Vertical Lift Module (VLM) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The vertical lift module (VLM) market is segmented by end-user industry (metal and machinery, automotive, electrical and electronics, retail/warehousing/distribution center/logistics center, life sciences, food and beverage, and other end-user industries), and geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Vertical Lift Module (VLM) Market Size

Vertical Lift Module (VLM) Market  Summary
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Study Period 2018 - 2028
Base Year For Estimation 2022
CAGR 8.00 %
Fastest Growing Market North America
Largest Market Asia-Pacific
Market Concentration High

Major Players

Vertical Lift Module (VLM) Market  Major Players

*Disclaimer: Major Players sorted in no particular order


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Vertical Lift Module (VLM) Market Analysis

The vertical lift module (VLM) market is expected to register a CAGR of 8% over the forecast period. Because of Industry 4.0, factories and warehouses are now more likely to use automated solutions.

  • Vertical lift modules form a significant part of the solution due to the shifted focus on smart intralogistics. Intralogistics experienced significant disruption over the past decade due to changes in end markets as preferences evolved from using VLMs as a mere space management tool to deriving operational benefits from connected solutions. This is one of the significant factors that is driving the market.
  • Further, another major factor that is driving the market is the stringent government regulations for increasing workplace safety. The Occupational Safety and Health Act, in its updated standards, has also mandated safety fall protection for employees, regardless of the fall distance. Hence, the safety of the workplace, which deals with the prevention of any injury or incident, becomes critical, thereby increasing the adoption of a vertical lift module (VLM).
  • Also, more retailers are using small-format distribution centers in areas with a lot of people. This means that square footage is limited and expensive, and the need for flexible, scalable, automated VLMs that can handle high volumes in small spaces is expected to grow and drive the retail market.
  • However, on the flip side, the high cost of the vertical lift module (VLM) and the high maintenance associated with them are a few factors that are restraining the market's growth in the forecasted period.
  • COVID-19 was expected to contribute to market growth in the future. This was due to the focus on automation in industries such as automotive, food and beverage, and logistics, so as to maintain social distancing and stress worker safety.

Vertical Lift Module (VLM) Industry Segmentation

A vertical lift module (VLM) is a closed system with an inserter and an extractor in the middle. This makes it easy for stored trays to be found and taken out automatically.When stored items were brought to the operator, the search time was cut by a lot, which increased productivity by 66%.

The studied market divides VLM into groups based on the end-user industries, such as automotive, food and beverage, and retail, and gives a detailed analysis of specific use cases and application areas. Also, the analysis of geography leaves out major countries in North America, Europe, and the Asia-Pacific region.

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By End-user Industry
Metal and Machinery
Electrical and Electronics
Retail/Warehousing/DistributionCenter/Logistics Center
Life Sciences
Food and Beverage
Other End-user Industries
By Geography
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Latin America
Middle East and Africa

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Vertical Lift Module (VLM) Market Trends

Food and Beverage Sector is Expected to Grow Significantly

A significant number of food and beverage companies are tormented by older carousels to facilitate picking, which are now being replaced with vertical lift modules (VLMs). These systems have greatly increased the cube utilization of facilities by allowing these companies to run seamlessly within space constraints.

  • Since the industry has huge inventories, the VLMs are made with ergonomic designs and trays that can hold more than 1,000 pounds each. The overall heights of the VLMs range from 15 feet to 75 feet.
  • Also, vertical lift modules (VLMs) must be used to keep workers from getting hurt, which is important for worker safety.As a result of the "Made in China 2025" strategy, China is likely to have a lot more factories that use automation by 2025.It fuels the nation's vertical lift module (VLM) business. Continuous investments made by businesses in their logistics divisions have a significant impact on the growth of the vertical lift module market.
  • Due to the pandemic, there has been the worst labor shortage globally. Strict regulations and COVID-19 guidelines and protocols to follow have created a huge gap in supply and demand for labor in the food and beverage industry. Therefore, many organizations are also looking for cost-cutting methods, such as lower wages and layoffs, considering the global scenario. Many organizations are thus looking to upgrade their warehouses with solutions like VLM to be more efficient; however, the high cost of solutions, fluctuating global economies, and uncertainty in the business hamper the application of such solutions.
  • Edge by Ascential, a top provider of e-commerce services, says that over the next few years, the digital sector is likely to grow, even though physical stores are still the most common way to sell food. It is expected that online sales in this sector will grow from 174 billion US dollars in 2021 to more than 275 billion US dollars in 2026. E-commerce is anticipated to represent around 7.6% of total grocery sales globally that year.
Vertical Lift Module Market : Estimated value of Global store-based and e-commerce sales, in USD billion, Edible Grocery Category, 2021-2026

Asia-Pacific is Expected to Experience Significant Growth

  • Asia-Pacific is expected to grow the most quickly because it is home to China, the world's biggest manufacturing hub and biggest exporter. Automation in China is expected to cut costs by 30% by 2025, and also, by virtue of the 'Made in China 2025' initiative, manufacturing units are expected to increase rapidly in the country. This factor drives the market for the vertical lift module (VLM) in the country.
  • Additionally, another fastest-growing economy in the world is India. With India's ambitious plan of 'Make in India," manufacturing and its consequential distribution and logistics activities are expected to witness exponential growth.
  • India is also the second-most populous nation in the world, and consumption dominates its economy.Based on the most recent data from the United Nations, India has a population of 1,423,061,201 people.The UN estimates the July 1, 2023 population at 1,428,627,663. Additionally, according to the Economic Survey 2023, India, the nation will grow at a rapid rate of 6 to 6.8% in FY 2024.
  • India is also making strides in its logistics and warehouse capabilities, and there are a number of projects, such as the DDF (Dedicated Freight Corridor) Sagar Mala Project, dedicated to e-commerce, logistics, and warehouse operations. India has a total of 11 major ports and 168 smaller or intermediate ports. This makes it possible for a lot of cargo to move along the Indian coast from the islands. This will also require a huge network of warehouses and storage units, making the studied market in the region and during the studied time period a huge market.
  • So, the above factors should make the vertical lift module (VLM) in the Asia-Pacific region look good during the forecast period.

