CONVEYOR SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Conveyor System Market Size and Trends

Global conveyor system market is estimated to be valued at US$ 10.35 Bn in 2024 and is expected to reach US$ 15.07 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031.

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Rapid industrialization and automation across industries have boosted demand for conveyor systems in material handling processes. Furthermore, growing e-commerce sector has also boosted the installation of conveyor systems in warehouses and distribution centers. Various industries like food & beverage, airport authorities, and e-commerce are investing in automated conveyor systems to improve productivity and efficiency. Advancements in technology like integrated robotics and Internet of Things (IoT) also support the automation of material handling equipment and warehouse operations. This can boost demand for intelligent and automated conveyor systems in the near future.

Market Driver - Advantages of conveyor systems over manual material handling

Conveyor systems have significantly impacted industries by reducing their dependency on manual labor for material movement tasks. While manual handling has its place, conveyor technology allows for higher throughput, improved safety and better optimization of workforce. Constant manual movement of materials involves significant costs associated with labor along with higher risks of injuries. Conveyor belts are designed to efficiently transport items from one stage to other without human intervention within the production cycle. This allows redirecting manpower to more value-added tasks.

Conveyor systems provide consistency and uniformity in operations. Materials are moved at a regulated pace based on pre-programmed settings. This brings repeatability in production processes. Higher volumes can be handled with greater ease and less fatigue as compared to manual methods. Labor requirements are reduced as one operator can oversee multiple belts. Risks of injury are minimal to none involved with conveyor movement as payloads are smoothly transported on the belts or rollers. With manual handling, chances of strains due to lifting heavy objects or accidents while shifting items remain. Therefore, conveyor systems create a safer work environment for employees.

Integration of conveyor technology has improved overall equipment effectiveness. Dedicated lines prevent mishandling and breakage losses seen during transportation by human beings. Items are moved from one station to another through the exact pathway. This enhances tracking and traceability. Less room for errors supports higher product quality. Advanced systems with sensors and programmable logic controllers facilitate collection of real-time operational data. Managers can monitor performance metrics and take informed decisions to optimize production flows.

Market Concentration and Competitive Landscape

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Increasing adoption across manufacturing and processing industries

Conveyor systems have emerged as an indispensable material handling solution across diversified industrial verticals. Growing complexity of manufacturing and assembly processes have boosted demand for automated movement of materials within premises. Automotive, food & beverage, packaging, pharmaceutical and other sectors are witnessing increased integration of conveyor belts, roller tracks and sortation systems. Ease of installation, scalability, and proven track record have made conveyor technology a universal choice for industries aiming at capacity expansion, productivity improvements and lean operations.

Sophisticated production methods involving multiple unit operations necessitate a streamlined pathway for moving work-in-progress from one stage to another. Conveyor lines eliminate disjointed material transfers and ensure continuity. These bring order and structure within busy plant floors by functioning as the central backbone. This has become indispensable for achieving just-in-time manufacturing excellence wherein optimal uptime of equipment and minimum queues are critical. Even for seasonal goods manufacturers implementing specialized short-run production, temporary pop-up conveyor lines offer a ready solution to scale up and scale down as needed.

Growing size and scale of facilities have made centralized conveyor distribution an operational necessity. Sprawling premises with several production lines require an integrated network for internal transportation of materials, parts and finished goods. Conveyors deployed as a unified system covering entire multi-acre industrial complexes ensure dependable movement of high volumes. These solve prevailing issues of inefficient internal logistics faced by large manufacturing set-ups otherwise relying heavily on manual carts and trolleys. Overall equipment effectiveness of big-ticket automated machinery is optimized through well-designed conveyor connectivity.

Automation adoption is rising across geographies at an accelerated pace to boost competitiveness. With new advanced manufacturing hubs emerging rapidly, local industries are recognizing the myriad benefits of integrating conveyor technology. Both discrete part and process manufacturing segments are capitalizing on Industry 4.0 compatible conveyor solutions to drive transformations. Universal recognition of the role conveyor systems play in achieving operational excellence forms the cornerstone of their widespread acceptance globally across diversified industry players.

Key Takeaways from Analyst:

Global conveyor system market growth is driven by increasing mechanization and automation across various industries for material handling applications. Rapid industrialization and expansion of warehouses and distribution centers can boost demand for scalable and efficient conveyor systems. Furthermore, need for minimizing labor costs and improving production throughput  can also boost adoption of conveyor systems. Belt conveyors systems segment dominates the market, owing to wide applicability in various sectors like food & beverage, airport luggage, parcel sorting, and others. However, there has been huge demand for pallet conveyors due to rising need for handling unit loads in the manufacturing sector.

