Automated Sortation System Market

Market Research Future (MRFR) predicts the global automated sortation system market to reach USD 5,516.15 million at a CAGR of 4.22% from 2022-2030 (forecast period).

High Demand for Shipping Accuracy

The global automated sortation system market is expected to grow owing to precision in shipping and productivity with the sortation system. The automated sortation system is a transformation in the mechanical industry. It will then provide packaged products on a schedule, for example, packaged food and beverages, post and parcels, medicines, textiles, and others. It is used for items of small size and is installed mostly in companies such as food and beverages, pharmaceuticals, retail and healthcare services.

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Time and Efficiency in Manufacturing & Packaging Sector

The automated sortation system reduces the number of hours spent on operations or simulation of raw materials. In a high-volume distribution environment, high-speed packing methods are required, which are dictated by the sortation hardware, which regularly determines production pace. Because of automation, time consistency, and constant high speed, these systems are more robust. It is entirely feasible to sort high-capacity objects with consistency and speed using an automation sortation system.

Initial Investment 

The growth of the automated sortation system market is adversely affected by major initial investment in the manufacturing of these systems. Market players must also produce systems that meet the requirements established by different regulatory organizations. This reduces market players' growth prospects.

Automated Sortation System Market to Benefit from COVID-19

During the early phases of the pandemic, numerous countries imposed stringent lockdown measures in response to the COVID-19 (coronavirus) outbreak. This, in turn, pushed people to transition from traditional buying techniques to online shopping for necessities. Furthermore, corporations are required to adopt social distancing norms at work, which has encouraged investments in automation and connected solutions.

Key Players

The prominent players in the worldwide automated sortation system market are Daifuku Co. Ltd (Japan), Vanderlande Industries B.V (Netherland), OKURA YUSOKI (Japan), Murata Machinery (Japan), Interroll, KION Group (Germany), TGW Group (Austria), Siemens AG (Munich), Mitsubishi Electric Corporation (Japan), BEUMER (Germany), Fives in Intralogistics (U.S.), SSI Schaefer (Germany), Equinox (Netherland), Shanxi Oriental Material Handling Co Ltd (China), and others.

By Type, Linear Sortation System is Dominating the Global Market

During the projected period, the loop sortation system market will be the fastest-growing. To maximize space, loop sortation systems, also known as circle sorters, are designed with narrow radius curves. It was normally made up of a series of cells connected together on a track. Products are manually or automatically introduced into these cells through conveyor systems. When the cell and related inventory arrive at a divert location, the loop sortation system's divert mechanism is activated, sending the inventory to the corresponding location.

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Europe to Dominate the Global Market

The European region will dominate the worldwide automated sortation system market. This is due to the presence of important market companies such as Siemens AG, KNAPP AG, and Beumer Group Gmbh. The market is expected to develop due to rising demand in the transportation and logistics sectors. Furthermore, as compared to other regions, European countries have a high logistics performance index (LPI) score, according to the World Bank Group. Furthermore, European firms such as System Logistics S.p.A. and DHL International GmbH make extensive use of automation in their warehouse operations, allowing the region to maintain its dominant market position.

Industry News

In August 2019, Interroll Group purchased sections of the business activities and assets of its IBH ehf, the company's sales agent in Iceland and the Faroe Islands. The acquisition was made to improve the previous company's sales and service offerings in the food and beverage industry.