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Automated sortation systems are generally used to arrange many products, including consumer goods, luggage, mail, and parcel, based on various categories such as destination, color, and product type. The need to decrease the catalog and handling process is anticipated to drive the automated sortation system market. Due to the rapid climb in stock-keeping units (SKUs), traders and distributors face challenges creating informed decisions about their further development. This system is used for utilizing labor, equipment, and technology more efficiently.
There's an increase in the number of products that can be delivered in the present competitive market, and there is a rise in demand for small range delivery of products more frequently. Automated distribution channels can instantly increase an organization's order accuracy by a considerable margin. The increase in the adoption of Internet of Things (IoT) technology is expected to fuel the market growth during the forecast period. Market players are more focused on utilizing the technology to boost their product services and efficiently meet end-user's required sortation needs. Sortation plays a significant role in pharmaceutical companies as well. These companies mostly face wastage issues, and to solve this issue, market players utilize connectivity through IoT and supply sortation at high speed and better visibility.
Key Market Driver -
some of the major drivers for the market are increase in adoption of internet services and increase in a company’s order accuracy.
Key Market Restraint -
the shortage of skilled workforce in the market is one of the major restraints for the market.
The global automated sortation system market is segmented by type, by end-use industry and, by region. Based on type segmentation, The linear sortation segment is expected to hold the largest market share, and it is expected to dominate the market during the forecast period. The segment consists of several sortation systems, such as shoe sorters, narrow belt sorters, tilt tray sorters, and cross-belt sorters. These systems are generally utilized in cross-docking applications. These systems are manufactured for optimum performance, and they are most reliable for having an extended working life period. The loop sortation segment mainly consists of tilt tray sorters, cross belt sorters, Bombay sorters, and pouch/pocket sorters. Loop sortation systems are well known as circular sortation systems and are arranged with stretched radius curves for the best possible space utilization. These systems are typically employed in pharmaceutical applications.
Based on the end-use industry, the retail and e-commerce segment holds the largest market share and is expected to dominate the market during the forecast period. The rapidly growing number of internet users with an enhanced experience of online shopping has led to a rise in the number of products that can be ordered online. This has led different retailers to automate their day-to-day operations to fulfill the delivery as per schedule. With the number of users increasing on the internet annually, it's expected that this segment will maintain its market share during the upcoming years. The food and beverage segment is expected to show significant growth in the market. This growth is attributed to the increase in the adoption of warehouse automation technology inside the sector. Some of the major companies that come under this sector include PepsiCo, Cargill, Inc., and Nestle S.A. these companies specialize in automating their warehouse operations to satisfy the ever-growing demand.
Key players in the global market include Bastian Solutions, Inc., BEUMER GROUP, Daifuku Co., Ltd., Dematic, Honeywell Intelligrated, Interroll Group, KNAPP AG, Murata Machinery, Ltd., Siemens AG, TGW Logistics Group.
Based on region, the market is segmented into Asia Pacific, Europe, North America, and the rest of the world. Europe is expected to account for the largest market share during the forecast period. This is attributed to the presence of prominent market players such as Siemens AG, KNAPP AG, and Beumer Group Gmbh in the region. Also due to the rise in demand of the transportation and logistics sector helped to drive the market growth. Furthermore, European companies such as System Logistics S.p.A. and DHL International GmbH widely implement automation for their warehouse operations. Asia Pacific is expected to exhibit a higher CAGR during the forecast period. This is attributed to the increase in the adoption of online shopping among developing countries like China and India. The Indian e-commerce market is anticipated to achieve high revenues during the forecast period. Furthermore, the Industry revolution 4.0 in this region is predicted to expand the usage of automated technologies, creating massive opportunities for market growth during the forecast period.
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