High initial installation and maintenance costs of conveyor systems can hamper the market growth. Availability of alternative material handling equipment poses challenges for the market growth. However, growing e-commerce and cold chain industries present significant opportunities for conveyor vendors. Emerging economies like India, China, Brazil, Mexico will provide immense growth prospects for players due to rising industrial and infrastructural investments.

Market Challenge - Complex integration requirements

Global conveyor system market faces integration challenges due to the need to seamlessly bring together complex mechanical, electronic and software components. Conveyor systems often involve interfacing various subsystems like belt and roller drives, programmable logic controllers, human-machine interfaces, safety sensors and networks. Properly integrating these diverse elements from different vendors is a difficult task that requires extensive engineering expertise. Manufacturers struggle with issues like compatibility of components, troubleshooting interconnectivity problems, and ensuring robust communication between all parts of the system. Further complications arise due to conveying requirements that involve intermittent loads, high throughput needs and interaction with other machinery in production facilities. The lack of standardization in the industry also makes integration harder as there are no uniform guidelines to facilitate plug-and-play functionality. Overcoming these complex integration obstacles is a major hurdle for the market in developing advanced, efficiently functioning conveyor belts and systems.

Opportunity- Scope for automation in conveyor systems

Global conveyor system market presents considerable opportunities for automation technology providers. Due to rising demand for automation driven by trends like Industry 4.0, there is significant scope for automated solutions in conveying applications. Most traditional conveyor systems currently involve high dependency on manual labor for tasks like loading, unloading, sorting, and tracking of items. Automating such repetitive jobs can help improve overall throughput, reduce errors and boost productivity for supply chain operations. Technologies such as robotics, machine vision, sensing, and wireless networking can automate functions like object identification, dynamic routing, performance monitoring and remote operation or conveyor systems. This reduces requirements for human staff on production floors and warehouses. Growing demand for flexible, customized and high throughput conveying further encourages incorporating more automation capabilities. System integrators and automation control vendors have vast opportunities in helping modernize conveying infrastructure with smart, automated equipment and solutions.

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Insights, By Type - Versatility and Scalability Boosts Demand for Belt Conveyor Systems

By type, belt conveyor systems segment is estimated to contribute the highest market share of 41.3% in 2024, due to their versatility and scalability. Belt conveyors can transport a wide variety of materials over varying distances both horizontally and at an angle. These are commonly used for bulk material handling applications in industries like mining, agriculture, and manufacturing.

Belt conveyors can be easily customized for specific production needs through adjustments to belt width, speed, incline angle, and number of transfer points. Their modular design allows sections to be added or removed with relative ease, enabling belt conveyors to scale along with production capacity changes. This  flexibility reduces capital investment risks associated with unpredictable demand fluctuations.

Their continuous operation also provides efficiency advantages over intermittent systems. Materials are transported non-stop from loading to unloading points with minimal labor requirements. Properly maintained belt conveyors can run 24/7 for years with high uptime percentages. This consistency improves throughput and lowers operating costs per unit of output.

The ability to handle large volumes smoothly at different speeds has made belt conveyors ubiquitous on assembly lines and within facilities. These automate material flows between sequential processing stages, ensuring uninterrupted workflows. This seamless integration accommodates lean manufacturing principles of just-in-time production and work-in-progress inventory reductions.

Belt conveyors occupy less space as compared to roller or overhead versions moving equivalent tonnages per hour. Their compact footprints are well-suited for optimizing factory floor space utilization.

Given the variety of payloads accommodated and high return on scalable capacity investments, belt conveyors will continue dominating the conveyor system market due to  their unmatched versatility for diverse material handling functions.

Insights, By Vertical - Focus on Efficiency and Safety Boosts Manufacturing Sector

By vertical, manufacturing segment is estimated to contribute the highest market share of 37.5% in 2024, due to concerns around efficiency and workplace safety. Conveyor systems are critical for automating material flows across complex production processes. These optimize resource usage, boost throughput, and minimize unnecessary employee exertion.

Precise conveyance of parts and components is essential for achieving high levels of quality, consistency and ergonomic work practices demanded within modern manufacturing facilities. Systems like belt, roller and overhead conveyors transfer loads accurately and gently between machinery with negligible risk of damage.

Manual handling poses ergonomic issues like repetitive strain injuries, which drive up healthcare costs and lost work time. Conveyors alleviate such physical burdens by automating transport tasks formerly done by hand. These enhance occupational safety by keeping workers away from dangerous moving machinery.

