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.
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.
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.
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.
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
Report Attribute |
Details |
Market size value in 2022 |
USD 9.02 billion |
Revenue forecast in 2030 |
USD 12.41 billion |
Growth Rate |
CAGR of 4.5% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2017 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; U.K.; France; Italy; China; India; Japan; South Korea; Brazil; Saudi Arabia; UAE |
Key companies profiled |
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 |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global warehouse racking market size was estimated at USD 8.72 billion in 2021 and is expected to reach USD 9.02 billion in 2022.
b. The warehouse racking market is expected to grow at a compound annual growth rate of 4.5% from 2022 to 2030 to reach USD12.41 billion by 2030.
b. Retail sector accounted for the revenue of USD 2.95 billion in 2021 and is expected to dominate the market over the forecast period, owing to the increasing demand of product multi-channel fulfillment, sales cycles, and storage density requirement of large volume products.
b. The key players operating in the global warehouse racking market include Daifuku Co., Ltd., Mecalux S.A., Kardex Group, Hannibal Industries, Inc., EMRACK INTERNATIONAL, Jungheinrich AG.
b. The warehouse racking market is anticipated to be driven by expansion of various application industries such as automotive, manufacturing, retail, food & beverage, and others across the globe. Rising demand for warehouse space in order to store and gain easy access to the products is anticipated to propel the need for optimizing the warehouse space.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
Leading SME award by D&B
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."
The mining industry accounts for a vital share of the global economy and is responsible for supplying key raw materials for several applications and end-use industries, thus being a key sector of focus amidst the ongoing pandemic outbreak. Mining industries in China are expected to return to normal operations by Q3 of 2020 as enterprises indicated towards the returning of their workers soon. Moreover, Iron ore producers are known to be the least impacted. Major players such as BHP and Vale reported experiencing no major influence on their operations due to the COVID-19 virus. The iron ore prices reached above USD 90 per ton amidst the pandemic situation which may negatively impact the end-use industries. The report will account for Covid19 as a key market contributor.
We value your investment and offer free customization with every report to fulfil your exact research needs.