AI unlocks smarter, faster sorting for global recycling sector

The global sensor-based sorting market is gaining momentum, offering a rare growth opportunity in a volatile economy.

According to Data Intelo, the market reached EUR 2.48 billion in 2024. It is set to expand to EUR 5.2 billion by 2033, growing at a CAGR of 8.7%.

Crucially, recycling remains the largest application segment, underlining strong demand for advanced sorting technologies across the circular economy.

Growth regions

Asia Pacific leads the growth at around EUR 826 million in 2024. The region is expected to grow at over 10% annually. Meanwhile, North America (EUR 625 million) and Europe (EUR 583 million) remain the technology leaders, supported by stricter regulation and higher automation levels.

Emerging regions, including Latin America and the Middle East and Africa, also show promise. Their combined market already exceeds EUR 443 million.

Technology shift accelerates adoption

Optical sorting dominates the market. However, X-ray technologies are expanding fastest, driven by demand for deeper material insights. At the same time, companies are integrating AI, sensors and cloud analytics to improve accuracy and throughput. This shift enables smarter, more adaptive sorting systems. As a result, new players are entering the market with specialised solutions.

Mining AI abilities

The use of artificial intelligence (AI) was a hot topic at the Sensor-Based Sorting & Control Conference at RWTH Aachen University.  ‘We are in a goldmine era of AI… if you know how to use it,’ insists Matthias Kerschaggl of US firm Headwall. He says the biggest potential for AI is data fusion, the combination of its features. .

‘We must build more trust in AI systems,’ Luz Alejo Alvarez told delegates. ‘People will not use them if they doubt their reliability.’ She appreciates it’s a tall order for recyclers as their systems must factor in a highly varied waste stream, potential fire risks, weather impacts on material, unusual on-site situations as well as market fluctuations and product trends.

‘You could say tech experts are facing a chicken and egg situation. To build a good AI system, you need a lot of robust data. But people are not eager to share unless the system is good… So which comes first?’

The good news is that confidence seems to be growing, reports Julian Aberger of Technical University of Leoben. ‘A total of 81% of companies we surveyed in Austria, Germany and Switzerland are interested in AI support for sorting.

Besides, many recyclers have a global scope. ‘We’re talking about sites spread across the world, employing lots of workers who may not all reach the same level of quality as they do here in Germany, Sweden or Belgium. Having access to smart sorting systems will help them improve their output quality.’