Parcel Sorting System Market Strategic Growth, Innovation and Investment Trends

Parcel Sorting System Market Size, Share, Trends, and Forecast Analysis

The parcel sorting system market is set to grow from USD 2.09 billion in 2025 to USD 4.51 billion by 2034, with an expected CAGR of 8.94% over the forecast period from 2025 to 2034.

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Introduction

The parcel sorting system market is a crucial segment of the logistics industry. This industry deals in development and distribution of parcel sorting solutions around the world. There are various types of sorting systems developed in this sector including cross-belt sorters, shoe sorters, tilt tray sorters, pop-up wheel sorters, vertical sorter modules, helix sorters and combination sorters. These sorters are integrated with numerous types of control systems consisting of PLC-based control systems, PC-based control systems, motion control systems and some others. It finds application in different sectors comprising of manufacturing, healthcare, food and beverage, retail, logistics, and some others. The growing demand for parcel sorting system from the e-commerce sector has contributed to the industrial expansion. This market is expected to grow significantly with the rise of the advanced machinery sector in different parts of the globe.

• According to the Ecommerce Tips Organization, the global e-commerce industry was valued at US$ 6.31 trillion in 2023 that is projected to reach around US$ 8.148 trillion in 2026. (Source: Ecommerce )

Highlights of the Parcel Sorting System Market

• North America held the highest revenue of the parcel sorting system market.
• Asia Pacific is expected to grow with the fastest CAGR during the forecast period.
• By system type, the cross-belt sorters segment dominated this industry.
• By system type, the tilt-tray sorters segment is expected to rise with a significant CAGR during the forecast period.
• By conveyor type, the belt conveyors segment held the largest revenue of the industry.
• By conveyor type, the roller conveyors segment is likely to grow with a considerable CAGR during the forecast period.
• By application, the retail and e-commerce segment led the industry.
• By application, the manufacturing segment held a significant share of the market.

Key Metrics and Overview

What are the Trends of Parcel Sorting System in 2025?

The major trends in this industry consists of partnerships, smart warehouses, integration of AI in sorting systems.

Partnerships

Several market players are partnering with logistics providers to deploy advanced sorting systems in warehouses. For instance, in August 2023, Falcon Autotech partnered with DTDC Express. This partnership is done for deploying Autotech’s sorting systems in warehouse of DTDC based in Chennai, India. (Source: Indian Transport & Logistics News)

Smart Warehouses

Nowadays, the e-commerce brands have started investing heavily for developing smart warehouses to enhance efficiency and improve productivity. For instance, in 2024, Huawei collaborated with Telkomsel. This collaboration is done for opening a smart warehouse in Indonesia. (Source: Privatenetworks)

Integration of AI in Sorting Systems

The adoption of AI-based parcel sorting system has increased rapidly in the manufacturing sector. These sorting systems comes with numerous advantages such as route optimization, reducing error, improved efficiency and some others. For instance, in January 2025, Ambi Robotics launched AmbiStack. AmbiStack is an AI-enabled robotic system designed for optimizing sorting process in logistics sector. (Source: Business Wire, Inc.)

System Type Insights

Why cross-belt sorters segment to hold the largest share of the parcel sorting system market in 2025?

The cross-belt sorters segment led this industry. The demand for cross-belt sorters has rapidly increased in the e-commerce sector for sorting small parcels, thereby driving the market growth. Additionally, numerous advantages of cross-belt sorters including high sorting accuracy and flexible handling is further driving the growth of the parcel sorting system market.

• In September 2024, Alstef Group launched XSORT. XSORT is a cross-belt sorter designed for handling baggage in airport. (Source: ACI Asia-Pacific & Middle East)

The tilt-tray sorters segment is expected to rise with a significant CAGR during the forecast period. The demand for tilt-tray sorter has increased rapidly from the airports for sorting checked luggage, thereby driving the market expansion. Also, numerous benefits of these sorters such as high sorting speeds, versatility, space optimization, adaptability and some others has boosted the growth of the parcel sorting system market.

Conveyor Type Insights

What made belt conveyors to be the most dominant segment in 2025?

The belt conveyors segment held the highest share of the industry. The growing demand for belt conveyors from several industries such as chemical, healthcare, semiconductor and some others has boosted the market growth. Additionally, numerous advantages of belt conveyors including cost-effectiveness, high load-bearing capacity, durability and some others is expected to propel the growth of the parcel sorting system market.

• In May 2024, Montech launched a new belt conveyor system. This conveyor system finds application in various industries such as chemical, electrical, pharmaceutical/medical and semiconductor industries. (Source: A3 Store)

The roller conveyors segment is expected to grow with a considerable CAGR during the forecast period. The increasing demand for advanced material handling solutions from numerous sectors such as warehousing, food and beverage, manufacturing and some others has driven the market growth. Also, various advantages of roller conveyors including enhanced safety, reduced operational costs, increased efficiency and some others is expected to drive the growth of the parcel sorting system market.

Application Insights

How retail and e-commerce segment dominated the parcel sorting system market in 2025?

The retail and e-commerce segment led the industry. The growing proliferation of smartphones has enabled people to purchase and sell products in online platforms, thereby driving the market expansion. Additionally, rapid investment by market players for developing advanced sorting systems to cater the needs of the e-commerce sector, thereby driving the growth of the parcel sorting system market.

