Automated Sortation Systems Market Growth & Trends

The global automated sortation systems market size is expected to reach USD 7.05 billion by 2027, expanding at a CAGR of 5.2% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. The rising demand for automated sortation systems in the retail and e-commerce sector is fueling market growth. Surging the adoption of online shopping has led to an increase in the number of orders. Retailers are opting for automated solutions in their warehouse and distribution facilities for error-free operations and on-time delivery of ordered products.

The growing espousal of automated sortation systems in post and parcel applications is anticipated to propel the market growth over the forecast period. Major companies such as DHL International GmbH and FedEx are investing heavily in automating their distribution facilities and enhancing their service offerings. For instance, in November 2018, DHL International GmbH announced the launch of its new automated distribution center in New Jersey. The 200,000 sq. ft. facility is equipped with a wide range of new automated sorting and scanning technologies that enable high throughput.

The market is comprised of a high degree of competition due to the presence of numerous key players. Manufacturers are focusing on opting for various inorganic growth strategies such as acquisitions, mergers, and geographical expansion to leverage their market share and gain a competitive advantage. For instance, in March 2020, Dematic announced that its parent organization KION Group AG acquired Digital Applications International Limited, a U.K. based software company that specializes in developing logistics automation solutions. The acquisition was done to enhance Dematic’s intralogistics software offering.

Automated Sortation Systems Market Report Highlights

  • The loop sortation segment is projected to expand at the fastest CAGR exceeding 5% over the forecast period owing to the increasing adoption in the food and beverage industry.
  • The retail and e-commerce segment held the highest market share of 29.86% in 2019. This share is due to the rising investments in warehouse automation technologies by retailers such as Walmart and, Inc.
  • Asia Pacific is expected to expand at a CAGR exceeding 4% from 2020 to 2027. This surge is attributed to the rising demand for automated sortation systems in developing economies such as China and India