Automated Sortation System Market
Automated Sortation System Market
Automated Sortation System Market to Reach US$ 4.6 Bn by 2032, driven by the rising need for a reduction in inventory and handling processes: Global Insight Services
New York, July 2023: According to a new research study by Global Insight Services (GIS), the global Automated Sortation System Market is expected to grow rapidly over the next 10 years to reach a value of more than the US $ 4.6 Billion by 2032.
An automated sortation system is a material handling system that uses sorting technology to automatically sort items or products according to predetermined criteria. Sortation systems are used in a variety of industries and applications, including package handling, order fulfilment, and manufacturing. Automated sortation systems typically consist of a series of conveyors, sorting devices, and control systems. The conveyors transport items to be sorted to the sorting devices, which can include chutes, gates, or other mechanisms. The control system directs the flow of items to the appropriate sorting device based on the predetermined criteria..
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Automated Sortation System Market: Key Trends and Drivers
The increasing adoption of Internet of Things (IoT) technology is driving market growth in the forecast period. Companies in the market are concentrating on leveraging this technology to improve their product offerings and fulfill the diverse sorting needs of end-users. Sortation holds significant importance for pharmaceutical companies, where wastage issues arise due to products being sorted outside their required storage temperature for extended periods, rendering them unusable. To address this challenge, industry players are employing IoT connectivity to enable high-speed sortation and enhance product visibility by tracking their location effectively. Additionally, increased investments in warehouse automation across various sectors. A notable example is Coca-Cola European Partners, which, in June 2017, committed a substantial investment of USD 49.6 million to enhance its factory in the U.K. with an automated warehouse. This investment aims to expand storage capacity and deploy advanced systems capable of efficiently handling around 25,000 pallets. Furthermore, the adoption of pouch/pocket sorters in the clothing and apparel industries is expected to further fuel market expansion during the forecast period.
Automated Sortation System Market: Restraints & Challenges
The Automated Sortation System market faces significant challenges, primarily stemming from the high initial investment cost and the requirement for substantial space during installation. The implementation of these systems demands a substantial upfront financial commitment, deterring potential adopters, particularly smaller businesses with limited budgets. Additionally, the need for a large physical area to accommodate the sortation infrastructure can be a limiting factor for companies with space constraints in their facilities. Despite the evident benefits of increased efficiency and productivity, these barriers pose considerable obstacles to the widespread adoption of automated sortation solutions in various industries. Innovative cost-effective solutions and adaptable compact designs will be important to address these challenges and unlock the full potential of automated sortation systems in the market.
Automated Sortation System Market Report Findings
The liner sorting segment is likely to hold a dominant Automated Sortation System Market share and grow at a substantial CAGR during the forecast period.
Based on type, the market is segmented into Linear Sortation, and Loop Sortation. Among these in 2022, the linear sortation segment dominated the market with the highest share. This segment encompasses a variety of sortation systems, such as shoe sorters, narrow belt sorters, tilt tray sorters, and cross-belt sorters, commonly utilized in cross-docking applications. These systems are renowned for their exceptional performance, reliability, and extended operational lifespan. Linear Sortation has become increasingly favored by industries such as e-commerce, logistics, and distribution centers due to its unparalleled efficiency and precision in handling high volumes of diverse items. The system’s ability to accurately sort packages, parcels, and products based on their unique attributes, such as size, weight, and destination, has led to improved operational throughput and reduced error rates. As businesses strive to streamline their supply chain processes and meet the ever-growing consumer expectations for faster and more reliable deliveries, the adoption of Linear Sortation technology has become indispensable, making it a pivotal driver in the rapid expansion of the automated sorting system markets.
Whereas, the loop sortation segment is anticipated to exhibit robust growth, exceeding a significant Compound Annual Growth Rate (CAGR). Loop sortation systems primarily include tilt tray sorters, cross belt sorters, Bombay sorters, and pouch/pocket sorters. Also known as circular sortation systems, they are designed with tight radius curves to make the most efficient use of warehouse space. Loop sortation systems are particularly favored in pharmaceutical applications for their precision and efficiency.
The retail and e-commerce segment is anticipated to hold a majority of the Automated Sortation System Market size throughout the study period.
