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

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 competitive landscape of the sortation systems market is fragmented owing to the presence of major players. The rise in major investments on research and development is projected to help players gain competitive edge in the overall market competition. Other players are focusing on improving their product portfolio. The company's overview, financials, revenue, market potential, investment in R&D, new market initiatives, presence, production facilities, company strengths and weaknesses, product launch, clinical trial pipelines, brand analysis, product approvals, patents, product width and breadth, application dominance, and technology lifeline curve are all included in the information. The information mentioned above only relates to the companies' market focus on parcel sortation systems. 'Siemens AG', 'Honeywell International Inc.', 'Daifuku Co., Ltd.', 'Murata Machinery, Ltd.', 'Vanderlande Industries B.V.', 'BEUMER Group GmbH & Co. KG', 'Bastian Solutions, LLC', 'Dematic Corporation', 'Intelligrated, Inc.', 'Interroll Holding AG', 'Fives Group', 'SSI SCHAEFER AG', 'KION Group AG', 'KNAPP AG', 'TGW Logistics Group GmbH', 'Conveyor Systems Ltd.', 'Viastore Systems GmbH', 'Okura Yusoki Co., Ltd.', 'MHS Holdings, Inc.', 'GBI Intralogistics GmbH'

The increasing growth of stock-keeping units (SKUs) makes it challenging for wholesalers and distributors to make decisions regarding their business operations. This creates a need for more inventive labour, equipment, and technology use. Owing to this, the market is projected to witness lucrative growth opportunities in the coming years.

One of the biggest revenue-generating industries worldwide is the retail sector. It has a significant number of omnichannel vendors who are likely to be among the biggest buyers of material handling products such as sorting systems. As they need high throughput operations in their fulfilment centres, e-commerce companies have a particularly high need for sorting systems. In addition, the market expansion for sortation systems in India is supported by the use of industrial automation systems, which are offered by a variety of businesses and are marked by current advances. For instance, a wide range of automation equipment and solutions, such as robot systems for warehouses, are offered by Delta Electronics. GreyOrange also released its most recent modular sortation system, which was created for contemporary distribution and logistics facilities that serve retail, courier, and express industries. Additionally, the Flexo robotics system can sort up to hundreds of locations and 12,000 parcels every hour, including items for normal post and courier up to 15 kg (33 pounds). Such innovative initiatives taken by manufacturers are likely to help create lucrative growth opportunities for the sortation systems market in the coming years.

In North America, automating warehouse and order fulfilment processes has emerged as the key tactic for ensuring supply chain productivity and financial targets while maximising the levels of customer service. Additionally, the United States accounts for an estimated 91% of the market's revenue, thereby propelling the North American region to emerge dominant for the sortation systems market in the forecast period. Organizations in North America boost order accuracy by up to several percentage points by automating distribution operations. Businesses that automate both high quality service with cost-efficient operations and noticeable service level improvements, have an immediate positive impact on overall profitability and a long-term favourable influence on this market’s revenue generation rates.