Rampant expansion activities commenced in the global e-commerce sector is projected to drive new growth prospects in conveying equipment market over 2025. The need to expand existing customer base and speed up product delivery has encouraged companies that are operating in the e-commerce sector to deploy advanced conveying equipment across their warehouses. Construction of new warehouse infrastructures will facilitate the deployment of advanced conveying equipment. In 2020, e-commerce giant Amazon revealed plans to build smaller fulfillment centers closer to customers in Philadelphia, Orlando, Phoenix, and Dallas to bolster same-day delivery of products for its growing customer base.
Conveying equipment can significantly improve overall manufacturing and material handling process across industries. Growing penetration of industrial automation across developing countries is supporting the deployment of precision conveying equipment. Companies in the manufacturing sector utilize this equipment to reduce operational costs and overall product processing time.
With rising labor costs across countries like Australia, Brazil, and Canada, the demand for automated equipment like conveyors is expected to accelerate significantly over the years. Based on these factors, a research report by Global Market Insights, Inc., projects that the conveying equipment market might exceed US$65 billion by the year 2025.
Specified below are the key trends that may stimulate conveying market size:
- Flourishing industrial sector of APAC
The manufacturing and e-commerce sector of countries like India, China, South Korea, Malaysia, Indonesia, and Thailand have propelled the demand for conveying equipment over recent years. Numerous SMEs and large scale manufacturers in the region are increasingly relying on advanced industrial technologies to expand business capacity and meet customer demands.
The demand for consumer products is relatively high across countries like India and China during festive seasons. According to a report, in 2019, Indian e-tailers achieved a record US$3 billion of Gross Merchandise Value (GMV) between September – October. Instances like this increase pressure on ecommerce firms, facilitating the required for reliable automated systems across warehouses. Industry 4.0 and initiatives like ‘Make in India’ are projected to deeply favor APAC conveying equipment market outlook by 2025.
- High demand for unit handling equipment
Unit handling conveying equipment is well-suited for moving lighter loads as well as large and discrete items. They provide safe and reliable material handling across external, internal, normal, humid, dusty, and corrosive environments.
They are mainly used to monitor lower batch size in applications in which manual positioning and rotation of products are required. High demand for durable manufacturing systems is expected to accelerate the deployment of unit handling equipment across industries.
- Implementation of new business strategies
Companies like Phoenix Conveyor Belt Systems, TGW Logistics Group GmbH, Murata Machinery, Ltd., SSI Schaefer Group, Kardex Group, Jungheinrich AG, Kion Group AG, Toyota Industries Corporation, Viastore Systems, Inc, and Fenner Group Holdings Ltd. are leading the conveying equipment market.
These firms are laying out new business strategies to sustain in the completive market. Development of technologically advanced products would likely favor product manufacturers and suppliers with new demand. In 2020, U.S.-based material handling equipment supplier, Multi-Conveyor LLC launched a new conveyor system designed to transport sugar bags from three different filling machines to feed a robotic tray packer at speeds of 70 to 140 bags/minute.
A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for numerous portals. Mateen attempts to bring forth his knowledge of the core industries in his articles, channelizing his experience in the technical and manufacturing domains.