Global Sortation Systems Market Size, Share, Growth Analysis, By Types(Linear Sortation Systems, and Loop Sortation Systems.), By Components(Hardware, Software), By Application(Post & Parcel, Food & beverage) - Industry Forecast 2024-2031

Global Sortation Systems Market size was valued at USD 5.79 billion in 2022 and is poised to grow from USD 6.05 billion in 2023 to USD 8.06 billion by 2031, growing at a CAGR of 4.50% during the forecast period (2024-2031).

The utilization of diverse tools in sorting involves managing task-specific software to identify items on conveyor systems and direct them to designated locations, including reading and applying labels as needed. While all these functions are vital for ensuring products reach their destinations, scheduling deliveries directly contributes to this objective by placing containers in appropriate delivery zones. Sorting significantly enhances consumer fulfillment automation effectiveness, available in various sizes and configurations, necessitating proper organization. The growth of the sortation systems market is fueled by the expanding global e-commerce sector, increasing labor costs, industrial automation, and technological advancements like AI and robotics. However, government restrictions on automation and challenges posed by a wide range of parcel volumes and sizes hinder market expansion despite the opportunities presented by IoT technology for business expansion.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Sortation Systems Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Sortation Systems Market Segmental Analysis

Global Sortation Systems Market is segmented based on the basis of types, components, application, and region. Based on types, the Sortation Systems Market is segmented into linear sortation systems, and loop sortation systems. Based on components, the market is classified into hardware, software, and services. Based on application, the Sortation Systems Market is categorized into post and parcel, food & beverage, Retail & ecommerce, transportation & logistics, pharmaceutical & medical devices, consumer packaged goods. Based on region, Sortation Systems Market is widespread into North America, Europe, Asia-Pacific, Latin America, and MEA.

Drivers of the Global Sortation Systems Market

Wholesalers and distributors face mounting challenges in managing their business operations due to the expanding number of stock-keeping units (SKUs). This necessitates the adoption of innovative approaches in labor, equipment, and technology utilization. Consequently, the market is poised to offer promising growth prospects in the foreseeable future.

Restraints in the Global Sortation Systems Market

The sortation systems market faces challenges due to the high initial manufacturing expenses and the necessity for compliance with various regulatory standards, limiting the entry of new players. However, the growing adoption and improved efficacy of sortation systems, particularly in airport luggage sorting, are expected to open up new avenues for business growth over time.

Market Trends of the Global Sortation Systems Market

The retail sector stands as one of the largest revenue generators globally, with a substantial presence of omnichannel vendors who represent significant purchasers of material handling products like sorting systems. E-commerce companies, driven by the need for high throughput operations in their fulfillment centers, have a particularly pronounced demand for these systems. Moreover, in India, the market for sortation systems is expanding, fueled by the adoption of industrial automation solutions from various providers leveraging cutting-edge technology. Delta Electronics offers a diverse range of automation equipment, including robot systems tailored for warehouse operations, while GreyOrange recently unveiled its latest modular sortation system designed to meet the evolving needs of modern distribution and logistics facilities catering to retail, courier, and express industries. Notably, innovations such as the Flexo robotics system capable of sorting hundreds of locations and processing up to 12,000 parcels per hour, including items weighing up to 15 kg (33 pounds), exemplify manufacturers' efforts to drive substantial growth opportunities in the sortation systems market in the foreseeable future.