Conveyor System Market to Gain Prominence on Account of Growing Need for Automation
The global conveyor systems market is characterized by the presence of a handful of players who have captured a dominant market share. This essentially makes the market oligopolistic in nature, thus, making it difficult for new entrants to challenge the integrity of the leading players. Transparency Market Research (TMR) finds that the top market players capturing more than 50% of the total market share are Dematic Group, Daifuku Co. Ltd., Murata Machinery Ltd, and Schaefer Systems International Inc. It is anticipated that these players would engage in core research and development in order to come up with novelty products. This is done to ensure that their consumer base stays intact and they can reap the benefits of better innovation. Another strategy expected to be adopted by the market players is the expansion of their geographical reach. A greater level of penetration into the regional market would give an upper hand to the market players. Moreover, expanding the product portfolio would also come in handy for the market players aiming to establish themselves within the market.
Transparency Market Research (TMR) conducted an analysis of the market to ascertain a growth trajectory over the period from 2017 to 2025. It is estimated that the market value in 2025 is expected to touch US$6312.5 mn from US$4697.1 mn in 2016. Furthermore, the market is expected to grow at a steady CAGR of 3.5% over the forecast period. Geographically, Europe is expected to lead all other regional markets, registering a CAGR of 2.7% over the forecast period. Based on distribution channel, the direct distribution channel is expected to outdo the online distribution channel due to a higher level of penetration of the former.
Utility Across Multiple Industries Bolsters Demand
A wide array of conveyor types ensures that the needs of all the industries are covered. Belt conveyors are the most popular across several industrial longitudes due to their ease of operation. These conveyors hold immense utility for industries such as packaging, food and beverages, and pharmaceuticals. Luggage is run on these belts for safe and efficient transit at airports, thus, making the aviation industry an ardent consumer of conveyor systems. These systems are also used across automotive, healthcare, and retail sectors. The operational efficiency offered by these systems is the primary reason behind their adoption. Furthermore, automation has also transcended as the watchword of industrial units who now want to reduce manual work. This augments the demand for these systems and creates tremendous opportunities for the market players. The concerns regarding the safety and wellbeing of employees has also driven the demand for conveyor systems within large industrial units. Advanced conveyor systems that boast of durability and can guarantee safe transport of heavy objects have also generated interest among the end-users. The growth of several industries has made it imperative for managers to induct their workplaces with conveyor systems.
High Costs of Installation Obstructs Market Growth
Despite the affluent growth rate of the market, certain factors are expected to obstruct the demand for conveyor systems. The installation costs of these systems is exorbitantly high, which discourages a number of small- and medium-sized industries from resorting to them. Furthermore, the costs incurred for repairing and maintaining these systems is also a burden for enterprises. However, the pervasive growth of automation across several industries will keep proliferating the demand within the market. The aviation industry is also expected to be a prolific consumer of conveyor systems.