Based on end-use, the market is segmented into Retail & E-commerce, Food & Beverages, Transportation & Logistics, Pharmaceutical, Others. Among these, the Retail & E-commerce segment has experienced significant growth in the automated sorting system market, driven by the ever-increasing demand for efficient and streamlined order fulfillment processes. With the surge in online shopping and the need for faster, accurate, and cost-effective sorting solutions, retailers and e-commerce businesses have turned to automated sorting systems to optimize their logistics operations. These systems leverage advanced technologies such as artificial intelligence, robotics, and computer vision to sort and categorize parcels and packages rapidly, improving order accuracy, reducing handling times, and enhancing overall customer satisfaction. As the Retail & E-commerce industry continues to expand and evolve, the adoption of automated sorting systems is expected to further accelerate, propelling the market’s growth in the coming years.
The Europe region is estimated to exhibit the highest growth rate during the Automated Sortation System Market forecast period.
Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. Europe accounted for largest revenue share in 2022. In 2019, primarily driven by key players like Siemens AG, KNAPP AG, and Beumer Group Gmbh. The region’s strong market position was further bolstered by the growing demand in the transportation and logistics sector. Additionally, Europe’s high logistics performance index (LPI) score, as reported by the World Bank Group, surpassed other regions, further strengthen its position. With renowned companies like System Logistics S.p.A. and DHL International GmbH heavily utilizing automation in warehouse operations, Europe is expected to maintain its significant market share from 2022 to 2032. On the other hand, the Asia Pacific region is projected to witness the highest compound annual growth rate (CAGR) during the forecast period. This growth is attributed to the increasing adoption of online shopping in developing countries like China and India. As per the India Brand Equity Foundation (IBEF), the Indian e-commerce market is set to reach USD 200 billion by 2026, a significant increase from USD 38.5 billion in 2017. Furthermore, the Industry 4.0 revolution in the region is anticipated to propel the use of automated technologies, unlocking substantial growth potential for the market.
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The overall competitive rivalry remains moderately high in the market studied. The growing presence of big players in the industry is expected to intensify competitive rivalry during the forecast period. The global automated sortation system market report includes players are Toyota Industries Corporation, Beumer Group, Fives, Intralox, Siemens AG, Daifuku Co., Ltd., KION Group (Dematic), SSI SCHAEFER Group, Murata Machinery Ltd. and Knapp AG, among others.
Recent Developments in the Automated Sortation System Market:
- In June 2021, Satake has announced a debut of its latest and largest optical sorter in size and capacity: “NIRAMI series.” Satake’s latest high specification Optical Sorter “NIRAMI” is designed to efficiently sort grains, pulses, seeds, and many other products. With various sizes available, all featuring extra-wide chutes and flexible configurations, Nirami ideally suits a wide variety of applications and processing capacities. These newly designed optics detect and distinguish subtle color differences utilizing RGB full-color cameras and optional infrared (IR) cameras.
- In March 2021, Interroll has added a system for a wide range of potential users to its successful range of automated sortation solutions with the launch of a new drop tray sorter, the Split Tray Sorter MT015S. The new product makes it easier for companies to enter the e-commerce market or be used flexibly to existing sortation solutions.
- In August 2019, Interroll Group acquired parts of the business activities and assets of its IBH ehf, the company sales agent in Iceland and Faroe Islands. The acquisition was done to strengthen the former company sales and service offerings in the food and beverage sector.
- In March 2018, KNAPP AG announced its plans to invest in an innovation center in Austria. The company plans to utilize the new facility for the development of technologically warehouse logistics systems and gain a competitive advantage in the market.
- In June 2017, Coca-Cola European Partners announced investment worth USD 49.6 million in its automated warehouse at its factory in the U.K. The investment was done to increase the facilitys storage capacity and will have systems that are capable of automatically moving around 25,000 pallets.
Automated Sortation System Market Report Coverage
- The report offers a comprehensive quantitative as well as qualitative analysis of the current global Automated Sortation System Market outlook and estimations from 2022 to 2032, which helps to recognize the prevalent opportunities.
- A thorough analysis of market trends and restraints is provided.
- Region-wise, as well as country-wise conditions, are broadly evaluated in this report.
- The forecasts in this report are made by examining the recent trends along with future Automated Sortation System Market potential from 2022 to 2032 in terms of revenue.
- Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the Automated Sortation System Market are also analyzed.
Global Automated Sortation System Market Segmentation
- Linear Sortation
- Loop Sortation
- Retail & E-commerce
- Food & Beverages
- Transportation & Logistics
- North America
- The U.S.
- The U.K.
- Rest of Europe
- The Asia-Pacific
- South Korea
- Rest of Asia-Pacific
- Rest of the World
- Latin America
- The Middle East
- Toyota Industries Corporation
- Beumer Group
- Siemens AG
- Daifuku Co., Ltd.
- KION Group (Dematic)
- SSI SCHAEFER Group
- Murata Machinery Ltd.
- Knapp AG