The ASEAN conveyor system market was estimated at approximately USD 1,981.6 Million in 2023 and is expected to achieve a growth rate of 6.8% year-on-year in 2024 to reach USD 2,116.4 Million. This would also be driven by continued industrialization, growing demands from e-commerce and manufacturing verticals, and increasing use of automation solutions. The market is expected to reach USD 4,202.4 million by 2034, with an expected CAGR of 7.1% from 2024 to 2034, as the industrial infrastructure of the region further develops and grows.
The demand for warehousing is anticipated to enhance the growth of the conveyor system market. As the various industries are developing, a significant portion of new business ventures will require substantial inventory management, stocking and logistics services.
The increasing demand for storage and the growing e-commerce sector in ASEAN countries are boosting the warehousing market, thereby boosting the conveyor system market.
The Indonesian market is expected to dominate the ASEAN Conveyor System Market in terms of revenue in 2022 and is anticipated to grow throughout the forecast period. Indonesia is projected to hold nearly 30% share of the ASEAN market.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2024 | USD 2,116.4 million |
| Projected Size, 2034 | USD 4,202.4 million |
| Value-based CAGR (2024 to 2034) | 7.1% |
The ASEAN conveyor system market is 10 to 12% of its parent market, of ASEAN Conveyor System Market.
As the automotive industry looks to maintain agility in the assembling process, the demand for conveyor systems has increased. Since there are numerous parts that need to be moved around during production, a well-functioning conveyor system is essential.
Conveyor systems offer many advantages to automotive manufacturers, including the ability to move parts quickly and efficiently around the production line. Also, conveyor systems help in reducing labor costs by automating repetitive tasks involved in moving parts from one station to the next.
As the automotive industry continues to face pressure to stay competitive, conveyor systems play a key role in assembly-line operations. In the ASEAN region, the automotive industry is likely to remain one of the main users of these systems.
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The table below presents the annual growth rates of the ASEAN Conveyor System Market from 2024 to 2034. With a base of 2023 and extended to the current year, 2024, the report studied how the industry growth trajectory moves from the first half of the year-that is, January to June, (H1)-to the second half comprising July to December, (H2).
This is in absolute comparison to offering the stakeholder's idea of how the sector has performed overtime, with hints on developments that may possibly emerge.
These figures indicate the growth of the sector in each half year, between the years 2023 and 2024. The market is expected to grow at a CAGR of 6.2% in H1-2023. In H2, the growth rate increases.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 6.2% (2023 to 2033) |
| H2 2023 | 6.6% (2023 to 2033) |
| H1 2024 | 6.7% (2024 to 2034) |
| H2 2024 | 6.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly decrease to 6.7% in the first half and relatively increase to 6.9% in the second half. In the first half (H1), the sector saw an increase of 50 BPS while in the second half (H2), there was a slight increase of 30 BPS.
Rapid Industrialization Driving Conveyor System Demand in ASEAN
Key factors contributing to the growth of the conveyor system market include rapid industrialization in Southeast Asian countries, especially Vietnam, Thailand, and Indonesia.
With these industries seeing further expansion and moving to higher value-added manufacturing, efficient material handling solutions are increasingly in demand, including conveyors. Such systems help an enterprise optimize its operations by enhancing efficiency, reducing downtime, and streamlining production lines.
Applications involving conveyor systems are indispensably required in sectors such as automotive, electrical and electronics, and consumer goods that ensure smooth production uninterruptedly at high speed. These reduce labor costs by automating the material movement, reducing human errors, hence increasing the productivity on the whole.
As ASEAN countries continue to position themselves as manufacturing hubs, the need for reliable and cost-effective conveyor systems will continue to increase and further boost market demand. For instance, manufacturers are evolving conveyor systems with better visco-elastic properties, which can reduce energy consumption by up to 20%.
Expanding Warehouse and Logistics Facilities to Propel Market Growth
The Indonesian intralogistics sector is undergoing a huge transformation. The international movement of commodities is rising and accelerating as a result of shorter product cycles, and developments in many end-use industries. There has been a significant expansion of warehouses and logistics facilities. Malaysia, Thailand, and especially Indonesia are strengthening their bulk handling ports, and recycling operations to meet the growing consumer demand.
In the e-commerce sector, conveyor methods are used to streamline the procedure circulation and heighten productivity at an optimum moment. Higher demand for warehousing and logistics in the ASEAN region is expected to boost the market for conveyor systems in warehousing and logistics and spark growth in the ASEAN region.
Several factors are likely to have an effect on each segment of the ASEAN conveyor system market. For instance, Indonesia is predicted to gain 200 to 250 basis points, whereas Indonesia's logistics and warehousing businesses are expected to lose 10 to 50 basis points over the next decade.
