The warehouse racking market is expected to capture a 3.8% CAGR from 2023 to 2033. The market is likely to increase from USD 7,464.9 million in 2023 to USD 10,839.2 million by 2033.
The Ever-expanding Retail Industry Supports the Growth of the Market
The retail industry has seen tremendous growth in recent years due to the incorporation of artificial intelligence (AI). Moreover, the industry is expanding due to home delivery service, discounts, expanding product range, and product customization. As a result, warehouse racking is in high demand.
Furthermore, increased urbanization, an emerging middle-class population, and rising disposable income stimulate demand for a variety of items, hence promoting market expansion.
Traditional brick-and-mortar players are selling their items through e-commerce and working to improve the customer experience to increase buyer footfall. These factors have also contributed to the outstanding growth of retail-related businesses.
| Report Attribute | Details |
|---|---|
| Warehouse Racking Market Value (2023) | USD 7,464.9 million |
| Warehouse Racking Market Anticipated Value (2033) | USD 10,839.2 million |
| Warehouse Racking Market Growth Rate (2023 to 2033) | 3.8% CAGR |
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The warehouse racking market accounted for USD 6,340.5 million in 2018 to USD 7,164.0 million in 2022, expanding at a 3.1% CAGR from 2018 to 2022.
Warehouse racking is a crucial component of warehouse management and infrastructure. It can either slow down or speed up warehouse operations depending on the adequacy of the racking systems used for warehouse duties. Racking is a steel framework composed of metal frames, beams, and connectors.
Warehouse racking systems are assembled and manufactured using a range of processes like clipping, welding, and bolting. These racking systems come in a variety of sizes to support the material or object that is stored on them.
Racking systems are used in warehouses of manufacturing plants, retail stores, and distribution centers. Because of numerous types of racking systems, managing materials and goods in the storage facilities of respective companies has become relatively simple.
The many levels of racking provide more storage capacity. In other words, warehouse racking enables the organization to utilize vertical space instead of floor space.
| Historical CAGR (2018 to 2022) | 3.1% |
|---|---|
| Forecast CAGR (2023 to 2033) | 3.8% |
As per the FMI analysts, a valuation of USD 10,839.2 million by 2033 end is estimated for the market.
| Year | Market Valuation |
|---|---|
| 2016 | USD 5,964.91 million |
| 2021 | USD 6,948.59 million |
| 2022 | USD 7,164.0 million |
| 2023 | USD 7,464.9 million |
| 2033 | USD 10,839.2 million |
Global trade volumes are increasing at an unprecedented rate as a result of improved trade connections via roads, trains, and airways. This is rising the demand for customized products and favorable trade agreements.
The Trade and Transportation Corridor Initiative, for example, is expected to invest roughly USD 2,000 million over the next decade. To improve Canada's transportation efficiency and effectiveness.
Many manufacturing companies do not own warehouses and instead prefer to use third-party logistics providers to keep their goods. This saves money and allows them to focus on the quality of their products and services.
As a result, warehouses must optimize their space to accommodate more goods. Most warehouse racks manufacturers also offer consulting services to help with warehouse management.
Growing retail space globally is expected to boost the global storage rack market over the forecast period. The worldwide retail market is expanding as a result of robust economic expansion and urbanization.
E-commerce is quickly becoming a popular way for customers to buy consumer products, resulting in a high need for warehousing.
This is projected to help the highlighted market grow during the forecast period. Furthermore, shopping convenience is one of the numerous aspects driving consumer interest in online channels.
Supermarkets, hypermarkets, and convenience stores have traditionally been the primary sales channels for consumer goods. Traditional retail establishments sell a variety of brands offered by vendors.
Allowing customers to readily select the best brands available. Vendors' rising emphasis on raising retail sales and retailer expansion fuel demand for warehouse racking, accelerating the market's growth pace throughout the forecast period.
With the integration of artificial intelligence (AI), home delivery services, and product personalization, the retail business has seen substantial expansion in recent years. As a result, manufacturers are increasing their investments in warehouse-racking solutions. Furthermore, growing urbanization is accelerating the growth of the e-commerce business.
Traditional brick-and-mortar stores are embracing e-commerce platforms. To provide better services such as quick delivery, a diverse product offering, and an improved customer experience.
