automation. Due to the pandemic, the supply chain was forced to improvise and adopt last-mile delivery, in-city distribution, and other hybrid approaches. Disruptions in supply chains, workforce availability, and economic uncertainty have posed challenges to market growth. The pandemic has also accelerated trends such as automation and contactless delivery, driving innovation in sortation technologies to enhance safety and efficiency.

The cross belt sortation systems segment is expected to be the largest during the forecast period

Cross Belt Sortation Systems segment commanded the largest share of the market throughout the extrapolated period. These systems utilize a network of belts that run perpendicular to the main conveyor line, allowing items to be diverted to designated chutes or lanes based on predetermined criteria. One of the key advantages of cross belt sortation is its ability to handle a wide range of products, including items of different shapes, sizes, and weights, with high accuracy and throughput rates. This flexibility makes cross belt sorters well-suited for diverse industries such as postal and parcel delivery, and manufacturing.

The E-Commerce & Retail segment is expected to have the highest CAGR during the forecast period

Due to the exponential rise in online shopping and the evolving demands of consumers for faster and more efficient order fulfilment, E-Commerce & Retail segment is estimated to witness the highest CAGR during the forecast period. With the increasing prevalence of e-commerce platforms and the shift towards omnichannel retailing, businesses in this sector are under pressure to optimize their logistics and distribution operations to meet customer expectations for speedy delivery. Sortation systems play a crucial role in this process by automating the sorting and routing of products within warehouses and distribution centers, enabling retailers to streamline order processing, minimize errors, and improve overall efficiency.

Region with largest share:

North America region is poised to hold the largest share over the projection period. In North America, automating order fulfillment and warehouse processes has emerged as the key to ensuring supply chain efficiency and achieving budgetary targets while boosting customer service standards. Organizations in North America achieve order accuracy increases of between 0.5 and several percentage points by automating distribution operations. Companies that automate experience an obvious rise in service quality and a large reduction in operating expenses. These benefits have an immediate beneficial influence on overall profitability as well as a long-term favorable effect on the expansion of market share.

Region with highest CAGR:

Asia Pacific is expected to grow at a rapid pace over the estimation period. Increased average salaries and better living standards are frequently associated with industrialization. Over time, several tactics have been tried, with differing degrees of success. Economic expansion, a more effective division of labor, and a spike in technological innovation have all been the results of industrialization. The governments of emerging countries are proactively promoting the advancement of their nations' communication infrastructure.

Key players in the market

Some of the key players in Sortation Systems market include Bastian Solutions Inc., Beumer Group Gmbh, Daifuku Co. Ltd, Dematic Corp., EuroSort Systems BV, Honeywell Intelligrated, Interroll Holding AG, Knapp AG, Mantissa Corporation, TGW Logistics Group, Vanderlande Industries Nederland BV and Viastore Systems Gmbh.

Key Developments:

In December 2023, DTDC EXPRESS partnered with Falcon Autotech, the supplier of intralogistics automation solutions, to automate parcel sorting operations at its super hub in Chennai, Tamil Nadu. Using its cross-belt sorter technology, the intralogistics automation company has designed DTDC's parcel sorting system, which can handle 9,000 packages per hour, operate in a 24/7 environment, and expand to help grow operations.

In November 2023, Daifuku Co., an Osaka (Japan) based company that offers automated material handling technology and solutions, would set up a manufacturing facility in India in Telangana with an investment of INR 450 crore (USD 54 Million). The facility would produce intra-logistics equipment such as automated storage and retrieval systems, conveyors, sorting transfer vehicles, and sorters.

In August 2022, Buhler launched color sorters for a manufacturing facility in Bangalore. These color sorters are manufactured in a renewable energy facility and will optimize the carbon footprint.

In July 2022, Wayzim launched an automatic sorting system in China to improve the efficiency of operations. The newly launched automated singulator system can sort 10,000 pieces per hour through high-intensity handling. The system can automatically convey and sort various items, from small envelopes to cargo up to 30kg.

Product Types Covered:
• Cross Belt Sortation Systems
• Tilt Tray Sortation Systems
• Conveyor Sortation Systems
• Push Tray Sortation Systems
• Vertical Sortation Systems
• Other Product Types

Weights Covered:
• 20-35 kg
• 5-20 kg
• Up to 5 kg

Throughputs Covered:
• Below 5,000
• 5,000-10,000
• 10,000-15,000
• Above 15,000

End Users Covered:
• E-Commerce & Retail
• Food and Beverages
• Logistics & Transportation
• Pharmaceuticals
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances