Warehouse Racking Market Outlook (2023 to 2033)

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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2018 to 2022 Warehouse Racking Market Outlook in Comparison to 2023 to 2033 Growth Forecast

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

Growing Demand for Warehouse Space Optimization

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.

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The Key Driver of Market Growth is Rising Demand for Retail Space

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.

Retail Industry Expansion Increase Sales?

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.

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What is Driving Warehouse Racking Demand?

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.

Increasing Market Competition Among Providers Can act as a Hurdle for the Warehouse Racking Business

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.

A Glimpse of Country-wise Insights

Does the Expansion of the Food and Beverage Sector Boost the Market in the United States?

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.

What Indian Storage Rack Market is expected to Grow?

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.

The Automotive Sector Drive the Market in the United Kingdom?

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.

Category-wise Insights

Why are Drive-in Pallet Rack Sales Increasing?

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.

Expanding Retail Sector Boosts Sales of Storage Racks and Shelving

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.

Competitive Landscape

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.

  • In 2021, SSI SCHAEFER is a global leader in warehouse and logistics solutions. Tee Yih Jia Food Manufacturing Pte Ltd, a leading frozen foods manufacturer, jointly launched Singapore's automated rack-clad high bay warehouse storage facility. In Q1 2022 at Tee Yih Jia's new USD 450 million production facility in Senoko - the Tee Yih Jia Food Hub.

Some Key Companies:

  • 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.

Scope of Report

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

Market Segmentation

Product Type:

  • Roll Formed Selective Pallet Rack
  • Structural Selective Pallet Rack
  • Push Back Pallet Rack
  • Drive in Pallet Rack

Application:

  • Automotive
  • Food & Beverage
  • Retail
  • Packaging
  • Manufacturing

Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • The Middle East and Africa

Frequently Asked Questions

What Key Trends are Driving the Warehouse Racking Market?

Growing emphasis on sustainability in warehouse operations is the key trend .

What Drives Sales of Warehouse Racking Market?

Expanding demand from the manufacturing, retail, and e-commerce sectors is driving the demand.

Which Country is Set to Register Exponential Growth in Warehouse Racking Market?

China's warehouse racking market is anticipated to witness a CAGR of 12% till 2033.

How Big will the Market be in Asia Pacific by 2033?

Market analysts predict that the Asia Pacific may register a valuation of US$ 100 billion by 2033.

What is North America's Expected Share in 2023 of Warehouse Racking Market?

In 2023, North America is anticipated to hold 34% of the global warehouse racking market.

Table of Content
	1. Executive Summary | Warehouse Racking Market
	2. Market Overview
	3. Market Background
	4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
	5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type
		5.1. Roll Formed Selective Pallet Rack
		5.2. Structural Selective Pallet Rack
		5.3. Push Back Pallet Rack
		5.4. Drive-In Pallet Rack
	6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
		6.1. Automotive
		6.2. Food & Beverage
		6.3. Retail
		6.4. Packaging
		6.5. Manufacturing
	7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
		7.1. North America
		7.2. Latin America
		7.3. Europe
		7.4. Asia Pacific
	8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	13. Key Countries Market Analysis
	14. Market Structure Analysis
	15. Competition Analysis
		15.1. Daifuku
		15.2. SsiSchaefer
		15.3. Interroll
		15.4. Dematic
		15.5. Vanderlande
		15.6. AK Material Handling Systems
		15.7. Beumer
		15.8. Constructor
		15.9. Dmw&H
		15.10. Godrej Storage Solutions
		15.11. Warehouse Rack & Shelf LLC.
		15.12. Steel King Industries, Inc.
	16. Assumptions & Acronyms Used
	17. Research Methodology
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