AUSTRALIA CONVEYOR MAINTENANCE SERVICE MARKET ANALYSIS

Australia Conveyor Maintenance Service Market is estimated to be valued at US$ 883 Mn by 2030.

A conveyor system is a widely used mechanical device that facilitates the movement of materials or objects from one location to another. It plays a crucial role in ensuring efficient product transportation for companies. While conveyor systems are frequently utilized in manufacturing plants, their lifespan can be extended through proper maintenance conducted by trained technicians. Maintenance is vital as conveyors are susceptible to various failures, including belt splice failure, misalignment of fasteners, seized or misaligned idlers and rollers, off-center or improper loading of the belt, belt misalignment, and breakdown or failure of conveyor belt drives. To address these issues, precautionary measures such as cleaner maintenance, pulley lagging, belt and roller tracking, vibrational analysis, and more are implemented.

Australia Conveyor Maintenance Service Market - Impact of Coronavirus (Covid-19) Pandemic

The spread of the COVID-19 has had an impact on people and businesses across the globe. Lockdowns were imposed across the globe. This disrupted the world economy as businesses were either shutdown or operated partially. This also impacted the business of conveyor maintenance services in Australia, as all the industries such as automotive, mining, manufacturing, and others were affected by the Covid-19 crisis and hence, demand for conveyor maintenance service also decreased due to less usage of conveyors in various plants. Hence the conveyor maintenance service market in Australia witnessed slow growth during pandemic.

Australia Conveyor Maintenance Service Market- Drivers:

Increasing production of mineral goods

Increasing production of mineral goods is driving growth of the Australia conveyor maintenance market during the forecast period. The prices of mineral goods have decreased significantly in the recent past, owing to high operational cost that affects profitability of mining business in Australia. However, increasing production of mineral commodities from new mines has led to expansion of the production capacity of iron mines.

Increasing Automation in Various Industries

The increasing prevalence of automation in diverse industries in Australia is motivated by the objectives of enhancing productivity, reducing costs, and improving operational efficiency. Automated conveyor systems play a significant role in warehouses, distribution centers, and manufacturing facilities. With the escalating adoption of automation, there is a corresponding increase in the demand for conveyor maintenance services to ensure the uninterrupted and efficient operation of these automated systems.

Australia Conveyor Maintenance Service Market- Opportunities:

Lucrative growth of manufacturing industry

Lucrative growth of manufacturing industry is expected to pose significant business opportunities over the forecast period. The Manufacturing industry is one of the major industries that extensively use conveyors for transportation of different materials, goods, objects and more.

Industrial Growth in Australia

The industrial sector in Australia exhibits diversity and growth across multiple domains, such as mining, manufacturing, logistics, and agriculture. These sectors rely significantly on conveyor systems for efficient material handling and transportation. As the industrial sector expands, there emerges a heightened demand for specialized conveyor maintenance services to provide expertise in the maintenance, repair, and optimization of conveyor systems.

Australia Conveyor Maintenance Service Market- Trends:

Enhancement in component design

Enhancement in component design is a major trend in the market. Key companies in the market are focused on innovating specialized maintenance service tools, in order to cater increasing demand from consumer.

Growing strategic alliance

Growing strategic alliance among key players is another major trend in the market. Key players in the maintenance industry are focused on various strategic moves such as mergers and acquisitions, in order to gain competitive edge in the market.

Australia Conveyor Maintenance Service Market- Restraints:

Rising pricing pressure over service and components

Rising pricing pressure over service and components providers is expected to restrain the Australia conveyor maintenance market growth over the forecast period. The decrease in commodity prices and subdued global mineral demand have had a substantial impact on mineral exploration activities in Australia. As a result, several mining operations have been forced to shut down, while the remaining companies are prioritizing cost-cutting measures to mitigate losses. These measures involve closely managing expenditure and reducing both capital and operational costs. Due to this, there have been limited contract renewals from single maintenance provider. This, in turn, is expected to restrain the market growth over the forecast period.

