Pallet Racking Market Overview
The global pallet racking market is expected to surpass USD 17,449.1 million by 2027 with a significant CAGR rate of 4.78% during 2021-2027. Pallet racking material allows companies to pack items in bulk to distribute in the market sufficiently. A sufficient number of products dispatched to the market is sold per demand. The Pallet Racking market helps the industries and factories to publish or manufacture products in bulk which helps save time and money when manufactured at once. Recently, after the development of e-commerce services, the pallet racking market has risen to its threshold. The market has a wide range of demand and market production, and population.
The pallet racking market is expected to witness an increase in popularity because it is easily accessible within the time frame, pocket-friendly and abundant goods and products which can be easily found in the market. The growing industries and high demand in the market have increased over time because of these major factors, i.e., lower cost, economic value, practicality, and usefulness. A rapid increase in pallet racking warehouses and facilities has emerged in any region.
Intensive research and development and new advances in pallet racking industries have given rise to the market's popularity all across the globe. The market for its popularity has emerged as a successful product of the pallet Racking market.
These pallet racking products can withstand numerous quantities of loads may be of pounds or quintal of pressure and weight.
The pallet racking market witnesses several strategic approaches, such as expansion plans. Collaboration, extensions of the market that drives the popularity of the market whole at a different level.
COVID-19 Analysis
COVID-19 pandemic has a substantial impact on the industrial sectors such as food and beverages, pharmaceuticals, and personal care as it is causing widespread concern and economic deprivation of industries as well as individuals all over the world. The logistics companies globally supply their products and solutions for various industries, including pharmaceuticals, food & beverages, manufacturing, and personal care. Moreover, without a significant storage solution, such industries will not be able to meet the demand of consumers in the market and face the financial crisis. As the demand for pallet racking has declined due to production shut down and disruption in the supply chain, many manufacturing companies have witnessed drastic declines in revenue. This has had a severe impact on economic activities, resulting in job losses and salary deductions of individuals across supply chains. Amid the COVID-19 outbreak, laborers fled to their respective native lands. With the shortage of labor, the manufacturing and supplying of pallet racking have also become a major challenge for the manufacturers.
Market Dynamics
The global pallet racking market is proliferating at a rapid pace. The global Pallet Racking market growth is driven by factors such as the surge in domestic & international trade volume and growth of the logistics & e-commerce industry. However, the availability of alternatives and fluctuations in the price of raw materials are expected to restrain the global market growth. Nevertheless, the growth prospects in emerging economies and investment opportunities in the cold chain industry are expected to create a growth opportunity for the market players.
Drivers
The rise in domestic & international trade activities due to rapid industrialization & globalization is the primary factor boosting the demand for pallet racking solutions, especially in the retail, healthcare, logistics, and automotive verticals. Growth in the food & beverage industry to meet rising human needs facilitates the expansion of the market for pallet racking due to an increased need for the suitable storage of edible materials in a warehouse. The food & beverages sector significantly contributes to the demand due to the rising need for the proper arrangement of perishable foods, energy drinks, ready-to-eat snacks, and other consumables. Large-scale utilization in the food processing industry to handle agricultural goods, including grains, rice, potatoes, and cereals, is one of the growth drivers for pallet racking.
Opportunity
Emerging economies play a crucial role in the global pallet racking market owing to the increasing population, rising standard of living, and an increasing per capita income. For instance, the UAE is considered the most dynamic country for e-commerce and logistics in the Middle East & Africa. Online shopping is rapidly gaining popularity in the UAE, owing to the increasing per capita income and the surging internet use primarily among the young population. These factors, coupled with the development of the logistics infrastructure, are likely to drive the growth of the e-commerce industry and ultimately boost the demand for pallet racking solutions.
Restraints
Pallet racking faces tough competition from Tier-Racks and post-racks. Tier-Racks, which are movable industrial racks, allow the user to maximize selectivity (such as traditional pallet racking) or maximize storage density, limiting market development to a certain extent. Although pallet racking products are more durable, they cannot be easily moved, leaving little flexibility for seasonal requirements. This is one of the primary reasons limiting the adoption of pallet racking over its alternatives.
GLOBAL PALLET RACKING MARKET, BY REGION, 2021Source: Industry Expert, Secondary Research, and MRFR Analysis
Market Segmentation
The global pallet racking market has been segmented based on system type, racking type, and end user.
