Dublin, April 29, 2022 (GLOBE NEWSWIRE) -- The "Vertical Lift Module Market - Forecasts from 2022 to 2027" report has been added to ResearchAndMarkets.com's offering.
The vertical lift module market was valued at US$1,287.525 million in 2020 and is expected to grow at a CAGR of 9.45% over the forecast period to reach a total market size of US$2,422.279 million by 2027.
Vertical lift modules (VLMs) are storage systems based on two parallel columns divided into fixed shelf locations in which a single storage module, such as a tray, can be placed. The modules facilitate the retrieval of items from trays and deliver them to an ergonomically placed work counter by pressing a button on the control unit. The vertical lift module market is driven by the healthcare, pharmaceutical, and electronic/electrical industries.
Moreover, the safety of the workplace necessitates the implementation of vertical lift modules (VLMs), as preventing injuries is crucial. Due to the 'Made in China 2025' initiative, China is expected to have a rapid increase in automated manufacturing units by 2025. It drives the market for vertical lift modules (VLM) in the country. Vertical lift module market growth is also largely driven by constant investments made by companies in their logistics divisions. For instance, FM Logistic, announced its plans to build a multi-client logistics facility (MCF) in India in March 2019. The storage capacity of this warehouse would be 100,000 pallet positions, boosting the market's growth.
Since the retail and food and beverage industries have been incorporating these systems at a rapid pace, vertical lift modules have also experienced an increase in demand. Similarly, hospital vertical lift module usage is expected to increase in the coming years. There is an increase in retail throughout the world, which has led to an increase in warehouse capacity to manage logistics more efficiently and effectively. Developments in the retail sector in developing countries are facilitated by flexible retail policies, the elimination of trade barriers, and the establishment of links to the World Trade Organization (WTO).
Growth Factors
The rise in retail and e-commerce:
In the developed economies of Europe and North America, the global retail industry is mature and highly competitive. A significant share of the market's growth has, however, been attributed to developing economies in the Asia-Pacific, the Middle East, and Latin America. The retail sectors in each of these markets benefit substantially from these economies. Approximately 500 new Walmart stores will open in China within the next five to seven years.
The expansion of the retail sector will drive the growth of VLMs. With the rise in retail, there is also a rise in warehouse services, which heavily rely on vertical lift modules. It was announced in May 2020 that Ahold Delhaize USA would be building two fully automated frozen warehouses with Americold. By building the two frozen facilities in partnership with Americold, the plan aims to increase cold-storage capacity by 24 million cubic feet, or 500,000 square feet.
Modern shopping involves Internet retail. With the increasing penetration of portable devices and internet services, e-commerce has grown into one of the world's most important platforms for shopping. There is an increase in online suppliers and a shift in the behavior of consumers that is driving the e-commerce industry. According to UNCTAD, e-commerce has seen a dramatic increase in its share of retail sales, rising from 16% to 19% by 2020. By 2020, the top 13 companies in the world will have sold 2.9 trillion dollars in online business-to-consumer (B2C) sales. As e-commerce grows, warehouses are also growing, which contributes to the growth of VLM markets.
Restraints
High cost:
There are, however, a few factors that impede the market's growth in the forecasted period, such as the high cost of the vertical lift module (VLM) and the high maintenance associated with them. Automated systems, such as vertical lift modules, usually have higher fixed costs for installation. Based on the comparison between the cost of using traditional warehouse shelving and the VLM system, it would not prove to be a worthwhile investment for businesses that do not access their warehouses very often. The VLM investment cost would be too high if, for example, the warehouse is used only one shift per day. Using traditional ways would be a better choice in that case. In addition to the initial costs associated with installing a vertical module system, additional training of employees will be required.
COVID-19 Insights:
It is expected that COVID-19 will contribute to market growth over the next few years. Several industries, including automotive, food and beverage, and logistics, have largely automated in order to maintain social distance and to prioritize worker safety. Since COVID-19 is a serious threat, manufacturers are being forced to implement automated processes. This has undeniably led to faster warehouse automation to cope with the unprecedented challenges posed by the pandemic.
Competitive Landscape
The use of automated technologies is increasing among organizations around the world. For example, Kardex acquired a majority stake in the Dutch company Robomotive in May 2020, which will enable it to offer fully integrated, automated picking solutions. The company will utilize Robomotive's technology for this purpose, and it will also expand its intralogistics segment, using automatic order picking in full cases, as well as play a crucial role in production logistics and distribution. Tetra Pak acquired eight Lean-Lift vertical lift modules from Hanel Storage Systems in November 2019 to streamline the process of storing and retrieving replacement parts at its production facilities.
Key Topics Covered:
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis
5. VERTICAL LIFT MODULE MARKET, BY DELIVERY TYPE
5.1. Introduction
5.2. Single-level delivery
5.3. Dual-level delivery
6. VERTICAL LIFT MODULE MARKET, BY STORAGE
6.1. Introduction
6.2. Refrigerated
6.3. Non-refrigerated
7. VERTICAL LIFT MODULE MARKET, BY INDUSTRY VERTICAL
7.1. Introduction
7.2. Food and Beverage
7.3. Automotive
7.4. Chemical
7.5. Healthcare
7.6. Aviation
7.7. E-Commerce
7.8. Metallurgy
7.9. Others
8. VERTICAL LIFT MODULE MARKET, BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisition, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.1. Kardex
10.2. Scahefer Systems International, Plc
10.3. Bradford Systems Corporations
10.4. Modula Group
10.5. Green Automated Solution Inc.
10.6. Conveyor Handling Company
10.7. Ferretto Group S.p.a.
10.8. Vidmar
10.9. Weland Solutions
10.10. Hanel
For more information about this report visit https://www.researchandmarkets.com/r/6f2vwd
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