Conveyors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• With the rapidly increasing growth in Stock-Keeping Units (SKUs), wholesalers and distributors need help to make informed decisions about their operations, which drives the need for the more innovative use of labor, equipment, and technology. The main factors driving the need for these automated material handling systems are cost savings, labor efficiency, and space constraints.
• Various factors, such as industrial growth, expansions, modernization of industries, and product and process-specific conditions, influence the conveyor systems market. Conveyor systems help simplify the task of handling bulky materials. It plays a vital role in operations by reducing and minimizing production cycle time and errors.
• Supply chains and business processes are becoming increasingly complex, and customers are demanding more. At the same time, competitive pressure is also growing among national economies and individual market players. Therefore, outsourcing models and automation are gaining demand.
• It has also been observed that there is an increasing need for delivering various products in small time frames that require efficient inventory management and reverse logistic systems. The developing automotive, retail, and food and beverage industries are also likely to fuel the growth of the market studied.
• The spread of COVID-19 has positively affected the market studied, especially in the food & beverage and pharmaceutical sectors, which have been deemed under essential services. Due to increased sales of the products under these segments, manufacturing facilities have been working round the clock to deliver the end products, which was only possible with the usage of conveyor belts, among other machines.

Conveyors Market Trends

Retail Segment to Witness Significant Growth

• The retail industry has transformed significantly with automation and IT-based solutions. Retailers are adopting automated warehousing and distribution solutions to optimize store space utilization and stay profitable. The retail sector utilizes conveyors for distribution, warehousing, sorting, and cross-docking. Growth in shopping through online mode in the Asia-Pacific and LAMEA regions has created a conducive market environment.
• The increasing usage of online retailing, coupled with changing consumer behavior toward goods purchasing, is likely to positively impact the adoption of conveyor and sortation systems. In addition, many companies already invested in the sortation facility are expected to increase their capacity, owing to the rising demand. For instance, in October 2022, UPS expanded its presence at Milan Bergamo Airport by adding a new facility to expand capacity. Moreover, the new facility measures 5,000 sq. meters and has sorting facilities, processing 3,800 packages per hour - twice as many as the previous building.
• The increasing purchasing power of consumers, changing lifestyles, growing working-class segment, and relaxation in government regulations such as Foreign Direct Investment. These factors have boosted the growth of supermarket chains and distribution centers, driving the demand for new distribution centers and warehouses, which is then expected to drive the conveyor market.
• Furthermore, According to the US Department of Commerce, the warehousing and storage industry in the US generated almost USD 50.5 billion in the year 2021, and there were over 19,000 warehouses in the united states, which will drive the market for conveyors in the US.

Asia Pacific is Expected to Hold the Largest Market Share

• Many international corporations from developed countries across the globe have set up their production facilities in the APAC region, especially in developing countries such as India and China, because of the availability of cheaper factors of production (labor, raw material, and equipment). The growth of manufacturing activities has increased the adoption of conveyor systems in this region.
• Moreover, increasing spending power, improving the standard of living, and higher GDP, among other factors, are increasing the demand for manufactured goods, which in turn is leading to the increased adoption of these automated systems. For example, the majority of belt conveyors in Indian manufacturing facilities were initially of the low-speed type. The expansion of these facilities, fueled by increased public demand for goods, led to the adoption of high-speed belt conveyors.
• In India, demand will increase from the retail, airport, and post and parcel industries during the forecast period. The retail market is primarily driven by the emergence of the e-market and customers shopping online, which gave rise to fulfillment centers and warehouses. Also, with the increased usage of communication devices, the internet is helping the growth of e-commerce and m-commerce.
• Also, the Tokoyo-based rubber company Bridgestone Corporation reported that the company was able to generate JPY 386.9 billion (USD 2.89 billion) in 2021 from China and Asia-Pacific, which play an essential part in the making of conveyors.
• Furthermore, the Ministry of Economy, Trade, and Industry (METI) stated that the sales value of conveyor and elevator beltings made from rubber in the rubber industry in Japan increased by JPY 700 million (USD 5.2 million) in 2021, compared to 2020, which was an increase of 4.58% of the sales.

Conveyors Market Competitor Analysis

• March 2022 - Honeywell announced a collaboration with OTTO Motors, a division of Clearpath Robotics, giving warehouses and distribution centers throughout North America an automated option to address some of the most labor-intensive roles in an increasingly scarce job market. The collaboration also allows Honeywell customers to increase efficiency, reduce errors and enhance safety by installing OTTO’s autonomous mobile robots (AMRs) in their facilities. These AMRs also provide a flexible and powerful way to transport pallets, typically accomplished primarily with forklifts and conveyor systems.
• May 2022 - Viastrore Systems GmbH announced that Interroll and Viastore had agreed to work more closely together in the field of conveyor technology in the future. The managing directors locked the corresponding cooperation with a handshake at LogiMAT, the international trade fair for intralogistics solutions, in Stuttgart, Germany.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
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