The global sortation systems market size was valued at USD 5.81 Bn in 2022 and is likely to reach USD 8.52 Bn by 2031, expanding at a CAGR of 5.2% during 2023–2031. Growing e-commerce and retail sales across the globe are anticipated to fuel the market.
The sortation system is an automated system that identifies and separates items or packages by specific criteria. The separated items are further directed toward their separate channels for packaging, storing, and shipping purposes. Sorting goods and managing the stored goods in warehousing is the primary purpose of sortation systems.
The items from warehouses, distribution centers, manufacturing units, factories, inventories, and the other components of the supply chain management require sorting plenty of products on an everyday basis. It includes moving products from one line of conveyance to another until they're delivered or picked up by an end customer.
The airports and harbors, on the other hand, require sortation systems for separating the payloads by weight. Aircrafts such as cargo planes require the right distribution of carriage materials in order to efficiently carry heavy materials. Regulation of heavy goods is achieved by using high-efficiency sortation systems.
Sortation systems consist of multiple components such as a remote controller, roller, processor, and conveyor belt. The conveyor belt is the most important component of the sorting system as it carries the materials and items on top of it, depending on its capacity to carry the loads. It carries materials such as pharmaceutical drugs, goods, cartons, luggage, and boxes.
During the outset of the COVID-19 pandemic, the market suffered from a sharp decline in demand for sortation systems. The manufacturing companies, supply chains, and logistic operations ceased due to the pandemic restrictions. This hampered the market in the initial phase of the COVID-19 outbreak. In the post-pandemic period, the market gradually recovered from the loss owing to the gradual resuming of businesses.
Sortation Systems Market Dynamics
Major Drivers
Rising warehouses at a rapid pace coupled with increasing automation are projected to drive the market during the forecast period. The warehouses, factories, logistics, and airports require automation to carry out their routine activities. The sortation system requires minimal manual input to keep it running. This reduces the workload of staff and allows them to manage multiple tasks.
The ability to ensure that the goods are sorted accurately is likely to boost the market. High-efficiency sorting systems are run at a fast pace. If there is any system error that executes incorrect sorting, it stores the records and helps the manufacturer to find and fix the error quickly. Moreover, the increasing adoption of Internet of Things (IoT) accelerates the market.
Existing Restraints
The high cost of sortation system is likely to impede the market. The efficient sortation systems are not affordable for newly emerging businesses and small enterprises due to the limited funding, which restraints the market growth to a certain limit.
Scope of the Sortation Systems Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Sortation Systems Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product Type (Narrow-belt, Cross-belt, Tilt-tray, and Sliding-shoe), Weight (1-5Kg, 5-20Kg, 30-35Kg, and Above 35Kg), and End-user (Food & Beverages, Airport, Post & Parcels, Retail, and Pharmaceuticals).
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Dematic; Daifuku Co., Ltd.; Honeywell International Inc.; Interroll Group; Murata Machinery, Ltd.; Nido Machineries; Knapp AG; Okura Yusoki Co., Ltd.; Bastian Solutions, LLC; TGW Logistics Group; Mantissa Corporation; Fives Intralogistics; Vanderlande Industries BV; Falcon Autotech; BEUMER Group GmbH & Co. KG; Optimus Sorter Technology BV; Alstef Group; EuroSort Systems BV; and Central Conveyor.
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Sortation Systems Market Segment Insights
Based on product type, the sortation systems market is divided into narrow-belt, cross-belt, tilt-tray, and sliding-shoe. The narrow-belt segment is expected to expand at a significant rate during the projection period owing to its operational efficiency and multiple benefits. Narrow-belt sorter is a high-speed solution that is suitable for mid-weight items. It has the capability of carrying the products at a speed of up to 300 feet per minute. It consumes less power as compared to other sorters while conducting operations quietly.
In terms of weight, the market is segmented into 1-5Kg, 5-20Kg, 30-35Kg, and above 35Kg. The 1-5 kg segment is anticipated to register a robust growth rate during the forecast period due to the rising popularity of e-commerce platforms for purchasing daily need items. The parcels and couriers of the products such as household & personal care products, electronic gadgets & their accessories, and clothing lie in the 1-5kg weight category. Modular parcel sortation automation system is majorly used by e-commerce companies in order to sort couriers and parcels, which is expected to augment the segment.
On the basis of end-user, the market is fragmented into food & beverage, airport, post & parcels, retail, and pharmaceuticals. The food & beverage segment is projected to register a considerable CAGR in the coming years, as it is used to sort out multiple products based on weight. In the food & beverages industry, a wide range of products are being produced on an everyday basis.
The raw materials for the products such as fruits and vegetables require sorting at primary levels, right after being brought from the farms. In later stages of production, the food products need to be carried out and sorted further to meet the quality standards set by the respective production companies. The segment growth is further attributed to the rising adoption of automated material handling equipment to ensure the quality and safety of products.
For example, an internationally popular potato chips company ‘Lays’, brings farm-bought potatoes, to their factory. They let these potatoes go through the sortation systems to separate the bigger ones from the smaller ones, and the fresh ones from the rotten ones to maintain the product quality & their brand identity.
In terms of region, the global sortation systems market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the assessment period due to the increasing adoption of robotic automated sortation systems to separate a wide range of goods. Increasing transportation and logistics activities in the region is further likely to propel the market.
Segments
The sortation systems market has been segmented on the basis of
Product Type
- Narrow-belt
- Cross-belt
- Tilt-tray
- Sliding-shoe
Weight
- 1-5Kg
- 5-20Kg
- 30-35Kg
- Above 35Kg
End-user
- Food & Beverages
- Airport
- Post & Parcels
- Retail
- Pharmaceuticals
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Dematic
- Daifuku Co., Ltd.
- Honeywell International Inc.
- Interroll Group
- Murata Machinery, Ltd.
- Nido Machineries
- Knapp AG
- Okura Yusoki Co., Ltd.
- Bastian Solutions, LLC
- TGW Logistics Group
- Mantissa Corporation
- Fives Intralogistics
- Vanderlande Industries BV
- Falcon Autotech
- BEUMER Group GmbH & Co. KG
- Optimus Sorter Technology BV
- Alstef Group
- EuroSort Systems BV
- Central Conveyor
Competitive Landscape
Key players competing in the global sortation systems market are Dematic; Daifuku Co., Ltd.; Honeywell International Inc.; Interroll Group; Murata Machinery, Ltd.; Nido Machineries; Knapp AG; Okura Yusoki Co., Ltd.; Bastian Solutions, LLC; TGW Logistics Group; Mantissa Corporation; Fives Intralogistics; Vanderlande Industries BV; Falcon Autotech; BEUMER Group GmbH & Co. KG; Optimus Sorter Technology BV; Alstef Group; EuroSort Systems BV; and Central Conveyor.
These key players have opted for product launches, brand acquisitions, research & development, and other unique business strategies to improve their global market presence. For instance,
- In June 2021, Satake launched the ‘NIRAMI Series’, an optical sorter with a big size and capacity. It is designed to sort pulses, grains, seeds, and other such products. The latest design of optics efficiently detects and distinguishes subtle colors with the help of RGB full-color cameras and infrared (IR) cameras.
- In March 2021, Interroll launched a range of automated solutions for sortation, ‘Split tray sorterMT015S’. It weighs goods up to 12 kg.
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