Conveyor systems market by industry - Global Forecast to 2025

02-04-2022 338

The global conveyor systems market size is expected to reach USD 10.6 billion by 2025, from an estimated value of USD 8.8 billion in 2020.

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The global conveyor systems market size is projected to reach USD 10.6 billion by 2025, from an estimated value of USD 8.8 billion in 2020. Higher adoption of automation processes in Different industries and increased need to handle larger volumes of goods are the driving factors behind the conveyor systems market.

Impact of Covid-19 on the market

The COVID-19 pandemic has disrupted markets globally. The material handling industry is going through a period of recovery. Partial operation of production facilities and distribution centers has delayed new orders for conveyor systems. However, the upward trend in e-commerce is expected to boost demand for conveyor systems. Conveyor system manufacturers have experienced significant business changes because of the COVID-19 crisis.

The conveyor systems market is witnessing a significant slowdown of operations due to the COVID-19 pandemic. According to the United Nations Industrial Development Organization (UNIDO), global manufacturing output fell 6.0% in the first quarter of 2020 due to lockdown measures due to the COVID-19 pandemic. Demand for conveyor systems for new manufacturing facilities and distribution centers has been delayed due to supply chain disruptions. According to MnM's forecast, the industry is expected to recover at a significant rate due to increased demand for automated conveyor systems in the post-COVID-19 period compared to before.



Market dynamics


- Driving factors: Increased demand to handle larger volumes of goods
More investments are expected in the mining industry in Latin American countries. Since mining requires handling larger volumes of cargo, conveyor systems are the preferred as well as economical solution for long distances. The growing purchasing power of consumers and economic growth in these regions are the main factors that have encouraged the growth of the manufacturing sector. Automation in manufacturing, baggage handling, food and beverage, mining and many other industries has brought the industry closer to zero errors.

- Opportunity: Increased material handling demand from pharmaceutical warehouses during the COVID-19 crisis
Essential supplies and medical device manufacturing are expected to drive the pharmaceutical and healthcare industries, and this is expected to further drive material handling demand. Such increased demand from the pharmaceutical and warehouse industries during the COVID-19 crisis is expected to boost the demand for conveyor systems.

- Challenge: Ensuring safety and reducing accidents
Conveyor systems have a number of moving parts and as a result, it is prone to a number of minor problems that can develop into major problems resulting in a complete halt of work. The more complex these systems are, the more likely they are to fail. In addition, ongoing failures can negatively affect the life of the conveyor system. Such problems lead to high maintenance costs, which make up a significant portion of the cost of conveyor system ownership. The Occupational Safety and Health Administration (OSHA) is a federal agency that sets standards and provides guidelines for every industry, including automation. It also provides warehouse safety solutions to common hazards that can occur when working with conveyor systems. Companies need to adhere to the norms set forth by OSHA to reduce accidents and enhance employee safety. Therefore, eliminating accidents is a challenge for the conveyor systems market.

Conveyor system in the market supply chain


- Automotive industry attracts conveyor system manufacturers
The recent increase in vehicle production in the automotive industry has resulted in increased demand for conveyor systems. Conveyor systems help automotive factories work with greater efficiency to meet desired production levels. Asia Pacific is expected to drive the growth of automotive conveyor systems due to the growth of the automotive industry. The presence of major players drives the growth of the conveyor systems market in the region. In terms of conveyor technology, roller conveyors and overhead conveyors are expected to lead the market during the forecast period.

- Conveyor systems market for retail and distribution
The increase in purchasing power and lifestyle changes have spurred the development of supermarket chains along with distribution centers. North America is forecast to hold the largest share of the retail & distribution pallet conveyor systems market during the forecast period. Pallet conveyors are ideal in situations where space is limited. Small and medium-sized distribution centers in North America use pallet conveyors to handle extremely heavy loads and are primarily used to handle inventory.

- Europe is forecast to grow at the highest rate during the forecast period
Europe, being an early adopter, has seen widespread applications of conveyor systems in a number of industries. Conveyor system manufacturers in the region have invested in research and development to innovate innovative technologies to stay competitive in the market. Germany and the UK are at the forefront of research and industrial engineering. Extensive infrastructure, highly qualified workforce and industry-wide value chain integration create an environment that allows companies to develop innovative technologies. The level of production in the food, retail and distribution, automotive and aviation industries has seen significant growth in Europe and is expected to increase further in the future.

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