Conveyors Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Conveyors Market is segmented by Product (Belt, Roller, Pallet, Overhead), End-user Vertical (Airport, Retail, Automotive, Manufacturing, Food & Beverage, Pharmaceuticals, Mining), and Geography.

Market Snapshot

Conveyors Market Overview
Study Period: 2019- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 4.5 %

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Market Overview

The Conveyors Market was valued at USD 7.73 billion in 2020 and is expected to reach USD 10.07 billion by 2026 registering a CAGR of 4.5% over the forecast period (2021-2026). The spread of COVID-19 has positively affected the market studied especially in the food & beverage along with the pharmaceutical sector, which has been deemed under essential services. Due to increased sales of the products under these segments, manufacturing facilities have been working round the clock to deliver the end-products, which would not have been possible without the usage of conveyor belts among other machines.

  • The world of intralogistics is undergoing a major transformation. With the globalization of the economy, shorter product cycles, and the advancements in e-commerce, the international flow of goods is increasing and accelerating which is driving the market studied.
  • With the rapidly increasing growth in stock-keeping units (SKUs), wholesalers and distributors are finding it difficult to make informed decisions about their operations. This drives the need for the smarter use of labor, equipment, and technology. The main factors driving the need for these automated material handling systems are cost savings, labor efficiency, and space constraints.
  • The conveyor systems market is influenced by various factors, such as industrial growth, expansions, modernization of industries and product and process specific conditions. Conveyor systems help in simplifying the task of handling bulky materials. It plays a vital role in operations by reducing and minimizing the production cycle time and errors respectively.
  • Supply chains and business processes are becoming increasingly complex, and customers are demanding more. At the same time, competitive pressure is also growing among national economies and individual market players. Therefore, outsourcing models and automation are gaining demand.
  • It has also been observed that there is an increasing need for delivering various products in small time frames that require efficient inventory management and reverse logistic systems. The developing automotive, retail, and food and beverage industries are also likely to fuel the growth of the market studied.

Scope of the Report

Conveyor systems are mechanical devices or assemblies that are used to transport various materials with little effort. There are different kinds of conveyor systems, usually consisting of a frame that supports either wheels, rollers or a belt, upon which the materials move from one place to another.

By Product Type
Belt
Roller
Pallet
Overhead
Geography
North America
By End User
Airport
Retail
Automotive
Manufacturing
Food and Beverage
Pharmaceuticals
Mining *(Kindly note that similar end-user segment coverage is provided for all other regions in the scope)
By Country
United States
Canada
Europe
By End User
By Country
France
Germany
Italy
Netherlands
Rest of Europe
Asia Pacific
By End User
By Country
Australia
China
India
Japan
South Korea
Rest of APAC
Latin America
By End User
By Country
Argentina
Brazil
Mexico
Rest of Latin America
Middle East & Africa
By End User
By Country
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa

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Key Market Trends

Retail Segment to Witness Significant Growth

  • The retail industry has transformed significantly with the advent of automation and IT-based solutions. To optimize store space utilization and to stay profitable, retailers are adopting automated warehousing and distribution solutions. The retail sector utilizes conveyors for distribution and warehousing, sorting, and cross-docking. Growth in shopping through online mode in the Asia-Pacific and LAMEA regions has created a conducive market environment.
  • The increasing usage of online retailing, coupled with changing consumer behavior toward goods purchasing, is likely to have a positive impact on the adoption of conveyor and sortation systems. In addition, many companies already invested in the sortation facility, are expected to increase their capacity, owing to the rising demand. For instance, UPS announced to expand their sortation capacity to reach over 25% increase in cross-border orders by 2022.
  • The increasing purchasing power of consumers, changing lifestyles, growing working-class segment, and relaxation in government regulations such as Foreign Direct Investment. These factors have boosted the growth of supermarket chains and distribution centers, which are driving the demand for new distribution centers and warehouses, which is then expected to drive the conveyors market.
  • Retail has been one of the major industries, wherein the requirement for conveyors and sortation is important. It especially helps online retailers to sort goods and increase goods delivery efficiency. Furthermore, retailers are increasingly investing in expanding warehouse space. For example, Blackstone Group invested USD 18.7 billion on 179 million square feet of the US warehouse space, to cater to the growing retail demand in the country.
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Asia Pacific is Expected to Hold the Largest Market Share

  • Many international corporations from developed countries across the globe have set up their production facilities in the APAC region, especially in developing countries such as India and China, because of the availability of cheaper factors of production (labor, raw material, and equipment). The increase in the growth of manufacturing activities has increased the adoption of conveyor systems in this region.
  • Moreover, increasing spending power, improving standard of living, and higher GDP among other factors are increasing the demand for manufactured goods, which in turn is leading to the increased adoption of these automated systems. For example, the majority of belt conveyors in Indian manufacturing facilities were initially of the low-speed type, with the expansion of these facilities fueled by increased public demand for goods is leading to the increased adoption of high-speed belt conveyors.
  • The mining industry significantly relies on conveyor belts in order to transport materials taken for processing. The industry is witnessing an increase in conveyor belts investments as it makes the operations cleaner, safer, and more productive. For instance, in Jun 2020, Coal India Ltd announced that it was planning to invest INR 157 billion in conveyor belts in order to replace road movement between mines and wagons. The first phase of investment will upgrade infrastructure at 35 mines, each having a capacity of four million tonnes per annum or more at six subsidiaries of the company. 
  • In India, demand is expected to increase from the retail, airport, and post and parcel industries during the forecast period. The retail market is primarily driven by the emergence of the e-market and customers shopping online which gave rise to fulfillment centers and warehouses. Also, with increased usage of communication devices, the internet is helping the growth of e-commerce and m-commerce.
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Competitive Landscape

The conveyors market is highly competitive owing to the presence of many large players supplying their product in domestic as well as in the international markets. The market appears to be moderately fragmented with the major players adopting strategies like product innovation and mergers and acquisitions. Some of the major players in the market are Daifuku Co. Ltd, SSI Schaefer AG, Murata Machinery Ltd among others.

