Parcel Sortation System Market Report 2026

The parcel sortation system market size has grown strongly in recent years. It will grow from $2.11 billion in 2025 to $2.28 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to growth of parcel volumes, e commerce expansion, labor shortage challenges, warehouse automation needs, logistics efficiency requirements.

The parcel sortation system market size is expected to see strong growth in the next few years. It will grow to $3.05 billion in 2030 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to same day delivery demand, cross border e commerce growth, ai driven logistics optimization, investment in smart warehouses, scalability requirements. Major trends in the forecast period include rising adoption of automated sorting systems, growing demand from e commerce fulfillment, expansion of ai based sorting software, increasing use of modular sortation designs, improvement in high speed sorting accuracy.

The expanding e-commerce industry is anticipated to drive the growth of the parcel sortation system market in the coming years. The e-commerce industry encompasses the buying and selling of goods and services through online platforms. Its growth is supported by factors such as greater convenience, a wide range of product options, competitive pricing, easy price comparison, and personalized shopping experiences. Parcel sortation systems play a critical role in e-commerce by automating and streamlining the sorting and distribution of packages, enabling efficient handling of the large volumes generated by online sales. For instance, according to the United States Census Bureau, a US-based government agency, US retail e-commerce sales reached $289.2 billion in the first quarter of 2024, reflecting a 2.1 percent (±0.7%) increase compared to the fourth quarter of 2023. Therefore, the rapid expansion of the e-commerce industry is contributing to the growth of the parcel sortation system market.

Major companies operating in the parcel sortation system market are focusing on the development of robot-based parcel sorting solutions and AI-powered vision systems to improve accuracy and operational efficiency. Robot-based parcel sorting systems are advanced automated solutions that use robots to handle and sort parcels within logistics and distribution facilities. These systems rely on robotic technologies to enhance the speed, precision, and overall effectiveness of the sorting process. For example, in January 2024, Viettel Post, a Vietnam-based express delivery service provider, deployed 160 LiBiao “Mini Yellow” autonomous guided robots in Vietnam. Installed at its storage and distribution hub, this deployment enabled fully automated parcel sortation operations. The robots used by VTPost are integrated with AI-based algorithms that autonomously identify, classify, and sort parcels based on size, weight, and destination. This automation minimizes sorting errors and increases processing speed, thereby improving overall logistics performance. Additionally, the system features real-time tracking and monitoring capabilities, allowing stakeholders to track parcel movement and status throughout the sorting process.

In August 2023, Duravant LLC, a U.S.-based provider of engineered equipment and automation solutions for food processing, packaging, and material handling, acquired National Presort LP (NPI) for an undisclosed sum. Through this acquisition, Duravant sought to broaden its material handling equipment portfolio and reinforce its presence in the e-commerce, distribution center, parcel, and courier sectors by incorporating NPI’s advanced sortation technologies. NPI is a U.S.-based manufacturer specializing in modular, automated parcel sortation systems.

Major companies operating in the parcel sortation system market report include 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, Böwe Systec, Muratec America, Okura Yusaki Co. Ltd.

North America was the largest region in the parcel sortation system market in 2025. The regions covered in the parcel sortation system market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the parcel sortation system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The parcel sortation system market includes revenues earned by entities by providing services such as system design and integration, installation, upgrades and retrofits, remote monitoring and management, and maintenance and support. The market value includes the value of related goods sold by the service provider or included within the service offering. The parcel sortation system market consists of sales of RFID systems, conveyor systems, automated sortation systems, and weighing and dimensioning systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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