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The global conveyor systems market size was USD 5.36 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with conveyor systems witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a declining growth of 2.6% in 2020. The market is projected to grow from USD 5.60 billion in 2021 to USD 7.62 billion by 2028 at a CAGR of 4.5% 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 growth of this market is driven by the handling of large volumes of goods in manufacturing and warehousing operations, as conveyor systems constitute a significant part of material handling systems. These systems are essential for the continuous transport of items from one area to another in many commercial and industrial facilities. They help reduce overall production time and total labor costs significantly. Therefore, manufacturers in the market are focusing on the demand for automated material handling and movement in industries to make manufacturing processes more efficient.
COVID-19 Pandemic: Disruptions in the Manufacturing Sector to Hinder Growth Prospects
During the COVID-19 pandemic, many organizations have faced a decline in their market growth. The adoption of conveyor systems is considered highly significant to overcome the challenges faced during the pandemic across the globe.
Lockdown & shutting down compliances of manufacturing industries is expected to grow to higher adoption of these systems. This compliance has created inconvenience in several parts of the world & across economies, their manufacturing units, dispersing laborers. Though automation & the use of material handling systems has substantial use & growth in this pandemic, the unemployment factor will be adversely affected as automation will reduce the requirement of the human workforce. Less human interaction could be a positive effect as it will reduce the spread of the virus, but simultaneously it will increase unemployment among people.
Major industries such as electronic/electrical, food & beverages & others are likely to get high adoption for conveyors to increase their market growth and enhance their production and material handling capacity. Advanced technologies will help them gain a considerable market share and manufacture a good quality product. Due to the pandemic, the other regions that lack technologies will also opt for conveyor material handling systems to bring the change in their production facility & stand with competitiveness.
Considering all these factors, the production process is suffering a complete shutdown, owing to fewer workers and suppliers available to transmit the value chain process throughout the assembly line. Moreover, the trajectory of the COVID-19 outbreak remains highly uncertain. Although on a long-term basis, the outlook seems dynamic for the market, with attractive expansion opportunities for the market players in years to come. Furthermore, the government should ensure to pull the monetary policy, fiscal policy, and trade policy in one direction to gain momentum and overcome the financial crises sooner.
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Application of Smart & Innovative Technologies to Upscale Market Size
A trend in this market was triggered when Mr. Henry Ford launched his conveyor system to maximize efficiency and save cost at his automotive plants. Since then, the conveyor system has become a permanent foundation for mass production, distribution of products, and material handling in multiple industries. Furthermore, smart and innovative technologies are being incorporated into these systems, such as RFID and barcode technologies that facilitate in-line scanning and dimensioning. Also, these systems are integrated with automated printing and labeling stations, streamlining both processes into a continuous and systematic order and manufacturing processes. In contradiction, material handling systems are relatively complex in their design and construction owing to their large structures and integration into different factory processes.
Nonetheless, the utilization of such systems, with their multiple advantages, has made them voluntarily acceptable across industries. Besides, conveyor systems have benefited industries by ensuring minimal damage during production, along with increased speed & accuracy of throughput & automated, adaptable, and modular platforms. These advantages and applications are expected to enhance the size of the market.
Increasing E-commerce and Industry 4.0 are Driving Today’s Material Handling Boom
E-commerce and industry 4.0 are transforming traditional supply chains, compelling companies to change the way they move, track, and store material using advanced technologies and automation. Manufacturers, wholesalers, retailers, and logistics companies establish fulfillment centers and utilize all available warehouse space. For instance, Industrial Kinetics supplies a pair of dual-strand in-floor vehicle slat conveyors for a large vehicle manufacturer, which will convey around 385 tons of vehicles, 250 tons of conveyor chains, and about 635 tons of materials. The demand for intelligent mechanical handling equipment is fueled by the need for automating the complete manufacturing process.
Moreover, the growth of the e-commerce industry has also factored in the growth of the material handling process at distribution centers and warehouses. Hence, aiding in the continuous flow of materials from manufacturing units to distribution centers and warehouses.
