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The global conveyor systems market size was USD 5.23 billion in 2019 and is projected to reach USD 7.43 billion by 2027, exhibiting a CAGR of 4.5% during the forecast period.
The growth of this market is driven by the handling of large volumes of goods in manufacturing and warehousing operations, as conveyor belt systems constitute a significant part of material handling systems. These systems are essential for continuous transport of items from one area to another in many commercial and industrial facilities as they help to reduce overall production time along with total labor costs significantly. Therefore, manufacturers in the market are focusing on full automation of the material handling and movement in industries to make manufacturing processes more efficient.
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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 in these systems such as the use of RFID and barcode technologies that facilitate in-line scanning as well as dimensioning. Also, these systems are integrated with automated printing and labelling stations, streamlining both processes into a continuous and systematic order in addition to the 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, have made them voluntarily acceptable across industries. Besides, these systems have benefited industries by ensuring minimal damage while production, along with increased speed & accuracy of throughput & automated, adaptable, and modular platform. These advantages and applications are expected to enhance the size of the market.
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 by using advanced technologies and automation. Manufacturers, wholesalers, retailers, and logistics companies are establishing fulfillment centers and utilizing all available warehouse space. For instance, Industrial Kinetics is supplying a pair of a 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 raw materials. The demand for intelligent mechanical handling equipment is fueled by the need for automating the complete manufacturing process.
Stringent Government Regulations and Uncertainty in the Global Trade to Hinder Market Growth
The recent outbreak of COVID-19 is anticipated to hamper the 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, thus has resulted in minimized demand for the systems. Furthermore, owing to the increasing spread of COVID-19, governments are imposing stringent lockdowns in countries, which is slowing the overall economic acitivities. This has impacted the new purchase decisions of organizations, thus hampering the growth of this market.
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Flat Belt Conveyors to Hold Largest Market Share
The global market is segmented on the basis of type, which is further sub-segmented into roller conveyors, flat belt conveyors, wheel conveyors, vertical conveyors, & others.
Flat belt conveyors have the largest as these are endless, continuous belts which are used to convey products or materials in a constant motion. These conveyors are made from various materials such as rubbers, plastics, fabric, metal, & leather. They are used to convey different types of products via different belt type such as heavier loads require thicker & stronger belt. Other than flat belt conveyors, roller conveyors are also expected to have substantial market share. Roller conveyors are of two kinds: gravity controlled & powered roller conveyors. Gravity controlled rollers are used to move products manually, when placed horizontally, whereas powered roller conveyors help to move materials using belts or rollers. Both types of roller conveyors are used to move products and luggage in a straight or curved structure, depending on the industry they are being deployed in. Besides, wheel conveyors, vertical conveyors, and others segments are likely to exhibit moderate growth rate during the forecast period owing to their limited applicability.
On-floor Conveyors to Witness Highest Growth Rate in the Near Future
Conveyor systems 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 conveyors 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 job in the assembly line. There are many types of overhead conveyors such as electric track, monorail, trolley, etc. Mostly, these conveyors are powered and controlled or moved manually depending upon their application. On the other hand, in-floor and on-floor are installed at the floor level. In-floor systems are installed at predetermined places and are less customizable, whereas the on-floor systems are highly customizable and have variety of types suited as per the customers’ needs. These conveyor belt systems have extensive applications at various end-use industries owing to their general application and wide acceptance for moving of goods & products. Owing to their advantages, the on-floor conveyors segment is anticipated to have the highest growth rate during the forecast period.
Bulk Load to Have a Major Share of the Market
As per load, the market includes unit load & bulk load. These loads are carried depending on the material and its physical state, that is, whether it is 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 so that they can be conveyed without disturbing their integrity. On the other hand, conveyor belt systems for bulk loads are installed by majority of the manufacturing industries such as food & beverage and mining among others. Thus, owing to this, 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 as it is 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. Among the end-use industries, the supply chain & logistics industry is expected to exhibit the highest growth rate for the forecast period. Moreover, the variety in the application of these systems is favoring their adoption in such as 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, 2019b (USD Billion)
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The global market is further categorized into 5 major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa and Latin America. Asia Pacific is 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, where China is home to manufacturing facilities of numerous global copanies, accompanied by provincial automotive manufacturers, including BYD Automotive, Geely, Dongfeng, Volkswagen, Ford Motor Co., and others. Furthermore, bulk material handling & storage systems are facilitating the management of large volumes of data, thereby reducing the unnecessary time consumption and fueling to the growth of the market in the region.
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 Internet of Things (IoT), Radio-frequency identification (RFIDs), and Artificial Intelligence (AI). Rising labor cost, along with infrastructure limitation, is expected to aid these regions tighten their grip on the conveyor systems market share. The Middle East & Africa and Latin America are also expected to have a moderate growth rate during the forecast period owing to the increasing adoption of the conveyor 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 shorter time.
Prominent Players are Aiming to Implement Automation, Digitalization, and Industry 4.0
The prominent players in this market are aiming for digital transformation of processes by concentrating a significant part of the research and development budget on digital solutions for production. For instance, Durr, a company which 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 Acquistion 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. This market is observing the increased competition, which is anticipated to surge further during the forecast period.
The conveyor systems market report offers an elaborative analysis of numerous factors affecting the global market. These include opportunities, growth drivers, threats, key industry developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as type, location, load, application and region. 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.
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Value (USD billion)
As per Fortune Business Insights study, the global market value stood at USD 5.23 billion in 2019.
By 2027, the global market value is expected to reach USD 7.43 billion.
The market is projected to grow at a CAGR of 4.5%, exhibiting moderate growth during the forecast period (2020-2027)
Asia Pacific is expected to hold dominant market share, with its value standing at USD 1.74 billion in 2019.
Within the type segment, flat belt is expected to be the leading segment in the market during the forecast period.
Emergence of e-commerce and Industry 4.0 are expected to propel the market growth.
Daifuku Co., Ltd., Continental Conveyor, Bastian Solutions, Inc., Conveyor Systems Ltd, ATS Automation Tooling Systems Inc. & Toyota Industries Corporation are the major players in the market.
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 62% - 72% of the market, which is majorly owed to their brand name and presence in multiple regions.
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