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.
According to a study by Persistence Market Research, 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.
- 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 aging warehouses, digitalization in the value chain, splurges by consumers, and political landscape (tax incentives) will boost overall industrial racking system market sentiments.
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.
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.