Warehouse Racking Market size is set to grow by USD 2.14 billion from 2024-2028, Changing consumer preferences boost the market, Technavio

NEW YORK, June 17, 2024 /PRNewswire/ -- The global warehouse racking market size is estimated to grow by USD 2.14 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.21% during the forecast period. Changing consumer preferences is driving market growth, with a trend towards rising demand for retail space. However, increasing competition among vendors in the market poses a challenge. Key market players include AK Material Handling Systems, AR Racking SAU, Beumer Group GmbH and Co. KG, Daifuku Co. Ltd., DMW and H, FIVES SAS, FlexLink Holding AB, Gonvarri Material Handling AS, Honeywell International Inc., Interroll Holding AG, Jungheinrich Group, Kardex Holding AG, KION GROUP AG, Mecalux SA, Murata Machinery Ltd., Russell Industries Inc., Saar Lagertechnik GmbH, SSI Schafer IT Solutions GmbH, The Invicta Group, and Toyota Industries Corp..

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Market Driver

The global retail market's expansion, driven by economic growth and urbanization, is increasing the demand for warehouse racking. Leading retailers like Walmart, Costco Wholesale, Kroger, and Schwarz are contributing to this growth. E-commerce is a significant factor, as consumers prefer shopping convenience.

Traditional retail stores sell various brands, but vendors and retailers are expanding their reach, leading to increased demand for warehouse racking. For instance, Max Hypermarket plans to open five new stores annually in India. This retail expansion will fuel the growth of the warehouse racking market. 

The warehouse racking market is experiencing significant growth due to the increasing demand for efficient and automated storage solutions. Racking systems, such as selective, pallet, and automated storage and retrieval systems (AS/RS), are becoming increasingly popular. These systems offer benefits like increased storage density, improved productivity, and reduced labor costs.

Additionally, the trend towards e-commerce and the need for faster order fulfillment is driving the adoption of advanced warehouse technologies like robotics and RFID. Furthermore, the use of sustainable materials and energy-efficient designs is gaining traction in the market. Overall, the warehouse racking market is expected to continue its upward trajectory in the coming years. 

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Market Challenges

• The warehouse racking market experiences intense competition from regional and international players, leading to price wars that could impact profit margins and potentially force smaller businesses to exit.
• This market is characterized by price-driven competition, with companies facing foreign exchange risks due to commercial transactions and assets and liabilities in various currencies. Some firms leverage lower labor costs or currency fluctuations to their advantage. To mitigate competition, companies focus on collaborations for efficiency and technology access. These factors contribute to slow market growth during the forecast period.
• The warehouse racking market faces several challenges in implementing and optimizing racking systems. These include the need for durable and flexible racking solutions to accommodate various product sizes and shapes. Additionally, the integration of automation and technology, such as robotics and IoT sensors, requires significant investment and expertise.
• Another challenge is ensuring compliance with safety regulations and maintaining proper inventory management. Furthermore, the increasing demand for sustainable and eco-friendly racking systems adds to the complexity of the market. Overall, the warehouse racking market requires innovative solutions to address these challenges and meet the evolving needs of businesses.

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Segment Overview 

1. End-user 
• 1.1 Automotive industry
• 1.2 Food and beverage industry
• 1.3 Retail industry
• 1.4 Electrical and electronics and others
2. Product 
• 2.1 Selective pallets
• 2.2 Push back
• 2.3 Drive-in
• 2.4 Pallet flow
• 2.5 Cantilever and others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Automotive industry- The automotive industry relies on efficient material handling to minimize errors and maximize production. Shelving systems and mezzanine flooring are popular solutions for storing small parts, offering quick access and utilizing overhead space. The growing demand in the passenger car and commercial vehicle segments is driving the need for racking solutions. Global OEMs like BMW, Ford Motor, and Volkswagen are expanding production facilities, boosting the automotive segment of the warehouse-racking market.

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Research Analysis

The Warehouse Racking Market encompasses the production, supply, and installation of various types of racking systems, including Pallet Racking, Vertical Frames, Horizontal Beams, and Shelving. These systems are primarily constructed from steel beams, metal frames, and connectors, which are often welded, clipped, or bolted together.

Warehouses in the online retail industry, application industries, and manufacturing sector utilize these racking systems to optimize their storage spaces and increase storage capacity. Space utilization is a significant factor in the economy, as international trade relies heavily on efficient warehousing solutions. Additionally, Pallet Flow Racks are gaining popularity due to their ability to streamline the storage and retrieval process.

Market Research Overview

The Warehouse Racking Market encompasses a variety of systems and technologies designed for efficient storage and retrieval of goods in warehouses and distribution centers. These racking systems come in different types, including pallet racking, drive-in racking, push-back racking, and automated storage and retrieval systems (AS/RS).

The market is driven by factors such as increasing demand for automated warehouse solutions, growing e-commerce industry, and the need for space optimization and improved productivity. Additionally, the integration of IoT and RFID technologies in racking systems is a significant trend in the market. The materials used in racking systems include steel, aluminum, and plastic, with each material offering unique benefits in terms of cost, durability, and weight capacity. The market is expected to grow at a steady pace in the coming years due to the ongoing demand for efficient and cost-effective warehouse solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Automotive Industry
• Food And Beverage Industry
• Retail Industry
• Electrical And Electronics And Others
• Product
• Selective Pallets
• Push Back
• Drive-in
• Pallet Flow
• Cantilever And Others
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

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Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio