The European market is expected to grow at a significant rate during the forecast period. The increase in construction activities for new warehouses and distribution centers in the U.K., Germany, and Spain should support the market. In addition, a wide range of racking systems is used to facilitate the material handling process.

GlobalIndustrialracking

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The global industrial racking systems market size was valued at USD 10.5 billion in 2021. The market is projected to grow from USD 11.0 billion in 2022 to USD 16.0 billion by 2029, exhibiting a CAGR of 5.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with industrial racking system experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 3.4% in 2020 as compared to 2019.

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Pallet racks

Moreover, the packaging sector is predicted to have substantial growth during the forecast period. It is owing to the demand for warehouse racking systems, which is anticipated to be pushed with the aid of developing product adoption in packaging applications. Major packaging corporations, which include Amcor, International Paper Company, and Crown Holdings & Tetra Level use green racking to manage area and decrease the dealing of exertions and stock in phrases of green product garage and handling.

Nowadays, technology is booming more than ever. Everyday technology evolves and brings new techniques and functionality. It is not only about machinery and vehicles. It is all about automation and the Internet of Things (IoT) based devices, which are immensely used in day to day industrial and warehouse operation. The emergence of the Internet of Things and automation is growing in each and every industry vertical. Both are used in manufacturing units, healthcare sector, aerospace industry, automobile industry, and others.

Retail segment witnessed a major growth during 2021. This is due to the increasing demand for online shopping as e-commerce services need an effective racking system, which smoothen the operations in the warehouse. The increased demand for e-commerce puts heavy pressure on the warehouse racking system of e-commerce to reduce this advanced racking system.

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In addition, most players are focusing on acquisition, product launches, and partnership with various small and medium-sized companies to expand their presence.

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Global rackingstock

The Middle East and Africa & Latin America are poised to grow as emerging markets and the increase of a fresh customer class have augmented the necessity for current distribution networks, subsequently, mirroring a robust viewpoint for the market.

Kardex, Averys SA, SSI Schaefer, Gonvarri Material Handling, PROMAN, S.r.l., AR Racking, ARPAC, North American Steel Equipment Inc., AK Material Handling Systems and others.

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Moreover, the drive-in/drive-thru pallet racking system segment will have a considerable progress due to rising adoption of advanced logistics and warehouse technology. Also, due to the growing use of the forklift and pallets in the automotive industry, the drive-in/drive-thru segment had the highest revenue in 2021 and will continue the trend during the forecast period.

The e-commerce industry creates heavy demand for advanced and seamless industrial racking systems as the requirement of storage of industrial goods is very high. Also, technological advancement in logistics and transportation increases the speed of supply chain delivery, which is also driving the market.

GlobalIndustrial cantilever racks

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Based on industrial vertical, the market is classified into retail, manufacturing, packaging, food and beverages, pharmaceuticals, and others (automotive).

The global industrial racking systems market is projected to grow from $11.0 billion in 2022 to $16.0 billion by 2029, at a CAGR of 5.6% in the forecast period

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India, the fastest growing country, is expected to invest heavily in the e-commerce and manufacturing sectors. Importantly, local government initiatives are likely to facilitate the transfer of low-cost manufacturing to Southeast Asia and parts of Africa. New transportation routes will also bring great opportunities to the logistics sector as supply chains modernize.

Following Asia Pacific, North America is likely to develop at a consistent rate due to the existence of significant manufacturers in these regions. Furthermore, companies in these areas are making specific efforts toward technical advances, a focus on aftermarket services, and increased spending in research and development operations, all of which are impelling the market growth. The build-up of inventories and surge in the U.S. freight show the growth and strength of the U.S. economy. Additionally, lack of modern warehousing facilities will create fierce competition for space among e-commerce merchants in the U.S. With the shortage of modern warehouse space and the rise of e-commerce in the U.S., there is a great opportunity to develop new warehouses and refurbish old warehouses to meet modern needs.

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Asia Pacific Industrial Racking Systems Market Size, 2021 (USD Billion) To get more information on the regional analysis of this market, Request a Free sample

The global market research report provides a detailed industrial racking systems market analysis and focuses on key aspects such as leading companies, product/service types, and leading end-use industries of the product. Besides, the report offers insights into the market trends and highlights the key industry developments. In addition to the factors mentioned above, the report encompasses several factors contributing to the growth in recent years.

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It is difficult to show any industry that has not yet been impacted by the COVID-19 pandemic. Since the coronavirus outbreak commenced in late 2019 in China, many cases were reported. Similar to the other industry verticals, the manufacturers of ready to use racking system and warehouse solution equipment were shut down and have been greatly reliant on Indian and Chinese companies as the prime source of raw materials such as steel material comes from China and India. China was the first to be mainly affected by the coronavirus and all its production units were shut down.

