From the point of storage of products to the point of final consumption, the logistics sector is one of the most growing industries in every economy in the world.
Before we begin, it is useful to understand what these companies, also known as third parties, are and how they view the logistics business. These are specialized logistics companies that undertake the logistics activities (primarily transportation and storage) of their customers. First party refers to the seller company, second party refers to the buyer company and third party refers to the company that undertakes some of the services between the seller and buyer companies.
The changing technological landscape, macro-economic developments and shifting consumer preferences are having a major impact on distribution centers and warehouse operations, paving the way for the remarkable growth of the global and industrial racking systems market volume. Globally, with the rapid growth of logistics in the transportation sector, the industrial racking systems market on a global basis is expected to grow at a CAGR of over 7% during the timeframe between 2020 and 2030.
Industrial Shelf Systems Market Trends
The logistics sector is one of the most developing branches of industry in every economy in the world, as it is understood from the transportation and management of products from the place where they are stored to the point of final consumption. This is why it includes the concept of holism in material transportation, warehousing, packaging, transportation, inventory management, supply chain management, supply and transportation safety. Given the complexities involved in this whole chain, end-to-end solutions have started to emerge. One of these is third-party logistics services, which deal with all of the above-mentioned activities. Since efficient material handling systems are the cornerstone of success for such service providers, the growth of specialized logistics third-party service providers is greatly benefiting the industrial storage and racking market.
Regional Policies to Support Increasing Rural Consumption and Growth
In the logistical side of any business, reaching the end point in remote areas has always been a problem. For many businesses and sectors, it is impossible to reach every location and every remote settlement. Therefore, in those places where demand is growing rapidly, there is a need for the aforementioned logistics systems to access these areas. Moreover, governments in various countries are taking initiatives to improve land and sea transportation and the connections between them by developing and modernizing the technical infrastructure that provides the connection between remote and rural areas and large urban centers close to them. These developments naturally have a very positive impact on the industrial shelving systems market.
The lack of space in modern storage areas necessitates the construction of new buildings, which brings with it the intense demand for industrial shelving systems.
The demand for warehouse construction and storage space is growing at a dizzying pace around the world. Moreover, the scarcity and limited space in modern warehousing facilities is exacerbating the competition between the big e-commerce giants in developing countries. This creates great opportunities to develop new warehouses, but also the need to renovate old warehouses. The market for industrial racking systems benefits from key players in economic activity. These key players are consumption, e-commerce, supply chain modernization and urbanization.
Where Manufacturers Are Focusing: Investments in Logistics and Supply Chain Network Growth
Competition in the global industrial shelving market is fierce. Industry giants are focusing on increasing their market share by investing heavily in logistics and exploring opportunities to give due importance to their supply chains. Likewise, these ongoing efforts are aimed at further improving business performance parameters and costs. Major manufacturers in the industrial shelving sector have turned their eyes to regions in South Asia and the Pacific. Their aim is to expand their production and distribution network in this region. Because labor costs are generally low in this geography and there are many industrial contract manufacturers.
Regional Overview of the Industrial Shelving Industry Market
In terms of regional breakdown, global demand for industrial shelving systems is dominated by the Asia Pacific region, which accounts for the monolithic size of the global shelving systems market in 2019. In future analyses, this region is expected to remain the most important center of attraction for the industrial shelving systems markets. The region includes major players such as Southeast Asian countries and India, which are emerging on the industrial shelving systems market scene, as well as China, Japan and South Korea, which are already present and have a large number of large-scale manufacturers.
Industrial Shelf Systems Market: An Arena of Cutthroat Competition
The market for industrial shelving systems is reasonably fragmented, with industry leaders alone holding 25% of the market. Based on the number of these global and regional giants present, it is fair to say that the market is witnessing fierce competition. In the industrial shelving market, some of the industry leaders dominating the market are: Stow International, Jungheinrich AG, Mecalux SA, Kardex AG, and Daifiku Co Ltd.