For instance, in December 2020, Amazon.com, Inc., an e-commerce giant, announced plans for two fulfillment centers in San Antonio. Thereby resulting in the material handling process, hence, increasing the installation of conveyor systems.
Uncertainty in the Global Trade to Hinder Market Growth
The recent outbreak of COVID-19 is anticipated to hamper the global conveyor systems market growth in the immediate future. Governments have reduced the global trade of non-essential products, thus limiting the sale of machines worldwide. This has limited the operations of conveying systems; this has resulted in minimized demand for the systems. Furthermore, owing to the increasing spread of COVID-19, governments are imposing stringent lockdowns, which is decelerating the overall economic activities. This has impacted the trading strategies of organizations, thus hampering the global conveyor system market size.
However, it is expected that these industries will witness a substantial boost in coming years, the sales volume anticipated to arise in the near future, and they will overcome challenges after the pandemic.
Flat Belt Conveyors to Hold Largest Market Share
The global market is segmented based on type, further sub-segmented into roller conveyors, flat belt conveyors, wheel conveyors, vertical conveyors, & others.
Flat belt conveyors are the largest as these are endless, continuous belts used to convey products or materials in a constant motion. They are made from various materials such as rubbers, plastics, fabric, metal, & leather and are used to convey different types of products via different belt types, such as heavier loads requiring thicker & stronger belts. Other than flat belt conveyors, roller conveyors are also expected to have a substantial market share. Roller conveyors are of two kinds: gravity-controlled rollers & powered rollers. Gravity-controlled rollers are used to transport products manually when placed horizontally, whereas belts and rollers are used to move materials in the case of powered roller conveyors. Both types of roller conveyors carry products and luggage in a straight or curved structure, depending on the industry they are being deployed in. Besides, wheel conveyors, vertical conveyors, and other segments are likely to exhibit a moderate growth rate during the forecast period owing to their limited applicability.
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On-floor Conveyors to Witness Highest Growth Rate
Conveyors are segmented into in-floor, on-floor, & overhead conveyors. Overhead conveyors are mounted on ceilings, which use chains, cables, trolleys, or similar connections to move products from one place to another. These are used in industries where products are required to be hanged, such as paint lines, part handling systems, dry cleaning garment lines, or for cooling/ cleaning jobs in the assembly line. There are many types of overhead conveyors such as electric track, monorail, trolley, etc. Mostly, these are powered and controlled or moved manually depending upon their application.
On the other hand, in-floor and on-floor systems are installed at the floor level. In-floor systems are installed at predetermined places and are less customizable. In contrast, the on-floor systems are highly customizable and have various types suited to the customers’ needs. These systems have extensive applications at various end-use industries due to their wide acceptance for moving goods & products. Owing to these advantages, the on-floor conveyors’ segment is projected to have the highest growth rate during the forecast period.
Bulk Load to Have a Major Share of the Market
The market is classified based on load into unit load & bulk load. These loads are carried depending on the material and its physical state, whether in solid-state, liquid, or gas, along with its packaging type. Unit loads are carried as a single item or multiple items, which are organized to be conveyed without disturbing their integrity. On the other hand, for bulk loads, the majority of the manufacturing industries, such as food & beverage and mining, among others, install this material handling solution. Thus, the bulk load segment is expected to hold a major share of the market.
Supply Chain & Logistics Application to Drive Market Growth
Based on application, the market is segmented into food & beverages, pharmaceuticals, supply chain & logistics, manufacturing, mining, & others. Conveyor systems constitute a vital part of the material handling process in industries involved in every step of industrial processes. Additionally, increasing automation with a reduction in overall costs is the primary reason behind the continuous increase in the adoption of conveyors in all industries. The supply chain & logistics industry is expected to exhibit the highest growth rate for the forecast period among the end-use industries. Moreover, the variety in the application favors their adoption in automotive, retail, food & beverages, pharmaceuticals, and other applications such as public infrastructure such as airports, which are among the major driving factors for the market.
