Market Size of Europe Sortation Systems Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 4.20 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Europe Sortation System Market Analysis
The European sortation systems market is expected to register a CAGR of 4.2% over the forecast period. Sortation systems are in demand from end users like post and parcel services, the food and beverages sector, and the e-commerce industry. Increasing labor costs and changing consumer behavior resulted in a rising demand for faster and more accurate delivery operations, thus developing a considerable demand for sortation systems. The major advantage of these systems to end users is the decreased time of operations. As more retail giants leverage "free shipping" and "one-day shipping" to sell products, these automated systems may grow in demand.
- Several factors are driving the growing interest in the adoption of autonomous robotics technology to perform sorting functions in order fulfillment centers. With the rapid urbanization and growth in stock-keeping units (SKUs), distributors and wholesalers are finding it technically challenging to make the right decisions for their operations. This factor is driving the need for a more innovative way of using labor, equipment, and technology. Key factors driving the need for an automated material handling system are cost savings, labor efficiency, and space constraints.
- Vendors in the market are gaining new orders for sortation systems due to increased focus on automation. For instance, in February 2022, Siemens Logistics received a contract from GLS Spain to design and integrate parcel sorting technology in GLS's new logistics center in Madrid. Therefore, the expansion of logistics and warehouses worldwide is driving the market's growth.
- Warehouses, distribution centers, and retailers must find ways to organize their sorting processes and handle different packages in less time and cost-effectively, as ineffective sorting wastes time and effort, thus damaging business profits. Therefore, warehouses, distribution centers, and retailers must upgrade their existing sorting systems to accurately sort large volumes of packages.
- The COVID-19 pandemic resulted in warehouse operators considering accelerating their schedules for adopting automation and robotics. Successful implementations demonstrated that these operators created safer jobs by reducing worker interactions and increasing productivity to meet the growing demand for e-commerce. The surge in e-commerce over the past few months has improved the sortation market in the region.
- Shipping companies such as UPS and DHL announced investments in their European operations due to a surge in e-commerce shipments. For instance, in September 2021, UPS opened a new sorting facility in Prague, expanding its European network. According to UPS, the new facility is part of its recently completed USD 2-billion multi-year European investment plan to expand the UPS network across Europe.
Europe Sortation System Industry Segmentation
A sortation system (hardware) identifies, inducts, merges, separates, and conveys products to specific destinations. Sortation systems enable more efficient wholesale, retail, and manufacturing distribution and are used across industries, such as post and parcels, food and beverages, airports, retail, and pharmaceuticals. These end-user applications have been considered to arrive at market estimates. The country-level analysis has also been covered in the report. The scope of the study considers the impact of COVID-19 on the market.
Europe Sortation Systems Market Size Summary
The European sortation systems market is experiencing significant growth, driven by the increasing demand from sectors such as e-commerce, food and beverages, and postal services. The need for faster and more accurate delivery operations, coupled with rising labor costs and changing consumer behaviors, has led to a heightened interest in automated sortation systems. These systems offer substantial advantages, including reduced operational time and improved efficiency, which are crucial for businesses aiming to meet the demands of "free shipping" and "one-day shipping" services. The market is further bolstered by the expansion of logistics and warehouse facilities across Europe, as companies like UPS and DHL invest in new sorting technologies to enhance their operations.
The adoption of autonomous robotics and automated material handling systems is gaining momentum as businesses seek to optimize their sorting processes amid rapid urbanization and an increase in stock-keeping units. The COVID-19 pandemic accelerated the shift towards automation, with warehouse operators recognizing the benefits of reduced worker interactions and increased productivity. Innovations in sorting technology, such as those implemented by Royal Mail and Magyar Posta, are setting new standards in the industry. The market is characterized by intense competition, with companies focusing on product launches, R&D investments, and strategic partnerships to maintain their competitive edge. As the demand for efficient sortation systems continues to rise, the European market is poised for further growth, supported by advancements in technology and infrastructure.
Europe Sortation Systems Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Threat of New Entrants
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1.2.2 Bargaining Power of Buyers
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1.2.3 Bargaining Power of Suppliers
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Value Chain Analysis
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1.4 Assessment of Impact of COVID-19 on the Industry
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2. MARKET SEGMENTATION
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2.1 By End User
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2.1.1 Post and Parcel
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2.1.2 Airport
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2.1.3 Food and Beverages
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2.1.4 Retail
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2.1.5 Pharmaceuticals
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2.1.6 Other End-user Industries
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2.2 By Country
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2.2.1 United Kingdom
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2.2.2 France
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2.2.3 Italy
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2.2.4 Germany
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2.2.5 Rest of Europe
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Europe Sortation Systems Market Size FAQs
What is the current Europe Sortation Systems Market size?
The Europe Sortation Systems Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)
Who are the key players in Europe Sortation Systems Market?
KNAPP AG, Viastore Systems Gmbh, Dematic Corp. (KION Group), Daifuku Co. Ltd and Interroll Holding AG are the major companies operating in the Europe Sortation Systems Market.