Global Automated Sortation System Market Size is to Reach USD 21.7 billion by 2034, With 8.8% CAGR Growth

As industrial operations become increasingly sophisticated, manufacturers are seeking to uplift their production capacities by incorporating automated sortation systems to up-scale warehousing and logistics by improving picking and sorting. Automated sortation systems helping garner faster returns on investments are steadily gaining traction.

NEWARK, Del, Aug. 19, 2024 (GLOBE NEWSWIRE) — The global automated sortation system market is poised to reach a valuation of USD 9.3 billion in 2024, with a robust compound annual growth rate (CAGR) of 8.8% projected over the forecast period from 2024 to 2034. By 2034, the market is expected to expand significantly, reaching USD 21.7 billion, and is anticipated to achieve a year-over-year growth rate of 7.9% in 2024.

Automated sortation systems are engineered to manage multiple items simultaneously with remarkable speed. These systems leverage advanced conveyor technologies and automated mechanisms to efficiently sort items, substantially enhancing operational productivity and throughput.

Sortation systems are integral to a variety of industries, including courier and logistics, automotive, food and beverage, pharmaceuticals, and air cargo. They facilitate precise and efficient package sorting in high-volume settings. Utilizing sensors, these systems detect the placement or removal of products on a conveyor belt, prompting the system to accurately direct the product to its designated location.

Sortation systems play a critical role in production lines by efficiently organizing and transporting components or finished products to subsequent stages of assembly or packaging. In the logistics sector, these systems enhance the cross-docking process by rapidly directing goods to their designated destinations. Cross-docking involves unloading incoming shipments from suppliers and promptly transferring them to outbound vehicles for immediate distribution.

Key Factors Shaping the Demand Outlook of the Automated Sortation System Industry:

• Increasing the application of automated sortation systems in various end-use industries to augment the growth of the market
• Reduced catalog handling procedures is expected to spur the market growth
• Increasing demand for sortation system to boost the market growth
• Growing advances in technology are expected to create new growth prospects for automated sortation system manufacturers.

Which Factors Can Positively Influence Demand for Automated Sortation Systems?

Improved IoT Technology Drives Sales of Automated Sorting Conveyor Systems

When automation equipment, sensors, and actuators are made accessible through the Internet to fulfil global demand, the key driving factor behind IoT automation is to significantly lower operational costs. Manufacturers makes use of new manufacturing technologies to develop flexible, smart, and adaptive production processes that meet the needs of a global market.

Manufacturers can also use IoT devices to detect part failures, schedule repairs, inform and alleviate spare parts inventories, and plan for future repairs using predictive maintenance procedures.

The stakes and advantages of IoT technology are enormous. Key market players focus on using smart technology to better their ware and suit customers’ diverse sporting expectations. Increased inventory demand is expected to assist market expansion.

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Key Takeaways from the Report

 Market Growth: The global automated sortation system market is projected to grow from USD 9.3 billion in 2024 to USD 21.7 billion by 2034, reflecting a CAGR of 8.8% over the forecast period.

 Dominant Region: South Korea is expected to lead the market with an impressive CAGR of 10.1% through 2034, underscoring its dominance in the sector.

 Key Players: Industry giants like Honeywell International Inc., Toyota Industries Corporation, Beumer Group, Fives, Intralox, and Siemens AG are spearheading innovations in automated sortation technologies.

 Types of Sorting: The market is segmented into linear sorters, circular sorters, and divert systems, catering to diverse industrial needs for efficient product identification and transportation.

 Industry Overview: Automated sortation systems play a critical role in logistics, automating the identification and routing of products within facilities, ensuring swift and accurate deliveries.

 Future Outlook: With rising demand for efficient logistics and supply chain operations, the automated sortation system market is poised for substantial growth over the next decade.

“An Automated Sortation System is a highly efficient technology designed to streamline the sorting process in warehouses and distribution centers. By using advanced algorithms and sensors, it enables faster, more accurate sorting of goods, reducing manual labor and increasing overall productivity.” opines Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).

Country-Wise Analysis

What is Supporting Automated Sortation System Market Growth in India?

Emerging e-Commerce Industry Due to Increasing Craze of Online Buying Driving Sales of Automated Sorting Conveyor Systems

During the forecast period, the Indian e-Commerce sector is expected to generate significant income for the automated sortation system market. This is because online shopping is becoming more popular in developing countries such as India and China.

The country’s industrial revolution is expected to increase the use of automation, resulting in huge market potential opportunities throughout the projection period. The country’s key market players are adopting automated technologies to meet their customers’ needs on time, resulting in significant market growth potential for the projection period.

Which Factors Drive Automated Sortation System Sales in the United States?

Increasing Service-related Businesses & Presence of Key Market Players Fuelling Demand for Automated Sorting Systems

In North America, the United States has the highest revenue share in the automated sortation system market. Businesses in the service sector are seeing profitable growth. Growing interest in sustainability, combined with a strong economy as a result of cost-cutting, has fuelled demand for automated sortation systems in the United States.

