The overhead conveyors market is predicted to expand rapidly during the forecast period.
Overhead conveyors are a type of conveyor system that moves materials above the working area to maximize space within a warehouse. They make use of unused vertical space, freeing up valuable floor space for other purposes. They are commonly used in manufacturing and distribution centers and come in a variety of types, designs, and uses. The expansion of the overhead conveyor industry is aided by the establishment of automotive manufacturing plants, and distribution centers followed by favourable investment inflows.
Market Drivers
New distribution centers and warehouses are being built to bolster logistics services globally. These facilities necessitate advanced logistics and efficient material handling systems to ensure uninterrupted operation and increased productivity. Overhead conveyors provide a solution that maximizes space utilization and allows for the smooth movement of goods throughout the facility which increases the adoption of overhead conveyors in newly built warehouses and distribution centers. For instance, in March 2023, Mahindra Logistics and Ascendas-Firstspace announced the opening of a one million square foot warehouse park in Talegaon, Pune. Additionally, in June 2023, VF Corporation announced the opening of a new state-of-the-art distribution center in Ontario, California. In September 2022, Maersk India officially opened its new warehouse in Bhiwandi, on the outskirts of Mumbai.
In the aerospace industry, overhead conveyors offer numerous benefits. They allow for the efficient movement of various aircraft components such as wings, engines, and smaller parts throughout the manufacturing facility. Manufacturers can improve workflow and optimize space utilization in their facilities by using overhead conveyors. The growing investment in the aerospace industry and increasing aircraft production are driving up demand for overhead conveyors. For instance, according to Airbus report, in 2022, the company delivered 661 commercial aircraft to 84 customers, an eight percent increase over the year 2021and received 1,078 gross new orders. Additionally, in September 2022, the French Prime Minister announced during the International Astronautical Congress that the aerospace industry would get more than €9 billion in investments over the next three decades.
Increasing automotive production plants plays an essential role in the growth of the overhead conveyor market. Overhead conveyors allow automotive components and parts to be transported along an established route, ensuring a smooth and continuous flow throughout the manufacturing process. This enables manufacturers to optimize space utilization and avoid obstacles on the factory floor, resulting in more efficient operations. In June 2022, The BMW Group expanded its manufacturing footprint in China with the official launch of Plant Lydia in Shenyang, China.
Asia Pacific is expected to show significant growth.
Asia Pacific is expected to account for a considerable share of the overhead conveyor market due to the establishment of new warehouses and automotive manufacturing plants. For instance, in August 2022, Schaeffler India opened a new consolidation and distribution center in Hosur. It is a fully Wi-Fi-enabled warehouse that will aid in automation and digitalization efforts. In December 2021, AWL India launched India’s largest warehouse dedicated solely to fashion apparel brands in Nagpur. The warehouse is equipped with high-tech devices and machinery powering its operations. Additionally, in June 2023, Garrett Motion Inc. completed the expansion of its automotive plant in Wuhan, China. This increased the factory's production capacity by 50%.
Market Challenges
Overhead conveyors can be expensive to install and maintain in comparison to standard conveyor systems. Some businesses may be hindered from implementing this technology due to the high initial investment and cost of regular maintenance. This may limit the adoption of overhead conveyors.
Market Developments
Company Products
Segmentation