Global Parcel Sortation Systems Market Overview
The Parcel Sortation Systems Market Size was estimated at 18.94 (USD Billion) in 2022.The Parcel Sortation Systems Industry is expected to grow from 20.75(USD Billion) in 2023 to 47.2 (USD Billion) by 2032. The Parcel Sortation Systems Market CAGR (growth rate) is expected to be around 9.56% during the forecast period (2024 - 2032).
Key Parcel Sortation Systems Market Trends Highlighted
The Parcel Sortation Systems market is witnessing a surge in demand driven by the exponential growth of e-commerce, leading to a significant increase in parcel volumes. The need for efficient and automated parcel handling systems is crucial to meet the demands of online retailers and logistics providers. Advanced technologies such as optical character recognition (OCR), artificial intelligence (AI), and robotics are revolutionizing the parcel sorting process, enabling higher accuracy and throughput rates. Sustainability is also becoming a key market trend, with parcel sorter manufacturers focusing on energy-efficient designs and eco-friendly materials. Furthermore, the rise of micro-fulfillment centers and last-mile delivery services is creating opportunities for specialized parcel sorting systems designed to accommodate smaller parcel sizes and faster delivery times.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Parcel Sortation Systems Market Drivers
Increasing e-commerce adoption
E-commerce development drives the increasing demand for parcel sorting systems. Since the growth of the e-commerce market, more people choose to order products online rather than purchase them in physical stores. It makes the need for efficient systems of parcels sorting and delivery simultaneously relevant. Due to the increasing flow of parcels of different shapes and sizes, it becomes critical to have systems that can sort them quickly and cost-efficiently.Furthermore, parcel sorting systems allow saving costs on the labor force as these systems are automated. Also, an appropriate system can significantly reduce the time needed for the sorting is an exceptional advantage of this technology. Therefore, with the growing e-commerce market, the parcel sorting systems become a critical sector of the e-commerce supply chain. The “same day” and “next day” delivery influence the increasing demand for parcel sorting systems.A similar type of delivery services undergoes a growing trend of popularity. Although these delivery methods were widely-used earlier, today, people prefer such delivery because it is faster. Therefore, it needs a system that can manage high-speed sorting of numerous parcels. Automated parcel sorting systems are likely to be a matching solution. Thus, the continuous development of e-commerce and the increasing of the “same day” and “next day” delivery popularity become the key drivers of the Parcel Sortation Systems Market Industry.
Technological advancements
The rapid growth of the Parcel Sortation Systems Market is largely due to advances in technological capabilities. The development of new technologies has significantly transformed the quality of tracking within the industry. With the help of artificial intelligence and machine learning, parcel sorting systems can now be controlled with greater accuracy and efficiency. AI-powered systems can examine a variety of recipients based on factors like size, shape, and delivery location.As a result, it is possible to reduce errors in sorting and provide better delivery times.
Government regulations
Added to this, government regulations have not only promoted the market of Global Parcel Sortation Systems but has also fueled its growth. Numerous governments worldwide have passed regulations which have compelled businesses to make use of automated parcel sorting systems. They have made these regulations in a bid to enhance efficiency and safety in the process of delivering parcels. Consequently, the application of government regulations is speculated to keep promoting the market of Global Parcel Sortation Systems thereby, effecting its growth in the years to come.
