Conveyors Market 2022-2028

Conveyors Market 2022-2028

Market Overview

The global conveyors market was valued at around $7.8 billion in 2021 and is anticipated to reach nearly $9.8 billion in 2028. The market is growing at a CAGR of 4.6% during the forecast period (2021-2028). The market growth is majorly driven by the increasing demand for automated material handling systems in various industries that include automotive, e-commerce, food & beverages, retail, pharmaceutical, and manufacturing industry. These industries are adopting conveyor systems to optimize space, improve productivity, and efficiency in the supply chain process. The COVID-19 has slowed down the growth as the supply chain was disrupted, and the global conveyors market witnessed a decline of 3.5% and was valued at nearly $7.5 billion in 2021. Suspension and partial operation of manufacturing facilities have impacted the new orders for the conveyor system in 2021. According to the United Nations Industrial Development Organization (UNIDO), global manufacturing output registered a decline of 6.0% during the first quarter of 2021 due to lockdown measures. Industries such as automotive, manufacturing, transportation, and warehousing postponed expansion programs due to COVID-19 which has impacted the market growth.

The growing retail and e-commerce industry backed with extensive demand for warehousing is contributing to the market. The e-commerce industry has been experiencing potential growth across the globe owing to rapid urbanization and internet penetration, which is positively influencing the global conveyors market. The major e-commerce companies include Amazon, Inc., Alibaba Group Holding, Ltd., and eBay, Inc. These companies are significantly focusing on the development of their transportation and warehousing capabilities across the countries, including the US, India, and China. This, in turn, contributes to the demand for conveyors systems to automate processes. Further, e-commerce companies are expanding their warehousing capabilities to meet storage capability. For instance, in July 2021, Amazon India declared that it had added 10 new warehouses and expanded its seven warehouse buildings. These new fulfillment centers are set up in Delhi, Mumbai, Bengaluru, Patna, Lucknow, Kolkata, Hyderabad, Chennai, Ludhiana, and Ahmedabad. With this expansion, the company has widened its network of fulfillment centers in 15 states with a total capacity of over 32 million cubic feet and it also includes the specialized network of Fulfilment Centers for large appliances and furniture category and receives centers.

Furthermore, in October 2021, Amazon India has expanded its fulfillment network in Karnataka with the launch of a new specialized fulfillment center –the largest in India, with a storage capacity of more than 1.2 million cubic feet. Similarly, in February 2021, Amazon declared 15 fulfillment centers dedicated to its grocery platform AmazonNow and six more dedicated to large appliances and furniture. This has increased the company’s storage capacity and will enable to improve delivery efficiency. Similarly, in March 2021, Gati, Ltd. announced the expansion of its facilities by doubling warehousing and distribution capacities across eight cities in India. Through this expansion, the company planned to increase its reach for same-day delivery within a 100 km radius in the major locales in the area. The increasing demand for e-commerce products is encouraging companies to increase their storage capabilities, which in turn, is leading to increasing demand for conveyor systems across the globe.
 
MARKET SEGMENTATION

By type, the market is segmented into belt conveyors, roller conveyors, pallet conveyors, overhead conveyors, tri-planar conveyors, and others including skid conveyors, and trailer conveyors. Belt conveyor held the highest market share of 30.0% accounted for around $2.3 billion in 2021 and is estimated to reach nearly $3.1 billion in 2028. The belt conveyor market is growing at the highest CAGR of 5.5% during the forecast period. The belt conveyor market is driven by significant demand from both manufacturing and distribution facilities.

Based on the operation, the market is bifurcated into automatic and manual. The automatic conveyor market held the highest market share of 63.5% accounted for around $4.9 billion in 2021 and is projected to reach nearly $6.4 billion in 2028. The automatic conveyor market is growing at the highest CAGR of 5.0% during the forecast period. The automatic conveyor market is driven by an increase in the adoption of industrial automation solutions and a rise in demand lowering the cost of operation.

Based on the end-user, the market has been sectioned into food & beverages, construction & mining, automotive, warehouse & distribution, among others.Warehouse & distribution held the highest market share of 42.5% accounted for around $3.3 billion in 2021 and is anticipated to reach nearly $4.2 billion in 2028. The warehouse & distribution market is growing at a CAGR of 4.9% during the forecast period. The warehouse & distribution market is driven by growing demand from the retail and e-commerce industry. The automotive market is growing at the highest CAGR of 6.3% during the forecast period. The automotive market was valued at around $1.2 billion in 2021 and is anticipated to reach nearly $1.6 billion in 2028. The automotive market is driven by increasing vehicle production, especially electric vehicle production in China and India, in the automotive industry.

Regional Outlook

The global conveyors market is segmented into North America (the US and Canada), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, and the Rest of Asia-Pacific), and the Rest of the World. Asia-Pacific region held a significant market share of 37.6% in 2021. The market in Asia-Pacific was valued at around $2.9 billion in 2021 and is anticipated to reach around $3.7 billion in 2028, growing at a CAGR of 4.7% during the forecast period. Well established automotive and e-commerce industry is driving the growth of the market in the Asia-Pacific region. China is the largest vehicle-producing country in the region with regional automotive manufacturers such as BYD Automotive, Geely, Dongfeng, Volkswagen Group, and Ford Motor Co. The market in North America is growing at the highest CAGR of 5.2% attributed to significant opportunities in the electric vehicles market. According to the International Energy Agency (IEA), the number of electric vehicles (EVs) is likely to grow up to 125 million in 2030 from just 3.1 million in 2017. The electric vehicle demand creates newer opportunities for the material handling system. The market in North America was valued at around $2.3 billion in 2021 and is anticipated to reach around $3.0 billion in 2028.

Key Players Outlook

Daifuku Co., Ltd., Continental AG, Siemens AG, Honeywell International Inc., Interroll Group, KUKA AG, and Fives Group are some of the leading manufacturers in the global conveyor market. These companies are adopting several strategies such as new product launches, expansion, agreements, partnerships, supply orders, mergers, and acquisitions to capture the conveyor system market.

Few Recent Developments-

● In July 2021, SideDrive Conveyor Co. announces its launch as the first company to exclusively focus on configurable side drive conveyor solutions for flexible and modular sanitary applications. SideDrive Conveyors are also flexible and can meet the needs of any application, plant floor layout, or production need.

● In May 2021, Automated warehouse solution provider TGW has announced the launch of its new KingDrive conveyor solution, offering warehouse ‘Plug and Play’ functionality and ultra-quiet operation. German pharmaceuticals wholesaler Fiebig is one of the first users to benefit from KingDrive Technology, with added Plug and Play functionality that allowed for a rapid installation and short commissioning time.