Budgetary Constraints and Cost Pressures Impede Demand for Professional Conveyor Maintenance Services

In the Australian market, numerous businesses encounter financial limitations and strive to reduce expenses. This circumstance is particularly relevant to conveyor maintenance services, which often entail the use of specialized expertise and equipment, resulting in higher costs. Consequently, certain companies may choose to pursue reactive maintenance approaches or undertake maintenance tasks internally as a cost-saving measure. This preference for cost minimization alternatives restricts the demand for professional conveyor maintenance services.

Figure 1: Australia Conveyor Maintenance Service Market Share (%), By Service Type, 2022

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Australia Conveyor Maintenance Service Market- Segmentation:

Australia Conveyor Maintenance Service Market report is segmented into Service Type, Conveyor Type & End-use Industry.

By Service Type: Component Replacement (Conveyor Belt, Roller and Idler, Cleaner, Others (Skirting Clamps, Pulley Lagging, Fastener, Impact Beds, Splicing Kits, etc.)), Maintenance Services.

By Conveyor Type: Rubber, Metal, Others

By End-use Industry: Mining, Industrial and Automotive, Pharmaceutical, Food Processing, Others (Power, Fertilizer, Transport, and Logistics)

Component replacement is expected to drive the Australia conveyor maintenance service market growth during the forecast period.

Among service type, component replacement segment is expected to exhibit the highest growth rate over the forecast period. According to the RBA (Reserve bank of Australia) report published in 2021, the mining industry contributes 11.5% share in Australia’s economy amongst the other industries. As the mining environment is harsh and causes wear and tear of the conveyor systems, the components need frequent replacement. Hence, the component replacement segment is expected to grow significantly in the forecast period.

The Maintenance Services segment in the Australian conveyor service market is experiencing growth due to several factors. The increasing industrialization and automation in sectors such as manufacturing, mining, and logistics have resulted in a higher demand for conveyor systems. As these systems are critical for smooth operations, the need for regular maintenance and servicing has increased. Also, businesses are recognizing the importance of preventive maintenance to minimize downtime and extend the lifespan of their conveyor systems. This has led to a rise in outsourcing maintenance services to specialized providers. Additionally, stringent safety regulations and a focus on operational efficiency have further fueled the growth of the Maintenance Services segment in the Australian conveyor service market.

Australia Conveyor Maintenance Service Market: Key Developments

Major market players are focusing on product launches in order to enhance their product portfolio. For instance,

For instance, In March 2020, Flexco, a conveyer belt manufacturing and maintenance service company introduced Elevate Belt Conveyor Intelligence, a real-time belt cleaning monitoring solution powered by data analytics. It enables mining organizations to obtain important information from afar in order to improve belt conveyor efficiency.

For instance, In Sept 2020, With the Belt Gauge solution, Fenner Dunlop, provider of the largest and most advanced team of conveyor technicians and service equipment fleet, has added mobile functionality to its portfolio of iBelt conveyor technology, giving customers from all products and conveyor industry applications a new option to accurately monitor conveyor health.

In April 2021, Fenner Dunlop, a UK-based manufacturer, and distributor of rubber conveyor belting for industrial purposes, acquired Technobalt for an undisclosed amount. The acquisition aims to strengthen Fenner's position as a provider of highly specialized conveying products and expand in numerous applications such as waste management, mining, quarrying, energy, and paper industries. Technobalt is an Estonia-based company involved in offering conveyor belts and related maintenance services

Australia Conveyor Maintenance Service Market: Key Companies Insights

Major players operating in the Australia Conveyor Maintenance Service market include ContiTech Australia Pty. Ltd., Endless Belt Service Pty Ltd., Fenner Dunlop Australia Pty Ltd, Flexible Steel Lacing Company (Flexco), Kinder Australia Pty Ltd., Mato GmbH & Co. KG., Minprovise Pty Ltd, Nepean Engineering & Innovation Pty Ltd., Reliable Conveyor Belt Pty. Ltd., Rema Tip Top Australia, Forbo Siegling PTY. Ltd., and others

*Definition:

A conveyor system is a common piece of mechanical handling device that moves materials/objects from one location. A conveyor is often lifeline to a company’s ability to effectively move its products in a timely manner.