Also, to stop the COVID-19 coronavirus from spreading, almost every company was putting in place social distance, safety standards, and protocols to make sure warehouse and factory workers were safe. This got a lot of attention. Thus, organizations were reevaluating their operations in facilities with a lower workforce. The outbreak negatively impacted the hosting of expos and trade shows and was expected to affect the marketing and sales specifics of smaller regional players amid the market incumbents.

Vertical Lift Module (VLM) Market - Growth Rate by Region (2023-2028)

Vertical Lift Module (VLM) Industry Overview

Companies like Kardex Group, Hanel Storage Systems, Ferretto Group S.p.A., Modula Inc., and Schaefer Systems International dominate the vertical lift module (VLM) market.With a big share of the market, these big players are focusing on growing their customer base in other countries.These companies are leveraging strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, midsize to smaller companies are increasing their market presence by securing new contracts and tapping new markets.

Mouser Electronics, Inc., which has the largest selection of semiconductors and electronic components and is the top distributor for new product introductions (NPIs) in the industry, continued to invest in cutting-edge automation in its global distribution center in February 2022. This was done to speed up order processing, improve accuracy, and help clients shorten their time-to-market. The largest VLM installation in the history of the technology will be at Mouser, where 120 vertical lift modules (VLMs) will be placed.

Vertical Lift Module (VLM) Market Leaders

  1. Kardex Group

  2. Hänel Storage Systems

  3. Ferretto Group S.p.a

  4. Modula Inc.(System Logistics)

  5. AutoCrib Inc.

*Disclaimer: Major Players sorted in no particular order

Vertical Lift Module (VLM) Market Concentration

Vertical Lift Module (VLM) Market News

  • March 2022: White Systems, a top producer of high-density intelligent storage equipment, recently established a strategic alliance with Weland Solutions, a company that creates cutting-edge and distinctive vertical lift solutions for the market. This alliance will support White's position as the industry leader in robust storage automation and provide the North American market with a variety of automated storage solutions to streamline distribution, e-commerce, and warehousing operations.
  • October 2022: The 5G smart warehouse at Naval Air Station North Island was inaugurated by two Modula vertical lift modules (VLM) from the Naval Supply Systems Command (NAVSUP) Fleet Logistics Center (FLC) San Diego. The VLMs are a component of the Navy's first 5G initiative, which will use the capabilities of 5G networks to automate and digitize supply chain processes in the Navy. By utilizing cutting-edge automation technologies like autonomous mobile robots and real-time asset visibility, the capabilities now under development are intended to boost supply chain efficiency.

Vertical Lift Module (VLM) Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Buyers/Consumers

      2. 4.2.2 Bargaining Power of Suppliers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Vertical Lift Module Market


    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Adoption among Warehouse Owners due to Reduced Floor Space

      2. 5.1.2 Significant Advantage over Traditional Storage and Retrieval Systems

    2. 5.2 Market Challenges

      1. 5.2.1 Increasing Energy Consumption Concerns and Huge Infrastructural Costs


    1. 6.1 By End-user Industry

      1. 6.1.1 Metal and Machinery

      2. 6.1.2 Automotive

      3. 6.1.3 Electrical and Electronics

      4. 6.1.4 Retail/Warehousing/DistributionCenter/Logistics Center

      5. 6.1.5 Life Sciences

      6. 6.1.6 Food and Beverage

      7. 6.1.7 Other End-user Industries

    2. 6.2 By Geography

      1. 6.2.1 North America

        1. United States

        2. Canada

      2. 6.2.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Spain

        6. Rest of Europe

      3. 6.2.3 Asia-Pacific

        1. China

        2. Japan

        3. South Korea

        4. Rest of Asia-Pacific

      4. 6.2.4 Latin America

      5. 6.2.5 Middle East and Africa


    1. 7.1 Company Profiles

      1. 7.1.1 Kardex Group

      2. 7.1.2 Hanel Storage Systems

      3. 7.1.3 Ferretto Group S.p.a

      4. 7.1.4 AutoCrib, Inc.

      5. 7.1.5 Modula Inc.(System Logistics)

      6. 7.1.6 Weland Lagersystem AB

      7. 7.1.7 Schaefer Systems International Inc.

      8. 7.1.8 Automha SPA

      9. 7.1.9 Green Automated Solutions, Inc

      10. 7.1.10 Stanley Black & Decker Storage Solutions

    2. *List Not Exhaustive


**Subject to Availability
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Vertical Lift Module (VLM) Market Research FAQs

The Vertical Lift Module (VLM) Market is projected to register a CAGR of 8% during the forecast period (2023-2028).

Kardex Group, Hänel Storage Systems, Ferretto Group S.p.a, Modula Inc.(System Logistics) and AutoCrib Inc. are the major companies operating in the Vertical Lift Module (VLM) Market.

North America is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the Asia-Pacific accounts for the largest market share in the Vertical Lift Module (VLM) Market.

Vertical Lift Module (VLM) Industry Report

Statistics for the 2023 Vertical Lift Module (VLM) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vertical Lift Module (VLM) analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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