Conveying Equipment Market is steadily approaching to witness high growth potential with the utmost demand for conveying systems in industries such as automobile, food & beverages, pharmaceutical, packaging, and other production plants. Increasing trend of automation in these industries to reduce the material handling time and production cost is boosting the conveying equipment industry demand globally. Conveyor systems are being highly adopted as an efficient and timely means of transporting materials from one location to another. Looking at the high deployment rate of these systems across myriad industries, conveying equipment market is certain to witness an appreciable surge over the coming seven years.
Shifting trends toward e-commerce is also liable for good business opportunities for the conveying equipment industry participants. Changes observed in distribution channel pattern from the suppliers to the consumers will need simultaneous production and delivery of goods. This has significantly boosted the conveying equipment market which is foreseen to grow at an annual rate of 2% over the period of 2016-2024, according to Global Market Insights, Inc.
Europe conveying equipment market size, by application, 2015 & 2024 (USD Mn)
Need for automation has drastically changed the industrial outlook in Europe. The focus on reducing human efforts in distribution centers and production plants have resulted into rapid industrialization and installation of conveying equipment. Europe conveying equipment market is likely to generate more than USD 13.5 billion by 2024, influenced by the growing automotive, food & beverage, and mining companies in the region. UK, Germany, and France are at the forefront of the overall regional development.
Rising construction projects of malls and airports in the developing countries will also impact the growth of conveying equipment market. These systems find effective use in public & private mail management and airport luggage handling. China will be a potential target for this market as the total infrastructural spending was recorded worth USD 1.4 trillion in 2015.
Favorable government norms and cost effective workforce are the prime factors drawing maximum investors to set their manufacturing base in Asia Pacific. The region is also witnessing a major surge in infrastructural spending capacity which will benefit the conveying equipment industry growth. India and China are two prominent countries showcasing aggressive participation in the regions development, as these countries are the largest emerging economies and thus provide huge growth opportunities. Several automotive companies are shifting their manufacturing base in this region which will be an advantage for the conveying equipment market. Looking at these favorable scenarios, Asia Pacific conveying equipment market is estimated to grow at a rate of 2.5% over the period of 2016-2024, having collected revenue over USD 10.2 billion in 2015.
Unit handling conveyors was the major product segment which made revenue over USD 17.5 billion in 2015, signifying the growing need of such conveying equipment in numerous industries. These systems are also widely accepted because of its low energy consumption and minimum maintenance cost. Usually, small scale production houses prefer this kind of conveying system in automotive industries and in vehicle shipment.
Another prominent product segment of conveying equipment industry is the bulk handling conveyers which is used in the process of loading and unloading of goods. Manufacturers usually prefer these types of systems for mass handling of a products such as coal, rotary air valve, ash, etc.
U.S. is a well-known hub for advanced manufacturing, installing and product designing facilities. This region has a major manufacturing base of spare parts which are supplied to automobile and aerospace industries which demands high productivity and efficiency thus pushing conveying equipment industry growth.
The key areas of application of conveying equipment industry includes durable goods and non-durable goods sector. This industry is witnessing huge demand, as many companies are introducing assembly line methods and mass production. Conveying equipment market from durable goods application is likely to generate revenue over USD 15.3 billion by 2024, owing to increasing production output scenario. Likewise, the non-durable application is also foreseen to grow at a CAGR of 1.2% over the period of 2016-2024 subject to its major use in food and beverage industry.
Global conveying equipment industry is moderately fragmented with top three players catering to more than 30% of the overall demand. Sandvik is a prominent player providing conveyors to industries including mining, aggregates & cement, and terminal & ports. Dematic Group is another company delivering solutions and intra- logistics to material building industries. Other notable conveying equipment industry participants include Richards Wilcox, Hitachi, Siemens, Rexnord, Webster, FMC Technologies, Nordstrong Equipment, Fritz Schafer, and Daifuku.