Global Warehouse Racking Market Insights Forecasts to 2032

• The Global Warehouse Racking Market Size was valued at USD 9.29 Billion in 2022.
• The Market is growing at a CAGR of 5.9% from 2022 to 2032.
• The worldwide Warehouse Racking Market is expected to reach USD 16.56 Billion by 2032.
• Asia Pacific is expected to grow the fastest during the forecast period.

The Warehouse Racking Market is expected to grow from USD 9.29 Billion in 2022 to USD 16.56 Billion by 2032, at a CAGR of 5.9% during the forecast period 2022-2032.

Market Overview

Warehouse racking is a system designed for storing products in a warehouse. Racking is a framework of steel that consists of beams, metal frames, and connectors. Welding, clipping, and bolting are common methods for assembling and constructing warehouse racking systems. Warehouse racking systems of various varieties have become an essential aspect of a warehouse's operations and inventory requirements. Warehouse racking assists in the optimization of storage spaces and enhances storage capacity. The systematic arrangement of products in the warehouse improves order identification, picking, and completion. The rising e-commerce sector is one of the key reasons fueling the expansion of the global warehouse racking market. As online shopping becomes more prevalent, there is a growing demand for efficient warehouse and distribution solutions. Robots or other automated devices are gaining traction in automated warehouse racking systems to transport and store products in warehouses. The growing popularity of automated warehouse racking systems is likely to have a substantial impact on the worldwide warehouse racking market. Manufacturers of warehouse racking are creating new and creative automated warehouse racking systems to fulfil the needs of enterprises of all sizes. This is projected to propel the global warehouse racking market further in the future years.

Driving Factors

Increased adoption of pallet racking systems due to features such as cost-effectiveness and speedy product transportation will drive the market over the forecast period. Furthermore, rising volumes of cross-border retail deliveries have increased demand for warehouse storage solutions. The adoption of contract logistics and distribution services around the world may promote industry growth in the next years. As a result of the emphasis on enhancing operational efficiency and cost optimization, there is an increasing demand for automated warehouse systems. This has driven an increase in demand for warehouse racking systems that can be connected with automation technologies such as robotics and conveyors. These modern technologies promote effective material handling, order picking, and inventory management, supporting market growth.

Restraining Factor

Workers' lack of awareness regarding the weight-bearing capacity of warehouse racks leads to rack overloading beyond the engineered weight capacity. Furthermore, faulty lift equipment training and a lack of driver training cause rack damage. Inadequate inspections and the use of low-quality materials are also expected to restrict market growth.

Warehouse racking systems require being maintained on a regular basis to ensure structural integrity and safe functioning. However, the costs of maintenance, repair, and replacement of broken components can be prohibitively expensive, particularly for tiny firms. The cost burden of continuous maintenance and repairs can be a concern for organizations looking to invest in warehouse racking solutions while working on a limited budget.

COVID-19 Impact Analysis

The coronavirus outbreak had a substantial impact on the warehouse racking industry. Preventative lockdowns imposed by the government to avoid spreading diseases created significant disruptions in a variety of industries and supply-chain sectors.

The COVID-19 pandemic had a tremendous impact on the warehouse management system market as consumers migrated to online platforms. Online demand for food and beverages, necessities, and prescriptions surged, all of which were delivered using innovative contactless methods. Increased online demand for a wide range of products was increased need for warehousing.

Market Segmentation

By Product Insight

The selective pallet segment is dominates the largest share of the Warehouse Racking Market during the forecast period.

On the basis of product segment, the warehouse racking market is classified into selective pallet, drive-in, double deep, back racking/push-back rack, pallet flow rack, and other. Among these, the selective pallet segment is anticipated to grow during the forecast period. Factors such as simple design structure, provision for easy handling of products, easy replacement of broken components, and adjustments of metal beams for varied heights are driving increasing demand for the selective pallet racking system market.

By Application Insight

The retail segment is accounted to hold the highest share of the Warehouse Racking Market during the forecast period.

On the basis of application segment, the warehouse racking market is sub-segmented into automotive, food & beverages, retail, and others. Among these, the retail segment is anticipated for the largest market share during the forecast period. Food and beverage warehouses require high-density storage facilities with several low and high levels on a rail-based system. Increasing investments and expansion plans in food and beverage warehouses and distribution centers around the world are boosting the segment's growth even further.

By Region Insight

North America dominates the Warehouse Racking Market with the largest market share throughout the forecast period.

North America dominates the largest market share over the forecast period. Over the projection period, the increased demand for fully automated warehousing facilities is expected to create substantial market opportunity. Increasing e-commerce platforms are encouraging consumers to buy more products online, which supports the development of warehouse infrastructure throughout the region. Rising construction activities in support of warehouse construction, as well as the replacement of outdated technologies used for storing and retrieving products in warehouses, are expected to help market growth.

The Asia Pacific Warehouse Racking Market is expected to grow fastest during the forecast period. Rapid industrialization, urbanization, and the establishment of a robust e-commerce sector have all developed in the region. Countries such as China, India, and Southeast Asian Countries are experiencing rapid increase in e-commerce activity, prompting the development of efficient warehouse and logistics infrastructure. The expanding manufacturing sector, as well as increased investments in logistics and supply chain management, are all contributing to the growth of the Asia Pacific warehouse racking market.

The Europe market is expected to grow at a rapid pace during the forecast period. Rising demand from the retail, automotive, food & beverage, manufacturing, and packaging application segments is propelling market expansion in Europe. Furthermore, the presence of large-scale warehouse-racking manufacturing firms contributes to the region's growth.

List of Key Market Players

• Daifuku Co., Ltd.
• KION Group AG
• Schaefer Holding International GmbH
• Interroll Holding AG
• Mecalux S.A.
• Jungheinrich AG
• SSI Schaefer AG
• Dematic
• Frazier Industrial Company
• Stocklin Logistik AG
• Steel King Industries Inc.
• Elite Storage Solutions Inc.

Key Market Developments

• On March 2023, Mecalux, a well-known manufacturer of warehouse racking solutions, has announced the establishment of a new manufacturing facility in Mexico. The facility is being constructed to meet the growing demand for warehouse racking solutions in the Americas.

• On June 2021, Interroll is expanding its offerings to make life easier for system integrators and end users, including an organizational overhaul and the deployment of a new spare parts warehouse. Interroll is reorganizing its services for new and existing customers, which are promoted as Interroll Lifetime Service.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2022 to 2032. Spherical Insights has segmented the Warehouse Racking Market based on the below-mentioned segments:

Warehouse Racking Market, Product Analysis

• Selective Pallet
• Drive-in, Double Deep
• Back Racking / Push-Back Rack
• Pallet Flow Rack
• Others

Warehouse Racking Market, Application Analysis

• Automotive
• Food & Beverages
• Retail
• Others

Warehouse Racking Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
  • Rest of Middle East & Africa
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa