The global vertical carousels market is expected to grow at a CAGR of 7.56% during the forecasted period and account for US$2.69 billion by 2030 from US$1.87 billion in 2025.
Vertical carousels are a type of lift system that offers automated storage and retrieval functionality across multiple industries. The vertical carousel system offers a wide range of advantages to industries, including greater flexibility of storage and enhanced efficiency. It also occupies a smaller space and helps in saving time and storage costs.
The vertical carousel modules offer a key application in the global healthcare sector. In the sector, the module offers efficient and smaller storage space units for storing multiple components, like bins, medicines, and other pharmaceutical supplies. The global healthcare sector’s growth is propelling the vertical carousel market’s expansion during the forecasted timeline.
The module offers key applications in hospitals. In the global market, hospitals and healthcare facilities have witnessed significant growth over the past few years. The American Hospital Association, in its report, stated that the total number of hospitals in the nation grew exponentially in the past few years. The association stated that in 2021, the total number of hospitals in the USA was 6,090, which increased to 6,093 in 2022. In 2023, the total number of hospitals in the nation was 6,129.
Growing global output of the manufacturing sector is predicted to promote the global vertical carousels market expansion.
In the manufacturing sector, vertical carousels offer multiple applications. The module helps in storing a larger volume of raw materials and components in a smaller volume. Vertical carousels also enhance the productivity and efficiency of the manufacturing process.
The global manufacturing sector has grown significantly over the past few years. The manufacturing sector plays a key role in the economies of all the major countries. The National Institute of Standards and Technology of the USA stated that in 2023, the manufacturing sector contributed about US$2.3 trillion, or about 10.2%, to the nation’s GDP.
Similarly, the India Brand Equity Foundation, a part of the Ministry of Commerce and Industry of the Indian government, stated in its report that capital utilization in the manufacturing sector witnessed a significant rise over the past few years. The agency noted that during the first quarter of 2024, the capital utilization in the manufacturing sector was recorded at 73.6%, which increased to 74% during the second quarter of 2024. During the third and fourth quarters of 2024, the capital utilization in the sector grew to 74.7% and 76.3%, respectively.
The increasing need in the food and beverage industry is expected to fuel the global vertical carousels market growth.
Vertical carousels have become increasingly popular in the food and beverage industry, leading to significant market growth. These systems have several advantages that enhance efficiency and productivity within food and beverage operations.
Vertical carousels bring products directly to the operators, which saves time and labor by reducing walking distances and minimizing picking errors. They also provide real-time inventory visibility and tracking, enabling better inventory management, reduced stockouts, and optimum inventory levels that save unnecessary costs on overstocking or understocking in food and beverage businesses.
Alongside this, vertical carousels are in high demand in grocery retailing because they increase the speed and accuracy of order fulfillment, maximize storage space, and make order picking faster while offering real-time visibility into inventory. According to the USDA Report called “Retail Foods” in July 2023, the food and beverage retail sales in the Philippines witnessed a 6% growth in 2023. Furthermore, as per the report, hypermarkets hold 6% of the market share for food sales, whereas supermarkets lead the industry by having 23% market share. Amongst this, informal traditional retailers held the maximum market share of 45%.
Moreover, vertical carousels are also utilized in food processing sectors. As of April 10th, 2023, there are around 3319 DPIIT-recognised startups in the food processing sector of India. These certified startups are dispersed in 425 districts nationwide. Additionally, in 2022, nearly 32% of the 3319 startups received recognition. Maharashtra had the most acknowledged startups in this field, around 620 companies.
Higher sales of food and beverages further boost demand for space-efficient storage and logistics arrangements. In line with this, as per Statistics Sweden, in 2022, total sales of food and beverages amounted to SEK 356 billion. This is a rise of approximately SEK 22 billion, or 6.6 percent compared with 2021. In fixed prices, the sales of sweets increased to SEK 107 per capita compared with 2021. More sales also breed innovation and new product development. One such example is the new Kardex Megamat, an automated carousel in which stored inventory rotates about a track to be carried to an operator. Vertical carousels work in line with the principles of goods-to-person. They are perfectly suited for both goods with a high pick frequency and similarly sized inventory and are being used significantly in the food and beverage sector.
Based on geography, the global vertical carousels market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The growth of the North American Vertical carousels market is mainly attributable to the growth of e-commerce in the region. Several major drivers influence the United States vertical carousel market. For instance, e-commerce is growing at an extremely fast pace, exponentially increasing the need for efficient order fulfillment solutions. Vertical carousels are suited to this demand, offering high-density storage and fast retrieval capabilities. In this regard, the Census Bureau of the Department of Commerce released the estimate that U.S. retail e-commerce sales for the second quarter of 2024 were $291.6 billion, 1.3 percent (±0.7) higher than the first quarter of 2024.
Vertical carousels optimize manufacturing processes by making it easy to store and retrieve components, tools, and work-in-progress materials. They maximize productivity, space utilization, and accuracy while minimizing labor costs and errors. Additionally, as stated by NIST, in 2022, manufacturing contributed $2.3 trillion to the U.S. GDP, amounting to 11.4 % of the total U.S. GDP.
Apart from that, the increasing labor costs and dearth of space also enforce the use of vertical carousels. The vertical system improves the use of available space through verticalization while reducing labor costs as it automates in-store retrieval and pick-and-place processes. In addition, it can also drastically enhance the accuracy and efficiency of warehouse operations through improved productivity with substantially lower picking errors and overall pick counts. White Systems, a SencorpWhite company based in Massachusetts, is a premier company at the forefront of innovative, integrated, intelligent storage solutions. White has been an original carousel manufacturer and has remained at the forefront of development for more than 70 years with a suite of intelligent storage systems.
The growth in focus on sustainability and environmental responsibility is another reason behind the demand for vertical carousels. Daifuku's vertical carousel is an automated rotary storage system that effectively uses vertical space. Compared to fixed racks, the vertical carousel can store large volumes of items in a much smaller footprint. It also is an ergonomic solution as it eliminates the need for workers to walk around the facility to find items and lets them perform pick operations from a pick window set at an ideal height. These systems, therefore, enable the optimization of the warehouse, which eventually helps reduce energy consumption and carbon emissions.
| Report Metric | Details |
|---|---|
| Total Market Size in 2025 | USD 1.87 billion |
| Total Market Size in 2030 | USD 2.69 billion |
| Forecast Unit | Billion |
| Growth Rate | 7.56% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Segmentation | Load Capacity, End-User, Geography |
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
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