Conveyor Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Conveyor Category Overview

This conveyor category is anticipated to grow at a CAGR of 4.2% from 2023 to 2030. Asia Pacific dominates the category which is driven by the economic growth of countries such as China, India, and Thailand. The increasing population in these nations has led to a surge in demand for this category in industries like food and beverage, e-commerce, and automotive. This region further benefits from the high demand for packaged food and consumer goods, as well as strong government initiatives and ongoing projects.

Growing foreign direct investments (FDI) in the automotive sector, increasing demand for efficient handling of larger volumes of goods, improving process efficiency, material safety concerns, and increasing use of conveyor systems in airports owing to the development of new airports and expansion of old ones are driving the growth of this category. Integration of IoT and AI technologies for real-time monitoring and optimization, focus on energy efficiency, robotics, automation, use of advanced materials and safety features for application-specific solutions, and the growth of e-commerce driving the need for efficient logistics and distribution centers are key trends that are shaping this category.

This category features a moderate level of fragmentation, with numerous local companies competing for market share. These market players are actively pursuing strategies such as investments, partnerships, and acquisitions & mergers to expand their presence and gain a competitive edge. Additionally, companies are allocating resources toward the development of enhanced products and maintaining competitive pricing.

• In February 2021, Daifuku Co., Ltd. and AFT Industries AG formed a business partnership to capitalize on their material handling expertise in the automotive industry, aiming to secure growing demand and investment from automotive manufacturers for material handling systems.

Recent advancements in this category have seen the integration of IoT and AI technologies, providing multinational corporations (MNCs) with enhanced operational efficiency and productivity. E-commerce giant Amazon exemplifies this trend by employing IoT-enabled conveyors in its fulfillment centers. These conveyors leverage sensors to collect real-time data on package location and speed. AI algorithms then analyze this data to optimize package flow, improving sorting accuracy and streamlining order fulfillment processes. Furthermore, OEMs like Volkswagen have adopted automated guided vehicles (AGVs) in conjunction with conveyor systems to automate material handling tasks. AGVs operate autonomously, transporting components and assemblies within production facilities, thereby reducing manual labor and increasing production efficiency. These technological advancements offer MNCs significant opportunities for optimizing their operations and achieving competitive advantages in the market.

In this category, the price and cost structure can vary based on factors such as the type of conveyor system, its specifications, and the supplier or manufacturer. Key components influencing costs include equipment expenses, installation and integration costs, maintenance and servicing expenses, energy consumption considerations, spare parts availability and costs, customization options, and supplier-related factors.

The most important details when sourcing materials for this industry are organizations should undertake several crucial considerations to facilitate informed decision-making and successful procurement. These include clearly defining the specific requirements and needs for the category by conducting thorough market research to identify reputable suppliers, issuing detailed requests for proposals (RFPs) to potential suppliers, and ensuring the presence of robust quality assurance processes in the selected supplier's operations. Additionally, a comprehensive cost analysis beyond the initial purchase price, the cultivation of strong supplier relationships, consideration of the total cost of ownership (TCO) over the category system's lifespan, and a commitment to continuous improvement through regular evaluation of supplier performance are vital. By adhering to these best practices, organizations can optimize their sourcing processes for this category, resulting in the selection of the most suitable supplier and successful implementation of conveyor systems. 

Conveyor Procurement Intelligence Report scope