ASEAN as a Manufacturing Hub Boosting Demand for Conveyor Systems
ASEAN countries are becoming key manufacturing hubs, particularly for industries like electronics, automotive, textiles, and consumer goods. As demand for locally produced goods and exports continues to rise, the need for advanced material handling systems becomes more critical. Conveyor systems play a crucial role in optimizing production lines and improving the efficiency of export processes.
These systems are essential for the seamless movement of raw materials, components, and finished goods within manufacturing facilities. By automating material handling, conveyors help reduce operational delays, minimize human error, and improve overall production speed.
As the manufacturing sector grows across the region, the demand for efficient and reliable conveyor systems will continue to increase, supporting ASEAN’s competitiveness in ASEAN markets and further driving industrial development.
Maintenance Challenges and Operational Disruptions in Conveyor Systems
Conveyor systems, particularly automated and high-tech models, require regular and thorough maintenance to ensure smooth, continuous operation. Without proper maintenance, conveyor systems can experience breakdowns or inefficiencies, resulting in costly downtime. These interruptions can disrupt production schedules, delay deliveries, and impact overall manufacturing throughput.
For industries that rely heavily on conveyor systems, such as automotive or electronics, even minor disruptions can lead to significant financial losses. In addition, unplanned maintenance or sudden repairs can incur unexpected costs, both in terms of labor and spare parts. Many manufacturing facilities must allocate additional resources for preventative maintenance or repair teams, further increasing operational expenses.
As a result, companies must carefully manage their maintenance schedules, invest in system diagnostics, and train their staff to maintain system efficiency. Failure to do so could hinder the full potential of conveyor systems and reduce their overall return on investment.
Principal Consultant
The ASEAN Conveyor System industry recorded a CAGR of 4.9% during the historical period between 2019 and 2023. The growth of Conveyor System industry was positive as it reached a value of USD 1,981.6 million in 2023 from USD 1,523.1 million in 2019.
During the historical period, the sector experienced significant fluctuations due to economic qualms. The ASEAN economy encountered numerous challenges, such as trade disputes, currency fluctuations, and geopolitical conflicts impacting industries dependent on these compounds.
The COVID-19 pandemic disrupted ASEAN supply chains and industrial activities, causing a temporary downturn inside the ASEAN Conveyor System industry, leading to delays and reduced manufacturing capacity. Lockdowns and restrictions impacted transportation and logistics, making it difficult to maintain regular supply and distribution channels.
Decreased industrial activity and demand fluctuations in key end-use industries such as Construction, Wood and Furniture, Textile, and Pulp & Paper made the situation further challenging for the Conveyor System market participants.
The industry demonstrated resilience post the crisis period with slow but steady recovery being evidenced with easing of lockdowns ASEANly and changes being incorporated within supply chains as part of new normal.
Once economic activity reaches pre-crisis levels, industrial activity is expected to reach its trend performance after a delay of 3-years, growing for following 4 years before stabilizing post-2030. The Conveyor System demand pattern is anticipated to reflect the same trend during the period.
Tier 1 companies include industry leaders with annual revenues exceeding USD 100-300 million. These companies are currently capturing a significant share of 50-66% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards.
Prominent companies within Tier 1 include: Daifuku Co. Ltd. Murata Machinery SSI Schaefer AG, KUKA AG (Swisslog AG), BEUMER Group KNAPP AG, Honeywell Intelligrated Inc., Kardex Group, Flexlink Systems, Interroll Holding AG Godrej Consoveyo Logistics Automation Ltd among others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 30 - 50 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 Godrej Consoveyo Logistics Automation Ltd, PT. Rollent Indonesia, PT. Suprabakti Mandiri, PT. Almec Indonesia. RexLine Engineering Indonesia.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues below USD 10-30 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier 3 MAE SYSTEMS ENGINEERING (THAI) CO., LTD, Nagasaki KIKI (Thailand), NKC THAI NAKANISHI PLIC Corp., Ltd., TUKU Singapore Pte Ltd and others.
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The section below covers assessments of Conveyor System sales across key countries. Countries from ASEAN are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 7.1% through the forecast period.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Indonesia | 7.9% |
| The Philippines | 7.5% |
| Singapore | 7.3% |
| Malaysia | 6.9% |
| Thailand | 6.6% |
Indonesia is set to create an absolute dollar opportunity worth USD 646.4 million during the forecast period.
Indonesia dominates the market for conveyor systems in the ASEAN region. The growing investment in information and technology sectors by foreign companies in Indonesia has led to the growth of small and big-scale businesses, which is thereby positively influencing the growth of the conveyor system market.
The growing end-use industries such as agriculture, automotive, food and beverage, furniture, etc. are stimulating the demand for conveyor systems in the country. Indonesia is a significant exporter of thermal coal in the world. With substantial deposits of copper, bauxite, gold, tin, nickel, and coal, Indonesia continues to be a significant player in the mining sector. The emerging market in Indonesia has strengthened the demand for conveyor systems.
Thailand is expected to grow with a CAGR of 6.6% and account for more than 16.1% of the market share by 2024 in the ASEAN market.
The expansion of the FMCG sector, retail sector, food industry, and e-commerce business in Thailand is supporting the logistics industry's growth in the nation. There are several large and medium-sized warehousing businesses across the country, which makes the Thai warehousing industry highly fragmented.
The warehousing market in Thailand encompasses a mix of organized and unorganized players with high competition based on the location as well as the size of the warehouse.
Thailand has seen a surge in its e-commerce economy recently, resulting in an expanded requirement for timely deliveries, thereby motivating e-commerce businesses and their logistics partners to modernize their warehouse layouts. The increase in demand for warehouse services is expected to fuel the demand for automatic conveyors in the country.
The Philippines is experiencing significant growth in the conveyor system market due to several key factors. The country's expanding manufacturing sector, especially in electronics, automotive, and food processing, is driving the need for more efficient material-handling equipment systems.
Additionally, the rapid growth of the retail and e-commerce sectors has created a surge in demand for logistics and warehousing solutions, where conveyor systems play a crucial role in streamlining operations.
Regions like Metro Manila, Calabarzon, and Cebu are seeing increased industrial activity and infrastructure development, supporting the adoption of automated systems in manufacturing plants and distribution centers.
The government’s "Build, Build, Build" program has also contributed to enhanced logistics infrastructure, further boosting the demand for advanced conveyor systems. As industries in the Philippines continue to modernize and scale, the demand for automated conveyor solutions that improve efficiency, reduce costs, and ensure faster production timelines will continue to rise.
The section explains the growth trajectories of the leading segments in the industry. In terms of by Type, the Roller Conveyors category will likely dominate and generate a share of around 44.1% in 2024.
| Segment | Roller Conveyors (Type) |
|---|---|
| Value Share (2024) | 44.1% |
By Type, Roller Conveyors will dominate the market through the forecast period. In roller-type conveyors, chain-driven conveyors will account for more than 44.1% share on a value basis by 2034.
The roller conveyor system has flexible and long-term benefits for making things easier to move in many industrial sectors, which include automotive, mining, food and beverage, bottling, warehousing and logistics, and packaging. The drive roller or live roller conveyor is the most significant advance in this area; to improve controllability, each roller is linked to a motor through a belt, chain, or shaft.
Overall, roller conveyor systems are crucial for improving operational efficiency, reducing labor costs, and increasing output in many industrial sectors. Their ability to handle high volumes of materials effectively and reliably makes them indispensable for modern manufacturing and logistics operations.
According to research, the automotive industry followed by the intralogistics and warehousing industry remains the most popular. The automotive industry is anticipated to remain dominant throughout the forecast period.
The ASEAN region brings substantial opportunities for manufacturers of automotive and vehicle components. The demand for vehicles increases as the region’s economy remains strong and the number of middle-class households with high net disposable income increases.
Growth in the production and sales figures is likely to continue as there has been an increase in demand for cars and other motor vehicles. The growing automotive industry in the ASEAN region is likely to boost the demand for conveyor systems in the region.
The Automotive industry is set to grow with a CAGR of 7.6% and is estimated to create an absolute dollar opportunity worth USD 256.7 million during the forecast period.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
A few key players in the Conveyor Systems industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.
Industry Updates
In terms of Type, the industry is divided into Belt Conveyor, (PVC Belt Plastic, Modular Bel, Other Types of Belt), Roller Conveyor, (Chain Driven, Ploy-v Belt Driven, Other Type of Drive), Pallet Conveyor, (Chain Type, Roller Type), Lifting Equipment and Others.
In terms of Industry, the industry is divided into Intra-Logistic/Warehousing, Tire Industry, Battery Industry, Furniture Industry, Automotive Industry, Mining and Construction, Chemical Industry, Food and Beverage, Agriculture, Others
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.
The ASEAN market was valued at USD 1,981.6 million in 2023.
The ASEAN market is set to reach USD 2,116.4 million in 2024.
ASEAN demand is anticipated to rise at 7.1% CAGR.
The industry is projected to reach USD 4,202.4 million by 2034.
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ASEAN Conveyor System Market