In the United States, post offices have achieved significant energy savings in parcel handling applications after implementing roller sortation systems across their parcel handling modules. The country’s strong economy, which includes increased port traffic, e-Commerce activity, and vital manufacturing indicators, all result in manufacturing growth, which is expected to fuel demand for automated sortation systems.

Competitive Landscape

Key players in the sortation systems industry, such as Honeywell International Inc., Toyota Industries Corporation, Beumer Group, Fives, Intralox, and Siemens AG, are strategically enhancing their market competitiveness. Manufacturers are actively incorporating innovative technologies to improve system efficiency and maintain a competitive edge.

To foster innovation, companies are making substantial investments in advanced facilities and forming strategic partnerships. Additionally, they are expanding their market presence through the acquisition of smaller firms. A significant focus is placed on research and development efforts aimed at producing solutions that meet the evolving needs of end-use industries.

The market is experiencing an increasing demand to streamline catalog and handling processes, a trend expected to drive significant growth. The proliferation of stock-keeping units (SKUs) presents challenges for traders and distributors, leading to a growing reliance on modern sortation systems to optimize operations.

Top Key Players in the Automated Sortation System Market

• Honeywell International Inc.
• Toyota Industries Corporation
• Beumer Group
• Fives
• Intralox
• Siemens AG
• Daifuku Co., Ltd.
• KION Group (Dematic)
• SSI Schaefer Group
• Murata Machinery Ltd.

Industry Updates

• In July 2024, BEUMER Group, headquartered in Beckum, Germany, announced an investment exceeding INR 2 billion in a new state-of-the-art production facility in Reliance MET City, Jhajjar. This move is expected to bolster BEUMER’s global manufacturing footprint and contribute to the ongoing success of its Indian subsidiary.
• In June 2024, Honeywell, based in North Carolina, acquired CAES Systems Holdings LLC from Advent International, a private equity firm, for approximately USD 1.9 billion in an all-cash transaction. This acquisition, valued at 14 times the estimated 2024 EBITDA on a tax-adjusted basis, underscores Honeywell’s commitment to expanding its capabilities.
• In June 2024, OPEX® Corporation, headquartered in New Jersey, was recognized by the SupplyTech Breakthrough Awards program as the winner of the 2024 Sortation System Innovation of the Year Award for its OPEX Sure Sort® X with OPEX XtractTM, further solidifying its position as an industry leader.

Category-Wise Analysis

Which End User is Driving Most Demand for Automated Sortation Equipment?

Increasing Trend of Home Shopping Driving Need for Automated Sorting Conveyor Systems in e-Business Sector

The retail and e-Commerce sectors accounted for the largest share of the market. The rising number of Internet users along with the convenience of online shopping has resulted in an increase in the number of products ordered online.

Several businesses have begun to automate their daily operations in order to achieve their delivery deadlines. These sectors are likely to continue their high market share during the projection period as the number of Internet users grows annually.

Rapid Growth in Online Food Purchasing Augmenting Sales of Sortation Systems for Warehouses

During the projection period, the food and beverage industry is estimated to expand at a healthy CAGR. This expansion can be attributed to the growing use of warehouse automation technology in the industry.

This is because of increasing demand for online food shopping. To accommodate this ever-increasing demand, major corporations in this area such as PepsiCo, Cargill, Inc., and Nestle S.A. are focusing on automating their warehouse operations. Firms such as Bastian Solutions, Inc. and Dematic are focusing on providing goods to companies in this industry in order to increase their market share.

Old Source: Automated Sortation System Market Surges on the Back of Enhanced Efficiency in Production Units, Future Market Insights

Key Segments of Market Report

By Equipment Type:

• Based on equipment type, the industry is divided into: the pop-up roller and ARB sorter, pivoting arm and paddle sorter, tilt-tray sorter, cross belt sorter, pouch/ pocket sorter, sliding shoe sorter, narrow belt sorter, flat sorter, and push tray sorter.

By Components:

• By components, the industry is segregated into hardware and software. Hardware is further segregated into drives and power units, conveyor belts, rollers and wheels, trays, scanners and sensors, and auxiliary components. Software is bifurcated into monitoring and visual inspections and control systems.

By System Type:

• Unit sorters, case sorters, and combo sorters are the leading system types.

By Sorting Type:

• The three main types of sorting are linear sorter, divert system, and circular sorter.

By Load Capacity:

• Based on load capacity, the industry is segregated into up to 5kg, 5 to 20 kg, 20 to 35 kg, and above 35 kg.

By Throughput Capacity:

• By throughput capacity, the industry is segmented into high throughput sorters (15000 sorts above), medium throughput sorters (5,000 to 15,000 sorts), and low throughput sorters (less than 5,000 sorts).

By End-use:

• A few key end-uses include courier and logistics, paper and print, automotive, food and beverages, pharmaceuticals, air cargo, leather goods, and general manufacturing.

By Region:

• Information about key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and the Middle East and Africa is given.

Author By:

Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.

His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.

Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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