The conveyor systems market size is projected to grow at a CAGR of 3.83% to reach US$10.069 billion in 2026 from US$7.741 billion in 2019. It has been observed a powerful rate in recent years and is forecast to exhibit fruitfully within the years to come back.
Conveyor systems are mechanical equipment’s which are used in various industry sectors including manufacturing, food and beverages, retail, transportation and automotive. These mechanical equipment’s are primarily used for material handling to save time and have an error-free process. Factors such as the need of automation to reduce costs, growing industrialization and to improve the overall efficiency are driving the use of conveyor systems in a variety of industry sectors.
One of the major drivers for the conveyor systems market growth includes the explosive growth of Industry 4.0 and e-commerce which has been continuously transforming company strategies, its supply chain, storage of materials with the use of advanced technologies and automation. The demand of automation in the manufacturing process has been fuelled by intelligent mechanical handling equipment’s. The use of automated distribution and warehouse solution to stay profitable and optimize warehouse space utilization has become a market trend for retailers. The conveyor systems are used in retail sectors for cross-docking, sorting and distribution and warehouse operations. The ever-growing online shopping in the Asia Pacific region has been a major contributor to the growth of the conveyor system market. The changing consumer behaviour towards purchasing goods and growing online retail has demanded the surged in the use of conveyor systems in industry sectors. The investment in sortation facility has further led to the increase in its demand in the global market. In the year 2018, UPS had announced to further expand their sortation capacity to increase their cross-border orders by 25% by the year 2022.
However, the increasing competitiveness among industries has led to the increasing demand of automation of industrial facilities as companies are constantly looking for process automation. The various advancements in automation have helped in meeting requirements such as material handling capacities which have resulted in less human errors, increasing safety measures, reduced production time, high volume production, and increased efficiency and accuracy. This has been a prime reason for its adoption by various industry sectors in the market. In a recent report by the International Federation of Robotics (IFR), 2.7 million were installed in various industry sectors in the year 2020. This has been a major reason which may hamper the conveyor systems market in the forecast period.
The Warehousing Segment Is Estimated to Own the Highest Market Share
Based on industry vertical, the market is metameric into manufacturing, healthcare, chemical, paper, food and beverage, warehousing and others. On the source of industry vertical, the warehousing section procured the utmost revenue of the worldwide conveyor systems market in 2019. The increasing demand of conveyor systems from the retail and warehousing sector in the global market has been a prime driver of this industry.
The increasing demand of conveyor systems market in the retail and warehousing sector is factored to staying profitable and to optimizing warehouse space utilization. The increasing adoption of automated and warehousing solutions in the retail market has gained pace due to its uses in cross docking, sorting and distribution and warehouse operations. It has proved to be a valuable asset for maximizing efficiencies in modern material handling systems for decades. With growing technological advancements, the demand for these conveyor systems in material handling has surged over the years. Recently in the year 2019, Daifuku, a leading manufacturer of material handling systems acquired Vega conveyors and Automation Private Limited to strengthen the company’s localization strategy and the increasing demand in the Asia Pacific region.
The growing working-class segment, lifestyle changes, increasing purchasing power of consumers and the lessening of government regulations such as the FDI have given a boost to the overall conveyor systems market in the forecast period.
North America and Asia Pacific Region Fuelled the Conveyor Systems Market
The market for conveyor systems market is metameric into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In recent years, Europe has emerged to be a prominent region in the conveyor systems market; though, the market within the Asia-Pacific region is anticipated to develop at a fast rate as compared to different regions. Europe is additionally anticipated to exhibit the highest rate / CAGR over the forecast amount 2020-2027. Factors like highly qualified workforce, extensive R&D infrastructure and the increasing research and development for the innovation of improved technological systems to gain a competitive edge in the market has led to the growth in this region. The growth of the Asia-Pacific market is calculable to be fuelled because of the upsurge in the demand of conveyor systems in production facilities set up in developing countries such as China and India by international corporation of developed countries across the globe due to cheaper labour, raw materials and equipment’s. This increase in the production and manufacturing units in the region have upsurged the demand of conveyor system in the region. Additionally, the improving standard of living, higher GDP and increasing spending power has allowed the demand for manufacturing goods, due to which the demand of conveyor systems and other automated solutions has increased in the forecast period.
Manufacturing activities are interrupted because of lockdown measures enforced in numerous countries. Additionally, disruptions within the supply chain and retardation of companies' businesses have occurred. Trade barriers have restrained the stock. The COVID-19 impact on conveyor systems market has been severely affected due to the uncertainty in the recovery timeline, the implantation of lockdown in various countries has had a negative impact on the automation, sensor and control industry. The investments made in the automation sectors have been put on hold due to the pandemic across various counties and is expected to be postponed for at least a year. The partial operation of distribution centres and manufacturing unit have cause delays is new orders of conveyor systems. The rising ecommerce globally is expected to revive the demand of conveyor systems in the global market. The COVID-19 pandemic has slowed down operations of the conveyor systems market. The United Nations Industrial Development Organization in a recent report witnessed a 6% decline in the global manufacturing output due to the lockdown implemented in the first quarter of 2020. In the post COVID scenario, the conveyor systems market is expected to gain pace owing to the increase in its demand in various industry sectors.
The key companies involved in the conductive silicon market are Siemens AG, DEMATIC, BEUMER Group, Murata Machinery Ltd., Liebherr Group, Mecalux SA, SSI Schaefer AG, Honeywell Intelligrated Inc., Daifuku Co. Ltd, Titan Conveyors.