The Future of Sortation Equipment: What the STIQ 2025 Report Means for Flexible Automation
- John Stikes
- Sep 9
- 2 min read
The world of sortation equipment is at a pivotal moment. After a sluggish 2023, the industry began to recover in 2024, and the outlook for 2025 is broadly optimistic. The STIQ 2025 Sortation Equipment Report highlights that while tariffs and geopolitics add uncertainty, automation remains the clear path forward for logistics, retail, and courier/express/parcel (CEP) operations.
As a flexible automation dealer, Approach Automation sees this as a unique window of opportunity. Between 2025 and 2027, mid-market adoption is set to surge as companies balance throughput, flexibility, and cost-effectiveness.
👉 Read the full STIQ report here: STIQ Sortation Equipment 2025 Report
Market Outlook: Recovery and Growth Ahead
2024 saw muted growth, but the industry is now rebounding, with vendors reporting strong pipelines for 2025.
CEP networks are making generational investments—renewing decades-old infrastructure, adding micro-DCs, and experimenting with zone skipping to reduce touchpoints.
E-commerce and retail remain major growth drivers, especially in unit and mobile sortation for order fulfillment and returns.
Technology Trends Shaping Sortation
Hybrid Sortation Systems
Cross-belt and loop sorters dominate large CEP hubs.
Mobile AMRs, pouch sorters, and robotic pick cells are carving niches in e-commerce and returns handling.
Hybrids (fixed + mobile) are emerging to balance throughput and flexibility.
Upstream Optimization
Focus is shifting to inbound processes: singulation, bulk unloading, and pre-sorting to relieve downstream bottlenecks.
3D-to-2D flow singulators and modular induct systems are gaining traction.
Software & Modularity
Hardware modularity is now standard.
The next frontier: software modularity and self-configuring controls, enabling faster deployments and scalability.
Transparency & Support
Customers want open systems with SCADA/HMI visibility, avoiding vendor lock-in.
After-sales service is a key differentiator, but open architectures are reducing dependency on proprietary support.
New Verticals
Growth beyond parcels: groceries, pharmaceuticals, and consumer packaged goods (CPG).
Portable sortation units are emerging for seasonal peaks and 3PLs.
Aviation is driving a baggage handling systems comeback.
Implications for Flexible Automation Dealers and Customers
For companies like Approach Automation and the clients we serve, the message is clear:
Sharpen Go-to-Market Focus: Target mid-market retailers, CPG, and fulfillment centers where modularity and fast ROI resonate.
Develop Hybrid Solutions: Offer combined fixed + mobile sorters to deliver flexibility at scale.
Highlight Labor Augmentation: Frame automation as a tool to reduce bottlenecks and amplify workforce productivity.
Provide Training & Support: Deliver open systems, client training, and SCADA integration for better visibility.
Expand Partnerships: Leverage cost-effective Asian hardware but differentiate with superior software and integration expertise.
Final Word
According to STIQ’s Sortation Equipment 2025 Report, the next two years will define winners and laggards in warehouse automation. While CEP giants modernize, the real opportunity lies in the mid-market—e-commerce retailers, 3PLs, and regional players.
At Approach Automation, our mission is to help customers prepare now with modular, flexible, and future-ready solutions. The market is moving quickly; those who act today will lead tomorrow.
