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The warehouse racking market size is forecast to increase by USD 2.15 billion at a CAGR of 6.21% between 2023 and 2028. The growth of the market depends on several factors, such as changing consumer preferences, convenience in consumption, and increasing demand for storage and warehousing. Significant expansion characterizes the market, fueled by the rising need for storage and warehousing solutions. In their quest for operational efficiency, businesses prioritize effective storage methods to guarantee product availability. Consequently, numerous enterprises opt to delegate their warehousing and storage needs to logistics service providers. These providers furnish customized solutions encompassing pallet racking, vertical frames, horizontal beams, and shelving, catering to diverse storage requirements. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
A key factor behind the growth of the market in this region is the increasing demand for storage racks from automotive, food & beverage, retail, and other end-users in developing countries such as China and India. Also, AK Material Handling Systems: The company offers warehouse racking such as Standard Pallet Rack systems, Push Back Pallet Rack systems and Cantilever Rack systems.
Market Forecast 2023-2027
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The market is experiencing substantial growth driven by the increasing demand for storage capacity expansion across various industries. Warehouse racking systems, comprising steel beams, metal frames, and connectors, provide efficient storage solutions for maximizing storage spaces. With the surge in e-commerce and the online retail industry, there is a heightened need for systematic alignment of products and organization within warehouses. Pallet racking, vertical frames, horizontal beams, and shelving systems play a crucial role in optimizing space utilization and enhancing storage capacity. These solutions cater to diverse application industries including the automotive and manufacturing sectors. As the global economy and international trade continue to expand, the warehouse racking market is expected to grow significantly, facilitating efficient storage and logistics operations. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
As companies seek to optimize their operations, efficient storage becomes crucial to ensure product availability in the market. Consequently, many organizations are outsourcing warehousing and storage to logistics service providers, who offer tailored solutions including pallet racking, vertical frames, horizontal beams, and shelving.
These solutions enable systematic alignment of products, maximizing storage capacity and space utilization. Advanced racking systems such as drive-in racks and mezzanine flooring racks further enhance storage density, meeting the demand for capacity expansion in industries like the automotive and manufacturing sectors. As companies prioritize efficient warehouse organization and space optimization, the warehouse racking market is poised for continued growth in the forecast period.
Growing retail space across the globe is likely to have a positive impact on the global storage rack market during the forecast period. The global retail market continues to grow due to strong economic growth and urbanization. E-commerce is becoming a popular medium for consumers to purchase consumer goods, creating a huge demand for warehousing. This is expected to contribute to the growth of the featured market during the forecast period. Furthermore, shopping convenience is one of the many factors that are popularizing online channels among consumers.
Moreover, the traditional sales channels for consumer products have always been supermarkets, hypermarkets, and convenience stores. Traditional retail stores sell various brands offered by vendors, and consumers can easily choose from the best brands available. The growing focus by vendors on increasing retail sales and the expansion of retailers will fuel the demand, which will accelerate the growth momentum of the market in focus during the forecast period.
The market is dynamic due to the presence of multiple regional and international vendors competing based on parameters such as new acquisitions, expansions, marketing, and promotional campaigns. The presence of a large number of vendors has also led to intense competition and price wars. Such price wars are likely to erode profit margins and lead to the exit of smaller companies from the market, which is a significant challenge for the market during the forecast period.
Moreover, companies that operate internationally are exposed to foreign exchange risks arising from various currencies. Foreign exchange risks arise from future commercial transactions and recognized assets and liabilities. Some companies might take advantage of this price competition due to the lower labor cost in their production facility's country or region and sometimes due to the fluctuation in the foreign currency exchange rate, which might favor a few companies. Such factors will hinder the market growth during the forecast period.
In the manufacturing industry, effective organization of stored products is crucial for streamlined operations. Welding, clipping, and bolting are essential processes in the production line, yet adequate warehouse racking solutions are necessary for optimal storage levels. The warehouse racking market caters to this demand, offering robust and customizable systems for various industries. These racking solutions facilitate efficient use of space, ensure easy access to inventory, and promote safety and productivity. By integrating welding, clipping, and bolting techniques in the racking manufacturing process, organizations can create durable and reliable storage systems that cater to the unique requirements of their businesses.
The automotive industry segment will account for a major share of the market's growth during the forecast period. The growth of the passenger car and commercial vehicle segment has increased the demand for racks around the world. Improving living standards and economic conditions, as well as increasing disposable income will have a positive impact on the growth of the automotive industry.
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The automotive industry segment was valued at USD 1.25 billion in 2018. In the automotive industry, materials are processed and moved as parts arrive, stored, and finally used on the assembly line. Automakers have a large number of parts of various shapes and sizes, so companies must ensure that only the necessary parts are moved. Failure to do so may result in misplaced, damaged, or improperly installed materials. These mistakes can be costly, as the extra time spent moving and manipulating things unnecessarily can be spent on more efficient productions. Shelving systems are commonly used in the automotive industry to store small auto parts. Such factors will increase segment growth during the forecast period.
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APAC is estimated to contribute 70% 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.
China is a major contributor to sales and is the largest market for warehouse racks in APAC. Rising disposable income could accelerate demand for automobiles, electronic and electrical equipment, and other goods that require warehouses for storage. Such factors will increase the market growth in this region 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:
AK Material Handling Systems, Beumer Group GmbH and Co. KG, Daifuku Co. Ltd., DMW and H, FIVES SAS, FlexLink Holding AB, Gonvarri Material Handling AS, Honeywell International Inc., Interroll Holding AG, Jungheinrich Group, Kardex Holding AG, KION GROUP AG, Mecalux SA, Murata Machinery Ltd., Russell Industries Inc., Saar Lagertechnik GmbH, SSI Schafer IT Solutions GmbH, The Invicta Group, and Toyota Industries Corp.
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 Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is experiencing significant growth driven by the increasing demand for automated warehouse systems and automation technologies. Companies are investing in automated warehouse racking systems to improve efficiency and cost savings. These systems include features such as automatic rack servicing and robotics for speedy product transportation and enhanced performance. Additionally, the demand for capacity expansion is driving the adoption of modern technologies and energy-efficient designs in warehouse storage solutions. However, challenges such as rack damage and overloading due to lack of knowledge or improper training remain restraining factors. To address these issues, companies are focusing on skilled workforce training and systematic alignment of products to optimize space utilization and storage capacity in distribution facilities. As e-commerce and online shopping continue to grow, the global market is poised for further expansion to meet the demands of cross-border retail deliveries and international trade.
Moreover, the market is experiencing robust growth driven by the increasing demand for efficient inventory management and storage solutions across various industries such as food & beverage warehouses and mass production facilities. Companies like Crown Holdings are investing in distribution services and global warehouse racking market infrastructure to meet these demands. However, factors such as overloading of racks and improper lift equipment training serve as restraining factors. To address these challenges, companies are focusing on performance enhancement through engineered weight capacity and application insight. Innovative solutions like pallet flow racks and gravity flow racks are gaining traction for their ability to maximize storage spaces and improve product ordering processes. With advancements in automation facilities and robots, the warehouse racking market is poised for continued growth in the coming years.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.21% |
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Market growth 2024-2028 |
USD 2.15 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.74 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 70% |
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Key countries |
China, US, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AK Material Handling Systems, AR Racking SAU, Beumer Group GmbH and Co. KG, Daifuku Co. Ltd., DMW and H, FIVES SAS, FlexLink Holding AB, Gonvarri Material Handling AS, Honeywell International Inc., Interroll Holding AG, Jungheinrich Group, Kardex Holding AG, KION GROUP AG, Mecalux SA, Murata Machinery Ltd., Russell Industries Inc., Saar Lagertechnik GmbH, SSI Schafer IT Solutions GmbH, The Invicta Group, and Toyota Industries Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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