Urban logistic facilities are rapidly growing in importance as they facilitate convenience and faster delivery times. With the potential to slash delivery times, the development of smaller warehouses will play an important role in the battle for online market share and open up future avenues for industrial racking systems.
Persistence Market Research (PMR) projects that the global industrial racking system market is expected to grow at a CAGR of ~7% throughout the forecast period. The industrial racking system market is assessed to twofold its value in the period of 2019-2029, riding high on the surging sales of e-commerce products and warehouse expansion.
Increasing Automation & Strong Need for Reduction of Complexity
- Storage, retrieval, and product handling under industrial racking systems is an integral cost and efficiency factor, not only in traditional production and distribution facilities but increasingly also for service providers and new (e.g. internet-based) business models such as e-Commerce. Many companies will have to invest in modernizing their storage and warehouse facilities in the coming years through industrial racking systems.
- Costs incurred on industrial racking systems can be reduced through further automation at facilities in order to save space and increase the availability of stored goods.
- Selective racking, also known as pallet racks, finds prominence in areas where cost effectiveness, large range of stock keeping units (SKUs), and no special forklift requirements are vital concerns, such as automotive, food & beverage, etc.
- Surge in trade volume exports, increased acceptance of the brand, focus on e-Commerce, and policy support by regional governments are the cited reasons for the strong growth outlook for the global industrial racking system market. The stream of policy and regulatory reforms by the Government of India unveiled in recent times has accentuated the entry of international players in the India racking system space.
- Lack of international standards and high-level fragmentation are anticipated to moderately impact the industrial racking system market in the near-term. However, improved affordability, stronger product launches, and multiple ownership will create new growth prospects in the global industrial racking system market.
2019 and the coming years will see positive ticks, where e-Commerce sales, demolition of ageing warehouses, digitalization in the value chain, splurges by consumers, and political landscape (tax incentives) will boost overall industrial racking system market sentiments.
Strong Market Positions and Customized Solutions Act as Differentiating Factors
Kardex, Daifuku Co., Ltd., and SSI Schaefer are some of the prominent market players in the business of material handling solutions and industrial racking systems. The cited companies have leading positions in the global industrial racking systems market across the globe, mainly in Asia Pacific and Europe. The robust existing customer base of these companies provides future revenue generating prospects through the delivery of after-sales services and refurbishment as well as new solutions to meet changing customer requirements in the industrial racking systems market.
Cost-competitiveness of Industrial Racking Systems to Play Key Role
The global industrial racking system market is driven by the need of smaller systems to increase efficiency through the adoption of ‘easily manageable’ systems on a stand-alone basis. By carrying capacity, in terms of value, the medium duty segment is expected to lead the global industrial racking system market throughout the forecast period due to the cost effectiveness of the product.
New Sales Channels and Consolidation Shape Market Growth
The implementation of suitable strategy is a key cornerstone for the further development of the industrial racking system market. New sales channels aim to achieve greater penetration of products in the intralogistics market and to increase the capacity utilization rate of existing production plants, therefore improving profitability through economies of scale. In the long-run, e-Commerce, increasing industrial investments to enhance the current storage space, and surge in the relationships of logistic players in the supply chain positively impact the global industrial racking system market.
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About FMI – Industrial Automation
The Industrial Automation division of FMI offers a novel approach and innovative perspective in analyzing the industrial automation market. Comprehensive coverage of capital, portable, process, construction, industrial, and special purpose machinery across manufacturing sector and distinctive analysis about installed base, consumables, replacement, USP-feature-application matrix make us a prominent voice of authority in the industry. We are associates of choice for established as well as budding industry stakeholders and channel partners when it comes to sustain, grow and identify new revenue prospects.