Industrial Vending Machine Market Size, Share & Trends Analysis Report By Type (Coil, Carousel), By Product (MRO, PPE), By End Use (Manufacturing, Oil & Gas), By Region (North America, APAC), And Segment Forecasts, 2019 - 2025

Industry Insights

The global industrial vending machine market size was valued at USD 2.07 billion in 2018 and is expected to witness a significant CAGR of 8.9% over the forecast period. Technological advancements in vending machines have enabled companies to improve the efficiency of inventory management and monitor inventory consumption. Moreover, growing emphasis on employee safety has stimulated the use of Personal Protective Equipment (PPE), thereby augmenting the adoption of PPE vending machines.

Vending machines help in maintaining the record of inventory usage by tracking the time and identification details of the user. Moreover, they improve employee productivity by reducing the walk-around time of the employees. Implementation of Radio-Frequency Identification (RFID) and cloud infrastructure in vending equipment has enabled easy 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. These equipment also enable the reduction of material usage, which, in turn, leads to a reduction in overall expenses. The market is expected to gain traction owing to the growing adoption of these products by Small and Medium Enterprises (SMEs). 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. These equipment 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

Coil vending machine is expected to emerge as the fastest-growing segment with a CAGR of 9.6% over the forecast period. These equipment hold more inventory compared to other product types. Moreover, these machines consume less power and are easy to maintain, which makes them more economical, in terms of use. As a result, the segment is anticipated to witness greater than average growth in coming years and attain a dominant market position by 2025.

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. Other types of equipment involve cabinets and lockers that are custom-designed as per the customer requirements. Cabinets and lockers are mostly used for MROs, which are stocked in comparatively higher quantities and volumes.

Product Insights

The Personal Protective Equipment (PPE) segment is expected to witness the maximum growth at a CAGR of 9.7% over the next six years. In addition, strict regulations regarding worker safety are expected to stimulate the demand for PPE equipment. Thus, emphasis on employee safety is fostering the implementation of industrial vending machines to store PPE. Moreover, along with the vending equipment, industry vendors provide PPE supplies as well, thereby increasing its adoption.

Maintenance, Repair, and Operations (MRO) supplies, such as tools, spare parts, sealants, coatings, tool kits, and testing equipment, are required the most during downtime. Thus, MRO equipment are stocked and maintained on a large scale in industries where the cost of downtime is high. They are also an important part of the floor inventory and hence tracking them is essential for many industries, such as manufacturing, oil & gas, and aviation. Moreover, since vending machines provide an easy way to track and maintain MRO, their scope of application in various end uses is expected to increase.

End Use Insights

Manufacturing is the largest end-use segment due to higher product adoption as a result of the costs associated with operational downtime in this industry. Industrial vending machines are largely used in the manufacturing sector as they help improve operational efficiency and keep a track on the supply usage. The segment is expected to register a CAGR of 8.9% over the forecast period.

Oil & gas is projected to be the fastest-growing segment at a CAGR of 9.1% over the next six years owing to high cost of equipment, such as drilling tools and PPE. Furthermore, employee safety is a high priority in this industry due to its hazardous work environment. Other end-use industries include aviation and military & defense. High costs associated with the unnecessary downtime has enabled the product adoption in these industries.

Regional Insights

North America held the largest market share in 2018, in terms of revenue, owing to a large number of OEMs and distributors based in the region. North America-based companies are pioneers in most of the technologies in the manufacturing industry, thereby contributing to the growth of this region. Higher awareness regarding worker safety and hazardous environments is also an important factor driving the regional market.

Asia Pacific is expected to be the fastest-growing market at a CAGR of 10.8% over the forecast period. Rapidly expanding SMEs industry in this region has fostered the market growth. The region is anticipated to gain traction in the latter part of the forecast period due to quick adoption of upcoming manufacturing and production practices in emerging countries like China, India, and South Korea. Moreover, countries, such as China and Japan, are home to many OEMs, which contributes to the market growth.

Industrial Vending Machine Market Share Insights

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

The market is highly competitive. Entry for new firms is difficult due to high investments required for the development of manufacturing infrastructure, such as factories and warehouse. Furthermore, existing industry participants provide additional services, such as consulting, maintenance, and supply of inventory, which also creates entry barriers for new companies. Thus, small-scale firms in the market are collaborating with major companies to enter into the industry.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. 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, 2014 - 2025)

  • Carousel

  • Coil

  • Others

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Maintenance, Repair and Operations (MRO)

  • Personal Protective Equipment (PPE)

  • Others

• End Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Manufacturing

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  •  Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa