Warehouse Racking Market Size, Share & Trends Analysis Report By Product (Selective Pallets, Drive-in), By Application (Retail, Food & Beverage), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global warehouse racking market size was valued at USD 8.49 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.7% from 2021 to 2028. Growing demand for capacity expansion in warehouses, coupled with the expanding online retail industry, is anticipated to benefit the market growth over the forecast period. Warehouse racking helps in optimizing the storage spaces and increases the storage capacity. In addition, it enhances the organization of the stored products. The systematic alignment of products in the warehouse makes it easier to identify, pick, and complete the order. In addition, it helps in minimizing the overall time.

The U.S. has emerged as one of the most severely affected countries due to the global pandemic outbreak in 2020. The threat of the rapid spread of infections led to curtailment or delay of infrastructure development projects in both the private and public sectors. This, in turn, led to a notable impact on the racking market in 2020 as it plays a crucial role in the development of transport and logistics infrastructure.

The global pandemic outbreak also led to the disruption of the global supply chain, which caused a two-way impact on the market for warehouse racking. Firstly, the stoppage in the global supply chain also delayed the warehouse expansion and maintenance plans of the private players. In addition, it led to a shortage of materials for the fabrication of racking due to a short-lived halt in transportation activities.

The market in the U.S. is expected to exhibit growth as the economy caters to a large e-commerce market, superior infrastructure and automation facility, and a highly-skilled workforce. In addition, the presence of major manufacturers and warehouse racking solution providers in the country leads to higher volume production and after-sales services.

A well-organized warehouse makes it easier to identify and pick orders, thereby reducing the workforce requirement, which saves cost. In addition, with the increased storage capacity, one is able to store more products, which helps in fulfilling the orders on time without accumulating backorders for your most popular items or risking sales.

The lack of knowledge about the weight-bearing capacity of the warehouse racks among the workers leads to the overloading of racks beyond the engineered weight capacity. In addition, improper lift equipment training and lack of driver training result in rack damage. Moreover, irregular inspections and the use of low-quality materials are anticipated to limit market growth.

Rising demand for easy product accessibility, maximum space utilization, product and worker safety, convenient workability, and overall performance enhancement in the application industries is likely to benefit the market growth. In addition, the availability of manual and automatic rack servicing is projected to offer growth opportunities for the market.

Product Insights

The selective pallets segment led the market and accounted for more than 40.0% share of the global revenue in 2020. The system exhibits an inexpensive design having a large selection of sizes and accessories, making it excellent for standard storage and utility services. In addition, the growing use of the product across the application industries is likely to fuel the market growth.

The drive-in racking systems are expected to be driven by the increasing 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.

Push-back racking systems are gaining popularity owing to their 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. These types of racking systems are commonly used in cold storage and climate-controlled environments.

Cantilever racks are expected to witness significant growth over the forecast period owing to the ease of 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.

Application Insights

The retail application segment led the market and accounted for more than 30.0% share of the global revenue in 2020. This is attributed to the increasing number of warehouses, online retail, supermarkets, hypermarkets, and others. The utilization of various types of racking systems enables the retail warehouses to maximize the present use of space and align products efficiently.

Food and beverage warehouses require high-density storage structures where the materials can be stored in multiple low and high levels on a rail-based system. Increasing investments and expansion plans in food and beverage warehouses and distribution centers across the globe are further propelling the growth of the market.

The automotive industry primarily focuses on mass production, hence bulk quantities of components, parts, and materials are needed to be stored in the inventory to carry out the assembly operations. A wide variety of racks are needed in the warehouse for specific components including the engine racks, cradle roll racks, folding shipping racks, and various others.

The demand for warehouse racking systems is expected to be driven by the growing product adoption in packaging applications. Major packaging companies such as International Paper Company, Amcor, Tetra Level, and Crown Holdings use efficient racking to manage space and reduce the dealing of labor and inventory in terms of efficient product storage and handling.

Regional Insights

North America dominated the market and accounted for over 25.0% share of the global revenue in 2020. This is attributed to the early adoption of the racking system in the region. In addition, rising demand for fully automated warehouse facilities is expected to provide immense market potential over the forecast period.

Increasing e-commerce platform is compelling consumers to buy more products online, which caters to the development of warehouse infrastructure across the region. Rising construction activities in favor of warehouse building, coupled with the replacement of obsolete technology used for storing and retrieving products in warehouses, are likely to benefit the market growth.

The market for warehouse racking is rapidly growing in Europe owing to the increased need from retail, automotive, food and beverage, manufacturing, and packaging applications over the forecast period. In addition, the presence of large warehouse racking manufacturing companies is offering growth prospects to the overall market.

Europe is majorly involved in the advancement of automated warehouse product distribution facilities, which, in turn, is expected to positively impact the market growth over the forecast period. In addition, various retail businesses are suffering in fulfilling the inconsistencies in meeting consumer demand owing to the lack of an efficient warehouse racking system.

Key Companies & Market Share Insights

Key players in the market compete based on material quality, designs, and pricing structures. Moreover, players are focusing on the introduction of racking components with enhanced durability and high load-bearing capacity to sustain themselves in the competitive market. Key players are also targeting to enhance their portfolio by providing design and installation services for the warehouse racks. Daifuku Co., Ltd. designs various storage, material handling, and sorting solution systems for manufacturing, distribution, and airport management systems. In addition, it offers automated technologies for the racking system, wherein the materials can be handled efficiently. Some 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 Material Handling Systems

• SSI SCHAEFER Group

• Dematic

• Toyota Industries Corporation

Warehouse Racking Market 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 latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global warehouse racking market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Selective Pallets

  • Drive-in

  • Push Back

  • Pallet Flow

  • Cantilever

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Automotive

  • Food & Beverage

  • Retail

  • Packaging

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • UAE