Changing technology landscape, macro-economic developments, and shifting consumer preferences are having a huge impact on the operations of warehouses and distribution centers, which is subsequently paving the way for significant expansion of the global industrial racking system market size. With the rapid growth of the logistics and transportation sector across the world, the global industrial racking system market is set to witness health growth at a CAGR of above 7% over the period of 2020 to 2030.
Industrial Racking System Market Trends
Growing 3PL Market to Augment Sales of Industrial Racking Systems: Logistics is one of the most important industries in any economy, as it deals with the management of the flow of products from the place of origin to the place of consumption, and thus, the industry also involves the integration of material handling, warehousing, packaging, transportation, inventory management, supply chain management, procurement, and shipping security aspects. Given the complexities involved across the entire chain, end-to-end solutions have emerged, such as third-party logistics (3PL), which take care of the entire gamut of such activities. The growth of dedicated third-party logistics service providers would immensely benefit the industrial racking system market, as efficient material handling systems are the cornerstone of success for such service providers.
Increasing Rural Consumption and Regional Policies Bolstering Growth Outlook: Catering to last-mile logistics in remote areas is a critical challenge for the logistics processes of all businesses. It is impossible for most businesses to reach each and every remote location. Thus, a dedicated logistics system is required to cater to the rapidly growing demand in such areas. Moreover, governments of various countries are implementing initiatives to improve connectivity and freight movement by upgrading infrastructure that links remote or rural areas to nearby major urban centers. These developments will also create a positive landscape for the industrial racking system market.
Shortage of Modern Warehousing Spaces Forcing New Build Along With High Demand for Industrial Racking Systems: Warehouse construction and demand for storage space is skyrocketing around the world. Furthermore, shortage of modern warehouse facilities will lead to tough competition for space among e-Commerce players, given the lack of modern warehouse space and rise of the e-Commerce industry, especially in developing countries. There is huge opportunity to develop new warehouses and rebuild old ones to ensure that they meet modern requirements. The industrial racking system market benefits from key drivers of economic activity, including consumption, e-Commerce, supply chain modernization, and urbanization. In developed markets of the U.S., Europe, and Japan, key factors are the reconfiguration of supply chains (strongly influenced by e-Commerce trends), whereas, in emerging markets such as Brazil, China, India, and Mexico, affluence and the rise of a new consumer class have increased the need for modern distribution networks
Manufacturers’ Focus: Investments in Logistics and Enhancing Supply Chain Networks: The global industrial racking system market is a highly competitive market space. Key market players are focusing on enhancing their market share by investing heavily in logistics and seeking possibilities to close value chains. Also, continuing efforts are being made to further improve the cost and performance parameters for different applications. Manufacturers in the industrial racking system market are focusing on expansion of their production and distribution networks in South Asia and Pacific, owing to the prevalence of low labor costs and large number of industrial manufacturers in the region.
Regional Outlook of Industrial Racking System Market
In terms of regional distribution, global demand for industrial racking systems is dominated by Asia Pacific, accounting for the single-largest chunk of the global industrial racking system market share in 2019. The region is projected to continue to be the most significant demand center for the industrial racking system market throughout the forecast period. The large-scale manufacturing hubs already present in East Asian countries of China, Japan, and South Korea, as well as upcoming new regional clusters in Southeast Asia and India, are key demand drivers for the industrial racking system market in this region.
Industrial Racking System Market: Highly Competitive Space
The industrial racking system market is fragmented on a moderate scale, with leading market players only occupying one-fourth of the market share. Attributing to the presence of number of global and regional players, the market witnesses fierce competition. Some of the key players in the global industrial racking system market are Stow International, Jungheinrich AG, Mecalux S.A., Kardex AG, and Daifuku Co. Ltd., amongst many others.
COVID-19 Impact on Industrial Racking System Market
The COVId-19 pandemic has been detrimental to the growth of most economies and sectors. With lockdowns, social distancing measures, and trade restrictions, even the industrial racking system market was adversely affected. However, as restrictions have eased, the e-Commerce sector has witnessed a boom, which has resulted in surging the growth of the industrial racking system market space too.
The selective racking and boltless shelving segment will grow at a significant rate, owing to warehouse infrastructure upgrades. In this competitive business environment, companies are focusing on enhancing their market share and presence through investing heavily in logistics and seeking possibilities to close value chains. The COVID-19 pandemic led to unprecedented spike in the usage of e-Commerce platforms, and this will positively impact the industrial racking system market in the medium to long term. The emergence of global players is likely to encourage unprecedented M&A activity, thereby increasing the transportation and logistics industry over the coming years.
Industrial Racking System Market - Scope of the Report
Persistence Market Research (PMR) recently published a report on the global Industrial racking system market. The report provides detailed valuation on key market dynamics, such as the drivers, trends, opportunities, and restraints, along with detailed information about the industrial racking system market structure. This market research report presents exclusive facts and figures about how the industrial racking system market will grow over the forecast period of 2020 to 2030.
Key indicators of market background, such as value chain analysis and supply chain, compounded annual growth rate (CAGR), and year-on-year (Y-o-Y) growth of the market are explained in PMR’s study in a comprehensive manner. This information can help readers understand the quantitative development projections of the industrial racking system market over the forecast period.
The study is relevant for stakeholders in the industrial racking system market, as well as manufacturers, distributors, suppliers, and investors, as it can help them understand applicable strategies to grow in the market. Stakeholders, investors, industry experts, researchers, and journalists, as well as business researchers in the industrial racking system market can leverage the information and statistics presented in PMR’s research report.
The report includes facts & figures related to the macro- as well as micro-economic factors that are impacting the growth of the industrial racking system market. The study also offers actionable insights based on the future trends in the industrial racking system market. Furthermore, regional players and new entrants in the industrial racking system market can also use the information presented in this report to make business decisions and gain momentum in the market.
Key Segments of Industrial Racking System Market
PMR’s study on the industrial racking system market is divided into four significant segments - design, carrying capacity, end use, and region. This report offers comprehensive data and information about the important market dynamics and growth parameters related to these categories.
Key Questions Answered in PMR’s Industrial Racking System Market Report
Industrial Racking System Market: Research Methodology
In PMR’s research report, exclusive research methodology is utilized to conduct comprehensive research on the development of the industrial racking system market, and reach conclusions on the future growth factors of the market. In this research methodology, secondary and primary research is utilized by analysts to ensure the precision and reliability of the conclusions.
Secondary resources are referred to by analysts during the evaluation of the industrial racking system market study, which comprise facts and figures from the World Bank, IMF, US Energy Information Administration, International Energy Agency, local & regional government websites, white papers, trade journals, and external and internal databases. Analysts have thoroughly interviewed several industry experts, such as sales supervisors, sales operation managers, product portfolio managers, senior managers, market intelligence managers, marketing/product managers, engineering managers, and production managers to provide insightful information.
Comprehensive information acquired from primary and secondary resources is validated from companies operating in the industrial racking system market, to make PMR’s projections on the growth prospects of the market more accurate and reliable.