Parcel Sortation Systems Market Segment Insights
Parcel Sortation Systems Market Sorting System Type Insights
The Parcel Sortation Systems Market is segmented into various types of sorting systems, including cross-belt sorters, shoe sorters, tilt tray sorters, pop-up wheel sorters, vertical sorter modules, helix sorters, and combination sorters. Each type has its unique characteristics and applications, catering to different parcel handling requirements. Cross-belt sorters, with a global market revenue of USD 1.2 billion in 2023 and projected to reach USD 1.8 billion by 2032, are widely used in e-commerce and retail distribution centers due to their ability to handle a high volume of parcels with speed and accuracy.Shoe sorters, with a market size of USD 750 million in 2023 and expected to grow to USD 1.1 billion by 2032, are specifically designed to handle footwear and are commonly found in shoe manufacturing and distribution facilities. Tilt tray sorters, with a market valuation of USD 900 million in 2023 and poised to reach USD 1.3 billion by 2032, employ trays that tilt to sort parcels based on their destination. Pop-up wheel sorters, with a market size of USD 600 million in 2023 and projected to grow to USD 900 million by 2032, utilize retractable wheels to gently sort parcels, making them suitable for handling delicate items.Vertical sorter modules, with a market revenue of USD 500 million in 2023 and anticipated to reach USD 800 million by 2032, offer a compact and efficient solution for sorting parcels in vertical spaces. Helix sorters, with a market size of USD 400 million in 2023 and projected to grow to USD 600 million by 2032, utilize a spiral conveyor system to sort parcels based on their destination. Combination sorters, which combine multiple sorting technologies, provide customized solutions for complex parcel handling operations. The growth of the Parcel Sortation Systems Market is driven by the increasing e-commerce industry, rising demand for automated parcel handling solutions, and advancements in sorting technology.The market is highly competitive, with key players investing in research and development to enhance sorting efficiency and reduce operational costs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Parcel Sortation Systems Market Sorting Process Insights
The Sorting Process segment plays a crucial role in the Parcel Sortation Systems Market, contributing significantly to its overall revenue. In 2023, the market for Sorting Process was valued at USD 12.5 billion and is projected to grow at a CAGR of 9.8% over the forecast period, reaching USD 22.3 billion by 2032. This growth is driven by the increasing demand for efficient and automated parcel handling systems, particularly in e-commerce and logistics industries. Induction, the first step in the sorting process, involves receiving and feeding parcels into the sorting system.Scanning, the next step, captures data such as parcel dimensions, weight, and destination. Weight Measurement determines the parcel's weight for accurate sorting and postage calculation. Sorting, the core of the process, classifies parcels based on various criteria such as destination, size, and weight. Finally, Diversion directs parcels to the appropriate chutes or conveyors for further processing or shipment. Each step in the Sorting Process is essential for ensuring efficient and accurate parcel handling. As the e-commerce industry continues to expand, the demand for automated and sophisticated sorting systems is expected to rise, driving the growth of the Sorting Process segment in the Parcel Sortation Systems Market.
Parcel Sortation Systems Market Conveyor Type Insights
The growth of this segment is attributed to the increasing demand for efficient and reliable parcel sorting solutions in logistics and e-commerce industries. Among the different types of conveyors, belt conveyors held the largest market share in 2023, accounting for over 40% of the total revenue. This is due to their high speed, efficiency, and ability to handle a wide range of parcel sizes and weights. Roller conveyors followed closely, capturing a significant market share owing to their simplicity, low maintenance, and cost-effectiveness. In the coming years, overhead chain conveyors are expected to witness a faster growth rate compared to other types due to their ability to handle heavy loads and operate in space-constrained environments.
Parcel Sortation Systems Market Application Insights
The logistics and transportation sector is the primary driver of the Parcel Sortation Systems Market, accounting for over 50% of the revenue in 2023. This dominance is attributed to the rising demand for efficient parcel handling solutions in the e-commerce industry. The retail and e-commerce segment is also witnessing significant growth due to the increasing popularity of online shopping, leading to higher volumes of parcels to be sorted. The manufacturing, healthcare, and food and beverage industries also contribute to the market growth, albeit to a lesser extent.
Parcel Sortation Systems Market Control System Insights
The Parcel Sortation Systems Market is segmented into various sub-segments based on control systems, including PLC-based, PC-based, and motion control systems. These systems play a critical role in automating and optimizing the sorting process, enhancing operational efficiency and throughput. PLC-based control systems are widely used in parcel sorting applications due to their reliability, flexibility, and ease of programming. They offer precise control over the sorting mechanisms, ensuring accurate and efficient sorting operations. PC-based control systems are gaining popularity as they provide advanced capabilities such as graphical user interfaces, data logging, and remote monitoring.These systems offer greater flexibility and customization options, enabling users to tailor the sorting process to their specific requirements. Motion control systems are responsible for controlling the movement of conveyors, sorters, and other mechanical components within the sorting system. They ensure smooth and synchronized operation, optimizing the overall performance and efficiency of the system. The market for control systems in the Parcel Sortation Systems Market is expected to grow significantly in the coming years, driven by the increasing demand for automated and efficient parcel sorting solutions.The growing e-commerce industry and the associated surge in parcel volumes are expected to fuel the demand for advanced control systems capable of handling high-volume sorting operations. Additionally, the need for improved operational efficiency and cost reduction is mendorong the adoption of sophisticated control systems that can optimize the sorting process and minimize downtime.
Parcel Sortation Systems Market Regional Insights
The Parcel Sortation Systems Market is segmented by region into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023, followed by Europe and APAC. The growth in the North American market is attributed to the increasing adoption of e-commerce and the growing demand for efficient parcel sorting solutions. The European market is also expected to witness significant growth, driven by the increasing demand for automated parcel sorting systems in the logistics and postal industries.The APAC region is expected to be the fastest-growing market, owing to the rapidly growing e-commerce industry in the region. South America and MEA are expected to witness moderate growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Parcel Sortation Systems Market Key Players And Competitive Insights
The key players in Parcel Sortation Systems Market industry are continuously trying to gain a competitive edge by investing in research and development. The development on Parcel Sortation Systems Markets are focused on improving the efficiency and accuracy to the sorting operation. The leading players in the Parcel Sortation Systems Market are utilizing the latest technologies such as artificial intelligence and machine learning to sort the parcels in an efficient manner which improve the throughput of the system. The Parcel Sortation Systems Market Competitive Landscape is expected to be dynamic with the companies trying to get the edge over the other companies by continuous efforts in innovative product developments, better customer service and more cost effective solutions.Beumer Group is a critical player in the Parcel Sortation Systems Market and offers a variety of options to its customers across multiple industry. Beumer Group has innovative sorting systems which offers better performance due to usage of AI and ML algorithms in the sorter. Beumer Group has a broad spectrum of solutions and has a global presence for efficient customer support and envoy of delays. It has a strong distribution network which helps its operations to a great extent.Dematic is a leading player in the Parcel Sortation Systems Market and has a well-deserved reputation for high-quality sorters at their customer’s disposal. Dematic has offerings in range of sorters, conveyors and software applications which provide high efficiency and negligible downtimes. It has a high focus on green logistics solutions offered by the company which have high sustainability and negligible impact on environment. Dematic is a financially strong company with high global operations and has a better competitive edge against competitors.
Key Companies in the Parcel Sortation Systems Market Include
- Dambach Lagersysteme
- Beumer Group
- Dematic
- Transbotics
- TGW
- Intelligrated
- Fives Intralogistics
- Veltec Systems (USA) Inc.
- Vanderlande
- Swisslog
- Egemin Automation
- Mecalux
- Honeywell Intelligrated
- Daifuku Co.
- SSI Schaefer
Parcel Sortation Systems Market Industry Developments
The global parcel sorting systems market is projected to reach USD 47.2 billion by 2032, exhibiting a CAGR of 9.56% from 2024 to 2032. Advancements in e-commerce, logistics, and automation drive market growth. The increasing volume of e-commerce shipments necessitates efficient parcel sorting and handling systems. Furthermore, the growing adoption of automated sorting solutions in warehouses and distribution centers fuels market expansion. Key players in the market include Dematic, Vanderlande, SSI Schaefer, and Beumer Group. Recent developments include Dematic's launch of the AutoStore solution for automated storage and retrieval systems and Vanderlande's partnership with KLM for an automated baggage handling system at Amsterdam Airport Schiphol.
