Pallet Conveyor Market Introduction :
Global Pallet Conveyor Market size is estimated to reach over USD 2,844.96 Million by 2030 from a value of USD 1,854.22 Million in 2022, growing at a CAGR of 5.8% from 2023 to 2030.
Pallet Conveyor Market Definition & Overview:
A pallet conveyor is a type of equipment that is capable of handling and transporting large, heavy, or unwieldly loads. They mainly transfer discrete products on carriers, also known as pallets, which are usually transported by roller chain, belt, flat-top chain, or rollers. They offer a range of benefits including improved warehouse flow and decreased traffic, minimized labor load handling, along with enhanced system throughput, safety, and ergonomics. Their aforementioned benefits are among key determinants for increasing its deployment in food & beverage, retail & e-commerce, chemical, pharmaceutical, and other industries.
Pallet Conveyor Market Insights :
Pallet Conveyor Market Dynamics - (DRO)
Key Drivers :
Growing food & beverage industry
Pallet conveyors are primarily utilized in food & beverage facilities for the transportation of food loads on pallets or skids. The conveying surfaces usually include rollers or multiple strands of chains. They are employed in food and beverage facilities for transporting raw materials from storage to the processing area, moving finished products onto the packaging line, and transferring packaged goods to the shipping area.
Factors including significant investments in the food & beverage sector, rising consumer demand for packaged and processed food products, and increasing hygiene standards in the food sector are key prospects driving the proliferation of the food & beverage sector.
For instance, according to Food Drink Europe, a European Union confederation for the food sector, the European Union food and beverage sector was valued at EUR 1,121 billion (USD 1,292.0 billion) in 2022, representing an increase of 2.6% in comparison to EUR 1,093 billion (USD 1,177.8 billion) in 2021. Analysis of market trends concludes that the growing food & beverage sector is further driving the adoption of the conveyors for aforementioned applications, in turn driving the pallet conveyor market demand.
Rising utilization in retail & e-commerce sector
Pallet conveyors are critical components in the retail and e-commerce sector. They have applications in retail & e-commerce logistic facilities for transportation, accumulation, and distribution of goods to particular positions required by the logistics operations. Their deployment in the retail & e-commerce sector helps in managing automated workflows and promote operational efficiency.
Factors including the rise in digitalization, increasing consumer preference for online shopping, and growing adoption of retail automation solutions are fostering the proliferation of the retail & e-commerce sector.
According to the U.S. Census Bureau of the Department of Commerce, Q3 2022 report, the e-commerce sector in the United States witnessed a substantial rise of 10.8% during the third quarter of 2022 as compared to the third quarter of 2021. Analysis of market trends concludes that the growing retail & e-commerce sector driving the adoption of the conveyors for transportation, accumulation, and distribution of goods, thereby, proliferating the pallet conveyor market demand.
Key Restraints :
High cost of pallet conveyors
The deployment of conveyors is often associated with high cost, which is a prime factor restricting the proliferation of the market. Their overall cost is dependent on the cost of production, followed by the cost of raw materials including stainless steel, aluminum, and others used in its manufacturing.
For instance, Bastian Solutions LLC offers various types of pallet conveyors with an average cost ranging from USD 2,706 to USD 9,157 per unit, which is relatively very high. Assessment of market trends indicates that high costs associated with its implementation are restraining the expansion of the market.
Future Opportunities :
Rising application in pharmaceutical sector
The rising application of pallet conveyors in the pharmaceutical sector is expected to present potential opportunities for the proliferation of the pallet conveyor market. They are often utilized in pharmaceutical facilities for efficient transportation of sensitive materials in a sanitary environment. Moreover, they play a significant role in pharmaceutical facilities for manufacturing, packaging, and distribution of pharmaceutical products. Analysis of market trends concludes that their ability to provide accurate placement, standardized production, and highly sanitary conditions are key aspects for increasing its utilization in the pharmaceutical sector.
