Conveyor System Market

2021 Analysis and Review: Conveyor System Market by Capacity Type– Unit Handling and Bulk Handling for 2021 – 2031

Conveyor System Market Snapshot

The Conveyor system market will register steady growth with the overall valuation forecast to surpass US$ 13.7 Bn in 2021. The market’s worth will increase at a compound annual growth rate (CAGR) of 4.5% between 2021 and 2031. Global Conveyor system sales are expected to return to 2019 level, with shipments expected to reach 16,000 units by the end of 2031, says FMI.

Regionally, the North America market is set to expand at 3.5% CAGR over the course of the assessment period. The growth can be attributed thriving e-commerce industry and expansion of packaging centers in the U.S. and Canada.

Key Points Covered in Conveyor System Market Study

  • Market estimates and forecast 2021 – 2031
  • Key drivers and restrains impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competitive Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact On Conveyor System Market and How to Navigate
  • Recommendation on Key Winning Strategies

2016 – 2020 Conveyor System Market Outlook in Comparison to 2021 – 2031 Forecasts

Rise in intralogistic operations and reduction in conventional supply chain activities resulted in growth of the Conveyor system market in the past five years. The market registered 3.1% CAGR from 2016 to 2020, says Future Market Insights.

Conveyor systems are integral parts of transportation module in commercial and industrial facilities. Automation in conveyor system has reduced production time and overall cost of manufacturing. Rising urbanization and industrialization in emerging economies of Asia and Middle East will fuel the demand for conveyor systems.

Customization to accommodate the requirements of diverse end users has resulted in the development of new conveyor systems with modified design and automated features. Besides this, the rising number of shopping malls and airports in middle income countries has triggered the demand for belt conveyors.

Growing complexity of supply chain and business processes and increasing demand from consumers have encouraged end users to incorporate industrial automation solutions such as conveyor systems to facilitate inline operation and production. This in turn will lead to high demand for warehouse space, which is expected to push the sales of conveyor systems.

Leading market players are looking to capitalize on thriving warehousing and retail industry and increasing investments towards modernization of airports. For instance, BEUMER GROUP received the contract from airport operator, Avinor, to design, integrate, operate, and deliver new CrisBag® tote-based baggage handling system (BHS) at Oslo airport in 2021.Their efforts towards expansion will prove chief growth driver of the market.

What is the Impact of Circular Economy on Conveyor System Market?

Stringent government regulations and initiatives adopted by industries towards reducing carbon footprint have encouraged manufacturers to move towards circular economy.

Conveyor systems consume tremendous energy especially systems that use old electric motors. Market players are working towards developing efficient products to reduce the energy costs and in turn limit the carbon emission.

Leading market players are collaborating to develop optimized machine drives, cooling systems along with replacing the conveyor belt material with lighter and more durable alternative to become more energy-efficient.

For instance, DuPont collaborated with Regina and developed new environmentally friendly Regina E-F.A.S.T. material for high speed conveyor system DuPont™ Delrin® for filling lines.

What is the Impact of Industry 4.0 on Conveyor System Market?

An increasing numbers of industries are incorporating Industry 4.0 techniques to upgrade their existing conveyor systems. They are integrating machine learning and industrial internet of things with existing infrastructure to optimize their production and improve efficiency.

Changing preference of consumers and need to create agile environment to cater to these trends will positively influence the market in upcoming years.

Industries are looking for compact, low maintenance, and smart conveyor system for their processing and manufacturing plants. Rising industrialization in developing countries and extensive research undertaken by market players to develop a multi-utility and flexible conveyor system, will drive the conveyor system market in upcoming years.

Integration of smart sensors and advanced communication systems with automated conveyor system and development of smarter motors and controllers for easier and quieter operations will accelerate the market growth in upcoming years.

Country-wise Analysis

Why Is U.S leading the Conveyor System Market?

United States Department of Transportation reports that air passenger traffic in U.S. experienced 1% year-on-year growth for 2019 reaching 19.887 million passengers.

The U.S. government is investing towards expanding old airports and developing new ones to handle this increase in air traffic and air freight transport.  This investment is expected to bode well with conveyor market growth in the country.

Distribution centers in the U.S. prefer pallet conveyor system owing to its compact size and heavy load bearing capacity. Increase in per capita income, favorable government policies and changing lifestyle has created ideal environment for growth of hypermarkets and their distribution centers.

