The global conveyor system market was projected to be valued at USD 6,403.1 million in 2023 and is anticipated to reach USD 6.6 billion in 2024. According to Future Market Insights, the market is set to report a CAGR of 5.5% from 2024 to 2034, reaching USD 11.3 billion by 2034.
The global conveyor systems market is envisioned to see innovation due to reduced operational costs and shorter production cycles, reducing errors. Manufacturers are enhancing their research and development capabilities, leading to a surge in the use of customized conveying systems in various industrial and commercial settings.
Driven by automation-focused demand, conveying equipment providers serve a variety of industries, including the food and beverage and automotive sectors. The increasing use of assembly line techniques and mass production, namely in the automotive industry, is anticipated to bolster the market's growth. Issues including dependence on the erratic durable goods market and lower capital investments brought on by trade deficits have hampered growth, nonetheless.
The growth in e-commerce and expansion of logistic operations are forcing many products to be handled with effective systems. Because of this, many companies are investing in conveyor belt systems to reduce hassle in operation and minimize labor costs. The surge of efforts toward operational efficiency improvement and higher production capacity adaptation contributes too much of the market growth.
The conveyor system market is gaining priority on sustainability as manufacturers aim at reducing their environmental impacts. These have seen friendly solutions such as the energy-efficient conveyor belt system that reduces power consumption.
In an effort to cut waste, there is also a trend to build conveyors using recyclable materials. The industry is attempting to reduce its carbon footprint and line with more general environmental aims by implementing the sustainable practices.
| Attributes | Key Insights |
|---|---|
| Estimated Industry Size, 2024 | USD 6.6 billion |
| Projected Industry Size, 2034 | USD 11.3 billion |
| Value-based CAGR (2024 to 2034) | 5.5% |
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The annual growth rates of the global conveyor system market for the years 2024 to 2034 are: Considering the base year, 2023, against the current year, 2024, the study identified industry growth for the first six months of the year-that is, January to June-and the remaining six months running from July to December. This would give a clear picture to the stakeholders concerning the performance of the sector over time and its likely future development.
| Particular | Value CAGR |
|---|---|
| H1 | 5.1% (2023 to 2033) |
| H2 | 5.5% (2023 to 2033) |
| H1 | 5.2% (2024 to 2034) |
| H2 | 5.7% (2024 to 2034) |
The CAGR will comparatively rise to 5.7% in the second half (H2) of 2024 and decline slightly to 5.2% in the first half (H1) of the observed period. This sector witnessed a 10 BPS rise in the first half (H1) and a 20 BPS increase in the second half (H2).
Industry 4.0 Compels Growth and Transformation in Conveyor Systems
Advanced conveyor belt systems, which combine machine learning and Industrial IoT for better production optimization and operational efficiency, are becoming more and more popular because of the growth of Industry 4.0 methodologies. In a competitive market that is changing quickly, a technology improvement like this might provide real-time monitoring and predictive maintenance of the system for improved performance.
Owing to the changes in consumer preference towards agility and responsiveness, industries seek compact, low-maintenance, and e-conveyors. This factor will positively influence market conditions as businesses strive to demand and aptly adapt to the change. The rise in industrialization in developing regions and the focus on creating flexible, multi-utility conveyor solutions by market players are devised to propel growth in the market.
The integration of smart sensors and innovative communication systems into automated structure of conveyors, along with the creation of more efficient motors and controllers, is estimated to boost growth even more. Such improvements make operations simpler, quieter, and more reliable, meeting the demand for better and more dependable conveyor systems.
Upsurge in E-commerce pushes Demand for Innovation
The explosive growth of e-commerce sets up a high demand on conveyor equipment, with volumes of packages considerably higher that have to be processed and shipped.
Online retailers are in situations where order volumes go high as more people spend their money on products offered on digital platforms. Such a situation asks for the implementation of efficient and scalable conveyors that handle fast and quick movements and sorting of goods in warehouses and distribution centers.
Online retailers are investing in sophisticated belt systems that can handle higher product volumes more accurately to meet demands. Conveyor systems featuring automated sorting technology and high-speed sorting capabilities reduce manual handling, speed up processing, and simplify operations. This improves operational effectiveness and guarantees prompt order fulfillment, both of which are essential for preserving customer satisfaction in a cutthroat market.
High Initial Investment Costs Challenge SMEs in Adopting Advanced Systems
The significant investment necessary for purchasing and installing advanced conveyor belts represents a challenge for number of companies, particularly those with lower budgets. The initial capital possesses the cost of the conveyors themselves with additional expenses such as installation, integration with existing infrastructure, and training for staff.
This prominent factor of cost can be a barrier for small-scale businesses or those operating on tight budgets, potentially restraining their ability to invest in such technologies.
The cost involved is one of the biggest barriers to a business considering upgrading or expanding the system. Smaller businesses especially may consider it hard to justify the investment if the return on investment is not readily apparent.
This could very well be a reason why smaller market players will implement more sophisticated conveyor systems at a slower pace than others, probably affecting their competitive edge and operating their businesses efficiently.
