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Industrial Racking Systems Market Size, Share, and Analysis, By System Type (Cantilever Racking System, Drive-In or Drive-Thru Racking System, Selective Racking System, Push Back Racking System, and Others), By Industrial Vertical (Retail, Manufacturing, Packaging, Food & Beverages, Pharmaceuticals, and Others), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034
Industrial Racking Systems Market is predicted to grow at a CAGR of 5.3% in the forecast period (2024-2034), with the market size valued at USD 11.7 billion in 2023 and expected to reach USD 20.6 billion by 2034.
Industrial racking systems are special structures that are designed for efficient storage in warehouses, distribution centers, and manufacturing facilities. They improve the utilization of vertical spaces and allow for the organized storage of pallets, boxes, and containers. These racking systems are of various types such as selective, drive-in, push-back, and pallet flow racks, which cater to diverse storage needs and space limitations. They are constructed from durable materials like steel and provide sturdy support for heavy loads, along with withstanding harsh industrial environments. Therefore, industrial racking systems are integral to modern supply chains as they improve the visibility of inventory and ensure timely delivery to customers.
Industrial racking systems market is anticipated to reach USD 20.6 billion, growing at a CAGR of 5.3% during the forecast period, due to high demand for efficient storage solutions across various industries. The growth of the industrial racking systems market is attributed to factors such as the growth of e-commerce, increasing automation in warehouses, and a focus on improving supply chain operations. In addition, rigorous laws regarding workplace safety and the need to maximize warehouse space are contributing to the adoption of industrial racking systems. Furthermore, major players in the market are focusing on innovation and expanding their reach to gain a competitive advantage. Thus, the industrial racking systems market will experience growth as businesses are prioritizing efficient storage and logistics solutions to meet the evolving demands of consumers.
Source: Fatpos Global
Industrial racking systems market is segmented based on System Type into Cantilever rack systems, Drive-In or Drive-Thru rack systems, Selective Racking Systems, Push Back Racking Systems, and Others. The selective racking system segment holds the lead as it can be easily used to store a wide variety of pallet sizes and types of goods, thus making it flexible to different types of inventory needs. Each pallet in a selective rack is directly accessible with the help of a forklift, which allows for easy picking, loading, and unloading. In comparison to high-density storage solutions such as drive-in or push-back racking, selective racking is generally less expensive to purchase and install, thus serving as a cost-effective option for several businesses irrespective of their scale or size.
Industrial racking systems market is categorized based on Industrial Vertical into Retail, Manufacturing, Packaging, Food & Beverages, Pharmaceuticals, and Others. The retail segment has been the dominating one as a surge in online shopping has increased the demand for warehousing solutions and given a boost to the E-Commerce market. Retail businesses are known for handling high stock volume with different sizes and turnover rates. Furthermore, as e-commerce continues to grow, retailers are focusing more on expanding their warehouse capacities, which creates the need for racking systems and better packing operations. However, other industries such as Manufacturing and Food & Beverages are growing at a faster rate as racking systems are required for storing raw materials and finished goods.
E-Commerce Growth Will Improve the Demand for Industrial Racking Systems
Growth of e-commerce has impacted the expansion of the industrial racking systems market. Initially, the rise in online shopping has increased the need for warehousing as retailers require more storage space to store up several inventories and simplify the order fulfilment processes. This increase in demand patterns for storage solutions increases the adoption of industrial racking systems to optimize space usage within warehouses. Additionally, with the growth of e-commerce, warehouses are learning the efficient picking and packing processes. Thus, selective racking systems can offer direct accessibility to each pallet, which can prove to be instrumental in easing instant order fulfilment in comparison to high-density storage substitutes.
High Adoption of Automation and Robotics in Warehouse Operations
Growing adoption of automation and robotics in warehouse operations is transforming the industrial racking systems market. Modern racking systems are designed to integrate different automation technologies, such as automated storage and retrieval systems and automated guided vehicles. Moreover, certain racking arrangements, primarily those with wider passages, are more compatible with automated equipment. Automation is further helping towards the implementation of high-density storage solutions such as drive-in or push-back racking systems, which can easily optimize storage capacity within warehouses. However, such systems require dedicated equipment for pallet retrieval. As a result, to address the labour shortage in the logistics industry, warehouses are turning to modern racking systems to operate efficiently with less workforce.
Initial Investment Required for Installation and Maintenance to Act as a Market Restraint
Higher initial investment is required for the installation and maintenance of industrial racking systems which can present a significant challenge to the market. This financial burden affects various aspects, such as financial limitations for small & medium-sized businesses and the need for flexibility to accommodate future needs. Thus, to address this challenge, the industry is adopting strategies such as offering modular racking systems that can provide scalability and promote cost-effective racking types such as selective racking systems. These solutions aim to make industrial racking systems more accessible and manageable for businesses with diverse budgets and storage requirements.
Industrial Racking System Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region dominates the industrial racking system market due to rapid industrialization in several nations, which has led to the rise of warehousing needs and increased the demand for storage solutions. Governments are investing in infrastructural development, such as warehouses and logistics facilities, which also support the growth of industrial racking systems in the region. Furthermore, the region also serves as a manufacturing hub for various industries that require stronger storage solutions for raw materials.
Alongside, other regions such as North America have a well-established warehousing and logistics infrastructure, due to the high adoption rate of automation technologies, which creates demand for advanced systems. On the other hand, European countries have strongly focused on safety regulations and effective warehouse operations.
Source: Fatpos Global
COVID-19 pandemic had a mixed impact on the industrial racking systems market, having both adverse and favorable effects. Negative impacts such as supply chain disruptions and price fluctuations, have resulted in the reduction of demand across various sectors. However, positive effects were also witnessed owing to the high demand for warehouse space and racking systems. The focus on strong inventory management and the adoption of automation technologies further strengthened the need for efficient storage solutions. Thus, irrespective of initial challenges, the market displayed flexibility and indicated signs of recovery in the post-pandemic landscape.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 5.3% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By System Type |
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By Industrial Vertical |
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By Region |
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Industrial Racking Systems Market size was valued at USD 11.7 billion in 2023 and is projected to reach the value of USD 20.6 billion in 2034, exhibiting a CAGR of 5.3% during the forecast period.
Industrial rack systems are purpose-built storage solutions that are designed to effectively organize and store goods in different industrial settings such as warehouses, manufacturing facilities, and distribution centers.
The Selective Racking System segment and Retail segment accounted for the largest Industrial Racking Systems Market share.
Key players in the Industrial Racking Systems Market include Daifuku Co., Ltd., SSI Schaefer, Ridg-U-Rak Inc., Gonvarri Material Handling, PROMAN, S.r., Kardex, AR Racking, Averys SA, ARPAC, North American Steel Equipment Inc., AK Material Handling Systems, Jungheinrich AG, Bastian Solutions, LLC, Dematic (KION Group), Interroll Holding AG and Other Prominent Players.
E-commerce growth and the high adoption of automation and robotics are the factors driving the industrial racking systems market.
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