Warehouse and Storage
Overview of the global AMHE market
The global AMHE market is anticipated to grow at a steady rate and will post a CAGR of more than 8% during the forecast period. Continual advancements witnessed in the e-commerce retail industry will drive the growth prospects for the global AMHE market in the forthcoming years. It has been observed that there is an increasing need for delivering various products in small time frames that requires an efficient inventory management and reverse logistic systems. One of the major factors responsible for the growing retail sector is the increasing use of the Internet and mobile services among the growing middle-class population. This growth in the retail sector will further drive the need for efficiency in delivery systems, inventory management, reverse logistics, and freight forwarding for better operation. As a result, the demand for AMHE will also increase as it helps to enhance these operational services.
The increased spending on research and developmental activities, M&A for new technologies, and the miniaturization of AMHE will drive the growth prospects for the global AMHE market until the end of 2021. One of the major factors responsible for this growing number of investments in R&D is the growing competition among the vendors in the market. Furthermore, the increasing trend of miniaturization of MHE will reduce the total installation cost of the machinery, which, in turn, will have a positive impact on the market’s growth.
Competitive landscape and key vendors
Overview of the warehouse and storage market in China
Market research analysts at Technavio have predicted that the warehouse and storage market in China will grow steadily during the next four years and post a CAGR of almost 8% by 2020. This market research analysis identifies the emergence of new segments such as reverse logistics as one of the primary factors that will have a positive impact on the growth of the market in the coming years. The country’s logistics segment is becoming more mature, which resulted in the emergence of specialized segments such as reverse logistics. The introduction of consumer protection laws in the country that enable consumers to return most commodities purchased via online platforms within seven days upon receipt of the goods without giving any reason will spur the demand for reverse logistics services, in turn, resulting in the emergence of additional warehouse storage spaces.
One of the major trends that will gain traction in the coming years is the growing use of robotic operations in warehouse and storage facilities. China is currently witnessing a major rise in labor costs and suffers a shortage of skilled labor, which will induce companies to use robots for packaging operations in warehouses and storage facilities. Major e-commerce vendors such as JD.com and Alibaba Group have already started using robotic systems for various applications such as picking up, packaging, and sending goods to distribution points.
Competitive landscape and key vendors
Global market outlook for chemical warehousing and storage
Extensive market research carried out by the analysts has shown that the global chemical warehousing and storage market will grow at a CAGR of almost 11% by 2020. The recent increase in the demand for specialty chemicals will help in the strong growth of this market over the forecast period. The demand for specialty chemicals is increasing because these chemicals have various applications in the food, cosmetics, agricultural, and textiles industries. Some examples of specialty chemicals are adhesives, cosmetic additives, food additives, agrochemicals, polymers, and construction chemicals. Since the growth prospects for the chemical warehousing and storage market is heavily dependent on the global consumption of specialty chemicals, an increase in its global consumption will result in the strong growth of this market during the estimated period.
According to the market research analysts, eminent trends, such as increasing concerns regarding health, safety, and environment, will result in the impressive growth of this market over the next four years. Safe handling of products is one of the major concerns for the warehousing and storage providers. The safety of products plays a significant role, especially in the chemical industry. As a result, most governments require every logistics and warehouse provider in the industry to have a license. Additionally, many warehouses and storage houses also take certain measures to ensure safety. These measures
Overview of the global oil and gas storage service market
Market research analysts at Technavio predict that the global oil and gas storage service market will grow steadily during the next four years and post an impressive revenue of more than USD 13 billion by 2020. This market research analysis identifies the delay in oil and gas pipeline projects as one of the primary growth factors for the oil and gas storage service market. Due to the low prices, the current crude oil market appears to be significantly dormant. This has resulted in a decrease in production and delayed crude oil pipeline projects. For instance, citing low crude oil productions, Enbridge Energy Partners (EEP) put the Sandpiper crude oil pipeline project that connects North Dakota to Wisconsin in the US on hold in September 2016 and the Knight Warrior oil pipeline project in Texas was also put on hold by BlueKnight, which also cited low-production to be the major reason. This will create the need for storing oil and gas products, in turn, driving the demand for storage services in the next few years.
One of the major trends that will gain traction in the forecast period is the shift in focus toward independent oil and gas storage service companies. This will mainly attribute to the high profit margin. Independent storage companies do not store oil only for customers but also store oil for trading as well. With the expected increase in crude oil prices in the coming years, this will help independent storage companies significantly increase their profit margins. Moreover, the focus of oil companies to increase investments towards their core business will also create the need for independent oil storage
Global outlook of the plastic pallet market
Technavio’s market research analyst predicts the global plastic pallet market to grow at a CAGR of about 7% by 2020. Plastic pallets are cost effective than wooden pallets as they are durable and resistant to damage. Manufacturers and distributors are preferring plastic pallets for shipments as they are 30% lighter and 42% more durable than wood. This helps in less wear and tear on equipment during transportation and as it is lighter, it reduces the cost of shipment and transportation by around 50%. The proper utilization of plastic pallets also minimizes costs with respect to floor space, load weight, labor and sanitization, and helps in cutting the shipment expenditures and saving time. Also, factors like decrease in product breakage due to pallet damage, drop in cleaning expenses, decline of repacking costs and problem-free disposable system significantly contributes to the growing applications of plastic pallets in the logistics section of various industries like, grocery, pharmaceutical and automotive.
The latest trend gaining popularity in this market is the implementation of advanced technologies like RFID in plastic pallets. Plastic pallets are implemented with RFID tags, which track and trace the physical conditions of the goods throughout the supply chain. RFID tags embedded in the plastic pallets can be located from the manufacturing unit through the distribution centers to the retail stores. The technology protects the pallets from being lost
Overview of the pallet market in Europe
According to the market research analysts at Technavio, the pallet market in Europe is anticipated to witness steady growth and will post a moderate CAGR of more than 5% over the forecast period. Pallet manufacturers are increasingly relying on automation to boost productivity and raise the capacity of their manufacturing plants. While loading and unloading pallets manually is time consuming, cumbersome, and expensive, automated processes are economical and efficient. Automation of processes improves the efficiency of pallet manufacturers by nearly 25% and also saves time. Moreover, pallet manufacturers are incorporating sophisticated logistics systems to improve their services. Some of the vendors are also integrating tracking technologies in pallets, to ensure the safety of food products as they travel through the product distribution system. The use of these novel technologies has also led to an increase in the use of plastic pallets as planting new tracking technologies on these pallets is easier than on other pallets, which will fuel the growth of this market in the coming years.
One of the emerging trends spurring the growth prospects for this market is the increasing preference for block pallets. Costco and Walmart, two of the major retailers, have announced their preference for block pallets. This has bolstered the production of block pallets as they are expected to account for a major portion of the market in the coming years. This trend is aiding the growth of large pallet poolers such as CHEP and PECO, which only deals in block pallets, putting independent producers who manufacture stringer
Warehousing is a central part of the logistics and supply chain industry. Research into the warehouse and storage sector includes a detailed study of services offered to customers, such as loading and unloading, inventory management tools, and other supply chain management (SMC) services.
The increased adoption of warehouse management system (WMS) services in warehouses will facilitate smoother warehouse management operations. A WMS is an integral part of the SCM process and provides services such as an inventory locator, inventory pick supervisor, shelf-life supervisor, and inventory management tools.
We cover warehousing and storage-related trends across different regions and countries. All market participants can benefit substantially by recognizing new and existing opportunities in the market and analyzing the competitive scenario.
Technavio’s warehouse and storage portfolio includes market reports on WMS, refrigerated storage, public and farm storage, material handling, inventory management, and refrigerated equipment.