Rising awareness of the importance of maximizing space utilization throughout the supply chain. Storage utilities, distribution centers, and stockyards are driving demand for efficient storage solutions.
Increased use of pallet racking systems due to benefits such as cost-effectiveness and fast product movement drive the market during the forecast period. Furthermore, rising volumes of cross-border retail deliveries have boosted demand for warehouse storage solutions.
The introduction of contract logistics and distribution services around the world may boost market growth in the future years.
The presence of various regional and worldwide suppliers competing on acquisitions, expansions, marketing, and promotional efforts. The existence of numerous vendors has also resulted in severe competition and price wars.
Price wars like this are projected to erode profit margins and drive smaller players out of the market. Posing a substantial challenge to the market throughout the projection period.
Organizations that operate on a global scale are vulnerable to currency exchange risks. Future business transactions, as well as recognized assets and obligations, pose foreign exchange risks.
Several companies may benefit from price competition due to cheaper labor costs in the country or region of their manufacturing plant. As well as fluctuations in the foreign currency exchange rate, which may favor a select enterprise. During the foreseeable period, such issues impede market expansion.
Manufacturers in the United States use Warehouse Shelving to Improve Inventory Management
The market in the United States is predicted to increase at a 13.4% CAGR during the forecast period, according to FMI.
The food and beverage business is vital to the country's economy. According to the USA Committee for Economic Development, the industry employs over 1.5 million people and includes nearly 27,000 enterprises.
As a result, growth in the food and beverage sector, as well as increased export and retail of organic food items, drive sales in the United States over the forecast period.
Increased Acceptance of Warehouse Racking Systems in India Drives Growth
The rapid expansion of India's e-commerce industry is boosting market growth. With sales expected to expand at a 7.2% CAGR over the assessment period.
In India, the shift from traditional brick-and-mortar storefronts to online retail platforms is increasing. This is driving the demand for effective storage solutions and sales of warehouse racking equipment.
Automakers Invest in Warehouse Shelving Units to Improve Supply Chain Management
The warehouse racking market in the United Kingdom is expected to register a 3.0% CAGR over the forecast period, according to FMI.
In the automotive industry, warehouse racking systems are utilized to store various automotive spare parts and automobiles. Increased motor vehicle sales in the United Kingdom are driving manufacturers.
To implement industrial shelving systems to maximize storage area utilization. With these elements behind it, the United Kingdom market is expected to rise rapidly in the future years.
Demand for Effective Inventory Management Solutions is Driving Sales of Pallet Racking Systems
Drive-in pallet rack sales accounted for 32.6% of the overall market share in 2021. The segment maintains its market dominance, with demand expanding at a 3.1% CAGR over the forecast period.
The increased demand for high-density warehouse storage is projected to boost demand for drive-in racking solutions. These racks eliminate aisles in a warehouse and are great for storing huge quantities of products in a small amount of space.
According to the application, retail sales are expected to thrive at a 2% CAGR over the evaluation period. The expansion of warehouses, supermarkets, hypermarkets, and other sorts of businesses is increasing sales in this area. Retail warehouses may maximize space utilization and efficiently arrange merchandise by using several types of racking systems.
Key competitors in the global storage rack market are focusing on expanding their production facilities to meet increasing customer demand. Furthermore, players are spending on research and development to expand their product portfolios.
Some Key Companies:
| Attribute | Details |
|---|---|
| Market Size Value in 2023 | USD 7,464.9 million |
| Market Size Value at End of Forecast (2033) | USD 10,839.2 million |
| Market Analysis | USD million for Value |
| Key Region Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; The Middle East and Africa |
| Key Segments | By Material Type, By Application, By Region |
| Key Companies Profiled | Daifuku; SSI Schaefer; Interroll; Dematic; Vanderlande; AK Material Handling Systems; Beumer; Constructor; Dmw&H; Godrej Storage Solutions; Warehouse Rack & Shelf LLC.; Steel King Industries, Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Growing emphasis on sustainability in warehouse operations is the key trend .
Expanding demand from the manufacturing, retail, and e-commerce sectors is driving the demand.
China's warehouse racking market is anticipated to witness a CAGR of 12% till 2033.
Market analysts predict that the Asia Pacific may register a valuation of US$ 100 billion by 2033.
In 2023, North America is anticipated to hold 34% of the global warehouse racking market.
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Warehouse Racking Market
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