Conveyor System Market Trends

Growth Drivers

• Growing Intralogistics Operations– According to the survey report, more than 40 percent of the respondents stated that intralogistics automation is very important for the success of the business.  The conveyor system makes the products ready for loading, transport, and storage without getting damaged. Therefore, the goods that are manufactured in an industry goes through different process, and this increased the use of conveyors. Hence, it is anticipated to increase the growth of the market in the upcoming years.
• Surging Expansion of Existing Airports- According to reports in 2021, the Airports Authority of India announced the investment of more than USD 3 Billion in order to expand the existing airports over the next four to five years in the country.
• Increasing Industrialization, and Urbanization– The industrialization rate has been increasing, owing to which, conveyors are used for various applications in the industries such as bottling, food processing, automotive, aerospace, and others. Moreover, it is also used for transporting products, buffering, and storage. Hence, it is predicted to drive the growth of the global conveyor system market over the forecast period. According to the most recent data, the Indian production rate increased by more than 4 percent year on year basis in December 2022.
• Surging in the Number of Warehouses Space- There has been an increase in the number of warehouse space, worldwide, which is driving up demand for conveyor systems to handle the stock in bulk.  It reduces the labor costs, minimize human errors, and lower workplace risks in the warehouses. Moreover, the goods are transported and sorted with the conveyor belts, that is projected to rise the growth of the global conveyor system market over the forecast period.  It is expected that the number of warehouses around the world to reach more than 175,000 by the end of 2025
• Increasing Number of Shopping Malls– The conveyor is used in multi-level retail stores in order to move shopping carts adjacently or parallel to escalators. There are more than 100,000 shopping centers in the United States as of now. Therefore, the advancement is required for the development of shopping malls, and it is predicted to increase the market’s growth by the end of 2035.

Challenges

• High Cost of the Conveyor System - The high cost of the conveyor system owing to the increase in expenses related to the belt, hardware, truss, power source, wire rope, and others. Moreover, there are maintenance costs that are required for the conveyor system, such as repairs, insurance, registration, fuel costs, and others. This is expected to hamper the growth of the market over the forecast period.
• Lack of Skilled Persons for Handling the Conveyor system
• High Chances of Workers Accidents in the Industries