Conveyor System Market

Conveyor System Market Outlook (2023 to 2033)

The global conveyor system market stands at a valuation of US$ 14.14 billion in 2023 and is forecasted to reach US$ 20.53 billion by the end of 2033. Worldwide demand for conveyor systems is set to increase at a CAGR of 3.8% from 2033 to 2033.

In commercial and industrial establishments, conveyor systems are crucial for moving items from one location to another since they speed up production and cut expenses. Innovative conveyor system designs to increase productivity have been made possible by end users use of industrial automation systems.

• Increasing preference for online shopping is driving the demand for conveyor systems in packaging & warehouse distribution.
• Packaging & warehouse distribution, one of the end-use sectors in the global conveyor system market, is expected to witness growth at a CAGR of 4.8% through 2033.

The need for industrial automation has grown as a result of the manufacturing sector's increasing requirement to handle vast quantities of resources and goods effectively. Every industrial step has a conveyor system, which is a crucial component of the material handling process.

Customization to satisfy the demands of varied end users has led to the development of new conveyor systems with updated designs and automated functionalities. Additionally, the expansion of malls and airports in emerging economies has spurred a need for belt conveyors.

For their processing and manufacturing facilities, industries are searching for compact, low-maintenance, and intelligent conveyor systems. The conveyor system market will be driven by increasing industrialization in emerging countries and intensive research being conducted by industry participants to create a multi-utility and flexible conveyor system.

Market growth is driven by the integration of intelligent sensors and cutting-edge communication systems with automated conveyor systems, as well as by the development of smarter motors and controllers for easier and quieter operations. The rising trend of automation in businesses is the main factor propelling the market for conveyor systems.

Automated conveyors can handle any amount of product volume, and they also make industrial tasks simpler by cutting down on delivery times. As a result, automated solutions are becoming increasingly popular across sectors.

• Since Mr. Henry Ford introduced his conveyor system to increase productivity and reduce costs at his automotive facilities, the conveyor system has established itself as a permanent basis for mass production, product distribution, and material handling in a variety of sectors.

Conveyor systems are also incorporating smart and cutting-edge technology such as RFID, barcodes, and others that enable in-line scanning and dimensioning. These systems combine with automatic printing and labeling equipment, simplifying the order and manufacturing processes into a continuous and organized operation.

Use of advanced technologies and their numerous benefits have led to their voluntary acceptance across sectors. Additionally, these technologies have benefited industries by minimizing production-related damage, increasing throughput speed and accuracy, and creating automated, flexible, and modular platforms. The worldwide market share is anticipated to increase as a result of these benefits and applications.

Report Attributes	Details
Conveyor System Market Size (2023)	US$ 14.14 Billion
Forecasted Market Value (2033)	US$ 20.53 Billion
Global Market Growth Rate (2023 to 2033)	3.8% CAGR
Market Share of Belt Conveyors (2023)	39%
United States Market Growth Rate (2023 to 2033)	3.5% CAGR
Market Share of Packaging & Warehouse Distribution (2023)	30%
Germany Market Growth Rate (2033)	4.9% CAGR
Japan Market Value (2023)	US$ 975.8 Million
Key Companies Profiled	Daifuku Co., Ltd. SSI Schäfer AG Murata Machinery Ltd. Interroll Holding AG Beumer Group Honeywell International Inc. Siemens AG Dematic Company Fives

Why are Conveyor System Sales Set to Increase Steadily?

“Circular Economy Adoption by Key Manufacturers”

End-use industries are adopting strategies to reduce their carbon footprint and stem harmful emissions owing to stringent government initiatives. This encourages manufacturers to move towards the circular economy.

Energy expenditure from running these systems is of primary importance. While labor and materials represent mainline items on the manufacturer’s bill of materials, energy costs are typically not represented. Leading market players are collaborating to become more energy efficient.

“Rapid Growth of Global e-Commerce Industry”

The main driver of the e-Commerce industry's growth is the rising popularity of online purchasing. Online customers prefer e-Commerce sites. As a result, they must stock their warehouses with vast quantities of goods.

Businesses must also provide accurate orders, same-day or same-hour delivery, and free returns to compete in e-Commerce. As a result, e-Commerce businesses are always seeking practical solutions to shorten delivery times.

Automated storage and retrieval systems (ASRS) and automated conveyors are two examples of material handling equipment that have been digitally enhanced. It has grown in favor among e-Commerce businesses since it makes order fulfillment procedures easier for them to manage. Conveyor system demand in the e-Commerce business is anticipated to experience substantial development over the coming years as demand for online shopping keeps rising.

“Integration of Industry 4.0 Techniques in Conveyor Systems”

Application of AI and IoT has a strong connection with rapid industrialization. Industry 4.0 is becoming more popular as a result of the rising need for material movement improvements. To increase productivity and efficiency, they are combining current infrastructure with machine learning and the industrial Internet of Things.

With the IoT and AI coupled with smart devices, conveyor systems can dramatically boost productivity. Pallet conveyor systems can reroute production in real-time if a production path is closed for maintenance, preventing a line back-up that would eventually affect all stages of production and result in a blockage.

• In October 2020, The 4.0 conveyor conversion kits were released by Ultimation Industries using Interroll's industry 4.0 DC Platform technology, which includes improved controls and EC5000 RollerDrives.

What is Hampering the Adoption of Conveyor Systems?

“High Maintenance Cost and Lack of Qualified Personnel”

Conveyor systems are the result of a variety of technologies used to provide effective logistical operations. It is a mechanical system that, if neglected, is vulnerable to damage, wear, overload, and mistakes. Conveyor system adoption in small and medium-sized businesses may be hampered by a lack of qualified personnel.

Market expansion is being hampered by the high initial cost, which includes costs for the hardware, belt, power supply, truss, wire rope, and supports. Additionally, there are extra costs associated with maintaining and operating these systems, including registration, insurance, fuel costs, repairs, and tire rotation, which limits market expansion.

How are Start-ups Gaining a Hold in This Competitive Market?

“New Market Entrants Introducing Automated Belt Conveyor Systems”

New companies are focusing their efforts on developing innovative products to increase their revenue. Aspiring market players are concentrating on research and development investments in digital production solutions to transform processes into digital ones.

• iFactory is a start-up based in Germany. Its goal is to make continuous belt 3D printers widely available and affordable so that anybody can use one and unleash their creativity regardless of the printer's bed size. With no restrictions on print size, it enables completely automated 3D printing. The unique belt technology that serves as the foundation of the 3D printer expands the possibilities for user creativity through complete automation and a continuous printing process.

Country-wise Insights

What’s Leading to Increased Demand for Conveyor Systems in the United States?

“Increase in Government Spending on Upgrading Old Airports”

• Demand for conveyor systems in the United States is valued at US$ 3.52 billion in 2023.

The United States is a major market for conveyor systems in the logistics industry. The United States government is gaining attention for its growing spending on upgrading old airports and building new ones to accommodate rising air travel and air freight.

• In April 2021, the United States government introduced the American Jobs Plan as a fresh drive to promote and develop airport infrastructure. Promoting terminal renovations and multimodal linkages that would provide convenient access for travelers and employees, will concentrate on secure and effective air travel.

What Makes Germany a Prominent Market for Producers of Conveyor Systems?

“Integration of Smart Technologies in Manufacturing Facilities”

• The market in Germany is expected to reach US$ 1 billion in 2033.

Growing adoption of advanced technologies in manufacturing facilities has greatly aided market expansion. Additionally, the presence of leading automakers is anticipated to fuel market expansion throughout the projection period.

• In September 2020, Mercedes-Benz announced the incorporation of Factory 56. The new unit embodies the future of production and sets new standards for the automotive industry. With an investment of approximately 730 million euros, the factory at the Mercedes-Benz plant in Sindelfingen is a clear commitment to Germany as a business location.

Why is the Adoption of Conveyor Systems Increasing in Japan?

“Rapid Expansion of Pharmaceutical Industry”

• Adoption of conveyor systems in Japan is set to rise at a CAGR of 2.5% over the next ten years.

The need for pneumatic conveying systems is projected to increase due to the booming pharmaceutical industry. Government organizations have actively supported policies that encourage the improvement of healthcare facilities.

Growing need for packaged food and other consumer goods, rising demand for automated material handling equipment, and the easy availability of affordable manufacturing inputs (labor, raw materials, and equipment) are the factors boosting market growth.

Category-wise Insights

Why are Belt Conveyors in Such High Demand?

“Belt Conveyors Widely Used Owing to their Low Maintenance and Easy Installation Features”

The market is classified into packaging & warehouse distribution, textile & paper, construction & mining, automotive & transportation, consumer electronics, food & beverages, and chemicals & pharmaceuticals based on the end use.

• Sales of belt conveyors account for 39% share of the global market

Belt conveyors are high in demand owing to their low maintenance and easy installation features. They are also an integral part of the airport baggage system.

Expansion of existing airports and the development of new airports will drive the demand for conveyor belts. New conveyor belt designs are also being used in manufacturing as they are easy to install and require very little maintenance.

Competitive Landscape

Leading companies are adopting strategic acquisitions such as new developments, quality control, product standards, and supply chain management to maintain their position in the market. Top market players are concentrating on introducing advanced technology to acquire a competitive advantage.

For instance :

• Dürr, a provider of automation and digitization/Industry 4.0, already established a whole infrastructure for digital business. The ADAMOS platform for the IIOT serves as its foundation. It gathers a lot of production data and is similar to the operating system. Based on ADAMOS, the business provides equipment that utilizes digital services and apps to maximize output.
• In 2020, Continental AG unveiled the Sybercord Steel Cord technology. It offers conveyor belts using Sybercord steel cords as a tension component, which, when compared to a regular steel cord belt, offers a greater dynamical breaking load with a corresponding reduction of the cord diameter. The cord's design offers the best corrosion resistance. In comparison to other steel cords used to make conveyor belts, Sybercord steel cords are also more flexible.

Key Segments of Conveyor System Industry Research

• By Product :

  • Belt Conveyors
  • Roller Conveyors
  • Pallet Conveyors
  • Overhead Conveyors
  • Tri-Planar Conveyors
  • Crescent Conveyors
  • Skid Conveyors
  • Trailer Conveyors
  • Others

• By Operation :

  • Manual
  • Semi-Automatic
  • Automatic

• By Capacity Type :

  • Unit Handling
  • Bulk Handling

• By End Use :

  • Packaging & Warehouse Distribution
  • Textile & Paper
  • Construction & Mining
  • Automotive & Transportation
  • Consumer Electronics
  • Food & Beverages
  • Chemicals & Pharmaceuticals

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa