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Industry Insights, Market Size, CAGR, High-Level Analysis: Global Warehouse Racking Market The global warehouse racking market size was valued at USD 8.2 billion in 2018 and is expected to progress at a CAGR of 3.6% from 2019 to 2025. Increasing demand for capacity expansion in warehouses and storage facilities is likely to drive the market for warehouse racking systems over the forecast period. Increasing demand and need for systematic storage and easy material handling is anticipated to support industry growth. Increasing awareness regarding optimum utilization of spaces across supply channels, such as distribution centers, storage utilities, and stockyards, is likely to aid the industry growth. Racking offers cost-effective and systematic storage operations for heavy and fragile objects. Moreover, the long lifespan of metal rack framework is anticipated to increase its popularity over the forecast period. In the U.S., selective pallet racking system emerged as the major product category in 2018. Well-established distribution network and growing online retail industry in the country have contributed to the growth of warehouse industry, thereby influencing the market on a positive note. Furthermore, acceptance of modern automated equipment in storage systems has encouraged the demand for drive-in racking systems in the country. Racking systems are primarily manufactured using structural steel and other metals such as iron and aluminum. Technical innovations by manufacturers to introduce a rigid rack framework, pallets, and attachment products have enhanced the life of warehouse racks. The aforementioned factors are likely to drive product demand in heavy end applications such as industrial machinery and automotive. These systems are considered cost-effective and efficient warehouse management techniques. Pallets used in structures can carry heavy loads. These systems are easy to maintain and can be easily relocated and restructured according to warehouse dimensions. Shifting consumer preferences from traditional shelving to racking structures to utilize and enhance existing storage facilities are anticipated to aid the market. These racking systems can be installed according to warehouse space availability and desired storage form. Moreover, the ability to restructure racks according to the dimensions of an object is likely to propel their demand. Product Insights of Global Warehouse Racking Market In 2018, selective pallet racking system emerged as the largest product category. It offers easy replacement of damaged components and adjustments of metal beams for different heights and pallet accommodation. Simple design structure coupled with provision for easy handling of objects in this racking type has supported its demand. Drive-in racking systems are gaining popularity as these products offer easy access to objects. Forklifts and hydraulic machines allow easy accessibility of objects in between the racks. However, high cost associated with the installation of these racks is likely to hinder their market growth. Cantilever racking systems are majorly used in large warehouses to accommodate long size objects such as pipes, rods, panels, structural sheets, and frames. These racks are catching consumer attention as they can accommodate products on both sides and can be easily accessed by machinery and forklifts. Growing demand for metal rods, pipes, and panels in construction industry is likely to have a positive impact on market growth. The demand for pallet flow racking system in Europe was valued at USD 115.5 million in 2018 and is anticipated to progress at a CAGR of 2.2% from 2019 to 2025. Easy handling without imposing high load while carrying and displacing stored objects offered by these systems is expected to aid their demand. However, the movement of pellets in this racking system disables tracking the desired object, which is likely to hamper their demand over the projected period. Application Insights of Global Warehouse Racking Market In 2018, retail application accounted for the largest share for the consumption of racking systems and is anticipated to ascend at a CAGR of 5.2% over the forecast period. Growing retailing sub-segments, such as online retail, hypermarkets, supermarkets, convenience stores, and food retail, are further likely to support industry growth. The expansion of multinational retail companies in the developing regions is further anticipated to support the market. Automotive application accounted for a significant share in 2018 owing to the need for large and durable racking systems to store heavy and fragile objects. Growing automotive industry across the globe has created a scope for construction of new warehouses. Growing demand for automotive aftermarket components is likely to contribute to the expansion of warehouses, thereby influencing the industry on a positive note. In 2018, food & beverages application accounted for the second-largest share in the global market. Increasing consumption of packaged and processed food products in the major regions including Asia Pacific and North America is expected to support the industry growth over the forecast period. The rapid growth of retail industry on account of increasing urbanization, rising disposable, and changing consumer dietary habits is expected to drive demand for warehouses, thereby impacting the market positively. Manufacturing industry across the major regions is experiencing rapid growth on account of increasing industrialization. To optimize distribution networks of manufactured products, industry players are focusing on establishment of distribution centers, which is anticipated to aid the market for warehouse racking. Optimization of supply channel and transportation & storage costs is likely to propel the demand for warehouse racking. Regional Insights of Global Warehouse Racking Market North America dominated the global market for warehouse racking in 2018. Well-established distribution network, early adoption of racking systems, and continuous innovations for storage space optimization have resulted in a high demand for racking structures in the region. Growing retail and food industries in the region are the major contributors to the construction of new warehouses, which in turn, is likely to propel product demand. The U.S. emerged as a key consumer for racking systems on account of well- established industrial sector in the country. Wide range of racking systems is used in warehouses to ease material handling process. Moreover, early acceptance of automated technologies in storage facilities has introduced forklifts and hydraulics that has positively impacted the market in the country. The demand for selective pallet racking system in Europe is anticipated to progress at a CAGR of 3.6% over the forecast period. Increasing construction activities of new warehouses and distribution centers across the U.K., Germany, and Spain are likely to support the market. Furthermore, the region is an automotive production hub with the presence of major manufacturers. Thus, automotive industry is expected to be a major consumer for warehouse racking in the region. In Asia Pacific, food & beverage and retail industries are anticipated to account for a significant consumption of racking systems over the forecast period. Rapid population growth in China and India, which demands high volumes of packaged food products, is expected to drive the retail industry in these countries, thereby impacting warehouse racking market positively. Warehouse Racking Market Share Insights Prominent players in the market include Daifuku Co., Ltd., Mecalux, S.A., Kardex Group, Hannibal Industries, EMRACK INTERNATIONAL, and Jungheinrich AG. These players compete based on material quality, designs, and pricing structures. Moreover, players are focusing on introduction of racking components with enhanced durability and high load-bearing capacity to sustain in the competitive market. Key players are also targeting to enhance their portfolios by providing design and installation services for warehouse racks. Daifuku Co., Ltd. designs various storage, material handling, and sorting solution systems for manufacturing, distribution, and airport management systems. Also, it offers automated technologies for racking systems, wherein, materials can be handled efficiently. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Warehouse Racking Market Research Report This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global warehouse racking market report on the basis of product, application, and region: Product Outlook (Revenue, USD Million, 2019 - 2030) Selective Pallet Drive-In Push Back Pallet Flow Cantilever Others Application Outlook (Revenue, USD Million, 2019 - 2030) Automotive Food & Beverage Retail Packaging Manufacturing Others
Table of Contents Chapter 1. Methodology and Scope 1.1. Research Methodology 1.2. Research Scope & Assumption 1.3. Information Procurement 1.3.1. Purchased Database 1.3.2. GVR’s Internal Database 1.3.3. Secondary Sources & Third-Party Perspectives 1.3.4. Primary Research 1.4. Information Analysis 1.4.1. Data Analysis Models 1.5. Market Formulation & Data Visualization | read more...