Warehouse Racking Market Size, Share & Trends Analysis Report By Product (Selective Pallet, Drive-in), By Application (Automotive, Food & Beverages), By Region (Asia Pacific, North America), And Segment Forecasts, 2023 - 2030

Warehouse Racking Market Size & Trends

The global warehouse racking market size was estimated at USD 9.02 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2023 to 2030. The increasing demand for capacity expansion in warehouses coupled with 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 also helps in minimizing the overall time. Expansion of various application industries, such as automotive, manufacturing, retail, and food & beverage, across the globe, is projected to boost product demand. Rising demand for warehouse space to store and gain easy access to products is anticipated to propel the need for optimizing the warehouse space via racking systems. The warehouses with planned and improved racking spaces help in saving costs. The availability of large storage spaces allows for ordering more products from the vendors in a single transaction. Furthermore, on ordering products in bulk quantities, suppliers generally offer discounts.

Thus, warehouses with increased storage spaces help in saving costs. In addition, a well-organized warehouse racking makes it easier to identify and pick orders, thereby reducing the workforce requirement, which further saves costs. Moreover, with increased storage capacity, one can store more products, which helps in fulfilling orders on time without accumulating backorders. The market in the U.S. is expected to have significant growth as the economy caters to a large e-commerce market, superior infrastructure & automation facilities, and a highly skilled workforce. In addition, the presence of a significant number of manufacturers and warehouse-racking solution providers in the country leads to higher volume production and after-sales services.

The lack of knowledge among workers about the weight-bearing capacity of the warehouse rack leads to the overloading of racks beyond the engineered weight capacity. In addition, improper lift equipment training and lack of driver training results in rack damage. Irregular inspections and the use of low-quality materials are also anticipated to limit the market growth. Rising demand for easy product accessibility, maximum space utilization, product & worker safety, convenient workability, and overall performance enhancement in the application industries are likely to benefit the market growth. In addition, the availability of manual and automatic rack servicing is projected to further offer growth opportunities to the market.

Product Insights

The selective pallet product segment led the industry in 2022 and accounted for the maximum share of more than 44.45% of the global revenue. 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 product usage across the application industries is likely to fuel the segment growth. The drive-in racking system segment held the second-largest share in 2022. It is expected to be driven by the rising demand to store 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 is gaining popularity owing to its superior selectivity. Different racks are used for each Stock-Keeping Unit (SKU), making them easier to find, relocate, pick, or put away the required products. These types of racking systems are commonly used in cold storage and climate-controlled environments. Cantilever racking is expected to be the second-fastest-growing segment from 2023 to 2030. The segment is driven by the ease of storage and retrieval of products with varying weights, sizes, and lengths. These racking 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 industry in 2022 and accounted for the largest share of more than 34.35% of the global revenue owing to the increased number of warehouses, supermarkets, hypermarkets, and others. In addition, the utilization of various types of racking systems enables retail warehouses to optimize the space and align products efficiently. Food & 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 & beverage warehouses and distribution centers across the globe are further propelling the growth of the segment.

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 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 industry and accounted for over 27.90% share of the overall revenue in 2022 owing to the early adoption of the racking system in the region. The rising demand for fully automated warehouse facilities is expected to provide immense market potential over the forecast period. Increasing e-commerce platforms 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 growth in Europe is attributed to the increased demand from the retail, automotive, food & beverage, manufacturing, and packaging application segments. In addition, the presence of large-scale warehouse-racking manufacturing companies is contributing to the region’s growth. Europe is majorly involved in the advancement of automated warehouse product distribution facilities, which, in turn, is expected to positively impact the regional market growth over the forecast period. Many retail businesses suffer in fulfilling inconsistencies in meeting consumer demands owing to the lack of an efficient warehouse racking system, this will boost product adoption.

Key Companies & Market Share Insights

The global industry has a strong presence of several manufacturers. The product is used in nearly every industry to store and retrieve the products from the distribution center. Various manufacturers are continuously engaged in product manufacturing and supply, offering complete service and solutions to customers with standard and customized user-specific requirements. The product finds applications in the automotive, food & beverage, retail, packaging, manufacturing, and other industries. The companies, including Daifuku Co. Ltd., Mecalux S.A., and Kardex Group, differentiate themselves in the market by offering industry-specific products, introducing automation in the racking systems, warehouse management software solutions, and various associated services ranging from floor planning to after-sales services. 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 Corp.

Warehouse Racking Market Report Scope

Global Warehouse Racking Market Report 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 2018 to 2030. 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, 2018 - 2030)

  • Selective Pallets

  • Drive-in

  • Push Back

  • Pallet Flow

  • Cantilever

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Automotive

  • Food & Beverage

  • Retail

  • Packaging

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • 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