Nevertheless, rising usage of advanced technology for managing warehouse spaces in emerging countries led to a rise in the installation of advanced industrial racking systems in industries and warehouses, such as shop floor, raw material storage area, goods warehouse, and in dispatch. China, India, the U.S., Russia, Germany, South Africa, and others are experiencing active improvement in use of industrial automation and advanced material stacking techniques that surged the installation of advanced racking systems. This advanced system provides high-end automation, which is important for the handling of heavy weight goods.

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Furthermore, push back pallet racking system segment is likely to have a fair growth due to its pallet storage method that permits pallets to be stowed from 2 to 6 deep on either side of an aisle, giving more developed storage density than other forms of racking.

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Industrial palletracking

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Based on system type, the market is classified into cantilever racking system, drive-in/drive-thru pallet racking system, selective pallet racking system, push back pallet racking system, and others (pallet flow system).

GlobalIndustrial Pallet racks

In the Asia Pacific region, the food & beverage and retail industries are predicted to account for noteworthy consumption of shelving methods during the forecast period. Also, the huge population growth rates in China and India are expected to create demand for processed foods and boost the retail sector in these countries, thereby having a positive impact on the storage rack market.

Food & beverages segment is projected to have considerable growth in the coming years. It is attributed to the warehouses that require high-density storage structures that can store materials in multiple low and high-rises in truck-based systems. Growing expansion & investments strategies in food & beverage warehouses and distribution centers around the world continue to drive the growth of the market.

Also, the manufacturing industry is expected to have a significant rise due to its utilization to stack up and keep items in diverse industries, warehouses, and different hubs. The capacity of business racking devices to distinguish, classify, mark, and make it smooth to locate items in warehouses has contributed to developing global uptake of those products.

Cantileverracking

The report scope covers five major regions. These include North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.

This system has rapidly become popular in the past few years. However, the starting cost of the single rack of the warehouse racking system and automation unit is greater than the conventional racking system. System types, such as sensors, beams, and conveyor driving motors, used in this system are expensive, which will straightaway influence the retail cost of the system.

Among the key players, Ridg-U-Rak Inc holds the highest market share globally. This is due to the company being a prime manufacturer of racking solution and racking automations, which is the main system type. This company provides raw materials to other players in the global market.

GlobalStorage solutions

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The global market has seen substantial rise in the past decades and it is anticipated to grow progressively in the forecast period. However, surge in COVID-19 cases imposed a sudden global lockdown in various countries, which caused shutdown of various manufacturing plants and disrupted supply chains of raw material in several countries. Also, growing digitization and advanced supply chain management and racking technology such as penetration of the Internet of things in developing countries are expected to boost the market growth during the forecast period.

The industrial racking system is a commercial storage solution which is designed and set up to stack raw material and finished goods in vertical columns with multiple horizontal rows. This system is helping organizations to manage and utilize warehouse spaces effectively. This system is also helping to streamline various logistics and warehouse related operations. Industrial or warehouse racking system is a structure of metal generally made up of various types of steel. This structure is used to support the final goods in industrial or warehouse facilities. There are various types of industrial racking, which play a key role in smooth and seamless functions of warehouse and logistics & supply chain activities of companies.

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This industrial type of racking system increases the automation in industrial storage systems and makes warehouse operations smooth and safe. This is helping to utilize warehouse space more effectively & contributing to the global industrial racking systems market growth.

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Also, cantilever racking system segment is expected to observe a significant rise in the coming years. These racks allow the storing and organization of things not simply kept on pallets. Warehouses use cantilever verticals that support cantilever arms. This permits heavier and longer things to be warehoused horizontally across multiple arms.

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The growing number of warehouses and industries across various countries and heavy demand of industrial racking in the e-commerce sector are major factors driving the growth of the market over the forecast period. Due to penetration of high-end telecommunication technologies, such as 4G and 5G network technology, the use of internet-based shopping in the retail sector is increasing, which boosts the e-commerce industry.

Furthermore, companies, such as Kardex, Averys SA, SSI Schaefer, Gonvarri Material Handling, PROMAN, S.r.l., AR Racking, ARPAC, North American Steel Equipment Inc., AK Material Handling Systems, and others have set-up their production plants in numerous countries, where the labor and production cost is less as compared with others, which will contribute to the growth of the market.

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The COVID-19 pandemic was speedily evolving, and its effect was felt in the supply chains. This had an adverse effect on economic activities globally. However, the global market witnessed a moderate decline in 2020 and will display fruitful growth in the future while the moderate drop is attributed to various manufacturing and automotive production units that had shut down across China, India, the U.S., and European countries. This led to challenges in the transfer of industrial production around the world.

Selective pallet racking system is anticipated to witness major growth during the forecast period. This is attributed to the particular structure of pallet racking where every single pallet location is closely manageable from the walkway. This racking system is the most common pallet racking system.

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The replacement of existing racking systems and the adoption of the new racking technology are not affordable for small-scale industries and individual users. Furthermore, lack of skilled workers for the manufacturing of embedded devices may hamper the market growth during the forecast period.