The global industrial racking system market is expected to grow at a CAGR of ~7% throughout from 2019-2029, according to a study by Persistence Market Research, New York. The industrial racking system market is assessed to twofold its value, riding high on the surging sales of e-commerce products and warehouse expansion.
Highlights from the study entail:
- Storage, retrieval and product handling is an integral cost and efficiency factor, not only in traditional production and distribution facilities, but also for service providers and new business models such as e-commerce. Many companies will have to modernize their storage and warehouse facilities in the coming years through industrial racking systems.
- Costs incurred on industrial racking systems can be reduced through further automation at facilities to save space and increase the availability of stored goods.
- Selective racking, also known as pallet racks, finds prominence in areas where cost effectiveness, large range of stock-keeping units (SKUs) and no special forklift requirements are vital concerns, such as food and beverage, etc.
- Surge in trade volume exports, increased acceptance of the brand, focus on e-commerce and policy support by regional governments are the cited reasons for the strong growth outlook for the global industrial racking system market. The stream of policy and regulatory reforms by the Government of India has accentuated the entry of international players in the India racking system space.
- Lack of international standards and high-level fragmentation are anticipated to moderately impact the industrial racking system market in the near-term. However, improved affordability, stronger product launches and multiple ownership will create new growth prospects in the global industrial racking system market.
2019 and the coming years will see positive ticks, where e-commerce sales, demolition of aging warehouses, digitalization in the value chain, splurges by consumers and political landscape (tax incentives) will boost overall industrial racking system market sentiments.