Meteoric rise of supermarket chains like Wal-Mart and Kroger Co. and their associated distribution centers will drive the sales of pallet conveyor systems in U.S.

How big is the Growth Opportunity in Germany?

Germany is expected to lead the Europe conveyor system market over the forecast period due to presence of technologically advance automotive industry and thriving food and beverage industry.

Germany is the epicenter of Industry 4.0 revolution. German automotive companies are investing towards integrating smart technologies to make their manufacturing facilities fully automated which includes conveyor system.

For instance, in September 2020, leading German automaker Mercedes-Benz opened its new manufacturing plant in Sindelfingen with an investment of US$ 864 million. The assembly plant plans to set the bars for sustainability and digital production to new level. The new hybrid and electric cars are expected to roll off the Conveyor belts in upcoming years.

Rising research activities, thriving online retails and e-commerce industry, and the growing automotive industry in the country is providing attractive opportunities for conveyor system manufacturers in the long-term.

What is Driving Conveyor System Market Growth in China?

Conveyor systems are finding application in agriculture and food and beverage industries in China. Modernization in food processing industry and introduction of automated production lines in packaged food and beverage industry are predicted to fuel the demand for belt conveyor systems in the country.

Population growth and growing demand for convenient food items are encouraging manufacturers to integrate automation in their manufacturing plants to boost production efficiency.

Leading beverage packaging, dairy product packaging, and ready to eat food packaging companies are employing standard conveyor belt systems for transporting goods across the plant.

According to World Bank in 2020, agriculture and related activities in China account for more than 7% of its total GDP.  Increasing initiatives undertaken to encourage agricultural activities and advancement in food processing activities are forecast to drive growth in demand for food grade conveyor belts system in China.

What Is Influencing Conveyor System Market Growth In India?

The demand for conveyor system in India is on the rise due to the growth of e-commerce industry and consequent expansion of warehousing. Increasing production and sales of medicines and personal protective equipment (PPE) kits further boosted the market growth in the country.

Indian Brand Equity Foundation predicted that Indian e-commerce market is expected grew 5.19X and reach market valuation of US$ 200 billion by 2026.  Increasing demand for warehousing due to booming e-commerce industry and lack of space and natural resources will increase the demand for smart and compact conveyor systems in India.

During COVID-19 pandemic, demand for medical equipments and medicines skyrocketed in India, leading to increased manufacturing of personal protective equipment (PPE) kits and pharmaceutical drugs. Rising need to ensure smooth supply of essential items boosted the demand for material handling equipments in India.

Rise in export of hydroxychloroquine (HCQ) tablets and spike in production of medicines and pharmaceutical drugs are predicted to boost the demand for conveyor systems in India.

Category-wise Insights

Why Are Belt Conveyors High in Demand?

Belt type conveyors are expected to register significant growth over the forecast period owing to its low maintenance and easy installation features. They are also an integral part of airport baggage system. Rise in number of passengers at airport and modernization, expansion, and establishment of new airports will drive the conveyor belt market growth.

COVID-19 imposed lockdown led to closure of manufacturing facilities and shutdown of business operations. Restarting of manufacturing plants with fraction of its original production rate, lack of conveyor belt raw material, and disrupted supply chain will negatively influence the demand of belt conveyor system.

Why Are Automated Conveyor Systems Gaining Popularity?

Automated conveyor systems are used in sorting, cross-docking, and distribution and warehousing operations. Retailers are switching towards automated system to optimize warehouse space utilization and keep up with the demand spikes occurred during COVID-19 pandemic.

Growth in online retailing and introduction of Industry 4.0 will transform supply chain operations, which in turn will drive the demand for automated conveyor system to store, track and move materials with minimum human intervention.

Which Are The Key Areas Of Application Of Conveyor System?

By application type, automotive and transportation industry will exhibit highest growth rate owing to increase in vehicle production rate and rising popularity of electric vehicles in developed nations. Automotive plants prefer overhead Conveyors owing to their high load carrying capacity and it also improves the efficiency of the automotive plant and boost production rate.

Packaging and warehousing is also gaining traction owing to growing e-commerce industry, rapid globalization and surge in international import and export activities. Rising need for optimum utilization of warehouse space and quick retrieval will drive the sales of automated conveyor systems in the future.

Competitive Landscape

As per the market analysis, presence of large number of regional and multinational market players has left the Conveyor system market fragmented. Rise in number of manufacturers is due to low manufacturing cost and very high demand.