• In April 2024, Collo-X launched an advanced sorting solution. This sorting solution is designed for sorting numerous goods in the e-commerce sector. (Source: UKi Media & Events a division of UKIP Media & Events Ltd)

The manufacturing segment is expected to rise with a notable CAGR during the forecast period. The rapid adoption of automated material handling solutions in the manufacturing sector has boosted the market growth. Also, the growing use of cross-belt sorters in numerous industries such as textiles, electronics and some others is expected to drive the growth of the parcel sorting system market.

Geographical Insights

Why North America dominated the parcel sorting system market in 2025?

North America led the parcel sorting system market due to numerous government initiatives aimed at developing the logistics sector coupled with growing trend of online-shopping. Also, rapid deployment of advanced parcel sorting systems in warehouses coupled with rising development in the manufacturing sector has further contributed to the overall industrial expansion. Moreover, the presence of several market players such as Dematic, Honeywell, TGW Logistics Group and some others is expected to drive the growth of the parcel sorting system market in this region.

• In March 2024, Honeywell partnered with Tompkins Robotics and Berkshire Grey. This partnership is done for developing an automated sortation system. (Source: Robotics 24/7 )

U.S. is the major contributor in this region. In the U.S., the market is generally driven by the rising trend of last mile delivery coupled with increasing emphasis on green logistics. Moreover, rapid development in the food and beverage sector as well as growing adoption of smart warehouses has contributed to the market growth.

Asia Pacific is expected to rise with the fastest CAGR during the forecast period. The growing demand for advanced parcel sorting systems from pharmaceutical industry has boosted the market expansion. Additionally, the integration of AI-enabled sorting systems in logistics warehouses for enhancing sorting procedure is playing a vital role in shaping the industrial landscape. Moreover, the presence of various parcel sorting system brands such as Daifuku Co. Ltd, Okura Yusoki Co., Ltd., Murata Machinery, Ltd. and some others is expected to boost the growth of the parcel sorting system market in this region.

• In April 2025, Daifuku Co., Ltd inaugurated a new manufacturing plant in Hyderabad, India. This production facility is opened to develop a wide range of machineries including rail-guided pallet sorters, automated storage and retrieval systems (AS/RS) and some others. (Source: Daifuku)

Japan dominated the market in this region. The technological advancements in robotics sector along with rise in number of e-commerce startups has boosted the market growth. Additionally, the presence of several market players coupled with rapid adoption of sustainable solutions in logistics sector is positively impacting the industry.

Industry Leader Announcement

• In April 2025, RafaÅ‚ NawÅ‚oka, the CEO of DPD Poland made an announcement stating that, “The implementation of advanced infrastructure, including a unique loop sorter, enables higher parcel throughput in a limited space - creating a new model for operational efficiency. Notably, the HDR facility is specialized in sorting small parcels, primarily for OOH deliveries and cross-docking operations. This new approach to facility design reflects evolving market needs and the necessity to tailor infrastructure to specific shipment profiles. The SwÄ™dów facility also complements the functions of our nearby hub in Lućmierz (HLU)."

Competitive Landscape

The parcel sorting system market is a highly fragmented industry with the presence of several dominating players. Some of the prominent companies in this industry consists of TGW, Fives Intralogistics, Veltec Systems (USA) Inc., Dambach Lagersysteme, Beumer Group, Dematic, Transbotics, Vanderlande, Swisslog, Egemin Automation, Mecalux, Honeywell, Daifuku Co., SSI Schaefer and some others. These companies are constantly engaged in developing parcel sorting systems and adopting numerous strategies such as collaborations, launches, partnerships, joint ventures, business expansions, acquisitions, and some others to maintain their dominance in this industry.

• In May 2025, Dematic launched a next-gen sorting platform. This platform finds application in various sectors including grocery, apparel, food & beverage, and consumer goods.(Source: Dematic)

• In June 2024, Mecalux partnered with MIT CTL. This partnership aims at integrating AI and ML for enhancing the parcel sorting process. (Source: Manufacturing Today)

Recent Developments

• In May 2025, Amazon launched Vulcan. Vulcan is an advanced package sorting system that helps in enhancing sorting processes in warehouses. (Source: BetaNews)

• In March 2025, Cainiao announced to open a parcel sorting center in Vietnam. This facility is opened to enhance the e-commerce sector in this region. (Source: Vietnam)

• In November 2024, FedEx launched an automated sorting plant in Memphis World Hub. This sorting plant is capable of handling around 56000 parcels every hour. (Source: UKI Media & Events)

Parcel Sorting System Market Segments

By Sorting System

• Cross-Belt Sorters
• Shoe Sorters
• Tilt Tray Sorters
• Pop-Up Wheel Sorters
• Vertical Sorter Modules
• Helix Sorters
• Combination Sorters

By Sorting Process

• Induction
• Scanning
• Weight Measurement
• Sorting
• Diversion

By Conveyor Type

• Domestic
• Belt Conveyors
• Roller Conveyors
• Chain Conveyors
• Overhead Chain Conveyors

By Application

• Logistics and Transportation
• Retail and E-commerce
• Manufacturing
• Healthcare
• Food and Beverage

By Control System

• PLC-based Control Systems
• PC-based Control Systems
• Motion Control Systems

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa