What Has Been the Progress and Growth of the Parcel Sortation System Market in Recent Years?
The parcel sortation system market has seen considerable growth due to a variety of factors.
• The parcel sortation system market has experienced strong growth recently. It will increase from $1.94 billion in 2024 to $2.13 billion in 2025, with a compound annual growth rate (CAGR) of 9.6%.
The growth can be attributed to the rise of omnichannel retailing, cross-border e-commerce expansion, growth in subscription box services, increasing awareness of green logistics, and a focus on minimizing delivery errors.
What Is The Expected Growth In The Parcel Sortation System Market Size Evolve over the Forecast Period?
The parcel sortation system market is expected to maintain its strong growth trajectory in upcoming years.
• The parcel sortation system market is expected to expand to $3.03 billion by 2029, with a CAGR of 9.2%.
The growth is driven by the rising volume of e-commerce, increased demand for automation, urbanization, investments in logistics infrastructure, and the demand for same-day delivery. Major trends include technological advancements, AI integration, IoT adoption, big data utilization, and cloud-based sortation solutions.
What Main Forces Are Fueling Expansion In The Parcel Sortation System Market?
The escalating growth of the online retail sector, or the e-commerce industry, is predicted to boost the expansion of the parcel sortation system market. This industry pertains to the digital marketplace where goods and services are bought and sold. The popularity and growth of e-commerce can be attributed to various factors like convenience, the breadth of product offerings, competitive rates, the ability to compare products easily, and customized shopping experiences. Within the e-commerce industry, parcel sortation systems have become crucial as they streamline and enhance the process of sorting and delivering parcels, effectively managing the high influx of packages produced by online sales. For example, data from the United States Census Bureau, an American government agency, showed that in Q1 2024, e-commerce sales in the US reached a value of $289.2 billion. This marks an increase of 2.1 percent (±0.7%) from Q4 2023. With the expansion of the e-commerce industry, the parcel sortation system market correspondingly experiences a growth surge.
What Are The Primary Segments In The Global Parcel Sortation System Market?
The parcel sortation system market covered in this report is segmented –
1) By Type: Linear Parcel Sortation Systems, Loop Parcel Sortation System, Other Types
2) By Offering: Hardware, Software, Services
3) By Application: Logistics, E-commerce, Airports, Pharmaceuticals and Medical Supply, Food And Beverage, Other Applications
Subsegments:
1) By Linear Parcel Sortation Systems: Belt Conveyor-Based Systems, Roller Conveyor-Based Systems, Cross-Belt Sortation Systems
2) By Loop Parcel Sortation System: Tilt Tray Sorters, Cross-Belt Loop Sorters, Pop-Up Wheel Sorters
3) By Other Types: Automated Guided Vehicle (AGV) Sortation Systems, Overhead Sortation Systems, Pusher-Based Sortation Systems
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How Are New Trends Impacting The Size Of The Parcel Sortation System Market?
Leading companies in the parcel sortation system market are introducing robot-oriented parcel sorting systems and AI-powered vision systems to improve accuracy and efficiency. Robot-oriented parcel sorting systems are state-of-the-art automated systems that use robots to manage and sort parcels in logistics and distribution centers. This kind of systems harness robotic technology to amplify the efficiency, precision, and speed of the sorting process. For instance, Viettel Post, a company based in Vietnam that specializes in express delivery services, launched 160 LiBiao 'Mini Yellow' autonomous guided robots in the country in January 2024. These devices are placed in the storage and distribution hub, resulting in a fully automated package sorting technology. The robots used by VTPost come with AI-driven algorithms that can autonomously classify, categorize, and sort parcels depending on their size, weight, and destination. This level of automation minimizes sorting errors and boosts processing speeds, thus enhancing the overall efficiency of their logistics. Additionally, this system is inclusive of real-time tracking and monitoring features, enabling stakeholders to keep tabs on the movement and status of parcels at every phase of the sorting process.
Who Are the Key Players In The Parcel Sortation System Market?
Major companies operating in the parcel sortation system market are:
• Honeywell International Inc.
• Kawasaki Heavy Industries
• FANUC America Corporation
• Daifuku Co. Ltd.
• Yaskawa America
• Vanderlande
• Pitney Bowes Inc.
• Dematic
• Körber AG
• Fives
• BEUMER Group
• TGW Logistics
• Interroll Group
• Daifuku
• Bastian Solutions
• Murata Machinery Ltd.
• Siemens Logistics GmbH
• Viastore Systems
• National Presort Inc.
• Böwe Systec
• Muratec America
• Mantissa Corporation
• Okura Yusaki Co. Ltd.
What Is The Most Dominant Region In The Parcel Sortation System Market?
North America was the largest region in the parcel sortation system market in 2023. The regions covered in the parcel sortation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
