The pallet racking market caters to the need for efficient space utilization in warehouses, distribution centers, and manufacturing facilities. Pallet racking allows for vertical stacking of pallets loaded with goods off the floor, thereby optimizing ground-level floor area. Racking systems with advanced design configurations improve productivity in material flow, picking operations, and inventory management.
The Global Pallet Racking Market is estimated to be valued at US$ 10.73 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the pallet racking market are Averys, AR Racking, SSI SCHAEFER, KION Group, Steel King, Advance Storage Products, Unarco Material Handling, Daifuku Co., Ltd., Mecalux S.A., Kardex Group, Hannibal Industries, Inc., Emrack International, Jungheinrich AG, AK Material Handling Systems, SSI Schaefer Group, Dematic, and Toyota Industries Corp.
Growing demand: Growing e-commerce industry and focus on automation in warehouses is expected to drive demand for Pallet Racking Market Trends Double deep pallet racking systems allow efficient utilization of vertical space.
Global expansion: Leading racking system providers are expanding globally through acquisitions and partnerships to cater to growing demand. Automation trends also require racking systems integrated with automated guided vehicles and robots.
Market Key Trends
Automation in racking systems Pallet Racking Market Size And Trends vehicles (AGVs) and autonomous mobile robots (AMRs) is a key trend. This allows lights-out and driverless operations in warehouses. Advanced racking systems with sensors and IoT enable real-time monitoring of inventory levels and optimized product retrieval. Rack manufacturers offer customized, modular solutions to meet industry-specific needs for applications like garments, food and beverages. Technological advances in racking hardware and software are making systems future-ready to accommodate evolving supply chain dynamics.
Porter’s Analysis
Threat of new entrants: Low set up costs and lack of patent protection pose a moderate threat of new entrants. However, established players have strong brand recognition and economies of scale.
Bargaining power of buyers: Large buyers have substantial bargaining power due to the availability of substitutes. Small buyers have low bargaining power due to lack of alternatives.
Bargaging power of suppliers: A few large suppliers exist, creating some pricing pressure. However, suppliers of steel and other raw materials do not hold strong bargaining power given the availability of substitute materials.
Threat of new substitutes: Substitute solutions include bulk storage racks, shelving units, and mobile shelving systems. However, new substitute threats are low as pallet racks provide efficient space utilization for pallets.
Competitive rivalry: The market is highly fragmented with the presence of many domestic and international players. Price competition is fierce.
Geographical Regions
North America currently holds the largest share of the pallet racking market, driven by strong demand from the e-commerce and food & beverage industries. The Asia Pacific region is expected to experience the fastest growth, led by China, India and other developing economies experiencing increasing investments in warehousing and logistics infrastructure.
Europe is another major regional market for pallet racking, accounting for a significant share globally. Growth in Europe is supported by evolving retail landscape, expansion of 3PL facilities and robotics integration in warehouses.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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