Industrial Vending Machine Market Size, Share & Trends Analysis Report By Type (Carousel, Coil), By Product (MRO Tools, PPE), By End-use (Manufacturing), By Region, And Segment Forecast, 2022 - 2030

Report Overview

The global industrial vending machine market size was valued at USD 2.53 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 9.7% from 2022 to 2030. The industry is expected to gain traction owing to the growing adoption of these products by small and medium enterprises (SMEs). The installation of this product is expected to increase over the coming years due to its cost efficiency, which would enable businesses to generate higher revenue. The ongoing COVID-19 pandemic has changed many industries' business scenarios, as countries globally imposed temporary lockdowns. This move further led to businesses temporarily closing their everyday operations, while some industries were allowed to operate with limited staff. Likewise, this industry faced issues of raw material supply due to disruption of the supply chain and eventually experienced production delays. The availability of these products on a rental basis has enabled SMEs to rent them at a profitable cost. The increasing adoption of industrial vending machines by small and medium specialty manufacturing units is expected to drive this industry in the coming years. Countries in emerging regions are expected to drive market growth during the forecast period.

Industrial vending machines are provisioned to maintain a note of inventory usage by tracking the product type, the time, and user identification, bringing transparency and accountability. Additionally, machines increase the output of the company by reducing the walk-around time and facilitating employee productivity. Industrial vending machines also avoid product hoarding of various items.

Industrial vending machines prevent companies to spend on constant inventory replenishments and reduce expenses of repeated purchases by lowering the freight and stock outage costs. Companies can ensure the availability of inventory of tools and spare parts as per requirement, which can be done by optimizing this product.

However, the high cost of installation and cost of maintenance of this product poses a challenge for several companies, particularly small-scale ones, and acts as a restraint. 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 dominated the market and accounted for 37.9% revenue share in 2021. 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 drive market expansion.

Coil vending machines, in particular, allow inventory to be stacked front to back, and provide solid storage density, but they’re not ideal for larger parts. In addition, coil machines offer automated reporting that can be customized to a client’s specific needs. Thus, coil machines are in more demand in comparison to carousel vending machines.

The carousel vending machine segment is expected to register a CAGR of 10.1% during the forecast period. These are used for products such as tools, cutters, and small testing equipment. Carousel vending machines 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 vending machines involve cabinets and scale-based vending machines that are custom-designed based on the end use. These cabinets and scale-based machines are generally used for MROs, which are stocked in higher densities and volumes. Furthermore, the demand for lockers has been on the rise due to increasing awareness about the safety and security of valuables.

Product Insights

The personal protective equipment (PPE) segment dominated the market and accounted for 41.4% in 2021. 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 these machines for PPE.

Occupational safety regulations play a major role in driving the personal protective equipment (PPE) market. Mandated policies by regulating agencies for companies to adhere to the labor safety requirement in industries are anticipated to boost demand for PPE. These regulations mention the type of PPE required for protection during different processes, thereby driving the demand for industrial vending machines for PPE equipment as well.

The maintenance, repair, and operations (MRO) segment is estimated to register a CAGR of 10.1% during the forecast period. MRO supplies 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 tools are one of the most essential parts of the inventory and tracking them is important for various end-use industries such as oil and gas, manufacturing, and aviation. Industrial vending machines provide an easy way to track and maintain MRO supplies, thereby driving the segment growth.

End-use Insights

The manufacturing end-use segment dominated the market and is expected to register a CAGR of 9.8% during the projection period. These products are extensively utilized in the manufacturing industries, to allow for improvement in operational downtime and to speed up the maintenance and mending process. Industrial vending machines also help to improve operational efficiency and keep a track of the inventory supply.

The demand for machines has substantially increased over the past few years and with the enhancement of cashless payment systems, IoT solutions are gaining momentum on a large scale worldwide. Furthermore, growing urbanization and rising industrialization have fueled the growth of the vending machine market.

The oil and gas segment accounted for a 22.6% market share in 2021 and is expected to witness strong growth during the forecast years, owing to the high cost of equipment such as cutting and drilling tools and PPE. Furthermore, labor safety is emerging as a high priority in this industry due to its hazardous work nature. The growing oil & gas and petrochemical industry in China, India, UAE, and Saudi Arabia is anticipated to propel product demand in this segment.

Other end-use industries include healthcare, aviation, and military and defense industries. The high costs associated with unnecessary downtime drive the adoption of industrial vending machines in these industries. The growth of the beverage segment, attributed to the high beverage sales in countries including Spain, Germany, and the U.K., is also driving industry growth.

Regional Insights

North America dominated the market and accounted for 35.0% revenue share in 2021, owing to the presence of numerous OEMs and distributors in the region. Moreover, rising awareness about workplace safety in risky work environments drives the market demand for industrial vending machines.

Asia Pacific is expected to witness a CAGR of 10.6% during the forecast period. The growing number of manufacturing industries in the region drives the demand for inventory management systems. Furthermore, countries such as China, India, and South Korea are adopting upcoming manufacturing and production practices, and the region is anticipated to gain traction during the assessment period.

Strong growth in emerging economies such as South Africa, Saudi Arabia, and the United Arab Emirates is expected to propel the growth of various industries. Due to the availability of cheap labor and raw material in the African continent, various manufacturing industries are gradually shifting to the Middle East & African region, which is expected to drive the demand for industrial vending machines during the forecast period.

European countries also accounted for a significant market revenue share in 2021. Germany, France, Italy, and United Kingdom are some of the important manufacturing countries in the world. During the projection years, increasing spending on research and innovation in these countries is expected to drive the global industrial vending machine market.

Key Companies & Market Share Insights

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

Key players also focus on joint ventures and product development to stay ahead of the competition. For instance, in May 2021, CribMaster launched FlipTop, a new vending machine designed specifically for high-value tools and accessories. This drawer-based machine has a capacity of up to 1,782 bins and it is available in three sizes. Some prominent players in the industrial vending machine market include:

• Apex Industrial Technologies, LLC

• AutoCrib, Inc.

• Brammer

• IMC Group

• SecuraStock

• CribMaster

• Fastenal Company

• Airgas Inc.

• IVM Ltd.

Industrial Vending Machine Market Report Scope

Global Industrial Vending Machine Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global industrial vending machine market report based on type, product, end-use, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Carousel Vending Machine

  • Coil Vending Machine

  • Cabinet Vending Machine

  • Others

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • MRO Tools

  • PPE

  • Others

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Manufacturing

  • Oil & Gas

  • Construction

  • Aerospace

  • Other

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa