The demand for parcel sortation systems is projected to grow rapidly as the number of consumers using e-commerce platforms increases, says Fact.MR.

Both B2B and B2C ecommerce will drive big growth in the global parcel sorting equipment market in 2023.

The global parcel sortation systems market size is estimated to reach $2.7 billion by 2032. That would have it advancing at 6.7% CAGR from 2022 to 2032, says a new report from Fact.MR, a market research and competitive intelligence provider.

A parcel sortation system is a network of conveyor belts that sorts packages according to their destination. It typically consists of one or more input stations, sorting and routing modules, distribution lines (parcels out to carriers), and a number of output stations.

Parcel sortation systems are widely utilized in a variety of industries, including food and beverage, automotive, electronics, logistics, retail, and pharmaceutical, among others. Companies’ spending is increasing due to a rise in labor costs. As a result, businesses are using automated solutions that will help to reduce labor expenses while still providing high accuracy in the parcel sorting process. The growing need for automated systems in various industries is expected to boost the demand for parcel sortation systems, says Fact.MR.

Moreover, rapid increase in usage of Internet of Things technology has created a profitable potential for parcel sortation system makers. The incorporation of the Internet of Things in parcel sortation systems improves the visibility of the product’s location. Furthermore, the demand for parcel sorting systems is projected to grow rapidly as the number of consumers using ecommerce platforms increases, according to Fact.MR.


“With increasing internet penetration rates in developing nations, particularly in Asia Pacific and Latin America, the adoption of online retailing is rising rapidly,” says Fact.MR. “As internet penetration increases in developing nations, demand for parcel sortation systems will rise significantly.”

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