Parcel Sortation Systems Market Segmentation Insights
- Parcel Sortation Systems Market Sorting System Type Outlook
- Cross-Belt Sorters
- Shoe Sorters
- Tilt Tray Sorters
- Pop-Up Wheel Sorters
- Vertical Sorter Modules
- Helix Sorters
- Combination Sorters
- Parcel Sortation Systems Market Sorting Process Outlook
- Induction
- Scanning
- Weight Measurement
- Sorting
- Diversion
- Parcel Sortation Systems Market Conveyor Type Outlook
- Belt Conveyors
- Roller Conveyors
- Chain Conveyors
- Overhead Chain Conveyors
- Parcel Sortation Systems Market Application Outlook
- Logistics and Transportation
- Retail and E-commerce
- Manufacturing
- Healthcare
- Food and Beverage
- Parcel Sortation Systems Market Control System Outlook
- PLC-based Control Systems
- PC-based Control Systems
- Motion Control Systems
| Report Attribute/Metric |
Details |
| Market Size 2022 |
18.94(USD Billion) |
| Market Size 2023 |
20.75(USD Billion) |
| Market Size 2032 |
47.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
9.56% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Dambach Lagersysteme ,Beumer Group ,Dematic ,Transbotics ,TGW ,Intelligrated ,Fives Intralogistics ,Veltec Systems (USA) Inc. ,Vanderlande ,Swisslog ,Egemin Automation ,Mecalux ,Honeywell Intelligrated ,Daifuku Co. ,SSI Schaefer |
| Segments Covered |
Sorting System Type ,Sorting Process ,Conveyor Type ,Application ,Control System ,Regional |
| Key Market Opportunities |
Increased ecommerce Growing package volumes Technological advancements Automation trends Customized solutions |
| Key Market Dynamics |
Ecommerce surge Automation adoption Supply chain optimization Labor shortages Technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Parcel Sortation Systems Market is expected to reach USD 20.75 billion in 2023 and is projected to grow at a CAGR of 9.56% to reach USD 47.2 billion by 2032.
The growth of the Parcel Sortation Systems Market is primarily driven by the increasing e-commerce industry, rising demand for efficient and automated parcel handling systems, and the growing need for faster and more reliable delivery services.
The Asia-Pacific region is expected to hold the largest market share in the Parcel Sortation Systems Market due to the rapid growth of the e-commerce industry in the region, particularly in countries like China and India.
Some of the key competitors in the Parcel Sortation Systems Market include Vanderlande Industries, Beumer Group, Siemens Logistics, Swisslog, and Dematic.
Parcel Sortation Systems are majorly used in e-commerce, retail, postal and courier services, and manufacturing industries for sorting and routing of parcels based on their destination, size, weight, and other criteria.
Key trends in the Parcel Sortation Systems Market include the adoption of advanced technologies such as robotics, artificial intelligence, and machine learning for enhanced automation and efficiency, the growing demand for sustainable and energy-efficient systems, and the increasing focus on customization and tailor-made solutions.
The Parcel Sortation Systems Market faces challenges such as the high cost of implementation and maintenance of automated systems, the need for skilled labor for operation and maintenance, and the potential for disruptions due to technological advancements and changes in e-commerce logistics.
The future growth prospects for the Parcel Sortation Systems Market are positive due to the continued growth of the e-commerce industry, the increasing adoption of automation and advanced technologies, and the growing need for efficient and reliable parcel handling systems.
Key factors to consider when choosing a Parcel Sortation System include the volume and type of parcels handled, the required throughput and sorting capacity, the available space and budget, the level of automation desired, and the integration with existing systems.
The latest advancements in Parcel Sortation Systems include the integration of robotics for automated parcel handling, the use of artificial intelligence for real-time decision-making and optimization, and the development of modular and scalable systems for flexible and customized solutions.