The rising investments in the pharmaceutical sector, expansion of pharmaceutical manufacturing units, and increasing pharmaceutical production are key factors driving the expansion of the pharmaceutical sector. For instance, according to the European Federation of Pharmaceutical Industries and Associations, the total production of the pharmaceutical sector in Europe was valued at USD 339.7 billion in 2021, witnessing a rise of 4.6% in comparison to USD 324.7 billion in 2020. Additionally, in June 2021, Stevanato Group, a life sciences firm based in Italy, invested USD 145 million in the development of a new pharmaceutical facility in Indiana, United States. The new plant is responsible for manufacturing EZ-fill vial and syringe products, and it is expected to be operational by 2025.
Therefore, the proliferation of pharmaceutical sector is anticipated to increase the application of the conveyors in pharmaceutical facilities, further emerging as one of many pallet conveyor market opportunities that will drive market expansion during the forecast period.
Pallet Conveyor Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 2,844.96 Million |
| CAGR (2023-2030) | 5.8% |
| By Type | Gravity Pallet Conveyors, Drag Chain Pallet Conveyors, Belt Driven Live Roller Pallet Conveyors, and Others |
| By End-User | Food & Beverage, Retail & E-commerce, Chemical, Pharmaceutical, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Five Group, Dorner Mfg. Corp, Bastian Solutions LLC, FMH Conveyors, Interroll Group, Krones AG, Damon Australia, KNAPP AG, Gilgen Logistics, and Okura Yusoki Co., Ltd. |
Pallet Conveyor Market Segmental Analysis :
Based on the Type :
Based on the type, the market is bifurcated into gravity, drag chain, belt driven live roller, and others. In 2022, the gravity segment accounted for the highest pallet conveyor market share. They are employed for moving pallets and are integrated with a track featuring a series of rollers laid in sequence within the conveyor frame. Moreover, they offer several benefits including high versatility, ease of use and maintenance, greater handling capacity, and relatively economical. Their above benefits are increasing its utilization in food & beverage, pharmaceutical, and other related industries.
In March 2022, Kerry Group, a food, and beverage company, launched its new food manufacturing facility worth USD 137 million in Georgia, United States. Assessment of market trends indicates that the proliferation of food & beverage sector is among the key factors driving the application of gravity conveyors in food and beverage manufacturing facilities, in turn contributing to the expansion of the market.
The drag chain segment is anticipated to register the fastest CAGR growth during the forecast period. They comprise of parallel strands of roller chains that are utilized for conveying loads. They are an ideal method for the transportation of pallets that refrain movement on roller conveyors or lack enough adequate strength to support the load. Moreover, threy offer several benefits such as efficient material transport, versatile material handling, space-saving design, robustness, reliability, and others. They are utilized in chemical, and food & beverage industries among others.
According to the American Chemistry Council, the total production of industrial chemicals in the United States witnessed a rise of 5.5% in 2021 as compared to 2020. Assessment of market trends indicates that the proliferation of chemical industry is driving the adoption of drag chain conveyors for transportation of materials used in chemical production facilities, thereby driving the pallet conveyor market growth during the forecast period.
Based on the End-User :
Based on the end-user, the market is segregated into food & beverage, retail & e-commerce, chemical, pharmaceutical, and others. In 2022, the retail & e-commerce segment accounted for the highest pallet conveyor market share of 35.4% in the market. Factors including rising digitalization, growing consumer preference for online shopping, and rising deployment of retail automation solutions are key prospects driving the proliferation of the retail & e-commerce segment.
In April 2022, the government of India announced the launch of an online retail network across 100 Indian cities to offer consumers with an alternative to multinational platforms including Flipkart and Amazon. Analysis of pallet conveyor market trends concludes that the expansion of retail & e-commerce sector is driving the adoption of the conveyors for transporting, accumulating, and distributing goods from warehouses to specific positions required by the logistics operations, in turn fostering market proliferation during the forecast period.
Food & beverage segment is expected to witness fastest CAGR growth during the forecast period. Analysis of pallet conveyor market trends concludes that the proliferation of food & beverage segment is attributed to several factors including significant investments in food & beverage facilities, rising hygiene standards in the food industry, and increasing utilization of the conveyors for transportation of food products.
