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The overhead conveyor system market size is forecast to increase by USD 528.98 million at a CAGR of 5.51% between 2023 and 2028. Market growth hinges on various factors, notably the escalating demand for lean manufacturing practices aimed at enhancing operational efficiency and minimizing waste across industries. Furthermore, the rise of e-commerce and the adoption of warehouse automation solutions drive market expansion, driven by the need to streamline order fulfillment processes and meet evolving consumer demands for faster delivery. Additionally, there is a growing demand for modular overhead conveyor solutions, reflecting the need for flexible and scalable material handling systems in manufacturing and distribution facilities. These factors collectively underscore the pivotal role of innovative solutions in optimizing supply chain operations and supporting the growth of industries. As businesses continue to prioritize efficiency and agility in their operations, the demand for lean manufacturing, warehouse automation, and modular conveyor solutions is poised to drive market growth in the coming years. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
Study Period |
2024-2028 |
Base Year For Estimation |
2023 |
CAGR |
5.51% |
Forecast period |
2024-2028 |
Fastest Growing Region |
APAC at 37% |
Largest Segment |
segments.1 |
Furthermore, APAC is experiencing rapid industrialization, driven by fast economic development, urbanization, and infrastructure investments. The expansion of manufacturing sectors such as automotive, electronics, food and beverage, and pharmaceuticals fuels the demand for overhead conveyor systems to streamline material handling and production processes. Additionally, Caldan Conveyor A S company offers overhead conveyor system such as C68, Single line, P and F380, P and F400, P and F420, and Shuttle systems. Also, Certina Holding company offers overhead conveyor system such as Manual Overhead Transfer Systems, Circular Conveyor systems, and Electric Overhead Monorails.
Market Forecast 2024-2028
The market is witnessing rapid growth due to the increasing adoption of automated manufacturing technology aimed at achieving high productivity. These systems enhance system productivity by seamlessly integrating machine both upstream and downstream in the production plant process. They are automatic one, streamline industrial activities in both production and distribution sectors while reducing energy consumption. Key features include automated conveyors and automated storage and retrieval systems, catering to diverse industries such as online shopping, processed food, and construction activities. Efficient repair and maintenance ensure sustained operation, while green conveyors address environmental concerns. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The surge in global e-commerce has heightened the need for efficient order fulfillment solutions. To meet customer demands for fast delivery, e-commerce companies rely on speedy and accurate order processing. Overhead conveyor systems offer an automated solution for goods transport within fulfillment centers, streamlining picking, sorting, and packing. With pressure to optimize warehouse space, these systems utilize vertical storage, maximizing capacity without extensive floor space.
For example, Schonenberger Systeme GmbH's ILS2100 system caters to diverse industries like automotive and fashion, facilitating intelligent item transport and automated tracking. Integrating overhead conveyors with robotics and automation tech further enhances warehouse efficiency. Automated guided vehicles and robotic pickers work alongside conveyors to automate material handling, boosting operational excellence. As e-commerce embraces automation, the market is poised for growth, driven by the need for efficient order fulfillment and distribution solutions.
Industry 4.0 technologies enhance overhead conveyor systems by incorporating smart sensors and IoT connectivity. These sensors monitor parameters like speed, temperature, and load status in real time, transmitting data wirelessly for remote monitoring and predictive maintenance. Predictive maintenance strategies use machine learning algorithms to analyze historical data patterns, optimizing asset uptime and reducing maintenance costs. Real-time monitoring and control allow operators to track material flows and adjust system parameters from anywhere using the Internet. Advanced HMIs and dashboards provide intuitive tools for visualizing and managing operations in real-time.
Furthermore, Industry 4.0 promotes interoperability, enabling seamless integration with other manufacturing systems and software platforms. This integration facilitates end-to-end visibility and optimization across the value chain, driving the growth of the market as manufacturers embrace digital transformation and Industry 4.0 initiatives.
Limited floor space in manufacturing facilities, warehouses, and distribution centers poses challenges for installing overhead conveyor systems. Space constraints necessitate careful planning of conveyor routes and creative solutions to maximize material handling efficiency. Irregular layouts, obstructions, and architectural features further complicate system design and installation, requiring customized solutions.
Additionally, adequate clearance above the production floor is essential, but low ceilings or limited overhead space can hinder safe operations and require modifications to building structures. Optimizing material flows within confined spaces requires meticulous planning to minimize congestion and streamline workflows while adhering to space constraints and clearance requirements. These challenges impact the adoption of overhead conveyor systems in various industries, hindering the growth of the market during the forecast period.
The market is witnessing significant growth driven by its automatic functionality, effectively streamlining industrial activities. It plays a vital role in industrial automation, enhancing machine productivity while supporting the handling of heavy weights. These systems eliminate the need for manual intervention, reducing reliance on traditional equipment like forklifts and trans pallets. Featuring components like motor bracket and counter-bearings, automated overhead conveyors find extensive applications in various sectors, including buildings and food and beverage conveyor systems.
