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The global industrial vending machines (IVM) market size was USD 2,365.0 million in 2020. The regional impact of COVID-19 has been unprecedented and staggering, with industrial vending machines witnessing a positive demand across the regions amid the pandemic. Based on our analysis, the market exhibited a modest growth of 6.5% in 2020. The market is projected to grow from USD 2,513.2 million in 2021 to USD 4,164.5 million in 2028 at a CAGR of 7.5% in the 2021-2028 period. The steady hike in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.
The rising emphasis on adopting technological implications in the vending industry for real-time inventory management of products such as manufacturing equipment and tools contributes to the growth of this market. These systems are installed in manufacturing plants and oil and gas industries to automatically dispense PPE and MRO, therefore expediting the streamlining of inventory management processes. The implementation of these vending systems has reduced the operational downtime in the aviation industry's critical manufacturing process. Moreover, the primary advantage of this system focuses on employee safety by increasing the usage of personal protective equipment (PPE), thus supporting the product demand globally.
COVID-19 to Inhibit the Production and Supply Chain of Industrial Vending Machines
The sudden occurrence of the COVID-19 pandemic across the world has led to the imposition of strict guidelines by the governments for the manufacturing sector. Owing to the lockdown strategy imposed across several countries, manufacturing sectors came to a halt, with all the operations on a standstill for more than a quarter. This resulted in impeding the production of these machines and their supply in various locations.
Unlike other sectors (such as consumer goods), the manufacturing sector has the largest number of these machine applications, as it is used to store appropriate tools, safety equipment, etc. required by the laborers. Thus, the abrupt closing of the manufacturing factories led to a drop in the demand for vending machines. With the rise in trading barriers and tensions amongst the countries, the supply chain of IVM has been severely affected. Also, with the vision of minimizing the COVID-19 cases, major countries discontinued the international and national trading of IVM, inhibiting supply chain management all over the world.
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Emergence of Advanced Technologies to Boost Industry Scope
The emergence of advanced technologies provides impetus to the industry development by integrating the vending machines with RFID tags and cloud infrastructure to develop a multilingual display system. Intelligent machines can be used for all types of items or products of different sizes and shapes without the necessity for staff intervention and protect any object from unauthorized access by requiring security codes. Moreover, smart machines are integrated with RFID tags for inventory management, supporting their adoption. IVM’s are integrated with SaveLog software that records each transaction using RFID tags, along with multi-language displays and alerts for filling up the stock.
Increasing Emphasis for Employee Safety Uplifts the Use of Personal Protective Equipment (PPE) Across the World
The major market players opt for advanced technological solutions for these machines with minimal power consumption and high work efficiency. Automotive and aviation manufacturing sectors, oil and gas, welding industry, military, and defense are the key consumers who highly depend on the industrial vending system due to the basic and important priority for personal protective equipment, thus driving the industrial vending machines market growth globally.
PPE is useful to protect the worker or employee against the safety and health risks at the manufacturing site. The Occupational Safety and Health Act of 1970 has led to the depreciation of workplace accidents in the United States for the last four decades, including industry-specific safety guidelines for construction, manufacturing, and maritime sectors. These machines offer PPE items such as safety helmets, eye protection goggles, footwear, safety harnesses, and respiratory protective equipment to reduce the risks over the employees and simultaneously track and maintain the accessibility of tools of each employee, henceforth uplifts the market growth throughout the world.
Rising Adoption of Industrial Vending Machines by SME Manufacturing Units
Applications served by these machines can cater to the enormous customer base, whether a leading player or a small and medium enterprise. The emerging SMEs opt for carousal machines across several regions, as these machines are cost-effective and require less floor space and minimum energy consumption. These vending systems help mitigate the management of inventories and enhance their performance to create a positive market position, propelling the equipment demand globally.
High Purchasing Cost Hinders and Caters the Rental Model Market
Industrial vending machines are highly complicated designed vending systems, leading to soaring initial purchasing costs. The recent outbreak of pandemic COVID-19 has led to the shutdown of the manufacturing sector, thus restricting IVM adoption. These machines cost high maintenance with unnecessary operational downtime to the manufacturers in the current lockdown period offering a substitute for the rental models, hampering the market growth throughout the world.
Coil Machine to Hold Highest Market Share in the Forecast Period
The global industrial vending machines market is segmented on type, which is further sub-segmented into carousel machines, coil machines, and others.
Coil machines are anticipated to have the highest market growth, owing to the rising demand for high-capacity industrial systems in several end-user industries. This type of machine has a higher capacity of holding the inventories, easy to organize, and maintains with less power consumption.
Carousel machines are expected to witness progressive growth, owing to their rising demand in small and medium enterprises (SME). As the carousel systems are cost-effective and occupy less floor space, they are highly adopted by the new market entrants. Furthermore, the other cabinet machines are likely to witness substantial growth, as these systems have less storage capacity along with consuming more power and low technology integration.
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Personal Protective Equipment (PPE) to Clutch Highest CAGR in the Near Future
The global market is segmented on the basis of type, which is further sub-segmented into maintenance, repair, and operations (MRO), personal protective equipment (PPE), and others.
Personal protective equipment (PPE) is projected to witness remarkable market growth due to the increasing adoption of protective equipment such as helmets, gloves, tinted glass welding masks, and many more for employee safety. Rising government regulations regarding employee safety have been strictly followed by the industries, thus increasing the implementation of these machines throughout the world.
Maintenance, repair, and operations (MRO) are expected to depict progressive growth, such as tools, spare parts, tool kits, sealants, testing equipment, and many more increases as per the demand in industries downtime. MRO equipment is stocked on a large scale in industries that face a high downtime period. The other products are likely to have stagnant growth owing to their limited applications and high purchasing cost.
