Sortation refers to the process of identifying products on a conveyor system and riveting them to decided destinations by utilizing the several devices controlled by software that are task-specific. Sortation can be classified into two types, one is unit sortation and the other is case level. Two technologies handle each sortation namely loop and liner sortation system. Automated sortation has become an unavoidable part of warehousing, order fulfillment, e-commerce industries, and material handling.
Automated sortation utilizes a variety of technologies like barcode scanners, barcoders, and many others. There are several benefits of automated sortation including faster order processing, less accidents, streamlined packing operations, reduced labor costs, and many more.
Global Automated Sortation System Market: Growth Factors
The growing demand for automated sortation systems to reduce the inventory handling process is driving the growth of the global automated sortation system market. It is helping the organizations to place material and equipment with high precision that aids in lesser items getting misplaced or lost. Several organizations are focusing on the efficient utilization of their inventory by facilitating just-in-time delivery services. This has increased the need for the automated solution for better management of operations for different channels including the distribution centers, thereby boosting the market growth.
The coronavirus led to the strict lockdown across the globe which has induced individuals to switch from traditional offline shopping to online shopping of goods. Moreover, social distancing norms also forced companies to invest in automation and integrated smart solutions.
The increased adoption of the Internet of Things (IoT) technology has created a lucrative opportunity for the growth of the global automated sortation system market. The key players in the market are emphasizing the use of technology to improve the product offering and fulfill the end-users sortation requirement.
Global Automated Sortation System Market: Segmentation
The global automated sortation system market can be segmented into equipment type, sorting type, system type, end-use, component type, load capacity, throughput capacity, and region.
By equipment type, the market can be segmented into push tray sorter, flat sorter, narrow belt sorter, sliding shoe sorter, pocket sorter, cross belt sorter, tilt-tray sorter, paddle & pivoting arm sorter, and ARB & pop-up roller sorter.
By component type, the market can be segmented into hardware and software. The hardware segment holds the hegemony over others.
By system type, the market can be segmented into combo sorter, case sorter, and unit sorter.
By sorting type, the market can be segmented into the circular sorter, divert sorter, and linear sorter. The linear sorter segment holds the largest market share than others.
By end-use, the market can be segmented into general manufacturing, leather goods, air cargo, pharmaceuticals, food & beverages, automotive, paper & print, courier & logistics, and retail & e-commerce. The retail & e-commerce segment holds the largest share in the global automated sortation system market owing to the growth in the number of internet users and ease of shopping that boosted the e-commerce segment. The food & beverage segment is anticipated to witness significant growth during the forecast period due to the growing adoption of warehouse automation in the sector.
By load capacity, the market can be segmented into above 35 kg, 20 to 35 kg, 5 to20 kg, up to 5 kg.
By throughput capacity, the market can be segmented into low, medium, and high throughput capacity.
Global Automated Sortation System Market: Regional analysis
Europe holds the largest share in the global automated sortation system market due to the presence of major key players in the region. Moreover, the growing demand in the logistics and transportation sector is driving the growth of the market globally. According to a study from the World Bank Group, several countries in Europe have a high logistic performance index (LPI).
Asia Pacific is anticipated to expand with a high CAGR during the forecast period owing to the growing adoption of online shopping in developing countries like India and China. Moreover, the emergence of industry 4.0 has led to increased adoption of automated technologies.
North America is anticipated to establish the hegemony in the global automated sortation system market during the forecast period.
Global Automated Sortation System Market: Competitive Players
Some of the significant players in the global automated sortation system market are KNAPP AG, Interroll Group, Honeywell Intelligrated, Dematic (KION Group AG), Daifuku Co. Ltd., Beumer Group Gmbh, and Bastian Solutions, Inc. However the prominent market players are adopting the various inorganic growth strategies like acquisitions and merger to increase their market share.