Based on system type, the global market has been segmented into conventional, mobile racking, shuttle racking, and hybrid/customized racking. In 2020, the conventional segment accounted for the largest market share and is projected to register a 4.22% CAGR during the projected timeframe.
Based on racking type, the global pallet racking market has been segmented into cantilever racking, selective racking, push back racking, drive-in racking, pallet flow racking, carton flow racking, and others. In 2020, the selective racking segment accounted for the largest market share of 27.46%, is projected to witness growth at a significant CAGR over the forecast period.
Based on end user, the global pallet racking market has been segmented into automotive, food & beverage, retail, manufacturing, warehouse & logistics, and others. In 2020, the retail segment accounted for the largest market share with a market value of USD 3,667.7 million.
Regional Analysis
Globally, the pallet racking market has been categorized into the North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Asia-Pacific accounted for the largest market share of 38.85% and is projected to register a 6.31% CAGR over the projected period, followed by North America market in 2020.
Asia-Pacific region to bolster the pallet racking market
The presence of large number of manufacturing companies in countries such as China, India, and Japan is the key factor driving the regional market. Furthermore, rapid industrialization in the region due to the low cost of manufacturing is expected to benefit the market growth. Other key factors such as the rising per capita disposable income of the middle-class population and increasing consumer focus on reducing packaging waste are anticipated to boost the demand for pallet racking products in Asia-Pacific during the forecast period.
Competitive Landscape
The global pallet racking market for pallet racking has witnessed significant growth over the forecast period due to the growing e-commerce industry. There are several domestic, regional, and global players operating in the pallet racking market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global pallet racking market who have contributed to the market growth. Gonvarri Material Handling (Norway), Hannibal Industries (US), Mecalux (Spain), Daifuku Co. Ltd. (Japan), Unarco Material Handling (US), and Schaefer Systems International (Germany) are some of the key players operating in the global market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Recent Developments
March 2022- The Great Bear, known as a leading logistics service provider and part of Culina Group, announced its collaboration to supply high-level latest production of the products.
The Global Truck Mounted Crane market is set to furnish Research Report Information on different types of cranes and may forecast until 2026.
Report Overview
This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2027. For this analysis, MRFR segmented the global pallet racking market report based on system type, racking type, and end user.
By System Type
By Racking Type
By End User
Report Attribute/Metric | Details |
---|---|
Market Size | 2020: USD 12,706.6 million 2027: USD 17,449.1 million |
CAGR | 6.8% CAGR (2022-2030) |
Base Year | 2020 |
Forecast Period | 2021–2027 |
Historical Data | 2019 |
Forecast Units | Value (USD Billion) |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered | By System Type (Conventional, Mobile Racking, Shuttle Racking, Hybrid/Customized Racking) By Racking Type (Cantilever Racking, Selective Racking, Push Back Racking, Drive-In Racking, Pallet Flow Racking, Carton Flow Racking, Others) By End User (Automotive, Food & Beverage, Retail, Manufacturing, Warehouse & Logistics, Others) |
Geographies Covered | North America, Europe, Asia-Pacific, and Rest of the World (RoW) |
Key Vendors | Gonvarri Material Handling Hannibal Industries Mecalux Daifuku Co. Ltd. Unarco Material Handling Schaefer Systems International KION Group Ridg-U-Rak Steel King Elite Storage Solution AR Racking Advance Storage Products |
Key Market Opportunities | Growth prospects in emerging economies |
Key Market Drivers | Surge in domestic & international trade volume |
A 4.78% CAGR is expected to transform the market.
The Asia Pacific regional market is projected to be the major driver of the market.
The segments in the market are offering system type, racking type, and end user.
The key contenders in the market are Gonvarri Material Handling (Norway), Hannibal Industries (US), Mecalux (Spain), Daifuku Co. Ltd. (Japan), Unarco Material Handling (US), and Schaefer Systems International (Germany).
Pallet Racking Market Segmentation
Pallet Racking System Outlook (USD Million, 2018-2030)
Pallet Racking System Type Outlook (USD Million, 2018-2030)
Pallet Racking Frame Load Capacity Outlook (USD Million, 2018-2030)
Pallet Racking End-Use Outlook (USD Million, 2018-2030)
Pallet Racking Regional Outlook (USD Million, 2018-2030)
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