The automotive segment will account for a major share of the market's growth during the forecast period.?Automotive manufacturers rely on overhead conveyor systems to streamline production and optimize space utilization. These systems facilitate the continuous movement of vehicle components along the assembly line, minimizing cycle times and disruptions. Modular and flexible overhead conveyors allow manufacturers to adapt production lines to changing needs easily.
The automotive segment was valued at USD 612.20 million in 2018. Further, integrated with automation technologies like robotics and AGVs, they enhance efficiency and productivity. For example, Durr AG offers Power and Free conveyors for paint shops, while Swisslog provides scalable solutions for intralogistics. The automotive industry's demand for efficient, automated material handling solutions drives the growth of the market in this segment.
Based on capacity, the market has been segmented into 0 Kg-50 Kg, 51 Kg-500 Kg, and above 501 Kg. The 0 Kg-50 Kg?segment will account for the largest share of this segment.? A 0-50 Kg overhead conveyor system offers versatility in handling various loads, from light items to heavier components, making it ideal for industries like electronics and automotive parts. Efficiently utilizing vertical space, it optimizes floor space and enhances productivity by reducing manual handling. Modular and scalable, it can easily adapt to changing production needs, ensuring smooth material flow. For instance, Swisslog's QuickMove system efficiently transports loads up to 50 kg, offering flexibility and easy integration.
APAC is estimated to contribute 37% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. In APAC, the booming e-commerce industry in APAC, which is fueled by rising Internet penetration and consumer spending, drives demand for warehouse automation solutions. E-commerce companies are investing in automated material handling equipment to optimize order fulfillment processes, reduce lead times, and meet growing customer expectations for fast and reliable deliveries.
Furthermore, companies in APAC are increasingly focusing on optimizing their supply chains to improve responsiveness, reduce lead times, and enhance customer satisfaction. Also, such systems play a crucial role in such infrastructure by facilitating efficient material flow, storage, and distribution within large-scale facilities. Thus, these factors will drive the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Aravali Engineers , ArSai Conve Systems , Bridgeveyor, Chass Eng.Pvt Ltd., Durr AG, Dynamic Conveyor Corp., FIVES SAS, KNAPP AG, MIDEA Group Co. Ltd., NIKO HELM HELLAS SA, OCS Overhead Conveyor System Ltd, OMH Group, Pacline Conveyors Inc., psb intralogistics GmbH, Railtechniek B.V., Rapid Industries, Schonenberger Systeme GmbH, Siemens AG, SSI Schafer IT Solutions GmbH, and United Engineering Industries
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments
The market is witnessing a surge in demand as warehousing facilities seek automated solutions to enhance efficiency and reduce waste. With the conveyor system's sectoral expansion, there's a growing need for intelligent mechanical handling equipment and innovative technologies like RFIDs, Artificial Intelligence (AI), and Internet of Things (IoT) integration. These advancements optimize passenger & freight handling capacity and streamline processes such as buffering/storage and sequencing. Industries like the automotive sector benefit from the cutting-edge technology, while the meat & poultry industry relies on overhead conveyors to comply with food safety regulations. As mining activities and oil and gas exploration expand, the overhead conveyor market plays a crucial role in transportation and weight management, supported by robust systems like I-beam trolley conveyors and power and free systems.
Further, the overhead conveyor systems market is witnessing a surge in demand driven by the need for efficient material handling solutions. These systems serve as a vital process link, enabling process decoupling and enhancing productivity in various industries, including the automotive sector and protein manufacturing. With automation features and electrical drives, overhead conveyor systems offer reliability and precision. They incorporate components like electric motors and bearings for seamless operation. Different types of conveyors, such as belt, roller, and pallet conveyors, cater to diverse application needs. Advanced features like semi-automatic operation and pouch sorting enhance efficiency, while innovations like the Tri-Planar design optimize space utilization. As industries increasingly shift away from fossil energies, the adoption of overhead conveyor systems, including power and free systems, is expected to rise, facilitated via main contractors.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.51% |
Market growth 2024-2028 |
USD 528.98 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.49 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aravali Engineers , ArSai Conve Systems , Bridgeveyor, Caldan Conveyor A S, Certina Holding, Chass Eng.Pvt Ltd., Daifuku Co. Ltd, Durr AG, Dynamic Conveyor Corp., FIVES SAS, KNAPP AG, MIDEA Group Co. Ltd., NIKO HELM HELLAS SA, OCS Overhead Conveyor System Ltd, OMH Group, Pacline Conveyors Inc., psb intralogistics GmbH, Railtechniek B.V., Rapid Industries, Schonenberger Systeme GmbH, Siemens AG, SSI Schafer IT Solutions GmbH, and United Engineering Industries |
Market dynamics |
Parent market analysis, Market growth analysis inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Capacity
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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