Warehouse Racking Market Size, Share & Trends Analysis Report By Product (Selective Pallets, Drive-In, Push Back, Pallet Flow, Cantilever), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global warehouse racking market size was estimated at USD 8.72 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 4.5% over the forecast period. The warehouse racking market is anticipated to be driven by the capacity expansion of warehouse and storage facilities. In addition, the rising awareness about the benefits of systematic storage and easy material handling processes is likely to further benefit the warehouse racking market over the forecast period.

However, the COVID-19 pandemic had created a mixed impact on the market. Though the pandemic had severely affected the automobile, manufacturing, and other industries, retail e-commerce industries witnessed significant growth in the year 2020. The trend is projected to continue over the forecast period. Online sales proliferated during the coronavirus pandemic in the U.S. and the country is expected to need more warehouses to store more and more array of products and boxes. In addition, handling and distribution of the same products and boxes from the warehouses is further expected to fuel the demand for the required racking system in the country during the forecast period.

Various advancements in the industry, such as the use of drones, robots, automated guided vehicles, cloud technologies, composite panel technologies, and others are expected to benefit industry growth. Mecalux, S.A., a warehouse racking manufacturer has introduced mobile racking system which is a high-density system that optimizes the available space and boosts the storage capacity.

The global market players in warehouse racking are seen focusing on the automation of the process. The players involved in manufacturing the warehouse racking offer conventional, semi-automated, and automated racking systems to provide automation and technological advancement in their product portfolio. The product benefits including robust construction, simple assembly, use of fewer components, and easy management process are anticipated to further benefit the product demand across the application industries.

Product Insights

The selective pallet segment is expected to witness a CAGR of 5.2% over the forecast period. Selective pallets are the most common and widely used racking system and are expected to witness high demand from various application industries such as retail, food & beverages, automotive, and others. The system provides efficient use of space and quick access to the load or product stored using any type of forklift. However, the system requires numerous aisles for higher selectivity, making it a low-density option when compared to the other type of racking system.

The drive-in racking system segment accounted for 9.3% of the market share in 2021. The drive-in warehouse racking system is the second-largest market and is expected to be driven by the risen demand to store the products with the maximum density in the warehouse facility. This type of racking system eliminates aisles in a warehouse and provides an excellent solution for storing a large number of similar products in a limited space.

The push-back racking system segment accounted for 11.1% of the market share in 2021. The market for push-back warehouse racking systems is expected to register growth owing to its higher space utilization factor. The system is popular owing to its superior selectivity as different tracks are used for each stock-keeping unit (SKU), making them easier to find, re-locate, pick, or put away the required products. The push back racking system is extremely popular for food and beverage-oriented operations owing to its similarity with the refrigerator, where the beverages are shelved at the grocery store.

The use of cantilever racks is expected to emerge as one of the fastest-growing product segments driven by the ease of warehouse racking storage and retrieval of products with varying weights, sizes, and lengths. These racks exhibit an easy installation and assembly with only a few components needed to build the product storying and holding structure. Whereas the market for warehouse racking is witnessing a surge in demand for structural cantilever racks owing to their heavy-duty and high-capacity storage and handling capability.

Application Insights

The automotive application segment accounted for the revenue of 11.4% in 2021 and is expected to grow at a significant rate during the forecast period. This segment accounted for the major share in the overall market for warehouse racking owing to the increasing trend for managing large automotive and related stock-keeping units (SKUs) in the warehouses. The demand for warehouse racking systems is expected to grow in the wake of growing concern regarding storing both vehicles and automotive parts & components.

The food and beverage application segment is expected to witness a fair amount of growth during the forecast period. Warehouse racking systems are widely used in food & beverage applications for storage and preservation purposes. An increase in demand for processed and packed food coupled with the increase in the number of supermarkets is the major growth driving factor to the overall market for warehouse racking.

The retail application segment accounts for the largest share and acts as vital to the overall growth of the market for warehouse racking owing to the increasing number of warehouses, online retail, supermarkets, hypermarkets, food retails, and others. Increasing demand for product multi-channel fulfillment, sales cycles, and storage density requirement of large volume products are the key factor that is adding significant growth to the overall market for warehouse racking.

The packaging application segment accounted for 7.6% of the market share in 2021. The demand for warehouse racking systems is expected to be driven by the increasing demand for packaging applications. The overall aspects of distribution, storage, sale, and use of products after packaging play a vital role in the growth of the overall market for warehouse racking. In addition, packaging plays a vital role in creating successful warehouse management.

Regional Insights

North America dominated the market and accounted for a revenue share of 27.5% in 2021. The presence of a robust and well-established distribution network is likely to augment market demand for warehouse racking in the near future. Timely movement of goods and a cost-effective racking system is the major factor driving the market for warehouse racking.

Mexico is witnessing a rise in a new consumer class having a high preference for modern product storage and distribution network during the forecast period. In addition, the rise in infrastructural development coupled with the rapidly changing logistics and supply network in the developing nation is expected to add positive growth to the overall market for warehouse racking.

Europe accounted for 26.1% of the market share in 2021. The rapid growth of warehouse racking in the European market is expected to ascend demand at a significant rate owing to the increased need from retail, automotive, food & beverage, manufacturing, and packaging application segment during the forecast period.

Increasing warehouse construction and shifting consumer preferences from struggling office properties and shopping centers to online purchasing in Germany is the major factor fueling the market growth of warehouse racking on a positive note. In addition, the rise in warehouse capacity coupled with increasing last-mile delivery facilities due to the advent of the pandemic is responsible for the growth of warehouses in the country on a large scale.

Key Companies & Market Share Insights

The global warehouse racking industry has continuously witnessed mergers and acquisitions by the major players to ensure competitiveness and profitability and establish a strong foothold in the market. The warehouse racking market players have developed a huge customer base through high-quality packaging for brand recognition as well as the development of a broader brand portfolio. In addition, these players have a wider base of retailers as well as distributors and are also associated with industry OEMs and law enforcement agencies. Some of the prominent players in the global warehouse racking market include:

• Daifuku Co., Ltd.

• Mecalux S.A.

• Kardex Group

• Hannibal Industries, Inc.

• EMRACK INTERNATIONAL

• Jungheinrich AG

• AK Materials Handling Systems

• SSI SCHAEFER Group

• Dematic

• Toyota Industries Corporation

Warehouse Racking Market Report Scope

Global Warehouse Racking Market Segmentation

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 2021 to 2030. For the purpose of this study, Grand View Research has segmented the global warehouse racking market on the basis of product, application, and region:

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

  • Selective Pallet

  • Drive-in

  • Push Back

  • Pallet Flow

  • Cantilever

  • Others

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

  • Automotive

  • Food And Beverage

  • Retail

  • Packaging

  • Manufacturing

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE