The global conveyor belt market size is projected to reach US$4.094 billion by 2026, from an estimated value of US$3.109 billion in 2019, growing at a CAGR of 4.01%. during the forecast period. The conveyor belt market is estimated to grow in the forecast period. An increase in industrial activities and rapid urbanization are the major factors leading to growth in the conveyor belt market. The conveyor belts are used across various industries like manufacturing, mining, aviation, food and beverages, and various others. The use of conveyors improves operational efficiency and saves time.
Impact of Covid-19 on the market
The market of the conveyor belt has been impacted by the covid-19 pandemic. Due to lockdown restrictions in various countries the various end-user industries of conveyor belts also had to stop their production thereby causing a decline in the demand. With the revival of the economy and increase in industrial activities, there will be an upsurge in the demand for conveyor belts.
Coal India announced in December 2020 under “first-mile connectivity” project investment worth Rs. 3,400 crores in conveyor belts to transport coal directly from mines without the use of trucks. This will in turn will reduce the number of trucks required, diesel consumption, and CO2 emissions. The use of alternative transport methods will help reduce traffic, road accidents, and adverse effects on the environment. During the first phase, 35 projects have been announced.
The construction industry will also play a major role in driving the demand for conveyor belts as infrastructure activities increase in developed and developing countries. An increase in the disposable income of the consumers will lead to the growth of the consumer goods sector thereby uplifting the manufacturing activities and growing the demand for conveyor belts. Government initiatives and funding in different industries will boost the demand for conveyor belts in an indirect manner.
There is a growing demand for eco-friendly conveyor belts that consume less energy. The aviation industry is growing around the world, due to an increase in the disposable income of consumers. The government is spending a significant amount to upgrade the airport infrastructure to ease the passengers traveling from different regions. This will include the installation of conveyor belts for the easy handling of baggage.
Growth in the demand from mining, power, and manufacturing industries will foster the demand for the conveyor belt market. Due to intense competition among competitors in an industry, it will encourage the use of efficient technology to improve their productivity, thereby indirectly increasing the demand for conveyor belts in the market. E-commerce is growing at a fast pace than ever before because of the ease it provides to the consumers. With the growth of e-commerce, the demand for conveyors will also increase because functions like automated storage and retrieval systems are better suited for conveyor belts than the traditional picking method.
The use of conveyors in the parcel centers is also growing. Quick processing and smooth transport in new postal distribution centers are the focus here (parcel centers and letter centers). The conveyor belts are highly economical, resilient, and low in noise, making them especially suitable for tough use in regular postal operations.
A high cost of maintenance will hamper the growth of the market. The conveyor belts are subject to mechanical damages, loss of flexibility, etc., therefore, the need for periodic inspection is a must.
Strict government regulations pertaining to a clean and safe environment for the installation of the conveyor belt may hinder the growth of the market.
The Asia Pacific to witness lucrative growth in the market.
Asia Pacific region will witness lucrative growth in the conveyor belt market. The increase in the development activities in the various end-user industries will drive growth in the market. The government initiatives and funding will also help foster growth in the market. The USA and Europe follow the Asia Pacific region in terms of the growth witnessed in the conveyor belt market.
The key players in the market of conveyor belt are Siemens AG, Daifuku Co. Ltd, Vanderlande Industries Holding B.V., Swisslog, TGW Logistics Group, Honeywell Intelligrated, Interroll Holding GmbH, Fives Group, ContiTech AG, The Yokohama Rubber Co., Ltd., Bridgestone Corporation, Fenner Group Holdings Ltd., Elastomerik Belts Private Limited., Continental Belting Private Limited, Sempertrans Conveyor Belt Solutions GmbH, Siban Peosa SA, and Bando Chemical Industries, Ltd. The companies are very competitive and compete with each other by product innovation. Various companies enter into a joint venture, merger, and acquisition in order to expand their reach and increase their global presence.
Frequently Asked Questions (FAQs)
Q1. What will be the conveyor belt market size by 2026?
A1. The conveyor belt market size is projected to reach a total market size of US$4.094 billion by 2026.
Q2. What are the growth prospects for conveyor belt market?
A2. The global conveyor belt market size is projected to grow at a CAGR of 4.01% during the forecast period.
Q3. What is the size of global conveyor belt market?
A3. Conveyor Belt Market was valued at US$3.109 billion for the year 2019.
Q4. Which region holds the maximum market share of the conveyor belt market?
A4. Asia Pacific region will witness lucrative growth in the conveyor belt market due to an increase in the development activities in the various end-user industries.
Q5. What factors are anticipated to drive the conveyor belt market growth?
A5. An increase in industrial activities and rapid urbanization are the major factors leading to growth in the conveyor belt market.