Industrial Vending Machine Market Size, Share & Trends Analysis Report By Type (Carousel, Coil), By Product (MRO, PPE), By End Use (Manufacturing, Oil & Gas), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global industrial vending machine market size was valued at USD 2.2 billion in 2019 and is expected to register a CAGR of 9.6% from 2020 to 2027. Technological advancements in vending machines have enabled companies to improve the efficiency of inventory management and monitor inventory consumption. The adoption of industrial vending machines is expected to increase over the coming years due to cost efficiency, which would enable businesses to generate higher revenue. Moreover, a growing emphasis on employee safety drives the use of personal protective equipment (PPE), subsequently resulting in increased adoption of industrial vending machines for PPE.

The ongoing technological revolution in the vending industry is expected to have a positive impact on market growth. The implementation of RFID and cloud infrastructure in vending systems have 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 a rental basis has enabled SMEs to purchase them at a minimal cost. In addition, the ability to accrue the cost of MRO and PPE on an as-needed basis is expected to help small units minimize costs. Thus, countries in emerging regions such as Asia Pacific are expected to drive market growth over the forecast period.

Industrial vending machines help maintain a 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. Industrial vending machines also enable the reduction of material usage, which, in turn, reduces the company’s expenses. Furthermore, industrial vending machines lower freight and stock outage costs, thereby enabling companies to prevent constant inventory replenishment and save expenses incurred on repeated inventory purchases.

Industrial vending machines can be optimized as per the production of the company to ensure the availability of the right tools and spare parts. Furthermore, increasing adoption of industrial vending machines by small and medium specialty manufacturing units is expected to drive the industrial vending machine market in the coming years. However, high cost of industrial vending machines poses a challenge for several companies, particularly small-scale companies. As the market matures over time, the high cost of industrial vending machines is anticipated to be absorbed by the rental revenue model.

Type Insights

The coil vending machine segment is expected to register the highest growth rate over the forecast period. These machines hold more inventory compared to other product types, consume less power, and are easy to maintain, making them more economical. As a result, the segment is anticipated to attain a dominant market position by 2027.

Carousel vending machines are used for products such as tools, cutters, and small testing equipment. These products occupy less floor space and are therefore widely adopted by SMEs. Moreover, this equipment is cost-efficient and hence economical for companies. Other types of equipment involve cabinets and lockers that are custom-designed based on the end use. These cabinets and lockers are generally used for MROs, which are stocked in comparatively higher quantities and volume.

Product Insights

The personal protective equipment (PPE) segment is expected to witness remarkable growth over the forecast period. Growing emphasis on employee safety has driven the implementation of industrial vending machines to store personal protection equipment. In addition, increasing regulations regarding employee safety are expected to drive the demand for industrial vending machines for PPE equipment. Moreover, along with industrial vending machines, industry vendors provide PPE supplies as well, thereby increasing their adoption.

Maintenance, repair, and operations (MRO) supply such as tools, spare parts, sealants, coatings, tool kits, and testing equipment are required the most during downtime. Thus, MRO equipment is stocked and maintained on a large scale in industries where the cost of downtime is high. MRO supplies are also an important part of the floor inventory and hence tracking them is essential for many industries such as manufacturing, oil and gas, and aviation. Industrial vending machines provide an easy way to track and maintain MRO supplies, thereby driving the segment growth.

End-use Insights

Manufacturing was the largest end-use segment for industrial vending equipment in 2019. Industrial vending machines are widely adopted in the manufacturing sector owing to the high costs associated with operational downtime. Industrial vending machines also help improve operational efficiency and keep a track on the supply usage. North America is projected to witness lucrative growth owing to the numerous manufacturing SMEs in the region.

Oil and gas are expected to emerge as the fastest-growing segment over the forecast period owing to the high cost of equipment such as drilling tools and PPE equipment. Furthermore, employee safety is a high priority in this industry due to its hazardous work environment. Other end-use industries include aviation and military and defense. The high cost associated with unnecessary downtime drives the adoption of industrial vending machines in these industries.

Regional Insights

In 2019, North America accounted for the largest share of over 40.0% of the market owing to the presence of numerous OEMs and distributors based in the region. North America-based companies are pioneers in most technologies in the manufacturing industry, which subsequently contributes to the growth of the regional market. Furthermore, growing awareness regarding worker safety and hazardous work environments drives the regional demand for industrial vending machines.

Asia Pacific is estimated to be the fastest-growing market over the forecast period. The growing number of SMEs in the region drives the product demand. Moreover, countries such as China and Japan are home to several OEMs, thereby driving the regional market growth. As countries such as China, India, and South Korea adopt upcoming manufacturing and production practices, the region is anticipated to gain traction in the latter part of the forecast period.

Industrial Vending Machine Market Share Insights

Key players in the global market include Fastenal Company; AutoCrib, Inc.; Apex Industrial Technologies LLC; Silkron; SupplyPro, Inc.; SupplyPoint; CribMaster; CMT Industrial Solutions; IVM Ltd.; Brammer; and Grainger, Inc. From these companies, Fastenal Company has emerged as the dominant vending solution provider, especially in North America. Fastenal’s exceptional performance can be attributed to the unique offerings and servicing model the company has adopted in the U.S.

The market is highly competitive. Entry for new players is difficult due to the high investment required for manufacturing infrastructure, such as factories and warehouses. Furthermore, existing players provide additional services such as consulting, maintenance, and supply of inventory, which creates entry barriers for new companies. Therefore, small-scale players in the market collaborate or partner with major players to enter into the industry.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global industrial vending machine market report on the basis of type, product, end use, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Carousel Vending Machine

  • Coil Vending Machine

  • Others

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Maintenance, Repair & Operations

  • Personal Protective Equipment

  • Others 

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Manufacturing

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa