Driving Parcel Sortation System Market Growth in 2025: The Role of E-commerce Boom Drives Growth Of Parcel Sortation System Market

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Parcel Sortation System Market Size Growth Forecast: What to Expect by 2025?
The market size for the parcel sortation system has seen significant growth lately. It is projected to progress from $1.94 billion in 2024 to $2.13 billion in 2025, registering a compound annual growth rate (CAGR) of 9.6%. The historical expansion in this market has been influenced by factors such as the rise in omnichannel retailing, the surge in cross-border e-commerce, the growth in subscription box services, heightened awareness concerning green logistics, and a greater emphasis on reducing delivery mistakes.

How Will the Parcel Sortation System Market Size Evolve and Grow by 2029?
The market size for the parcel sortation system is predicted to experience robust expansion in the imminent years, projected to reach $3.03 billion in 2029 with a compound annual growth rate (CAGR) of 9.2%. Factors contributing to this anticipated growth within the forecast period include a surge in e-commerce activity, increased demand for automation, rising urbanization, a boost in logistics infrastructure investments, and the ever-growing need for same-day delivery. The forecast period will also see significant trends such as the progression of technology, AI incorporation, IoT endorsement, big data utilization, and a shift towards cloud-based sortation solutions.

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What Drivers Are Propelling the Growth of Parcel Sortation System Market Forward?
The expansion of the e-commerce sector is projected to boost the parcel sortation system market's growth in the future. The term e-commerce refers to the purchasing and selling of goods and services over the Internet. Various elements like convenience, variety of products, competitive prices, comparative ease, and customized shopping experiences are contributing to the rise of the e-commerce sector. Parcel sortation systems within e-commerce simplify and enhance the sorting and distribution process for parcels, allowing for efficient handling of the enormous quantity of packages originating from online sales. For example, the United States Census Bureau, a government organization based in the US, reported that US retail e-commerce sales reached $289.2 billion in the first quarter of 2024, a 2.1 percent (±0.7%) increase from the last quarter of 2023. As a result, the burgeoning e-commerce industry is fuelling the growth of the parcel sortation system market.

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Which Emerging Trends Are Transforming the Parcel Sortation System Market in 2025?
Leading firms in the area of parcel sortation system market are creating robot-influenced parcel sorting frameworks and AI-powered vision systems for superior precision and productivity. Parcel sorting mechanisms that depend on robotics are advanced automation systems that employ robots to categorize and manage parcels in supply and dissemination centers. These mechanisms apply robotic technology to improve the efficiency, accuracy, and speed of the sorting operation. In January 2024, for example, Viettel Post, a firm based in Vietnam that provides courier services, introduced 160 'Mini Yellow' autonomous robots in Vietnam by LiBiao. These robots are put into operation at the storage and distribution center, leading to a fully automated package classification technology. Robots used by VTPost are embedded with AI-operated algorithms capable of independently recognizing, grouping, and sorting parcels according to their size, weight, and final destination. This automation minimizes sorting inaccuracies and boosts processing rates, enhancing the overall effectiveness of the logistics. The system also incorporates real-time tracking and supervision features that allow involved parties to observe parcel movements and status during all stages of the sorting operation.

What Are the Key Segments in the Parcel Sortation System Market?
The parcel sortation system market covered in this report is segmented -

1) By Type: Linear Parcel Sortation Systems, Loop Parcel Sortation System, Other Types
2) By Offering: Hardware, Software, Services
3) By Application: Logistics, E-commerce, Airports, Pharmaceuticals and Medical Supply, Food And Beverage, Other Applications

Subsegments:
1) By Linear Parcel Sortation Systems: Belt Conveyor-Based Systems, Roller Conveyor-Based Systems, Cross-Belt Sortation Systems
2) By Loop Parcel Sortation System: Tilt Tray Sorters, Cross-Belt Loop Sorters, Pop-Up Wheel Sorters
3) By Other Types: Automated Guided Vehicle (AGV) Sortation Systems, Overhead Sortation Systems, Pusher-Based Sortation Systems

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Who Are the Key Players Shaping the Parcel Sortation System Market's Competitive Landscape?
Major companies operating in the parcel sortation system market are Honeywell International Inc., Kawasaki Heavy Industries, FANUC America Corporation, Daifuku Co. Ltd., Yaskawa America, Vanderlande, Pitney Bowes Inc., Dematic, Körber AG, Fives, BEUMER Group, TGW Logistics, Interroll Group, Daifuku, Bastian Solutions, Murata Machinery Ltd., Siemens Logistics GmbH, Viastore Systems, National Presort Inc., Böwe Systec, Muratec America, Mantissa Corporation, Okura Yusaki Co. Ltd.

What Geographic Markets Are Powering Growth in the Parcel Sortation System Market?
North America was the largest region in the parcel sortation system market in 2023. The regions covered in the parcel sortation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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