Parcel Sortation Systems Market To Hit USD 3.50 Billion By 2032, Driven By The Surge In E-Commerce And Automation In Logistics | SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The Parcel Sortation Systems Market is growing with demand for automated, high-speed logistics solutions in e-commerce and retail, driven by AI, robotics, and supply chain optimization.

Austin, April 08, 2025 (GLOBE NEWSWIRE) -- Parcel Sortation Systems Market Size & Growth Insights:

According to the SNS Insider,“The Parcel Sortation Systems Market size was valued at USD 1.75 Billion in 2023, and expected to reach USD 3.50 Billion by 2032, growing at a CAGR of 8.01 % during 2024-2032.”

Automation Driven Expansion Transforming High Volume Parcel Distribution

The Parcel Sortation Systems Market is experiencing rapid growth, driven by the surge in e-commerce and the increasing demand for fast, automated sorting solutions to manage high shipment volumes efficiently. Logistics companies are heavily investing in AI-based sortation systems, robotics, and predictive analytics to enhance processing speed, minimize errors, and optimize throughput. The rise of same-day and express delivery services has further accelerated the adoption of advanced sorting technologies, while IoT-driven smart logistics and AI-powered vision systems are streamlining parcel flow and reducing operational bottlenecks. In the US, the market was valued at USD 0.30 billion in 2022 and is expected to reach USD 0.65 billion by 2032, growing at a CAGR of 9.03%.

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Leading Market Players with their Product Listed in this Report are:

• Beumer Group (Germany) – Cross-belt sorters, high-speed conveyor sortation systems
• Interroll Group (Switzerland) – Roller conveyor sorters, modular automated sorting systems
• Vanderlande Industries B.V. (Netherlands) – Loop sorters, sliding shoe sorters, automated parcel sorting solutions
• Daifuku Co., Ltd. (Japan) – Tilt-tray sorters, linear parcel sortation systems
• Kion Group AG (Germany) – Automated warehouse sortation systems, shoe sorters
• Bastian Solutions, LLC (USA) – Robotic parcel sorting systems, pop-up sorters
• Körber AG (Germany) – AI-powered parcel sortation, high-speed sorting conveyors
• Okura Yusoki Co., Ltd. (Japan) – Tilt-tray sorters, parcel diverters
• Dematic (USA) – Cross-belt sorters, robotic parcel sorting solutions
• Honeywell International, Inc. (USA) – Smart parcel sorting systems, IoT-enabled automated sorters
• Murata Machinery, Ltd. (Japan) – High-speed parcel sorting conveyors, loop sortation systems
• SSI Schaefer (Germany) – Linear sortation conveyors, automated sorting hubs
• TGW Logistics Group (Austria) – Shuttle-based parcel sorting, dynamic conveyor sorting systems
• Equinox (Netherlands) – Parcel sorting solutions, robotic sorting arms.

Parcel Sortation Systems Market Report Scope:

Report Attributes	Details
Market Size in 2023	USD 1.75 Billion
Market Size by 2032	USD 3.50 Billion
CAGR	CAGR of 8.01% From 2024 to 2032
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segmentation	. By Offering (Hardware, Software, Service) . By Type (Linear Parcel Sortation System, Loop (Circular) Parcel Sortation System) . By Industry Vertical (Logistics, E-commerce, Airports, Pharmaceuticals, Food & Beverages, Others)
Key Drivers	. Automation-Driven Expansion of High-Volume Distribution Hubs. . Accelerating E-Commerce Growth and the Demand for Same-Day Delivery.

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However, sorting irregular and oversized parcels remains a challenge, as most automated systems are optimized for standard package dimensions. Handling asymmetrical or fragile shipments requires costly specialized equipment, such as adaptive grippers and advanced machine vision technology. Despite these challenges, investments in scalable, modular, and energy-efficient sortation solutions continue to rise, with major players like Amazon, FedEx, and DHL leading innovations to improve delivery accuracy and overall supply chain efficiency.

