23 Jul, 2026
According to Straits Research, the global parcel sortation system market size was valued at $2.75 billion in 2025 and is projected to grow from $3.02 billion in 2026 to $6.34 billion by 2034 at a CAGR of 9.71% during the forecast period 2026-2034.
Asia-Pacific’s digital economy has experienced drastic growth in recent times. India and China are the fastest-growing e-commerce marketplaces, driven by demographic profiles, increasing internet penetration, and excellent economic performance. The region’s startup ecosystem is growing at an exponential rate, owing to the favorable FDI policies, government incentives, as well as internet initiatives by market players. For instance, in India, 100% FDI is permitted in B2B e-commerce under the automatic route, presenting ample growth opportunities for business with e-commerce.
Rapidly growing e-commerce in the region, supported by increasing consumer disposable income, is a significant driver for logistics, marking a vital point of differentiation between market players aiming for speedy and accurate delivery. The growing logistics and distribution sectors are prompting the owners to use parcel sortation systems to provide better customer service.
The COVID-19 outbreak is expected to take a significant toll on the market due to disruption in the global supply chain, which may take a longer time to recuperate. Overall the e-commerce business is sluggish, and the construction of new distribution centers, warehouses, and airports is stalled, which are the primary end-users of parcel sortation systems. All these factors are likely to impact the market.
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