Industrial Vending Machines Market Analysis By Type (Carousel Vending, Coil Vending), By Product (Maintenance, Repair & Operations, PPE), By End-use, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The industrial vending machines market size was valued at USD 715.6 million in 2016 and is expected to witness significant growth over the forecast period. Technological advancements in vending machines have enabled companies to improve the efficiency of inventory management and monitor inventory consumption. Moreover, a growing emphasis on employee safety has stimulated the use of Personal Protective Equipment (PPE), thereby stimulating the adoption of PPE vending machines.

The implementation of RFID and cloud infrastructure in vending equipment has enabled the tracking and monitoring of inventory for the prevention of fraudulent activities such as misuse and theft. Furthermore, these technologies provide electronic records of the inventory status and analysis tools to offer insights to the customer for effective inventory management. The technologies further offer real-time visibility of inventory to ensure that products such as manufacturing equipment and tools are not misplaced and are readily available.

The industry is expected to gain traction owing to the growing adoption of these products by Small and Medium Enterprises (SMEs). The availability of these products on rental basis has enabled SMEs to purchase them at a minimal cost. Thus, countries in developing regions such as Asia Pacific are expected to foster the industry growth over the forecast period.

Vending machines help in maintaining the record of inventory usage by tracking the time and identification details of the user. Moreover, they improve the company’s productivity by reducing the walk-around time of the employees, thereby increasing employee productivity. These products also enable the reduction of material usage, which in turn leads to a decrease in the company’s expenses.

These products lower the freight and stock outage costs, thereby enabling companies to prevent constant inventory replenishment and save the expenses incurred on repeated inventory purchases. The machines can be optimized as per the production of the company to ensure the availability of the right tools and spare parts.

Type Insights

The coil vending machine segment is expected to emerge as the fastest-growing segment by 2025, with a CAGR of 9.0% over the forecast period. These machines hold more inventory compared to other product types. Moreover, these machines consume less power and are easy to maintain.

Carousel type machines are used for products such as tools, cutters, and small testing equipment. These products occupy less floor space and are therefore, largely adopted by SMEs. Moreover, the cost of equipment is lower than other types, thereby being economical for the companies. Other types of equipment involve cabinets and lockers that are custom-designed as per the end-use.

Product Insights

The Personal Protective Equipment (PPE) segment is expected to witness remarkable growth and reach USD 537.4 million by 2025, growing at a CAGR of 9.2% over the next eight years. Increasing regulations regarding employee safety are expected to stimulate the demand for PPE equipment. Moreover, along with the vending equipment, industry vendors provide PPE supplies thereby increasing its adoption.

Maintenance, Repair, and Operations (MRO) supplies such as tools and testing equipment are required the most during downtime. Thus, MRO equipment is adopted on a large scale in industries where the cost of downtime is high. Industries such as manufacturing, oil & gas, and aviation employ MRO equipment to reduce downtime cost.

End-use Insights

Manufacturing is the largest end-use segment for industrial vending equipment. Since the cost associated with operational downtime is high in this industry, these products are adopted largely in manufacturing. The segment is expected to register a CAGR of 8.3% over the forecast period. Regions such as North America are predicted to witness growth owing to the many manufacturing SMEs in the region.

The oil & gas segment is the fastest-growing segment owing to the high cost of equipment such as drilling tools and PPE equipment, among others. Furthermore, employee safety is a high priority in this industry due to its hazardous work environment.

Regional Insights

In 2016, North America held the largest regional market share in terms of revenue, accounting over 41% of the overall market as most of the OEMs and distributors are based in this region. North America-based companies are pioneers in most of the technologies in the manufacturing industry, thereby contributing to the growth of the regional market.

Asia Pacific is expected to be the fastest-growing market, registering a CAGR of 10.3% over the forecast period. The growing SMEs industry in this region has fostered the growth of the regional market. Moreover, countries such as China and Japan are home to many OEMs, thereby driving the regional growth.

Competitive Insights

Key players in the industry include AutoCrib, Inc., Apex Industrial Technologies LLC, Silkron, SupplyPro, Inc., Fastenal Company, SupplyPoint, CribMaster, CMT Industrial Solutions, IVM Ltd., Brammer, and Grainger, Inc., among others.

The competition among industry participants is fairly high and the companies focus on retaining market share. Entry for new players is difficult due to the high investment required for manufacturing infrastructure such as factories and warehouse. Moreover, small players in the market collaborate or partner with the major players to enter into the industry. Furthermore, industry participants provide additional services such as consulting, maintenance, and supply of inventory.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the industrial vending machines market based on type, product, end-use, and region.

• Type Scope (Revenue, USD Million; 2014 - 2025)

  • Carousel Vending Machine

  • Coil Vending Machine

  • Others

• Product Scope (Revenue, USD Million; 2014 - 2025)

  • Maintenance, Repair, and Operations

  • Personal Protective Equipment

  • Others

• End-use Scope (Revenue, USD Million; 2014 - 2025)

  • Manufacturing

  • Oil & Gas

  • Others

• Region Scope (Revenue, USD Million; 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA