Vertical Lift Module Trends and Forecast
The future of the global vertical lift module market looks promising with opportunities in the automotive, metals and machinery, food and beverages, chemicals, healthcare, semiconductor and electronics, aviation, and e-commerce markets. The global vertical lift module market is expected to reach an estimated $2.1 billion by 2030 with a CAGR of 7.0% from 2024 to 2030. The major drivers for this market are rapidly expanding e-commerce sector across the world, growing focus towards industrial automation and growth of industry 4.0, as well as, strong demand for the installation of vertical lift module systems in the food and beverage and retail sectors to improve logistics management.
• Lucintel forecasts that, within the delivery type category, single-level delivery will remain the larger segment over the forecast period due to growing requirement for maximum storage capacity utilization owing to the extensive demand for faster recovery and storage of heterogeneous commodities.
• In terms of region, North America will remain the largest region over the forecast period due to significant technological breakthroughs, strong presence of large manufacturers in the area, and the growing e-commerce, retail, and logistics sectors in the region.
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Emerging Trends in the Vertical Lift Module Market
The vertical lift module market is changing substantially, with new trends emerging that reflect changes in the direction of industries regarding storage management. External factors driving these modifications include growth in technology, changes in consumer needs, and the desire for more effective and environmentally friendly options.
• Integration with IoT: With the Internet of Things (IoT), it is now possible to track and analyze data related to VLMs, enhancing inventory management and optimizing processes. This is particularly relevant for industries where accurate tracking and inventory management are crucial, such as the pharmaceutical and electronic industries.
• Automated Guided Vehicles (AGVs) Synergy: The growth of VLMs and AGVs has improved automation in warehouses. AGVs can extract products from VLMs without human assistance, thus enhancing order processing and reducing labor costs.
• Customization and Scalability: The demand for customizable and scalable VLMs in specific industries is on the rise. This trend enables companies to purchase VLMs that can be upgraded along with their businesses, making it a more practical and cost-effective option.
• Sustainability Focus: Sustainability is increasingly emphasized in the design of VLMs, as manufacturers develop energy-efficient structures and materials. This trend is driven by increased regulatory demands and sustainability targets set by companies, making VLMs a greener option.
• Advanced Control Systems: Advancements in control systems, such as AI and machine learning, are improving the performance and reliability of VLMs. These systems enable condition-based maintenance and dynamic ordering, minimizing downtime and maximizing storage space usage.
These trends are transforming the vertical lift module market, making it more integrated, automated, and environmentally friendly. The innovation in IoT, AGV, and their control systems is opening up new possibilities for the customization and sustainability of VLMs across various industries.
Recent Developments in the Vertical Lift Module Market
The vertical lift module market has seen significant advancements that are improving its features and broadening its applications. These developments have been driven by the demand for better storage systems, automation, and space-saving solutions within various sectors.
• IoT Integration: The integration of IoT with VLMs enables functionalities that improve monitoring and aid decision-making based on prevailing data. This advancement is enhancing inventory management and overall operations in sectors such as healthcare and electronics, where proper inventory management is paramount.
• Enhanced Automation: VLMs are increasingly associated with automated equipment, such as robotic arms and AGVs. This advancement eliminates time-consuming manual tasks within warehouses, increasing the accuracy of order picking and the speed at which orders are processed.
• Modular Design: The use of modular VLM designs makes installation and scalability more convenient. This development allows organizations to easily upgrade or adjust their storage systems as per new requirements, making VLMs more flexible.
• Energy Saving: Energy-efficient technologies are driving advances in vertical lift modules, making them more environmentally friendly. Energy conservation has become a trend in manufacturing industries, and manufacturers are now seeking creative designs and materials to achieve this.
• AI-Based Inventory Management: The application of artificial intelligence in VLM systems enhances inventory control through predictive analysis and automated restocking. This development helps companies optimize space usage, prevent merchandise shortages, and improve supply chain efficiency.
These advancements are positively impacting the vertical lift module market by improving capability, performance, and versatility. Innovations are making VLMs a must-have tool for modern warehouses and storage facilities.
Strategic Growth Opportunities for Vertical Lift Module Market
The vertical lift module market is being examined for various strategic growth opportunities across multiple applications. These opportunities are expected to arise due to the increasing need for efficient storage, automation, and space optimization in industries such as manufacturing and healthcare.
• Ecommerce Warehousing: There is a favorable scenario for VLMs in warehousing and shipping centers due to the growth of e-commerce. For VLMs, high-density storage shelves and fast access are essential to meet the demands of e-commerce order fulfillment.
• Automotive Manufacturing: VLMs are increasingly adopted for the effective storage of parts and components in the automotive industry. Production processes are enhanced as parts can be collected and positioned in other processes instantly, reducing wait times and increasing efficiency.
• Healthcare Facilities: Healthcare facilities are using VLMs as centralized storage for medical supplies, pharmaceuticals, and other medical-related equipment. VLMs improve stock control and reduce errors, which is crucial in environments where patient well-being is of utmost importance.
• Aerospace Industry: The aerospace industry is utilizing VLMs to store expensive assets. The quality and accuracy of VLMs are critical to the manufacturing and maintenance processes in the aerospace sector.
• Retail Distribution: VLMs are rapidly being adopted in retail distribution centers to maximize space utilization and enhance order processing turnaround time. VLMs help control various types of inventory, which helps retailers meet customer demands and shorten order fulfillment periods.
These strategic growth opportunities are shaping the future of the vertical lift module market. Key drivers of VLM adoption include globalization and the practices of modern businesses in the e-commerce, automotive, healthcare, aerospace, and retail sectors.
Vertical Lift Module Market Driver and Challenges
There are many factors that drive or challenge the vertical lift module market, which are technological, economic, or regulatory based. For stakeholders operating in this fast-paced market, it is important to appreciate these changes in the market structure.
The factors responsible for driving the vertical lift module market include:
• Automation Demand: The rising need for automation in warehouses and manufacturing is one reason regulating the installation of VLMs. These systems are efficient in space utilization as they have high capacity storage and reasonable retrievability, thus reducing manpower and maximizing operational efficiency.
• Space Optimization: Due to urbanization and increased costs of real estate, space optimization is another key factor in the VLM market. VLMs aim to optimize vertical cubic space usage, making them advantageous at locations with inadequate floor area.
• Rising E-commerce: The expansion of e-commerce drives the need for effective storage and order processing systems. E-commerce centers are usually overwhelmed with huge inventories, leading to VLMsÄX%$%X efficiency in executing consumer orders.
• Technological Advancements: VLM systems are constantly improving with the integration of more technology, further marketing these products as space managers and uplifting the market as well.
• Sustainability Goals: Green VLMs are in demand because of the emphasis on corporate social responsibility. There has been a growing trend in the adoption of VLMs that are energy-efficient, supporting the growing green business approaches.
Challenges in the vertical lift module market are:
• High Initial Costs: The capital investment required to acquire a VLM system is a challenge. Due to the recession, the purchase of such equipment is burdensome for many small and medium-sized enterprises (SMEs). It sometimes takes time for companies to recoup their investments.
• Maintenance Requirements: VLMs need to be serviced on a timely basis to perform well, which is expensive and time-consuming. This is especially a problem in industries with low budgets and lack of skills.
• Integration: It can be easy to understand VLMs, but the problem comes when they are to be integrated into existing WMS and other technologies, which some people may not have the skills to perform. This complexity can elongate the lead time and increase the expenses incurred.
• Compliance: The diversity of the VLMs may counter the efforts of manufacturers when it comes to different regions with varied regulatory policies. Environmental restrictions and safety compliance are additional factors that have to be catered to while designing VLM systems, which increase the costs of the systems.
• Limited Awareness: Some architects are not well-versed in VLMs, making it difficult to consider how to implement them. This lack of knowledge will, in turn, affect the market growth, largely in developing countries where modern storage is just gaining popularity.
It is in the last section of the description that there has been a balance between what drives the vertical lift module market and the issues that hinder market growth. Although the demand for space optimization, technological advancement, and rising demand for automation works in favor of market growth, the high price, maintenance, and regulatory challenges are barriers. These all need to be solved in order to tap wider market opportunities.
List of Vertical Lift Module Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies vertical lift module companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the vertical lift module companies profiled in this report include-
• Gonvarri Material Handling
• Ferretto Group
• EffiMat Storage Technology
• ICAM SRL
• AutoCrib
• Hänel Storage Systems
• Kardex Remstar
Vertical Lift Module by Segment
The study includes a forecast for the global vertical lift module by delivery type, storage type, end use, and region.
Vertical Lift Module Market by Delivery Type [Analysis by Value from 2018 to 2030]:
• Single-Level Delivery
• Dual-Level Delivery
Vertical Lift Module Market by Storage Type [Analysis by Value from 2018 to 2030]:
• Non-Refrigerated Storage
• Refrigerated Storage
Vertical Lift Module Market by End Use [Analysis by Value from 2018 to 2030]:
• Automotive
• Metals & Machinery
• Food & Beverages
• Chemicals
• Healthcare
• Semiconductor & Electronics
• E-Commerce
• Other Industries
Vertical Lift Module Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Vertical Lift Module Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. The image below highlights recent developments by major vertical lift module producers in key regions: the USA, China, India, Japan, and Germany.
• United States: VLM adoption in the U.S. has grown mostly in the e-commerce and manufacturing industries. Companies are increasingly using VLMs together with their automation systems to optimize the operation of warehouses while minimizing the manpower employed. The goal is to enhance inventory control measures and attend to the increasing number of clients requesting prompt and accurate order delivery.
• China: Manufacturing and logistics in China have great demand for VLMs due to the vast urbanization and industrialization. Rapid growth of e-commerce and smart manufacturing sectors, which require high capacity storage systems in urban warehouses, has led to the introduction of more sophisticated VLMs into the Chinese market.
• Germany: Germany remains a leader in developing new VLMs with a focus on compatibility with Industry 4.0. German corporations are working on VLMs with greater degrees of mechanization and connection to the Internet of Things (IoT), with predictive analytics and real-time inventory management necessary in modern-day manufacturing processes.
• India: Similarly, the VLM market in India is evolving due to the need for research space in urbanized areas. Cheaper, easy-to-roll-out Quick Response VLM systems that target Small and Medium Enterprises (SMEs) will meet the demand. The growing retail and auto industries also propel the use of VLMs.
• Japan: The problem of labor deficiency in some industries has led to the implementation of VLM systems. Japanese organizations are sourcing small, simple, and comprehensive vertical lifting machines that can easily be adopted into operational sequences. The availability of modular VLM designs for use in urban facilities is also now a trend.
Features of the Global Vertical Lift Module Market
Market Size Estimates: Vertical lift module market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Vertical lift module market size by delivery type, storage type, end use, and region in terms of value ($B).
Regional Analysis: Vertical lift module market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different delivery type, storage type, end use, and regions for the vertical lift module market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the vertical lift module market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the vertical lift module market size?
Answer: The global vertical lift module market is expected to reach an estimated $2.1 billion by 2030.
Q2. What is the growth forecast for vertical lift module market?
Answer: The global vertical lift module market is expected to grow with a CAGR of 7.0% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the vertical lift module market?
Answer: The major drivers for this market are rapidly expanding e-commerce sector across the world, growing focus towards industrial automation and growth of industry 4.0, as well as, strong demand for the installation of vertical lift module systems in the food and beverage and retail sectors to improve logistics management.
Q4. What are the major segments for vertical lift module market?
Answer: The future of the global vertical lift module market looks promising with opportunities in the automotive, metals and machinery, food and beverages, chemicals, healthcare, semiconductor and electronics, aviation, and e-commerce markets.
Q5. Who are the key vertical lift module market companies?
Answer: Some of the key vertical lift module companies are as follows:
• Gonvarri Material Handling
• Ferretto Group
• EffiMat Storage Technology
• ICAM SRL
• AutoCrib
• Hänel Storage Systems
• Kardex Remstar
Q6. Which vertical lift module market segment will be the largest in future?
Answer: Lucintel forecasts that single-level delivery will remain the larger segment over the forecast period due to growing requirement for maximum storage capacity utilization owing to the extensive demand for faster recovery and storage of heterogeneous commodities.
Q7. In vertical lift module market, which region is expected to be the largest in next 5 years?
Answer: North America will remain the largest region over the forecast period due to significant technological breakthroughs, strong presence of large manufacturers in the area, and the growing e-commerce, retail, and logistics sectors in the region.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the vertical lift module market by delivery type (single-level delivery and dual-level delivery), storage type (non-refrigerated storage and refrigerated storage), end use (automotive, metals & machinery, food & beverages, chemicals, healthcare, semiconductor & electronics, aviation, e-commerce, and other industries), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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