Regulations further mandate safety compliance, increasing importance of automated guided vehicles (AGVs) that eliminate accidents compared to forklifts in congested shipping/receiving areas. Conveyors integrated with control systems autonomously route containers and pallets between automated storage and handling stations.

Focus on productivity, compliance and human-centric operations will sustain manufacturing's leadership, thus, boosting adoption of conveyor system.

Regional Insights

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North America has been the dominant region in the global conveyor system market with an estimated market share of 40.1% in 2024. The large-scale presence of prominent automotive OEMs as well as other manufacturing industries such as food and beverage, mining, and airport logistics has boosted demand for conveyor systems in the region. Majority of Tier 1 system integrators and automation solution providers  are headquartered in the region, thus, providing  an edge over others in terms of technology offerings and innovation. Furthermore, the region is known for adhering to the highest safety and operational standards, making the products compliant with regional regulations.

Asia Pacific region has emerged as the fastest growing market for conveyor system globally. Rapid industrialization and growing manufacturing sectors, especially in China, India, Vietnam and Indonesia can drive the market growth. These countries are also attractive manufacturing destinations for industries shifting their production bases from other mature markets. As business activities increase in the region, the need for material movement, sorting, and packaging within industrial facilities has surged tremendously. Local system integrators are continuously enhancing their capabilities to tap into domestic as well as export opportunities. China, being the manufacturing powerhouse, has the largest number of domestic conveyor system manufacturers and component suppliers. These are renowned for affordable price points and flexible customization options.

The Middle East market is witnessing steady growth due to infrastructure projects, airport expansions, and growth in warehousing and logistics centers. Majority of projects rely on technology transfer and capability building partnerships between local players and their international counterparts. This allows regional businesses to gain expertise in installation, commissioning, and maintenance of advanced automation solutions. System companies source components and sub-assemblies from global hubs while undertaking final assembly, testing and product support functions within the region.

Market Report Scope

Key Developments

• In June 2023, Siemens introduced the SIMATIC WinCC Unified V18, an advanced visualization system integrated within the TIA Portal. This system features significant enhancements to the WinCC Unified software, which supports panels and runtime systems, facilitating vertical integration from visualization to operational processes. Siemens' open-source runtime platform addresses challenges associated with proprietary engineering, enabling quicker commissioning through pre-installed applications. Users can transfer runtime applications via various methods, including PC-based software, USB drives, SD cards, and network options, simplifying the process of updating and servicing HMIs both locally and globally.
• In February 2023, Murata Machinery USA, Inc. (Muratec), a leading provider of automation solutions that specializes in logistics and clean room technologies, announced the introduction of the Ledger A3 mini-load system. This innovative automated storage and retrieval system (AS/RS) features a four-tote carriage designed for high-density storage and retrieval of small products.
• In March 2021, Columbus McKinnon Corporation, a prominent manufacturer of motion control products and systems, announced its acquisition of Dorner Manufacturing Corporation, a leader in high-precision conveyor solutions. Dorner will continue to operate within the Columbus McKinnon portfolio, and this integration is expected to enhance Dorner's automation capabilities and open up new opportunities for product development and market expansion.
• In January 2021, MHS Holdings, Inc., a leading provider of advanced material handling automation solutions, engineering, equipment, and software based in the U.S., announced its acquisition of the U.S. conveyor business division of TGW Systems, Inc. This acquisition involves certain assets from TGW's conveyor unit, which operates independently from its integration division, and is expected to close in February 2021.

*Definition: Global Conveyor System Market consists of companies that manufacture and supply conveyor belt systems used for transporting materials over short or long distances in various industries like food processing, healthcare, airport luggage handling, parcel sorting, and manufacturing. Conveyor systems allow for efficient transport of products, packages, components and waste without much manual labor.

Market Segmentation

• Type Insights (Revenue, US$ Bn, 2019 - 2031)
• • Belt Conveyor Systems
  • Roller Conveyor Systems
  • Overhead Conveyor Systems
  • Pallet Conveyor Systems
  • Others (e.g. Vibrating Conveyor, Bucket Conveyor)
•  Vertical Insights (Revenue, US$ Bn, 2019 - 2031)
• • Manufacturing
  • Logistics and Warehousing
  • Food and Beverage
  • Mining and Minerals
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Bastian Solutions, Inc.
  • BEUMER Group GmbH & Co. KG
  • Caterpillar Inc.
  • Continental Conveyor
  • Daifuku Co., Ltd.
  • Dematic Corp.
  • Dürr AG
  • Emerson Electric Co.
  • Fives Group
  • Interroll Group
  • Kardex Group
  • Kuka AG (Swisslog Holding AG)
  • Murata Machinery, Ltd.
  • Siemens AG
  • SSI Schäfer AG