Asia Pacific Conveyor Systems Market Size, 2020 (USD billion)
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Asia Pacific generated a revenue of USD 1.79 billion in 2020 and is anticipated to emerge as the prevalent region in the market during the forecast period. Besides, this region is also expected to exhibit the highest CAGR for the forecast period. The growth in this region is anticipated to increase with the development in the end-use industries such as FMCG, automobile, airport, & mining. India & China are the major contributors to the market growth in this region.
Additionally, the region is expected to significantly impact growth, as there is a high concentration of manufacturing industries aiming to automate their manufacturing facilities owing to a continuous increase in human resource cost, among other factors. Furthermore, conveyor systems are expected to have consistent growth even in developed countries with increasing automation and industry 4.0. In addition, the rising demand for products from consumers has turned out to be a pressing concern for the manufacturer. This resulted in implementing automation and an integrated manufacturing process to increase production, which is expected to augment the market growth.
China is home to manufacturing facilities of numerous global companies, accompanied by provincial automotive manufacturers, including BYD Automotive, Geely, Dongfeng, Volkswagen, Ford Motor Co., and others. Furthermore, bulk material handling & storage systems facilitate the management of large volumes of data, thereby reducing unnecessary time consumption and fueling the growth of the market in the region.
The Europe & North America region is witnessing growth with the adoption of automation in the manufacturing units along with increasing penetration of advanced technologies, such as the Internet of Things (IoT), Radio-frequency identification (RFIDs), and Artificial Intelligence (AI). Rising labor costs and infrastructure limitations are expected to aid these regions in tightening their grip on the market share.
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The Middle East & Africa, and Latin American markets are also expected to have a moderate growth rate during the forecast period owing to the increasing adoption of these systems in the warehouse & manufacturing facilities. This, coupled with the rising labor cost, is driving the market in this region. These factors are compelling manufacturers to use sophisticated machinery and ensure high throughput quality in a shorter time.
Prominent Players Are Aiming to Implement Automation, Digitalization, and Industry 4.0
The prominent players in this market aim for the digital transformation of processes by concentrating a significant part of the research and development budget on digital production solutions. For instance, Durr, a company that provides automation & digitization/Industry 4.0, has built up a complete infrastructure for digital business at an early stage. Its backbone is formed by the ADAMOS platform for the Industrial Internet of Things (IIoT). It is comparable to the operating system of a computer and collects large volumes of production data. On the basis of ADAMOS, the company offers machinery operating on digital services and apps that allow them to optimize their production.
Key Players in the Market are Intensifying Their Regional Presence with Acquisition and Partnerships
Moreover, the market appears to be extremely competitive and fragmented. International players are seen gradually intensifying their presence in the developing economies, making it tough for regional sellers to compete with them, especially in terms of quality and price point. These manufacturers are focusing on acquiring regional players, along with entering partnerships, for enhanced market share. The market observes increased competition, which is anticipated to surge further during the forecast period.
An Infographic Representation of Conveyor Systems Market
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The global conveyor systems market research report provides a detailed analysis of the type, location, load, and application. It provides information along with leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, current market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors contributing to the market's growth in recent years.
Value (USD billion)
Type, Location, Load, Application & Geography
As per the Fortune Business Insights study, the global market value stood at USD 5.36 billion in 2020.
By 2028, the global market value is expected to reach USD 7.62 billion.
The market is projected to grow at a CAGR of 4.5%, exhibiting moderate growth during the forecast period (2021-2028)
Asia Pacific is expected to hold a dominant market share, with its value standing at USD 1.79 billion in 2020.
Within the type segment, the flat belt systems segment is expected to be the leading segment in the market during the forecast period.
The emergence of e-commerce and Industry 4.0 is expected to propel market growth.
Daifuku Co., Ltd., Continental Conveyor, Bastian Solutions, Inc., ATS Automation Tooling Systems Inc. & Toyota Industries Corporation are the major players in the market.
The on-floor location segment is expected to drive the market because of its multiple applications in various industries.
The major players in the market constitute approximately 62% - 72% of the market, which is majorly owed to their brand name and presence in multiple regions.
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