Future Market Insights (FMI) states that top Conveyor system market players account for more than 20% of global market share, whereas other small and medium-sized regional players accounted for more than 70% market share in 2021.

Conveyor system market players are entering into collaboration with multiple end users to install their Conveyor systems and gain decisive advantage in this competitive domain.

For instance in February 2021, Daifuku Co. Ltd. signed an agreement with Germany-based AFT Industries AG to collaborate on a project-by-project basis by utilizing AFT’s automotive customer base and technologies and Daifuku’s extensive global network, to provide better offering to customers in automotive domain which includes automated conveyor system.

In June 2021, SSI Schaefer partnered with Coca Cola Amatil to design and deliver flexible, agile and accurate Conveyor system to their automated state-of-the-art distribution center in Brisbane, Australia.

Conveyor System Market – Report Scope

Attribute

Details

Forecast Period

2021 – 2031

Historical Data Available for

2019 – 2029

Market Analysis

US$ Mn for Value & Units for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa

Key Countries Covered

U.S., Canada, Brazil, Mexico, Argentina, Rest of Latin America, Germany, U.K., France Italy, China, India, Japan, GCC Countries, South Africa, Israel, Turkey, Iran, Rest of Middle East & Africa, Australia, New Zealand, South Korea, the Philippines, Malaysia, and Thailand

Key Segments Covered

By Product Type, By Operation Type, By Capacity Type, By Application Type, and By Region

Key Companies Profiled

Daifuku, BEUMER GROUP, Interroll Holding AG, Murata Machinery, Schaefer Systems International and Dürr Group

Report Coverage

Market Overview, Market Background, Market Forecast, Segmental Analysis, Regional Profiling and Competition Analysis

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is Conveyor system market size?

    Driven by technological advancement in Conveyor system to make them affordable to small manufacturers, the Conveyor system market size is forecast to reach US$ 13.7 Bn in 2021 with a CAGR of 4.5%.

  • At what rate did the Conveyor system market expand in the last five years?

    Between 2016 and 2020, the Conveyor System sales grew at 3.1% CAGR.

  • What are the key trends shaping the Conveyor system market?

    Strategic merger and acquisitions by tier-1 companies and technology integration of Conveyor system with material handling solutions are few of the key trends shaping the Conveyor System market.

  • Who are the key exporters operating in Conveyor system market?

    Germany, Japan, and U.S. are the leading exporters of Conveyor system in the world.

  • What is the North America Conveyor system market outlook?

    Demand registered in North America will continue rising, backed by increasing manufacturing and export of Conveyor system from U.S. and Canada, the North America market is anticipated to expand at 3.5% CAGR during the forecast period.

  • Who are the leading companies in Conveyor system market?

    Daifuku Co. ltd., Schaefer Systems International Inc., Interroll Holding AG, BEUMER GROUP, and Dematic Company are the top companies operating in the market.

  • What is the share of top companies in Conveyor system market?

    As of 2020, Daifuku Co. Ltd. hold around 7% share in global Conveyor system market followed by Schaefer Systems International Inc. with 5%, Beumer Group and Dematic Company with 4% and Interroll Holding AG with around 3.5% of global market share.

  • At what rate will Conveyor system sales increase in Europe?

    Conveyor System sales will increase at 3.4% CAGR in Europe, backed by thriving mining industry in the U.K., Germany and other countries.

  • Which are the top countries driving Conveyor system market demand?

    Leading countries driving demand in the Conveyor System market are Germany, Japan and U.S.

  • what are the key statistics for Conveyor system market in Japan and South Korea?

    Currently in 2021, Japan and South Korea collectively hold around 7% of global Conveyor system market share.

Key Segments Covered in Conveyor System Market Study:

By Product Type:

  • Belt Conveyor
  • Roller Conveyor
  • Pallet Conveyor
  • Overhead Conveyor
  • Tri-Planar Conveyor
  • Crescent Conveyor
  • Skid Conveyor
  • Trailer Conveyor
  • Others

By Operation Type:

  • Manual
  • Semi-Automatic
  • Automatic

By Capacity Type:

  • Unit Handling
  • Bulk Handling

By Application Type:

  • Packaging & Warehouse Distribution
  • Textile & Paper
  • Construction & Mining
  • Automotive & Transportation
  • Consumer Electronics
  • Food & Beverage
  • Chemical & Pharmaceutical

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa

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