Manufacturing Sector to Witness Highest Growth Rate in the Coming Future
By end user, the market is bifurcated into manufacturing, oil and gas, and others.
The manufacturing sector is expected to hold the highest share and CAGR, owing to the need for maintenance, repair, operations (MRO) tools, and personal protective equipment (PPE) across the aviation and automotive manufacturing industries. Personal protective equipment (PPE) is a basic need to cope with the employee safety regulations and improve operational efficiency and real-time inventory management, thus enhancing the demand for these machines in the manufacturing sector.
The oil and gas sector has witnessed a rising demand for industrial vending systems, due to the need for precise inventory management systems to look over the high-cost drilling equipment and personal protective equipment. Up-to-date reporting of each employee accessed equipment helps to maintain and organize the industry's inventories, leading to high dependence over the IVM.
The other industries such as military and defense opt for these machines to offer customized military equipment, hence depicting stable market growth.
Asia Pacific Industrial Vending Machines Market Size, 2020 (USD Million)
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The market is anticipated to witness progressive growth in Asia Pacific countries due to the region's rapidly developing manufacturing industry. Industrial manufacturers in India, China, and South Korea deploy these machines to enhance productivity and efficiency in the overall manufacturing process. These machines help improve inventory management and ensure timely access to needed supplies, attributing to the market size.
China to Witness the Highest CAGR with Rising Manufacturing Sector
China is expected to witness the highest CAGR with emerging automotive, machinery, and other manufacturing sectors over the forecast period. China is witnessing tremendous growth in the global market with emerging new key players across the manufacturing sector that believe in offering a wide range of product portfolios at minimal rates. However, the recent outbreak of COVID-19 in China is expected to hamper the growth in 2020. Government authorities in the region have implemented stringent lockdowns, restricting the people's movements. This is anticipated to lower the demand for new machines in the years 2020 and 2021.
The demand for these machines is increasing in North America owing to the rising concerns about worker safety. With the help of intelligent vending machines, companies can easily track which employee has accessed supplies at a particular time, offering valuable insight into internal supply requirements. This data offers companies more control than a regular IVM. As a result, they can restrict items from certain members of employees for health and safety reasons. However, the outbreak of COVID-19 has significantly impacted the U.S. manufacturing industry. Manufacturing facilities are closed owing to the unavailability of workers and raw materials, hindering the market.
The increasing number of SMEs in European countries, including the UK, Germany, and France, drives market growth. SMEs deploy vending systems to offer employees enhanced accessibility to useful tools, increasing overall productivity and accountability. However, the increasing prevalence of COVID-19 in Italy, the UK, France, and Russia is hampering the demand for these machines. Companies are expected to postpone purchasing new machines for cost-cutting and maintaining financial stability in the pandemic outbreak.
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Moreover, the rapidly developing oil & gas industry in the Middle East and African countries such as Saudi and UAE is expected to propel the market growth. Oil & gas companies utilize these machines to enable efficient usage of protective equipment, such as goggles, gloves, and helmets, contributing to market size expansion. Furthermore, the manufacturing industry in Latin America is witnessing growth. Companies are installing vending machines for managing inventory, streamlining the ordering process, and reducing additional expenses.
Fastenal, AutoCrib, IVM, and Apex Industrial Technologies are Opting for Technological Revolution to Improve Inventory Management System and Product Portfolio
Key market players like Fastenal, AutoCrib, IVM, and Apex Industrial Technologies are highly participating in the technological revolution by integrating their industrial vending systems with cloud infrastructure and RFID tags. These advanced features help operate the vending equipment 24/7 without any break in workflow and generate up-to-date reports of the tool consumption. These organizations are presenting such advanced products to cater to their huge industrial customer base, thus maintaining their market position.
Furthermore, Apex Industrial Technologies integrates its industrial vending systems with Trajectory Cloud software and Apex Connect n’ Go Technology offering deep insights over stock replenishment, reorder points, usage patterns, and device service needs. Similarly, Fastenal Company’s stock-keeping units (SKU) range is incorporated with sensor-based measurement technologies for faster and simpler transactions, thus enabling easier inventory control and management.
An Infographic Representation of Industrial Vending Machines Market
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The industrial vending machines market report offers an elaborative analysis of numerous factors affecting the global market. These include opportunities, growth drivers, threats, key industry developments, and restraints. It further helps in analyzing, segmenting, and defining the market based on different segments such as type and applications. It strategically examines several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players to gain a competitive edge in the market and attract high market revenue in the forecast duration.
Value (USD Million)
Type, Product, End-User, Region
Fortune Business Insights says that the value of the market was USD 2,365.0 million in 2020
The market is projected to reach USD 4,164.5 million by 2028
The market will grow at a rate of 7.5% CAGR. The rising emphasis on adopting technological implications in the vending industry, for real-time inventory management of products such as manufacturing equipment and tools is attributing to this market
Asia Pacific is expected to witness the highest growth rate with a revenue generation of USD 731.9 million in 2020 due to rapidly developing manufacturing industry in several Asia Pacific countries
Coil machine is expected to be the leading segment in the market during the forecast period
The increasing emphasis on employee safety uplifts the use of personal protective equipment (PPE), and the rising adoption of the IVM by SME manufacturing units boosts the market growth
Fastenal, AutoCrib, IVM, and Apex Industrial Technologies are the top players in the market
Asia Pacific is projected to witness the highest market growth, owing to the increasing number of manufacturing activities in China and India
The manufacturing segment is expected to lead the market during the forecast period
The emergence of advanced technologies is the current market trend
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