Industrial Mezzanines Market Size, Share & COVID-19 Impact Analysis, By Type (Prefabricated, Structured, Free-standing, Perimeter), By Number of Storey (Single – level, Multi – level) By Application (Processing Plants, Industrial Facilities and Warehouses, Distribution Centers, Retail Stores, Office buildings), and Regional Forecast, 2021-2028.

The global industrial mezzanines market size was USD 7.08 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with industrial mezzanines witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 3.0% in 2020 compared to the average year-on-year growth rate during 2017-2019. The market is projected to grow from USD 7.32 billion in 2021 to USD 10.14 billion in 2028 at a CAGR of 4.8% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The industrial mezzanine is an elevated floor storage platform that is installed between the floor and ceiling. It is specifically utilized to maximize the storage space and additional office space above or below the existing structure. In the current era, these storage systems solutions are freestanding and have an interlocking design that allows the end-user to increase overhead storage space with cost-effective investments.

Technological advancements in the industrial mezzanine are a growing market trend. The mezzanines are configured such that storage of goods is done manually or automatically by utilizing automated robots and electric pallet trucks. Additionally, the manufacturers are focused on developing modernized storage solutions. The warehouses, distribution centers, retail stores, and processing plants have maximum ceiling height that allows more storage of goods. Moreover, modular mezzanines are one of the newer concepts. These mezzanines create an extra space horizontally so that the goods can easily be transported from one end of the warehouse to others to make the operational process less complicated.

COVID-19 Impact: Fast Growing E-commerce Industry to Boost Industrial Mezzanine Installation

The COVID-19 pandemic situation is rapidly evolving and impacting the global supply chains. This, in turn, has paralyzed economic activities across the globe. However, it has been projected that the global market has observed a moderate downfall in the year 2020 and will exhibit positive growth in the future ahead. The moderate downfall was attributed to the falling steel industry across the U.S. and European countries that has challenged the transportation of industrial production across the globe. Manufacturers are, therefore, left with a reduced workforce that rightly hampered the market in the year 2020.

However, the ever-growing e-commerce industry has generated the quick installation of mezzanines to store products across warehouses, retail stores, and other applications. Countries like the U.K., India, Poland, Saudi Arabia, Vietnam, South Africa, and others are witnessing dynamic enhancement in the E-commerce landscape that increased the installation of free-standing and structural mezzanines across the applications. Additionally, various governmental bodies such as Occupational Safety and Health Administration (OSHA), Health and Safety Executive (HSE), and others have defined various laws for safety standards that deal with the safety of workers while working on raised platforms.

Therefore, all these measures taken by governmental bodies and manufacturers worldwide are remarking favorably on the strong growth of the market in the future ahead.

LATEST TRENDS

Implementation of Advanced Technologies to Spur Market Growth

Implementing technologies and integrating industrial mezzanines with different types of material handling systems is a trending aspect across e-commerce, aerospace, and other major industries. With the adoption of artificial intelligence technology across mezzanine systems, the sorting process has become synchronized. Additionally, companies are implementing the IoT in storage so that the facility storage owners can integrate the product system with a pallet racking system and conveyor systems.

For instance, stow International offers product picking applications in mezzanine flooring to support outfeed conveyors for an automated tracking system. Moreover, they offer benefits in distribution centers, including adaptability with other material handling systems, robust and safe storage options through the adoption of internet of things (IoT) in the storage of goods. Therefore, technologically integrated products are a growing trend in the global market.

DRIVING FACTORS

Growth in E-commerce Industry to Propel Market Growth

The rapid growth in the e-commerce industry has enlightened the nature of online orders and how the order must be processed. Owing to this, mezzanines and their structural parts such as floor support columns and staircase are gaining traction, as it is steel structured and offers additional space without changing the building fabrication. Additionally, warehouse, retail stores, and others expand the size of their fulfillment centers by utilizing all the available space within the facility.

E-commerce companies opt for warehouses with maximum ceiling height and distribution centers with more than four buildings. For instance, The United Nations Conference on Trade and Development (UNCTAD) stated that Alibaba, a China-based E-commerce company, has gross merchandise value (GMV) of USD 866.00 billion in 2018, almost 3.5 times higher than Amazon’s GMV, i.e., USD 277.00 billion, the U.S. based e-commerce company. Thus, the growth in the e-commerce industry is expected to favor the global industrial mezzanines market growth during the forecast period.

RESTRAINING FACTORS

Lack of Importance of Safety Measurements to Hinder Market Growth

A mezzanine floor is a vital tool for utilizing the available space within the pre-existing facilities. However, there are areas of concern regarding the safety of workers. The manufacturers are fabricating mezzanines without safety measurements including, gatekeeper, handrail, guardrails, and staircase. Owing to this, the workers are losing their lives while working on the raised platforms. For instance, the UK Government's Health and Safety Executive (HSE) stated that, in 2018-19, in Great Britain, nearly 44,000 injuries occurred at the workplace, owing to the non-existence of mezzanine safety equipment. There are safety standards fixed by various governmental bodies regarding guardrail systems, handrail systems, and safety gates. Still, the incidences of injuries occur while working in an elevated workspace. This is owing to the lack of importance of safety measurements amongst the manufacturers and the workers.

SEGMENTATION

By Type Analysis

Hassle-free Customization to Boost Free-standing Mezzanines Demand

The industrial mezzanines are categorized into prefabricated, structural, free-standing, and perimeter mezzanines.

The free-standing mezzanine is in the best position to lead the market. It is attributed to its ability to restructure as and when needed in the facility stores. Additionally, the primary beam, i.e., steel, offers hassle-free customization within the warehouse or distribution center building. This feature makes freestanding mezzanine floor cost-effective steel structures.

