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Parcel Sorting System Market - By Component (Hardware, Software, Services), Type (Push Tray Sorters, Tilt-tray Sorter, Crossbelt Sorter, Shoe Sorter), End-user (Transportation & Logistics, Retail & E-commerce, Food & Beverage, Pharmaceutical) & Forecast, 2023 – 2032

  • Report ID: GMI6461
  • Published Date: Aug 2023
  • Report Format: PDF

Parcel sorting system Market Size

Parcel Sorting System Market size was valued at USD 1.9 billion in 2022 and is anticipated to grow at a CAGR of over 7% between 2023 and 2032. Global parcel sortation system industry growth is driven by the increasing market competition and differentiation.

Parcel Sorting System Market

As competition in the e-commerce and logistics sectors intensifies, companies seek to differentiate themselves through efficient and reliable parcel sortation systems that streamline their supply chain operations. For instance, Vanderlande AutoSort Pro, launched in February 2023, is a high-speed parcel sortation system that can sort up to 10,000 parcels per hour. It is equipped with advanced features, such as barcode scanning and weight detection, that allow it to sort parcels accurately and efficiently. The changing technological landscape will help create a healthy growth trajectory for the parcel sortation system business.

Consumer preferences for online shopping and the convenience of home delivery have significantly contributed to the demand for efficient parcel sortation systems. According to Eurostat, 87% of individuals aged between 25 and 34 years in Europe bought or ordered goods or services online in 2022. However, implementing advanced parcel sortation systems requires a significant upfront investment in terms of capital, technology, and infrastructure. This initial cost can be a barrier for some businesses, particularly smaller and mid-sized companies. Besides, integrating new parcel sortation systems with existing logistics and warehouse management systems can be complex and time-consuming. Compatibility issues, data migration, and operational disruptions during integration can pose challenges for businesses looking to adopt these systems.

COVID-19 Impact

The COVID-19 pandemic significantly impacted the demand for parcel sortation systems, driven by the surge in e-commerce and the transformation of consumer behavior. With lockdowns and social distancing measures in place, online shopping witnessed an unprecedented boom. This led to a substantial increase in parcel volumes, straining logistics operations. For instance, Amazon announced hiring thousands of employees and investing in warehouse expansion, highlighting the need for efficient parcel sortation systems to handle the escalated demand for rapid, accurate, and contactless deliveries during the pandemic.

Parcel Sorting System Market Trends

Parcel sortation systems that offer modular design and scalability will allow businesses to adapt to changing demands more easily, thus gaining increased popularity. In January 2023, Siemens launched its new modular parcel sortation system, the FlexSort. It is designed to be scalable to meet the needs of any parcel sorting operation, from small businesses to large retailers. It is also easy to install and maintain, making it a cost-effective solution for businesses of all sizes. As parcel volumes fluctuate, modular systems can be expanded or contracted as needed without major disruptions, favoring their adoption over the coming years.

Parcel Sorting System Market Analysis

Parcel Sorting System Market, By Component,

Based on component, the parcel sorting system market is segmented into hardware, software, and services. The hardware segment held around 40% of the market share and will expand commendably over 2023-2032. The hardware segment will witness exponential due to the industry's growing need for advanced automation and efficiency. As e-commerce and logistics operations expand, there's a heightened requirement for durable and high-performance components such as conveyor systems, robotic arms, sensors, and barcode scanners. Instances like DHL's investment in state-of-the-art parcel sorting technology highlight the urgency for reliable hardware solutions to meet escalating parcel volumes and ensure seamless sorting processes, driving the increased demand for these components.

Parcel Sorting System Market Share, By End-user, 2022

Based on end-user, the parcel sorting system market is divided into transportation & logistics, retail & e-commerce, food & beverage, pharmaceutical and others. The retail & e-commerce segment dominates the market with around 20% revenue share in 2022. As consumers increasingly turn to e-commerce for their purchasing needs, retailers require efficient sorting solutions to handle the surge in parcel volumes and ensure timely deliveries. Parcel sortation systems enable streamlined order processing, accurate sorting, and optimized last-mile delivery, enhancing customer satisfaction. The ability to meet the fast-paced demands of online retail, expedite order fulfillment, and offer reliable shipping options fuels the adoption of these systems within the retail and e-commerce sector.

U.S. Parcel Sorting System Market Size

North America held over 30% parcel sorting system market share in 2022 and expected to grow at a significant CAGR through 2032. North America Parcel Sortation System industry will experience substantial growth due to the region's robust e-commerce landscape and technological advancements. The surge in online shopping has led to increased parcel volumes, compelling retailers, and logistics providers to invest in efficient sorting solutions. Additionally, the need for autonomous last-mile delivery to accommodate vast geographic areas and urban populations drives the demand for these systems. With a focus on optimizing supply chains, enhancing customer experiences, and meeting evolving consumer expectations, North America continues to drive the remarkable growth of the Parcel Sortation System industry.

Parcel sorting system Market Share

Major companies operating in the parcel sorting system market are :

  • Beumer Group
  • Daifuku Co. Ltd
  • Dematic
  • Equinox
  • Honeywell International Inc,
  • Interroll Group
  • Koerber AG
  • Pitney Bowes Inc
  • Vanderlande Industries B.V.

Parcel sorting system Industry News

  • In February 2023, Vanderlande announced a partnership with Honeywell Intelligrated to develop a new generation of parcel sortation systems. This partnership will combine Vanderlande's expertise in parcel sortation with Honeywell's expertise in automation technology.

The parcel sorting system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Component

  • Hardware
  • Software
  • Services

By Type

  • Push Tray Sorters
  • Tilt-tray Sorter
  • Crossbelt Sorter
  • Shoe Sorter
  • Others

By End Use

  • Transportation & Logistics
  • Retail & E-commerce
  • Food & Beverage
  • Pharmaceutical
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • Saudi Arabia
    • South Africa
    • UAE


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size for parcel sorting system was valued at USD 1.9 billion in 2022 and is anticipated to grow at a CAGR of over 7% between 2023 and 2032m driven by the increasing competition and focus on differentiation.

The retail & e-commerce segment held around 20% market share in 2022, on account of the ability of parcel sorting systems to meet the fast-paced demands of online retail, expedite order fulfillment, and offer reliable shipping options.

North America accounted for over 30% market share in 2022 and expected to grow at a significant CAGR through 2032, due to the region's robust e-commerce landscape and technological advancements.

Beumer Group, Daifuku Co. Ltd, Dematic, Equinox, Honeywell International Inc, Interroll Group, Koerber AG, Pitney Bowes Inc, and Vanderlande Industries B.V.

Parcel Sorting System Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 271
  • Countries covered: 19
  • Pages: 300
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