Conveyor Market Outlook, 2029

A conveyor system is just one of the mechanical handling equipment widely used in the transport of bulk or heavy materials all across the facilities. It involves a belt that is stretched between two or more pulleys. Conveyor systems have emerged as among the prime factors contributing to higher operational efficiency through the smoothing of material handling processes, labor cost-cutting, and minimal product damage. As such, the conveyor market now faces increased aspects of sustainability, brought about by environmental pressures and growing pressures from authorities.Recycling and waste reduction are now taken into consideration in the design and operation of conveyor systems.

Innovations in conveyor design are changing capabilities and applications of these systems. Advancements in modular conveyor design let businesses create more flexible and customized products in response to the needs of their specific operations. These smart technologies, such as AI and IoT, are integrated with the conveyor system to improve functionality by making it capable of real-time monitoring and predictive maintenance. Conveyor systems have applications in many different fields. Conveyors are an essential part of a manufacturing assembly line as they provide for continuous production without requiring intervention by the operator.

Food industry conveyors transport raw materials and packaged products, meeting hygiene standards while speed is attained. This enables package movement in warehouses and also in distribution centers- very critical in an e-commerce or retail business. According to the International Federation of Robotics, industrial robot sales worldwide are expected to rise by 27% in 2021 to 486,800 units, thus clearly a trend where automation is taking over. This development goes hand-in-hand with the use of smart conveyor systems and is put at the forefront as an essential component for the future of industrial automation.

According to the research report, “Global Conveyor Market Outlook 2029” the market is anticipated to cross USD 13 Billion by 2029, increasing from USD 9.98 Billion in 2023. The market is expected to grow with a 5.37% CAGR from 2024 to 2029. The landscape of a traditional supply chain is a world in transformation and being reshaped by two forces such as the emergence of e-commerce, and the advent of Industry 4.0. Companies are compelled to remodel the way they manage material movement, track, and store it, with regard to the use of high technology and automation, to be able to stay competitive in this digital age.

Such change has brought with it the setting up of fulfillment centers and space optimization for warehouses in manufacturers, wholesalers, retailers, and logistics firms. A desire for intelligent mechanical handling equipment arises from the need to automate the entire manufacturing processes for better efficiency and productivity. Accelerating growth of the e-commerce sector is further fueling the rise in material handling processes in warehouses and distribution centers.

The COVID-19 pandemic showed much vulnerability in global supply chains, and companies had to invest in technologies that were good at resilience and adaptability. Organization is being pursued to advance the attainment of conveyor systems that have real-time monitoring and analytics. Such a system will optimize the management of inventories and respond very quickly to potential disruptions. Some critical associations play roles in the global conveyor market through promotions of standards and innovation. MHI's education and networking, Conveyor Equipment Manufacturers Association's safety and efficiency through conveyor systems, International Federation of Robotics overlaps on the automation trend impacting conveyors, the Association for Packaging and Processing Technologies shows how conveyor is being applied in packaging, and the European Conveyor Systems Association, which promotes collaboration and sustainability in Europe

Market Drivers

• Rising Industrialization in Developing Countries: The rapid industrialization in regions such as Southeast Asia, Africa, and Latin America is significantly fueling demand for efficient material handling solutions. As these regions enhance their manufacturing capabilities, the need for automated conveyor systems becomes more pronounced. This growth is driving substantial investments in conveyor technology and infrastructure, presenting both local and international manufacturers with ample opportunities to enter and expand in these emerging markets. The rise of industrial activities not only accelerates the adoption of conveyor systems but also fosters technological advancement in the industry.
• Technological Convergence with Robotics: The convergence of conveyor technology with robotics is revolutionizing automation capabilities across various industries. Collaborative robots (cobots) are increasingly being integrated with conveyor systems, allowing them to work alongside human operators and enhance productivity. This synergy improves workflow efficiency and provides businesses with the flexibility needed to adjust production lines quickly in response to changing market demands. The integration of robotics with conveyors enables companies to achieve higher operational efficiencies and reduce manual handling, ultimately driving growth in the conveyor market.

Market Challenges

• Skilled Labor Shortages:The conveyor industry, like many others, is experiencing a shortage of skilled labor. Many existing employees are nearing retirement, and younger generations may lack interest or training in industrial automation and conveyor technology. This labor shortage can lead to difficulties in operating and maintaining conveyor systems, resulting in increased downtime and potential production losses. Companies may also incur higher costs by relying on outsourced labor or specialized training programs.
• Technological Obsolescence:The rapid pace of technological advancement means that conveyor systems can become outdated quickly. As new technologies emerge, older systems may not integrate well with modern automation and data analytics tools. Companies may face significant costs associated with upgrading or replacing obsolete conveyor systems. Additionally, maintaining compatibility with newer technologies can complicate system integration and disrupt operations. A conveyor system is critical for maintaining trust and ensuring continuity in production processes.

Market Trends

• Growth of Multi-functional Conveyors: The development of multi-functional conveyors is becoming increasingly popular as businesses seek to enhance operational efficiency. These versatile systems can perform a variety of tasks - such as sorting, packaging, and transporting - reducing the need for multiple separate machines. By integrating multiple functions into a single conveyor system, businesses can save space, lower equipment costs, and streamline their operations. The adoption of multi-functional conveyors contributes to higher overall productivity and allows companies to optimize their workflows, making them a valuable trend in modern material handling solutions.
• Digital Twins for Conveyor Systems: The concept of digital twins is gaining traction in the conveyor market, as businesses create virtual models of their physical conveyor systems. This technology allows companies to simulate operations, test changes, and optimize performance without the risks associated with physical alterations. By leveraging digital twins, businesses can make data-driven decisions regarding system enhancements and resource allocation. This trend enables organizations to proactively identify potential issues, improve operational efficiency, and reduce costs associated with physical prototyping and system adjustments.

The global conveyor market is led by the automotive and transportation sector, primarily because of the latter's important role in enhancing the efficiency and productivity in the vehicle manufacturing processes.

The automobile business is able to take advantage of conveyor systems for well over a century, although they were first brought into the mainstream by Henry Ford's assembly line innovations. These conveyor systems allow vehicles and various components within a manufacturing plant to flow freely and thus save a great deal in terms of time for the deliveries of productions as well as labor. With the rapid growth of demand for automobiles, especially electric automobiles, manufacturers are now strongly pressed to capitalize on available space along their production lines.

For example, the use of automated conveyor systems allows for the handling of heavy materials and streamlines operations to achieve high output levels while avoiding errors by manufacturers. This can be further complemented by including smart technologies, such as RFID and automated labeling, in these systems through real-time tracking and management of inventory for improved operational efficiency. The growing trend of Industry 4.0, which emphasizes automation and data exchange in manufacturing technologies, further promotes investment in conveyor systems in the automotive sector.

For instance, the need to become adaptable to the various changing consumer demands and production requirements triggered the increase in customized conveyor solutions specifically designed to adapt to the challenges in the automotive industry. Further, since these changes affect the global supply chain, the transportation components of these systems become critical to the efficiency of logistics and distribution. In fact, it is not only a consumer of conveyor systems, but a driving force that sustains its leading position in the global conveyor market by strengthening and even advancing the capabilities of conveyor systems.

The fastest pace of industrialization and an advancement in the automation technology across the sectors are the primary reasons for the leadership of Belt in the global conveyor market.

The conveyor belt market is in tremendous growth presently, primarily driven by the rapid rate of industrialization and advancement in automation technologies. China and India, the two giants in Asia-Pacific, have been especially highlighted as main drivers for this conveyor belt market. A country does not merely expand its industrial base but also invests a huge amount in infrastructure development for efficient material handling. Conveyor belts play a crucial role in the automation of most industries, for example, automotive, food processing, and logistics-to increase productivity while reducing labor cost.

With this adoption of Industry 4.0, the result has been increased efficiency and reliability brought by smart technologies in conveyor systems, which include IoT connectivity and analytics. Rising demand for strong, effective, and clean metal conveyor belts for food processing industries reflects this trend too. An increase in the business of online sales necessitates more automated warehouses, which sets the demand for conveyor systems for safe and quick movement of goods. Competitive landscape is characterized with players like Bridgestone Corporation and Continental Belting. The established players for the last many years have been competing through innovation- to evolve with changing market requirements.

The largest reason automatic functioning leads in the global conveyor market is because of the ever-present demand for efficiency and productivity in material handling processes across a wide array of industries.

Automation of conveyor systems is changing the face of industries, because of efficiency enhancement, labor cost cutting, and enhanced workplace safety. Growth in adoption by business enterprises is mainly driven by technology-advantaged sensors, robotics, and artificial intelligence and the product/offerings as a whole enhance the operational capabilities of conveyor systems. This automated conveyor system enables rapid and error-free material handling without human error, making them an essential aspect of sectors such as e-commerce, automotive, and food and beverage13.

Besides, the implementation of Industry 4.0 has called for industries to adopt smart technologies that enable timely monitoring as well as data-driven decision-making for optimized supply chain operations45. The increasing complexity of supply chains and the demand for agile response mechanisms to market calls only add weight to this call. How do companies utilize higher productivity combined with zero waste-the principles of lean manufacturing-to achieve these ends? Automated conveyor systems become strategically necessary. Dealing with these current operational challenges in the future will also provide businesses with the readiness to respond much more effectively to emergent market requirements within a more competitive landscape.

The primacy of unit load conveyors in the global conveyor market mainly results from their ability to handle different product types and volumes across various industries in the most efficient manner.

Unit load conveyors are designed to move materials as one unit. This has especially improved the efficiency of manufacturing and distribution plants. They can handle products ranging from small package handling to high unit volume pallets-handling products that could need application in industries like food and beverages, automotive, and retail. This helps companies minimize time and labor needed in material handling. Unit load conveyors can also easily be integrated with automation systems using technologies like RFID and IoT for real-time tracking and inventory management. This also minimizes human error in the process while maximizing throughput as materials move more fluidly through production lines and warehouses.

The increasing demand in manufacturing processes, especially automation, has raised the units of load conveyor adoptions. Companies engage themselves with the adoption process to enhance the production efficiency by reducing the operational costs. For instance, efficiency in retrieving and sorting occurs in the throughput of automated warehouses for the fast supply service of e-commerce which provides a fast trend of having goods delivered. Moreover, systems are endowed with the benefits of maximum durability and low maintenance requirements inasmuch as they minimize downtime and long-term costs of operation.

Europe is primarily leading the Global Conveyor Market due to the dominant manufacture base and interest in the innovation of technologies as well as automation in the region.

The region accommodates one of the leading conveyor systems manufacturers, where those have encouraged a strong reputation for quality, reliability, and advanced technology. Those companies have extensive experience in the market and provide a vast range of conveyor solutions for various applications such as manufacturing, logistics, food processing, and mining, to name some. Besides, Europe's strict regulatory environment stimulates demand for high-tech conveyor systems that ensure safety, energy efficiency, and sustainability. The region has been sped even more by Industry 4.0, with increasing use of smart technologies such as the internet of things and automation in conveyor markets.

The European manufacturers are pioneers in developing smart conveyor systems that can optimize production operations, avoid downtime, and maximize their overall operational efficiency. The infrastructure strength with high levels of industrialization in Europe demands conveyor systems highly for the required industries. Innovation-friendliness can be attributed to the region's aspect of emphasis on research and development with expertise in the workforce towards conveyor technology.

• In April 2022, REMA TIP TOP AG expanded its Southern German service network through the acquisition of HEMPEL Industrievulkanisation GmbH & Co. KG, a leading conveyor technology company headquartered in Neu-Ulm.
• In February 2021, Kanchan Metals launched new conveyor belts for the food processing segment.
• In 2022, Dunlop Conveyor Belting has recently launched a new and unique style of heat-resistant conveyor belt: Optima Heat Xtreme, which it says is the first truly new heat-resistant belt construction made available to industrial users.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Conveyor market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Industry

• Automotive & Transportation
• Food & Beverage
• Chemical & Pharmaceutical
• Construction & Mining
• Consumer Electronics
• Other

By Type

• Belt
• Roller
• Pallet
• Overhead
• Others

By Operation

• Manual
• Semi-automatic
• Automatic

By Load

• Bulk
• Unit

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Conveyor industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.