For instance, in October 2020, Nestle invested around USD 550 million for the development of a new food processing factory in Ohio, U.S., to fulfill the rising demand for high-quality pet foods. The new facility is scheduled to be operational in 2023.Thus, the rising development of food processing facilities is further driving the adoption of the conveyors for transporting raw materials from storage to the processing area, moving finished products onto the packaging line, and transferring packaged goods to the shipping area. The above factors are anticipated to drive the pallet conveyor market growth during the forecast period.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America accounted for the largest revenue share of USD 585.93 Million in 2022. The adoption of products from the market in the North American region is primarily driven by its usage in food & beverage, pharmaceutical, chemical, and other sectors. Moreover, North America has been a major hub for the companies associated with pharmaceutical and food & beverage manufacturing among others. The pallet conveyor market analysis concluded that their increasing application in food & beverage plants for transporting raw materials, moving finished products onto the packaging line, and transferring packaged goods to the shipping area is among the significant factors driving the market proliferation in the region. For instance, in August 2021, Tyson Foods, invested USD 300 million to build a food processing facility in Virginia, U.S. The facility is scheduled to be operational in 2023. The above factors are further propelling the expansion of the pallet conveyor market in the North American region.
Asia-Pacific is accounted for the largest revenue share of USD 508.06 Million in the year 2022 and is expected to reach USD 787.20 million by 2030 registering the fastest CAGR growth of 6.0% during the forecast period. In addition, in the region, China is accounted for the maximum revenue share of 33.4% in the same year. The pallet conveyor market analysis concluded that the rapid pace of industrialization and development is creating lucrative opportunities for market proliferation in the region. Moreover, factors including the development of multiple industries including pharmaceutical, food & beverage, retail & e-commerce, and others are fostering the market proliferation in the Asia-Pacific region.
For instance, according to the India Brand Equity Foundation (IBEF), India ranked third in terms of pharmaceutical production by volume in 2021. According to IBEF, the local pharmaceutical sector in India consists of approximately 10,500 pharmaceutical manufacturing units and 3,000 drug companies. Therefore, the growing pharmaceutical facilities are driving the deployment of the conveyors for applications involving manufacturing, packaging, and distribution of pharmaceutical products, thereby, proliferating the market growth in the Asia-Pacific region.
Top Key Players & Market Share Insights:
The pallet conveyor market is highly competitive with major players providing products to the national and international markets. The major companies operating in pallet conveyor industry are adopting several strategies in research and development (R&D), product innovation, and application launches to hold a strong position in Pallet Conveyor market. Key players in the Pallet Conveyor market include-
- Five Group
- Dorner Mfg. Corp
- KNAPP AG
- Gilgen Logistics
- Okura Yusoki Co., Ltd.
- Bastian Solutions LLC
- FMH Conveyors
- Interroll Group
- Krones AG
- Damon Australia
Recent Industry Developments :
- In April 2023, Columbus McKinnon Corporation, a manufacturer of precision conveyors, executed a definitive agreement for acquisition of Montratec GmbH. The acquisition aims at expanding the company's precision conveyance platform.
- In July 2021, Interroll announced the expansion of its Modular Pallet Conveyor Platform (MPP) with powerful and flexible control solution with the aim of reducing the installation and planning effort for material flow projects. Moreover, the MPP platform is designed to be deployed for automated pallet conveying.
Key Questions Answered in the Report
What is pallet conveyor? +
Pallet conveyor is a type of equipment that is capable of handling and transporting large, heavy or unwieldly loads. Pallet conveyors mainly transfer discrete products on carriers, also known as pallets, which are usually transported by roller chain, belt, flat-top chain, or rollers.
What specific segmentation details are covered in the pallet conveyor report, and how is the dominating segment impacting the market growth? +
Type segment has witnessed gravity pallet conveyors as the dominating segment in the year 2022, owing to its increasing utilization in food & beverage, pharmaceutical, and other related industries.
What specific segmentation details are covered in the pallet conveyor market report, and how is the fastest segment anticipated to impact the market growth? +
End-user segment has witnessed food & beverage as the fastest-growing segment during the forecast period due to the rising adoption of pallet conveyors for transporting raw materials, moving finished products, and transferring packaged goods in food & beverage plants.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2030? +
Asia-Pacific is anticipated to register fastest CAGR growth during the forecast period due to rapid pace of industrialization and growth of multiple industries such as pharmaceutical, food & beverage, retail & e-commerce, and others.