Emergence of Smart Warehousing Stimulates Demand for Accuracy
The emergence of smart distribution centers and warehouses creates a substantial opportunity for reliable conveyor belt systems. These facilities need sophisticated conveyor solutions that can work smoothly with their smart technology architecture as they embrace automation to manage inventory and fulfill orders more effectively.
Robotics, sensors, and data analytics are just a few of the automated technologies that smart warehouses use to improve accuracy and operating efficiency.
Conveyor systems are essential in these sophisticated surroundings because they make it easier for items to move freely throughout the building. Conveyors that are integrated with smart technology provide automatic sorting, dynamic product routing based on supply and demand, and real-time inventory tracking. This feature enhances workflow productivity by decreasing manual involvement and optimizing material handling procedures.
Global conveyor system sales increased steadily between 2019 and 2023, propelled by expanding industry demands and automation breakthroughs. Due to the growth of commercial and industrial facilities, especially in emerging economies, the market consistently saw an increase during this time.
Investments in technology and the incorporation of automation in conveyor belt systems had a major role in decreasing production times and expenses, hence bolstering the total increase in sales.
It is anticipated that requirements for conveyors would grow prominently by the forecast period of 2024 to 2034. Ongoing urbanization, industrialization, and the continuous growth of e-commerce and warehouse sectors, primarily contributing to this growth.
The demand for sophisticated, adaptable conveyor solutions will rise as companies look to improve productivity and optimize supply networks. A higher CAGR is anticipated during the projection period, indicating the strong demand being driven by changing market trends and conveyor system technical advances.
Tier I companies are the industry leaders with more than USD 200 million in revenues each year, commanding a huge market share of 30 to 35% in the world. High production capacity and an extensive product portfolio describe the characteristics of the frontrunners. These can be identified by large-scale manufacturing expertise and geographical presence supported by a strong consumer base.
The companies provide diversified products; moreover, they implement state-of-the-art technologies to fulfill regulatory requirements. Some of the key players in Tier 1 are Daifuku Co., Ltd., SSI Schaefer AG, Dematic Group, Vanderlande Industries, and Honeywell International.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 50 to 200 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by robust presence overseas and in-depth industry expertise. They possess strong technology capabilities and adhere strictly to regulatory requirements.
However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Swisslog Holding AG, Murata Machinery, Ltd., Interroll Group, BEUMER Group GmbH & Co. KG, and TGW Logistics Group.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 50 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment. They are small-scale participants with limited geographical presence.
In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 includes Fives Group, Hytrol Conveyor Company, Inc., FlexLink AB, Bastian Solutions, Inc., Mecalux, S.A., Shuttleworth, LLC, Kardex Group, Dorner Mfg. Corp., Siemens AG, Conveyor Systems Ltd., and others.
The section below covers assessments of conveyor system sales across key countries. Countries from East Asia, and North America, are anticipated to exhibit promising double-digit growth over the forecast period.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| China | 7.9% |
| India | 6.6% |
| United States | 5.8% |
| Brazil | 5.2% |
| Germany | 4.7% |
The sales for conveyor system in China are projected to witness a CAGR of 7.9%, reaching a valuation of USD 1,870 million, due to its broadening Food and Beverage Sector.
China's conveyor market is growing quickly because of the country's increasing demand for processed and packaged goods. These systems are essential for handling and packing materials efficiently while upholding strict quality and safety regulations.
Over 7% of China's GDP comes from the food and beverage sector, and operations are changing because of automation-based technological revolution. Conveyors are vital for maximizing the movement of products through assembly lines, cutting down on labor costs, and lowering the danger of contamination.
Government initiatives for infrastructure development and investments have led to the growth of the market. Modernization policies and technical improvements are modernizing food and beverage facilities, increasing the demand for sophisticated conveyors, and supporting further growth and competitiveness in the Chinese food and beverage industry.
The conveyor system industry in India is anticipated to witness a CAGR of 6.6% between 2024 and 2034. In 2024, the market is projected to reach a value of USD 420.7 million, propelled by rapid industrialization, expanding packaging sectors, and the growing emphasis on automation.
The packaging sector in India, which is being propelled by the need for packaged goods across many industries, is causing the market to develop significantly in the region. Businesses are investing in state-of-the-art conveyors in order to maintain high production efficiency and expedite packaging procedures while maintaining correct quality, a result of disposable incomes and urbanization.
Conveyor systems are essential for optimizing processes in packaging operations, which are undergoing a revolution because to the integration of automation and smart technologies. Automated conveyors make it easier for goods to move smoothly through the many packaging phases, from distribution and sorting to filling and labeling.
The United States conveyor system market is projected to expand at a CAGR of 5.8% from 2024 to 2034, with its market value anticipated to reach USD 1,001.8 million in 2024.
The growth of new airports and the expansion of existing ones are contributing significantly to the rise in air traffic and air freight transport in the United States, creating substantial demand for conveyor systems.
According to the United States Department of Transportation, air passenger traffic grew by 1% in 2019, reaching nearly 19.9 million passengers. This rise in air traffic underscores the need for efficient baggage handling systems and cargo transportation, further fueling the demand for conveyor systems in airports.
Due to rising air freight volumes and airport authorities improving their material handling and logistics capacities, the United States government's infrastructure development activities are propelling the demand for conveyor systems. The expansion of air freight and passenger baggage handling may be attributed, in large part, to the building and restoration of airports.
The need for pallet conveyor systems is anticipated to increase due to the growing number of distribution facilities, which are being driven by large supermarket chains like Wal-Mart and Kroger Co. Pallet conveyors' small size and great load-bearing capability make them perfect for managing large shipments in distribution facilities.
The section explains the growth trajectories of the leading segments in the industry. In terms of product type, the belt conveyor category will likely dominate and generate a value share of around 21.1% in 2024. Based on Operation type, Automatic Conveyor System segment will remain a dominating segment with a prominent share of 68.4% in 2024.
| Segment | Belt Conveyor (Product Type) |
|---|---|
| Value Share (2024) | 21.1% |
Belt conveyors are a dominant market segment due to their versatility in various industries, including manufacturing, mining, food and beverage, and logistics. They can handle diversified goods, making them ideal for complex production and distribution processes. Their ease of installation, low operational costs, and high volume capacity have accelerated their widespread adoption.
Future improvements in belt conveyors, such as energy-efficient solutions and durable materials, are expected to drive increased demand. The reliability and adaptability of belt conveyors will support their continued prominence in the market. Additionally, investments in infrastructure and automation across various sectors will further strengthen the belt conveyor segment's position in the conveyor system market.
| Segment | Printing Ink and Coatings (Application) |
|---|---|
| Value Share (2024) | 68.4% |
Due to their effectiveness and smooth integration with industrial processes, automatic systems are predicted to hold a dominant position in the conveyor system market. In high-speed, high-accuracy environments like distribution centers, pharmacies, and automobile production, these solutions are very helpful. Their automated capabilities allow for consistent, predictable functioning, which boosts output and lowers personnel costs.
Industry 4.0 and smart production are driving the need for automatic conveyor systems because they can be connected with cutting-edge technology like as sensors, control systems, and data analytics for real-time operations monitoring and optimization. As more sectors embrace automated solutions to handle complicated supply chains and high-volume production needs, the automatic conveyor industry is well-positioned to take the lead.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
A few key players in the conveyor system industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.
Industry Updates:
| Report Attributes | Details |
|---|---|
| Current Total Market Size (2024) | USD 6.6 billion |
| Projected Market Size (2034) | USD 11.3 billion |
| Overall Market CAGR (2024 to 2034) | 5.5% |
| Base Year for Estimation | 2023 |
| Historical Period | 2019 to 2023 |
| Projections Period | 2024 to 2034 |
| Report Analysis Parameter | Revenue in USD billion/volume in units |
| Product/Service Segments & CAGR | Belt Conveyor, Roller Conveyor, Pallet Conveyor, Overhead Conveyor, Tri-Planar Conveyor, Crescent Conveyor, Skid Conveyor, Trailer Conveyor, Others |
| By Operation Type Analyzed | Manual, Semi-Automatic, Automatic |
| By Capacity Type Analyzed | Unit Handling, Bulk Handling |
| By Application Type | Packaging & Warehouse Distribution, Textile & Paper, Construction & Mining, Automotive & Transportation, Consumer Electronics, Food & Beverage, Chemical & Pharmaceutical |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Countries Covered | United States, Japan, Germany, India, United Kingdom, France, Italy, Brazil, Canada, South Korea, Australia, Spain, Netherlands, Saudi Arabia, Switzerland |
| Key Players | Daifuku Co., Ltd., SSI Schaefer AG, Dematic Group, Vanderlande Industries, Honeywell Intelligrated, Swisslog Holding AG, Murata Machinery, Ltd., Interroll Group, BEUMER Group GmbH & Co. KG, TGW Logistics Group, Fives Group, Hytrol Conveyor Company, Inc., FlexLink AB, Bastian Solutions, Inc., Mecalux, S.A., Shuttleworth, LLC, Kardex Group, Dorner Mfg. Corp., Siemens AG, Conveyor Systems Ltd. |
| Additional Attributes | Automation Trends, Energy-Efficient Systems, Predictive Maintenance, Smart Conveying Solutions, Industry 4.0 Integration, Sustainability Initiatives |
| Customization and Pricing | Available upon request |
The global market was valued at USD 6,403.1 million in 2023.
The global market is set to reach USD 6.6 billion in 2024.
Global demand is anticipated to record of CAGR of 5.5%.
The industry is projected to reach USD 11.3 billion by 2034.
In terms of product type, the industry is divided into belt conveyor, roller conveyor, pallet conveyor, overhead conveyor, tri-planar conveyor, crescent conveyor, skid conveyor, trailer conveyor, and others.
In terms of operation type, the industry is divided into manual, semi-automatic, and automatic.
In terms of capacity type, the industry is divided into unit handling, and bulk handling.
In terms of application type, the industry is divided into packaging & warehouse distribution, textile & paper, construction & mining, automotive & transportation, consumer electronics, food & beverage, and chemical & pharmaceutical.
Conveyor System Market
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