ID: MRFR/PNT/6860-HCR | February 2021 | Region: Global | 110 pages
Pallet Racking Market Overview
The pallet racking market is expected to grow at a CAGR of 7.8% until the end of 2027. The entire market is expected to be worth US $14.1 billion at the end of this time period. Pallet racking material is extensively and intensively used in many industries. The major one seems to be the logistics and warehousing industry.
Pallet racking material is useful since it allows companies to pack items in bulk. This helps save them time and money. The pallet racking market is expected to witness an increase in popularity in more and more industries over time because of its sheer lower cost, economic value, practicality, and usefulness.
COVID-19 first appeared on the global stage in March of 2020. A large fraction of the world population was caught by this virus. The worst part is that people who got recovered could get it again since the antibodies only lasted for a few months.
The pallet racking industry was no exception. As many industries were forced to temporarily close down or close down for the long-term, many raw materials needed to make many goods were unavailable. This was especially true of the pallet racking industry. The result was higher manufacturing costs of fewer units. The end consumer paid the price in the form of more expensive pallet racking materials.
The global pallet racking market may have strong barriers to entry with high initial investment costs. However, competition is cutthroat in this market. Established and new players are finding that they can survive only if they invest heavily in research and development, enter into partnerships, and enter into mergers and acquisitions. The objective of all three efforts is to try to enter into new markets and keep market share in existing markets.
Elite Storage Solutions is an entrenched American player. It has survived largely because it has invested heavily in research and development and joint ventures. This has allowed it to bring a new generation of pallet racking products and materials to market.
List of Companies
The advent of COVID-19 last year forced societies and businesses to emphasize protectionary measures like social distancing, contactless delivery, remote work, and remote shopping (in the form of purely e-commerce based shopping.) since COVID-19 is still a major health issue and since many regions (like India) are going through a second wave, these measures remain in place.
It appears that the growing trend of the world shifting towards e-commerce is here to stay. This was increasingly true in the pre-COVID world, but it’s a permanent reality now. This is providing a real boost to the pallet racking market because it’s creating real demand for mass packaged goods.
Incomes are rising in developing nations in general. This is especially true in the Asia-Pacific region. The largest nations in this region are India and China. The middle classes are exploding in both nations and real purchasing power and disposable/discretionary incomes are rising rapidly. All of these phenomena are fueling the popularity and rapid growth in e-commerce (and e-business.)
This trend has also been seen most prominently in the Middle East North Africa (MENA) region. The Middle Eastern and North African nations have been especially hard-hit by COVID. Their populations are attempting to try to keep the second wave of COVID-19 from hitting by trying to stay at home as much as possible. Part of this includes shopping online to avoid physical contact in stores.
This has seen a rapid increase in the number of pallet racking warehouses and facilities emerge in these regions. More pallet racking warehouses and facilities have emerged throughout the world in general because of COVID-19. However, another key reason for the rapid growth in the pallet racking market has been the fact that manufacturing has increasingly become automated. Part of the reason for this has been because smart and automated manufacturing is cheaper. However, part of the reason for this is because of COVID-19. Manufacturers sought to use robots to decrease human exposure and contact as much as possible in the attempt to stop the virus from spreading as rapidly.
A key factor that is restraining growth in the pallet racking market is the need to make the optimal use of space in pallet racking warehouses. This will allow pallet racking manufacturers to produce and store as many pallet racking units as possible. In the long run, it will help manufacturers sell and make more. It will also bring the unit cost down for pallet racks. This will help both manufacturers and consumers.
The rising cost of pallet racking materials is and will continue to be a challenge for the pallet racking market. This will force pallet racking manufacturers to become more creative in their quest to continue to make money while selling pallet racking materials and supplies.
Cumulative growth analysis
The overall CAGR for the pallet racking market is expected to be 6.8% until at least the end of 2027. The overall market is expected to be worth more than the US $15 billion by then because it was worth more than the US $8 billion when breakneck growth started for this market.
Intensive research and development and new advances in pallet racking technologies have to lead many companies in the pallet racking market to sell a new generation of cost-effective solutions and products that are useful and more practical. For example, Elite Storage Solutions is an American company. Elite Storage Solutions makes its pallet racking materials from industrial-grade steel. This is beyond practical. It’s both flexible and durable. Indeed, companies that invest in these pallet racking products find that they never need to buy other pallet racking products for many years. This reduces their overall expenses and helps them make more money!
These pallet racking products are able to withstand many pounds of pressure and weight. They stay intact even when other pallet racking products buckle under extreme weight and pressure. These products come in a variety of shapes, colors, and sizes. This gives them the ability to handle any packing job no matter how challenging or strenuous.
The pallet racking market is segmented into the following types:
Selective racking is the most popular type of racking used by industry. Packers can easily access any point and location in any warehouse. They can also pack any type of product imaginable with these products. They’re very affordable and it doesn’t cost much to install them. They also help to conserve precious space in packing warehouses. These types of pallets are also easier for heavy equipment and machinery to lift.
By end-user industry
The worldwide pallet racking market is segmented into the following industries:
The warehousing and logistics segment has the largest pallet racking market share. This is largely because of breakneck growth in the global e-commerce market.
The North American region has the largest pallet racking market share. In this region, the American market is the most important. This is mainly because it exports many goods. This, when combined with phenomenal growth in e-commerce has created lots of demand for pallet racking products. The third-party logistics market is growing rapidly in America. This segment has historically had a high demand for pallet racking products.
The pallet racking market is largely fragmented in South and Latin America. The main reason why is that most of the demand is in Mexico which has benefitted handsomely from the North Atlantic Free Trade Agreement (NAFTA.)
In the European Union, these nations have the lion’s share in terms of demand for pallet racking products:
The pallet racking market is growing at more than 6% a year. The rapid rise in popularity in e-commerce around the world is driving growth. This was largely fueled by the appearance of COVID-19 on the global stage last year.
|Market Size||2027:USD 14.1 Billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||System , Racking System Type, Frame Load Capacity , End-Use Industry|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Elite Storage Solutions (US), Ridg-U-Rak (US), Averys (France), AR Racking (Spain), Daifuku (Japan), SSI SCHAEFER (US), Hannibal Industries (US), Mecalux (Spain), KION Group (Germany), Steel King (US), Advance Storage Products (US) and Unarco Material Handling (US).|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global pallet racking market is recorded a substantial market valuation of USD 8.2 billion in 2018.
The global pallet racking market is projected to register a moderate 7.8% CAGR in the forecast period.
The hybrid/customized racking segment is slated to expand as the fastest-growing segment.
The selective racking segment is slated to expand as the fastest-growing segment.
A few major market players operating in the global pallet racking market are Ridg-U-Rak (US), Elite Storage Solutions (US), Averys (France), among others.
Selective racking segment