Key Industry Segmentation

By Offering

In 2023, the hardware segment dominated the Parcel Sortation Systems Market, accounting for 70% of total revenue due to the rising adoption of advanced sorting machinery, conveyors, and scanning technologies. High-speed sorters, AGVs, and AI-driven robotics enhance efficiency and reduce errors in parcel handling.

The services segment is projected to be the fastest-growing from 2024 to 2032, driven by demand for installation, maintenance, and system integration. Predictive maintenance and AI-powered analytics are optimizing performance, while the shift toward Equipment-as-a-Service (EaaS) is improving cost efficiency. As logistics networks expand, both hardware and service innovations will shape automated parcel sorting.

By Application

In 2023, the linear parcel sortation system segment led the Parcel Sortation Systems Market with a 58% revenue share, driven by its high efficiency, scalability, and ability to handle large parcel volumes. Commonly used in logistics hubs and e-commerce centers, cross-belt and tilt-tray sorters streamline operations by ensuring a continuous, linear flow, reducing bottlenecks, and enhancing speed.

The loop sortation system segment is expected to grow the fastest from 2024 to 2032 due to its high throughput, flexibility, and ability to recirculate parcels dynamically. As e-commerce and express deliveries expand, both systems will continue driving market growth.

By Industry Vertical

In 2023, the logistics segment held a 45% share of the Parcel Sortation Systems Market, driven by e-commerce growth, global trade expansion, and the need for efficient last-mile delivery. Logistics providers are investing in AI-driven sorting, robotics, and machine vision to enhance accuracy and efficiency while integrating energy-efficient technologies to reduce costs and environmental impact.

The e-commerce segment is the fastest-growing from 2024 to 2032, fueled by rising online shopping and express delivery demands. As omnichannel retail and same-day delivery expand, major logistics and e-commerce firms are upgrading fulfillment centers with advanced automation to handle increasing parcel volumes.

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Asia-Pacific Leads While North America Emerges as the Fastest-Growing Market for Parcel Sortation Systems

In 2023, Asia-Pacific dominated the parcel sortation systems market with a 42% revenue share, driven by booming e-commerce, urbanization, and investments in logistics automation. Countries like China, Japan, India, and South Korea are rapidly adopting AI-powered sorting, robotics, and smart logistics infrastructure, supported by major e-commerce giants like Alibaba and JD.com.

North America is the fastest-growing region from 2024 to 2032, fueled by rising demand for automated logistics, warehouse robotics, and AI-driven sorting solutions. Companies like Amazon, FedEx, and UPS are investing in advanced automation to enhance efficiency amid labor shortages and high operational costs. Government initiatives and the expansion of micro-fulfillment centers further accelerate adoption.

Recent Development

• 11. March 2025, BEUMER Group unveils cutting-edge automation at PROMAT 2025 under the theme“Your Partner of Choice,” featuring AutoDrop for the BG Pouch System and Dynamic Bulk Pick for AI-driven bulk sorting. These innovations enhance efficiency, processing up to 10,000 pieces per hour while advancing the vision of lights-out warehouses for 24/7 logistics automation.
• 11. March 2025, Interroll revolutionizes automated conveyor systems with MCP PLAY, enabling up to 100% higher throughput and 30% lower energy consumption. Featuring Flowing Merge and Adjust to Gap functions, this innovation enhances efficiency, reduces programming efforts, and supports seamless, decentralized control for future-proof logistics automation.

T able o f Contents - Major Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

5.1 Parcel Sorting Efficiency & Performance

5.2 Parcel Logistics & Last-Mile Impact

5.3 Expansion Rate of Automated Sorting Hubs

6. Competitive Landscape

7. Parcel Sortation Systems Market Segmentation, by Offering

8. Parcel Sortation Systems Market Segmentation, by Type

9. Parcel Sortation Systems Market Segmentation, by Industry Vertical

11. Regional Analysis

12. Company Profiles

13. Use Cases and Best Practices

14. Conclusion

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