PUBLISHER: Grand View Research | PRODUCT CODE: 1512075
PUBLISHER: Grand View Research | PRODUCT CODE: 1512075
The global warehouse conveying equipment market size is anticipated to reach USD 20.00 billion by 2030 and is projected to grow at a CAGR of 4.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is currently experiencing significant growth, driven by the exponential rise in e-commerce, advancements in automation technology, and the increased focus on operational efficiency and productivity within the logistics and manufacturing sectors.
As companies strive to meet the demands of faster delivery times and manage a diverse range of products, automated conveying systems have become essential for optimizing material handling processes. Innovations such as AI-powered sortation systems, IoT-enabled conveyor belts, and robotics are setting new standards for speed, accuracy, and flexibility in warehouse operations. Moreover, the push towards sustainability is encouraging the development of energy-efficient conveying solutions that minimize carbon footprints. With the ongoing digital transformation and the integration of smart technologies, the market is poised for further evolution, catering to the needs of modern, scalable, and environmentally conscious supply chains.
According to CBRE, the U.S. e-commerce market is projected to reach a staggering 26% of all retail sales by 2025, prompting a significant demand for an additional 330 million square feet of warehousing and distribution space. This expansion is driven by the exponential growth in online shopping, which saw an unprecedented surge in warehouse construction activity in the first quarter of 2022, with a groundbreaking 546.1 million square feet of new warehousing and distribution space being developed. This record-setting level of construction underlines the urgent need to accommodate the booming e-commerce industry's warehousing requirements. Furthermore, JLL's projections indicate that an additional USD 1 billion in sales by 2025 would necessitate over 1 billion square feet of industrial real estate, highlighting the critical importance of expanding and optimizing logistics infrastructure.
This burgeoning demand for warehousing and distribution space directly influences the market, as these facilities rely heavily on sophisticated conveying systems to enhance operational efficiency and manage the high volume of goods being processed. The anticipated expansion in warehouse space is expected to drive significant growth in the demand for advanced conveying solutions, including automated conveyor belts, sortation systems, and robotics, tailored to streamline material handling processes in line with the scaling of e-commerce operations. As warehouses and distribution centers become increasingly automated to keep pace with the rapid growth of online shopping, the market is poised for substantial growth, catering to the need for speed, accuracy, and efficiency in e-commerce logistics.
In May 2024, Kenco, a leading third-party logistics (3PL) provider, announced the implementation of AutoStore, a leading automated storage and retrieval system (ASRS) solution, at the company's Jeffersonville, Ind., distribution center.Once complete, the AutoStore system will include 49,000 bins, 130 grid robots, 10 picking ports, and four replenishment ports. Kenco estimates that 15 million units will travel through the system per year.