Vertical Lift Module Market - Forecasts from 2024 to 2029

Vertical Lift Module Market - Forecasts from 2024 to 2029

The vertical lift module market is evaluated at US$1,652.034 million for the year 2022 growing at a CAGR of 9.89% reaching the market size of US$3,196.831 million by the year 2029.

Vertical lift modules (VLMs) are storage systems based on two parallel columns divided into fixed shelf locations in which a single storage module, such as a tray, can be placed. The modules facilitate the retrieval of items from trays and deliver them to an ergonomically placed work counter by pressing a button on the control unit. The vertical lift module market is driven by the healthcare, pharmaceutical, and electronic/electrical industries. Moreover, the safety of the workplace necessitates the implementation of VLMs, as preventing injuries is crucial. Owing to the 'Made in China 2025' initiative, China is expected to have a rapid increase in automated manufacturing units by 2025. It drives the market for vertical lift modules in the country. Vertical lift module market growth is also largely driven by constant investments made by companies in their logistics divisions.

MARKET DRIVERS:

The rapid increase in the food and beverage industry.

Since the retail and food and beverage industries have been incorporating these systems at a rapid pace, vertical lift modules have also experienced an increase in demand. Similarly, hospital vertical lift module usage is expected to increase in the coming years. There is an increase in retail throughout the world, which has led to an increase in warehouse capacity to manage logistics more efficiently and effectively. Developments in the retail sector in developing countries are facilitated by flexible retail policies, the elimination of trade barriers, and the establishment of links to the World Trade Organization (WTO).
Rise in retail and e-commerce

In the developed economies of Europe and North America, the global retail industry is mature and highly competitive. A significant share of the market's growth has, however, been attributed to developing economies in the Asia-Pacific, the Middle East, and Latin America. The retail sectors in each of these markets benefit substantially from these economies. Approximately 500 new Walmart stores will open in China within the next five to seven years. The expansion of the retail sector will drive the growth of VLMs. With the rise in retail, there is also a rise in warehouse services, which heavily rely on vertical lift modules. It was announced in May 2020 that Ahold Delhaize USA would be building two fully automated frozen warehouses with Americold.

Modern shopping involves Internet retail. With the increasing penetration of portable devices and internet services, e-commerce has grown into one of the world's most important platforms for shopping. There is an increase in online suppliers and a shift in consumer behaviour that is driving the e-commerce industry. According to UNCTAD, e-commerce has seen a dramatic increase in its share of retail sales, rising from 16% to 19% by 2020. By 2020, the top 13 companies in the world sold 2.9 trillion dollars in online business-to-consumer (B2C) sales. As e-commerce grows, warehouses also grow, which contributes to the VLM market growth.

MARKET DRIVERS:

High cost is anticipated to hamper the market growth.

There are a few factors that impede the market’s growth in the forecasted period, such as the high cost of the vertical lift module and the high maintenance associated with them. Automated systems, such as vertical lift modules, usually have higher fixed costs for installation. Based on the comparison between the cost of using traditional warehouse shelving and the VLM system, it would not prove to be a worthwhile investment for businesses that do not access their warehouses very often. The VLM investment cost would be too high if, for example, the warehouse is used only one shift per day. Using traditional ways would be a better choice in that case. In addition to the initial costs associated with installing a vertical module system, additional employee training will be required.

The North American vertical lift module market is anticipated to grow significantly.

The vertical lift module (VLM) market in North America is expanding rapidly due to several important factors. Businesses are adopting VLMs as a strategic solution as a result of the increase in e-commerce activity and the increased emphasis on warehouse efficiency and optimization. With the growth of e-commerce, there is a need for more efficient logistics and fulfillment procedures. VLMs are essential for optimizing storage capacity and enhancing overall operational effectiveness. The usage of VLMs has been further encouraged by labor shortages in several industries, as their automated features ease the burden of human labor in warehouse operations. Continuous technical developments, such as the incorporation of robots and complex control systems, add to the allure of VLMs as cutting-edge and effective warehouse solutions.

Key Developments:

In March 2022, the leading producer of high-density intelligent storage systems, White Systems, established a strategic alliance with Weland Solutions, a company that creates cutting-edge and distinctive vertical lift solutions for the market. Through this collaboration, White was able to further solidify its leadership position in robust storage automation and offer a broad range of automated storage solutions to the North American market, helping to streamline operations in e-commerce, distribution, and warehousing.
In February 2022, to help customers further reduce time-to-market, Mouser Electronics, Inc., the industry's top distributor of New Product Introduction (NPI) and supplier of the largest selection of semiconductors and electronic components, is continuing to invest in cutting-edge automation in its global distribution center. This will increase order processing, accuracy, and speed.

Segmentation:

By Delivery Type
Single Level Delivery
Dual-Level Delivery
By Storage
Refrigerated
Non-Refrigerated
By Industry Vertical
Food & Beverage
Automotive
Chemical
Healthcare
Aviation
E-Commerce
Metallurgy
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
India
South Korea
Taiwan
Thailand
Indonesia
Japan
Others