Global Sortation Systems Market By Type (Post and Parcel, Airport, Food and Beverages, Retail and Pharmaceutical), and By Region - Trends, Analysis and Forecast till 2034

A sortation system (hardware) merges, identifies, inducts, separates, and conveys products to specific destinations. The automation trend has spread its wings across a range of industry verticals, and sortation systems play an imperative role in assisting manufacturers in fulfilling their automation objectives. Conveyors and sortation systems allow more efficient retail, wholesale, and manufacturing distribution and are used across industries, such as post and parcel, airports, food and beverages, retail, and pharmaceuticals.

High Demand from Logistics

Warehousing accounts for a 25% share in the logistics industry, which remains mostly unorganized in developing countries. However, this scenario is changing gradually, and warehousing is becoming more organized. Thus, the demand for conveyors, sorters, and other material handling systems is surging. By using sortation systems at warehouses, order consolidation can be done quickly. Also, sorting at the destination has become easier and more accurate by employing automated sorters. This will further boost the demand for sortation systems in warehouses and logistic centers.

Need for Reduction in Inventory and Handling Processes

Smart IT systems have prompted an expansion in responsiveness and allowed retail distribution centers to significantly reduce inventory by receiving and dispatching goods just in time. Some retailers are expected to handle about 90% of their goods in this way. Manufacturers of many fast-moving consumer goods are opting for sortation systems to handle carbonized products as they come off the production line to reduce handling steps. Sortation systems help in reducing cost per case with faster delivery, reducing the inventory in distribution centers.

E-Commerce to Create Remunerative Potential

The increasing popularity of e-commerce surges the number of orders placed per day. This hike in the number of orders has made product delivery a challenging task for the logistics industry. Thus, the demand for material handling solutions such as sortation systems is witnessing a rise across all regions, to increase productivity. Also, order fulfillment in the e-commerce industry includes versatility in terms of handling packaging formats. Initially, products from e-commerce are delivered in cartons, which makes their sorting a challenging task. However, polybags are increasingly being employed for e-commerce delivery, as they are less expensive and apt for the packaging of apparel, consumer durables, and other goods, as compared to cartons.

According to the 2017 Annual Industry Report produced by MHI, 63% of supply chain professionals revealed that hiring and retaining a skilled workforce continues to be the biggest obstacle faced by their businesses. Since millennials are known for placing high importance on the quality of time off and the ability to work on top-notch automated projects, automated warehouses are being marked as a lucrative source of employment, as well as advanced learning.

The global sortation systems market is segmented based on type, and region.

On the basis of type, the global sortation systems market is segmented into post and parcel, airport, food and beverages, retail, and pharmaceutical.

Regional Insights:

In the region, the global sortation systems market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in North America dominates the global market in terms of revenue and is projected to continue its dominance in the coming years, due to increasing interest in sustainability, coupled with a robust economy as a result of cost containment, which has led to the demand for the sortation systems in the country. In the United States, post offices have seen a 60% energy savings in parcel-handling applications after employing a roller sortation system across their parcel-handling module. The strong economy of the US region, with notable port traffic, increased e-commerce activity, and key manufacturing indices resulting in manufacturing growth are poised to drive the demand for sortation systems across the country. Irrespective of a couple of external and domestic risks that could impact the positive outlook, the economy of Asia-Pacific is set to grow with the aid of stronger growth in advanced economies, a moderate recovery in commodity prices, and a recovery in global trade growth.

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the global sortation systems market report based on type, and region:

Global Sortation Systems Market, By Type:

• Post and Parcel
• Airport
• Food and Beverages
• Retail
• Pharmaceutical

Global Sortation Systems Market, By Region:

• North America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • U.S.
  • Canada

Rest of the Middle East & Africa

The key players operating the global sortation systems market include Daifuku Co. Ltd, Interroll Holding AG, Dematic Corp., Viastore Systems Gmbh, Muruta Machinery Ltd., Vanderlande Industries BV, Beumer Group Gmbh & Co. KG, Honeywell Intelligrated Inc., TGW Logistics Group GmbH, GreyOrange Pte Ltd. Prominent players operating in the target market are focusing on the strategic partnerships as well as launching of the products in order to gain competitive edge in the target market. For instance, in March 2018, Beumer Group launched a sortation system at LogiMAT. The BG Line Sorter provides an alternative to traditional sliding-shoe line sorters by combining the broad handling mix of a cross-belt sorter within the compact footprint of a line sorter. In April 2019, Daifuku Co., Ltd. announced that it had completed its acquisition of India-based Vega Conveyors & Automation Private Limited (“Vega”)

• June 2021 - Satake announced the launch of its newest and largest optical sorter in size and capacity: “NIRAMI Series”. Satake's latest high-specification optical sorter, "NIRAMI", is designed for efficient sorting of grains, beans, nuts and many other products. Available in a variety of sizes, all with extra-wide chutes and flexible configurations, Nirami is ideal for a wide range of applications and handling capabilities. These newly designed optics detect and differentiate minute differences in color using an RGB color camera and an optional infrared (IR) camera.
• In March 2021 - Interroll has added a potential multi-user system to its successful range of automated sorting solutions with the launch of a new drop tray sorter, the MT015S Split Tray Sorter. The new product makes it easier for companies to enter the e-commerce market or be used flexibly within existing sorting solutions.
• In July 2020, Next Generation Manufacturing Canada (NGen) invested $5 million in projects leading to the development and production of automated technology instead of manual work to help prevent the spread of the coronavirus.

• Daifuku Co. Ltd
• Interroll Holding AG
• Dematic Corp.
• Viastore Systems Gmbh
• Muruta Machinery Ltd.
• Vanderlande Industries BV
• Beumer Group Gmbh & Co. KG
• Honeywell Intelligrated Inc.
• TGW Logistics Group GmbH
• GreyOrange Pte Ltd