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The global conveyor systems market size was valued at USD 5.42 billion in 2021. The market is projected to grow from USD 5.60 billion in 2022 to USD 7.76 billion by 2029, exhibiting a CAGR of 4.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with conveyor systems experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of 2.1% in 2020 compared to 2019.
A conveyor system is a part of mechanical handling equipment that is predominantly utilized to transport bulk or heavy materials across the facilities. It consists of a belt that is stretched across two or more pulleys.
The market's growth is driven by handling 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 focus on automated material handling and movement in industries to make manufacturing processes more efficient.
Need for Automation in Good Transportation to Boost Conveyor System Installation
According to the World Health Organization (WHO), in February 2020, the International Committee on Taxonomy of Viruses (ICTV) has given the name to SARS-CoV-2 virus as ‘COVID-19’ also called as ‘novel coronavirus’. Thus, in March 2020, the WHO declared it as ‘COVID-19 Pandemic’.
United Nations Conference on Trade and Development (UNCTAD) states that, mainly impacted economies are the European Union (chemicals, automotive and machinery), the U.S. (machinery, precision instruments and automotive), Taiwan-Province of China (office machinery and communication equipment), the Republic of Korea (machinery equipment), Japan (machinery and automotive) Vietnam (communication equipment).
However, this market, it is always on a growing curve. The main reason behind is constant upgradation of material handling systems. The need for automation and goods transportation has further balanced the impact and complimented the continuous growth.
Manufacturers were positively dealing by introducing new automated systems and partnering with regional companies to expand market presence thus, minimizing the COVID-19 impact on the financial aspects.
On a long-term basis, the global market is witnessing strong growth. It is predominantly attributed to accelerated demand for food & beverages, pharmaceuticals, electronics and other products that falls under essential services.
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Application of Smart & Innovative Technologies to Upscale Market Size
Since Mr. Henry ford launched his conveyor system to maximize efficiency and save cost at his automotive plants, the conveyor system has become a permanent foundation for mass production, distribution of products, and material handling in multiple industries. Additionally, smart and innovative technologies including RFID, barcode and others are being incorporated into these systems that facilitate in-line scanning and dimensioning. These systems are integrated with automated printing and labeling stations, streamlining both processes into a continuous and systematic order and manufacturing processes.
Nonetheless, the utilization of such systems, with their multiple advantages, has made them voluntarily acceptable across industries. Besides, these systems have benefited industries by ensuring minimal damage during production and increased speed & accuracy of throughput & automated, adaptable, and modular platforms. These advantages and applications are expected to upsurge the global market share.
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 how 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. Additionally, the demand for intelligent mechanical handling equipment is fueled by the need for automating the complete manufacturing processes.
Additionally, 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 increasing the installation of conveyor systems.
Uncertainty in 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 restricted the conveyor systems’ operations thus, resulted in minimized demand across regions. Furthermore, due to the increasing spread of COVID-19, governments are imposing stringent lockdowns, decelerating overall economic activities. These factors have 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, and the sales volume is anticipated to arise.
Constant Motion Conveying Ability to Portray Highest CAGR for Flat Belt Conveyors
Based on type, the market is segmented into roller conveyors, flat belt conveyors, wheel conveyors, vertical conveyors, & others.
Flat belt conveyors are the largest. The reason being they are endless, continuous belts used to convey materials or products in a constant motion. They are made from numerous materials including, plastics, rubbers, plastics, metal, fabric and leather. They convey different types of products via diverse types of belts, such as heavier loads requiring stronger & thicker belts.
Roller conveyors are 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. Depending on their deployed industry, both types of roller conveyors carry products and luggage in a straight or curved structure.
Due to their limited applicability, wheel conveyors, vertical conveyors, and other segments are likely to exhibit a moderate growth rate during the forecast period.
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Industrial Utilization to Depict Highest Growth Rate for On-floor Conveyors
In terms of location, the market can be divided into in-floor, on-floor, & overhead conveyors.
In-floor and on-floor systems are installed at the floor level. The on-floor systems exhibit the highest CAGR as these 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. In-floor systems are installed at predetermined places and are less customizable.
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 hung, such as paint lines, part handling systems, dry cleaning garment lines, or for cooling/ cleaning jobs in the assembly line. Overhead conveyors include electric track, monorail, and trolleys. Mostly, these are powered and controlled or moved manually depending upon their application.
Organized Conveyance of Single or Multiple Items to Depict Highest CAGR for Unit Load Segment
Based on load, the market can be categorized into unit load & bulk load.
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 market share. Bulk 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.
Increasing Automation to Portray Highest CAGR for Supply Chain & Logistics Segment
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.
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, 2021 (USD billion)
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The Asia Pacific is in the best position to lead the market. The highest growth is attributed to the increased development across FMCG, automobile, airport and mining industries. Additionally, the region is expected to significantly impact growth due to a high concentration of manufacturing industries aiming to automate their manufacturing facilities, owing to a continuous rise in human-resource costs.
Moreover, these systems are expected to grow consistently even in developed countries with increasing automation and industry 4.0. Moreover, the rising demand for products from consumers has become a pressing concern for the manufacturer. This has resulted in implementing automation and an integrated manufacturing process to increase production, which in turn is augmenting the market growth.
Established Manufacturing Facilities to Portray Highest CAGR for China Market
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. Additionally, 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 America markets are expected to have a moderate growth rate during the forecast period, owing to the increasing adoption of these systems in the warehouse & manufacturing facilities and the rising labor cost. These factors are compelling manufacturers to use sophisticated machinery and ensure high throughput quality in a shorter time. The Middle East & Africa, in particular, is witnessing heavy traffic for conveyors across manufacturing and supply chain & logistics industries, thus, bolstering its utilization across the GCC countries.
Prominent Players Are Implementing Automation, Digitalization, and Industry 4.0 to Deeply Penetrate into the Global Market
The prominent players aim for the digital transformation of processes by concentrating a significant part of the research and development budget on digital production solutions. For instance, Dürr, 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 and collects large volumes of production data. Based on ADAMOS, the company offers machinery operating on digital services and apps to optimize its production.
Key Players in Market are intensifying their Regional Presence with Acquisition and Partnerships
Leading players are 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 and 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 analyzes the type, location, load, and application. It provides information and leading companies and their business overview, types, and leading product applications. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the factors mentioned above, the report encompasses several factors contributing to the market's growth in recent years.
Value (USD billion)
Type, Location, Load, Application & Region
Fortune Business Insights says the market stood at USD 5.42 billion in 2021.
Fortune Business Insights says that the market will reach USD 7.76 billion in 2029.
The market will exhibit considerable growth of 4.8% CAGR during the forecast period.
The Asia Pacific is the fastest-growing region in this market.
The flat belt conveyors segment is expected to hold the highest CAGR in the market.
The emergence of e-commerce and Industry 4.0 is expected to propel market growth.
Daifuku Co., Ltd., ATS Automation Tooling Systems Inc., Dürr Group and Toyota Industries Corporation are the major players in the market.
The on-floor conveyors segment is expected to hold the highest CAGR in the market.
The emergence of innovative technologies is a key market trend.
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