  • Jan 2020 - SSI Schaefer implemented a logistics center for Misumi, a global manufacturer, and provider of mechanical components and indirect materials for special machine construction and assembly automation. Core elements of the system are an automated shuttle warehouse, a four-storied rack system, ergonomic workstations connected via a conveying system, and the logistics software Wamas.
  • Feb 2021 - Daifuku Co., Ltd. and Germany-based AFT Industries AG concluded an agreement to form a business partnership to leverage their material handling expertise in the automotive industry. Daifuku and AFT plan to use the partnership as a way to open channels and secure growing demand and investment from automotive manufacturers for material handling systems.

Recent Developments

  • Jan 2021 - TGW Logistics Group plans to sell some of its US conveyor assets located in Norton Shores, Michigan, to Material Handling Systems Inc. (MHS). The contract between the two companies has been signed and the acquisition is expected to come into effect in February 2021. Lincoln International guided TGW through the whole M&A process. With the sale, TGW adjusts its strategic portfolio and focuses on the growing integration business in North America.
  • Dec 2020 - Dorner Manufacturing Corporation improved its FlexMove Helix Conveyors with several new enhancements. The addition of D-Tools accessibility and shorter lead times make for a more responsive, user-friendly experience. The addition of D-Tools, Dorner’s online conveyor configurator, gives product engineers, plant managers, and others the ability to easily download CAD models to design Helix Conveyors to fit their exact application in a matter of minutes. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Demand for Handling Larger Volumes of Goods and Improving Productivity

      2. 4.2.2 Rapid Growth of E-commerce

    3. 4.3 Market Restraints

      1. 4.3.1 High Initial Investments

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Assessment of COVID-19 Impact on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Belt

      2. 5.1.2 Roller

      3. 5.1.3 Pallet

      4. 5.1.4 Overhead

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 By End User

          1. 5.2.1.1.1 Airport

          2. 5.2.1.1.2 Retail

          3. 5.2.1.1.3 Automotive

          4. 5.2.1.1.4 Manufacturing

          5. 5.2.1.1.5 Food and Beverage

          6. 5.2.1.1.6 Pharmaceuticals

          7. 5.2.1.1.7 Mining *(Kindly note that similar end-user segment coverage is provided for all other regions in the scope)

        2. 5.2.1.2 By Country

          1. 5.2.1.2.1 United States

          2. 5.2.1.2.2 Canada

      2. 5.2.2 Europe

        1. 5.2.2.1 By End User

        2. 5.2.2.2 By Country

          1. 5.2.2.2.1 France

          2. 5.2.2.2.2 Germany

          3. 5.2.2.2.3 Italy

          4. 5.2.2.2.4 Netherlands

          5. 5.2.2.2.5 Rest of Europe

      3. 5.2.3 Asia Pacific

        1. 5.2.3.1 By End User

        2. 5.2.3.2 By Country

          1. 5.2.3.2.1 Australia

          2. 5.2.3.2.2 China

          3. 5.2.3.2.3 India

          4. 5.2.3.2.4 Japan

          5. 5.2.3.2.5 South Korea

          6. 5.2.3.2.6 Rest of APAC

      4. 5.2.4 Latin America

        1. 5.2.4.1 By End User

        2. 5.2.4.2 By Country

          1. 5.2.4.2.1 Argentina

          2. 5.2.4.2.2 Brazil

          3. 5.2.4.2.3 Mexico

          4. 5.2.4.2.4 Rest of Latin America

      5. 5.2.5 Middle East & Africa

        1. 5.2.5.1 By End User

        2. 5.2.5.2 By Country

          1. 5.2.5.2.1 United Arab Emirates

          2. 5.2.5.2.2 Saudi Arabia

          3. 5.2.5.2.3 South Africa

          4. 5.2.5.2.4 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Daifuku Co. Ltd

      2. 6.1.2 SSI Schaefer AG

      3. 6.1.3 Murata Machinery Ltd

      4. 6.1.4 Mecalux SA

      5. 6.1.5 BEUMER Group GmbH & Co. KG

      6. 6.1.6 KNAPP AG

      7. 6.1.7 KUKA AG (Swisslog AG)

      8. 6.1.8 Honeywell Intelligrated Inc.

      9. 6.1.9 Kardex Group

      10. 6.1.10 Viastrore Systems GmbH

      11. 6.1.11 Bastian Solutions Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Conveyors Market market is studied from 2019 - 2026.

The Conveyors Market is growing at a CAGR of 4.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Daifuku Co. Ltd, SSI Schaefer AG, Murata Machinery Ltd, BEUMER Group GmbH & Co. KG, Honeywell Intelligrated Inc. are the major companies operating in Conveyors Market.

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