The structural mezzanine is expected to grow significantly due to its utilization in apartment or industrial buildings. Prefabricated and perimeter mezzanines are expected to grow steadily. Companies that focus on the fast installation of simple mezzanine systems specifically demand prefabricated mezzanines whereas perimeter mezzanines are utilized to transport goods from one end of the facility store to another. Additionally, the building columns support the perimeter mezzanine, making it more useful when accommodating the maximum visitors during the industrial visits.

By Number of Storey Analysis

Installation of Last-mile E-commerce Warehouses to Favor Single-level mezzanines Growth

The storey segment is characterized into the single–level and multi-level mezzanines.

The single-level mezzanines are in demand, owing to the increased requirement for last-mile E-commerce warehouses. Moreover, the utilization of single-level mezzanines in small and medium enterprises has boosted the demand.

The multi-level type offers maximum storage capacity over the mezzanine floor, owing to the maximum ceiling height utilization.

By Application Analysis

Increase in Warehouse Renting to Drive Industrial Facilities and Warehouses Segment

By application, the industrial facilities and warehouses category segments are expected to dominate due to increased industrial manufacturing and a rise in warehouse renting rates. The warehouse construction companies are offering warehouses on rent to SMEs to carry out the delivery of goods quickly.

The distribution center category is expected to witness substantial growth, owing to the increased number of distribution centers utilized by the e-commerce companies to store goods.

Industrial mezzanines are utilized in retail stores, office buildings, and processing plants, as it increases the back–of–storage area in these stores and office space in office buildings.

REGIONAL INSIGHTS

The market is classified across five regions, namely North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

The market is anticipated to witness swift growth in the Asia Pacific, owing to the availability of mezzanine product varieties across the region. Countries including India, China, Malaysia, and South Korea extensively adopt mezzanines for available space utilization.

India to Showcase Highest CAGR; Leading participants Focus on Installing Warehouses and Distribution Centers

India is emerging as one of the biggest zones in the global market for industrial mezzanine. The market participants offer storage solutions such as mezzanine floors to utilize maximum available space in retail stores and industrial warehouses. Additionally, giant players in the e-commerce business have shifted their warehousing and distribution centers in India, owing to the governmental initiative, including Make in India and others. This has been the boosting factor in utilizing mezzanine floors for faster delivery of goods. For instance, in March 2018, Amazon India added six new fulfillment centers specifically for furniture and large appliances storage.

North America is projected to witness substantial growth attributed to the advantage of space availability in warehouses, distribution centers, and other industrial facilities. Moreover, the key players are adopting product expansion strategies in the U.S. to cope-up with the regional players. For instance, Mecalux, S.A., and Equipto have implemented the product expansion strategy to expand mezzanine applications in pallet racking and modular cabinets, respectively.

Europe is experiencing steady growth in the forecast period due to the presence of major players, including Schaefer Systems International, Inc., Jungheinrich Ag, Konvex Storage systems, S.L., and others. Additionally, the strict safety measurement standards imposed by the U.K. government have complimented the market growth.

The Middle East and Africa and Latin America are estimated to grow at a steady rate due to the rising government initiatives for the manufacturing industry across countries such as Oman, Saudi Arabia, South Africa, and others.

KEY INDUSTRY PLAYERS

Major Companies Focus on Brand Expansion and Providing Industrial Operational Support

Key players have adopted strategies including advanced product launching and acquiring regional players to sustain in the market competition. Additionally, leading market participants continuously focus on technological advancements, including IoT in storage systems and integrating mezzanines with material handling equipment systems to offer a wide range of mezzanine products. Moreover, these market players supply their material handling equipment to countries such as Belgium, Germany, Czech Republic, and others to capture unattainable areas.

MiTek Mezzanine Systems, Inc. is Utilizing Automated Techniques to Generated More Sales

MiTek Mezzanine Systems, Inc. is integrating mezzanines with procurement and automated conveyor systems to apprehend the extent of their benefits. For instance, the company offers an industrial mezzanine with decking types featuring automated picking and conveyor pallet-line machines that help cut down the operation time. This would showcase its product to industry professionals and foster automation in logistics and material handling industries.

LIST OF KEY COMPANIES PROFILED:

• Mecalux, S.A. (Barcelona, Spain)


• Jungheinrich AG (Hamburg, Germany)


• Schaefer Systems International, Inc. (Neunkirchen (DE), Germany)


• MiTek Mezzanine Systems, Inc. (Cubic Design, Inc.) (Wisconsin, U.S)


• stow International (Spiere-Helkijn, Belgium)


• Stanley Black & Decker, Inc. (Stanley Vidmar) (Connecticut, U.S.)


• Equipto (Pennsylvania, U.S.)


• Steele Solutions Inc. (Wisconsin, U. S.)


• Cornerstone Specialty Wood Products, LLC (Ohio, U.S.)


• Gonvarri Material Handling (Madrid, Spain)


• Konvex Storage Systems, S.L. (Golmés, Spain)

KEY INDUSTRY DEVELOPMENTS:

• December 2019 – Mecalux, S.A. installed a mezzanine floor in Almenara mall shopping center in Canelones, Uruguay. The mezzanine structure is made up of five floors to raise the storage capacity.


• January 2019 – Jungheinrich AG acquired ISI Automation GmbH & Co. KG. ISI Automation GmbH & Co. KG’s ISIPlus and ISIPro products expand the Jungheinrich AG’s product portfolio in the area between shop floor operations and ERP.

REPORT COVERAGE

The global industrial mezzanines market research report provides detailed insights into the market. Some of them are growth drivers, restraints, competitive landscape, regional industry analysis, and challenges. It further offers an analytical depiction of the market, current trends, and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide the financial competency of the market. The information gathered in this report has been taken from several primary and secondary sources.

REPORT SCOPE & SEGMENTATION