Industry: Industrial Automation
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 134
Report ID: PMRREP34486
The market is estimated to reach a valuation of US$990.4 Mn by the year 2031, at a CAGR of 8.9%, during the forecast period 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2023E) |
US$545.3 Mn |
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Market Size (2031F) |
US$990.4 Mn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
8.9% |
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Historical Growth Rate (CAGR 2019 to 2023) |
7.5% |
The market stands as a pivotal component within the country's burgeoning logistics and warehousing infrastructure.
Characterized by a diverse array of storage solutions tailored to meet the evolving needs of industries ranging from manufacturing to e-commerce, this market embodies innovation and efficiency.
Key features include a spectrum of racking systems such as selective pallet racks, drive-in/drive-through racks, cantilever racks, and more, offering versatile storage solutions adaptable to various warehouse layouts and inventory types.
India's market for industrial racking plays a vital role in optimizing space utilization, streamlining inventory management, and enhancing overall operational efficiency for businesses across sectors.
As the nation witnesses rapid industrialization and urbanization coupled with the expansion of e-commerce platforms, the demand for robust storage infrastructure continues to surge.
Heightened emphasis on cost-effectiveness and sustainability underscores the importance of investing in efficient racking solutions that minimize wastage and maximize resource utilization.
In essence, the Indian industrial racking market not only addresses the immediate storage needs of businesses but also contributes to the broad goals of enhancing supply chain resilience and competitiveness in the dynamic market landscape of India.
Increased adoption of IoT and automation in the logistics sector is creating a huge demand for industrial racking systems.
Technology is growing faster than ever these days and is always bringing with it new methods and features and involves more than just automobiles and machinery.
The key components driving the market forward are automation and Internet of Things (IoT)-based gadgets, which are widely utilized in regular industrial and warehousing operations.
Automation and the Internet of Things are becoming more prevalent in every industry. Both are employed in manufacturing facilities, the medical field, the aerospace industry, the car industry, and other sectors.
This industrial racking system streamlines and secures warehouse operations while increasing automation in industrial storage systems. This promotes more efficient use of warehouse space as well as the expansion of the industrial racking systems industry globally.
Over the historical period 2019 to 2023, sales of industrial racking systems have increased in parallel with growing e-commerce activities and the setting up of new warehouses in urban areas of India, which registered a CAGR of 7.5%.
Growth in demand and sales can be attributed to the increasing demand for warehousing technologies, effective inventory management, and space optimization.
With the rising expansion of cold storage facilities and growing cold supply chain due to the expansion of the food & beverage industry, demand for mobile racking systems is rising rapidly as these are highly suitable for operation under variable temperature conditions.
Mobile industrial racking equipment is ideally suited for use in negative temperature environments up to -40° C.
In India, some of the prominent manufacturers of industrial racking systems are investing heavily in research and development (R&D) activities to manage their warehousing activities more efficiently.
The continuously rising e-commerce sector in India, coupled with the growing logistics sector, is expected to boost demand for industrial racking solutions and systems in India.
Growth of E-commerce sector
The exponential growth of the e-commerce sector in India has fueled the need for efficient warehousing solutions, driving the demand for industrial racking systems.
With the rise of online shopping platforms and increasing consumer expectations for speedy deliveries, e-commerce companies are investing heavily in optimizing their supply chain operations.
Industrial racking systems offer a scalable and organized storage solution, enabling e-commerce businesses to maximize warehouse space utilization, improve inventory management, and enhance order fulfilment efficiency.
As e-commerce continues to thrive and expand its footprint across India, the demand for industrial racking solutions is poised to experience sustained growth.
Rapid Infrastructural Development
India's focus on infrastructure development and industrialization initiatives is another key driver propelling the expansion of the industrial racking market.
The government's efforts to promote manufacturing under schemes like 'Make in India' have spurred industrial growth, leading to increased demand for storage infrastructure.
Industrial racking systems play a crucial role in optimizing storage space within manufacturing facilities, warehouses, and distribution centers.
As industries expand and modernize their operations to meet growing consumer demand, the need for efficient storage solutions provided by industrial racking systems becomes indispensable, driving market growth in India's evolving industrial landscape.
Infrastructural Challenges
The India industrial racking market faces significant restraints due to infrastructure challenges and limited adoption in rural areas.
While urban centers witness rapid industrialization and expansion of logistics infrastructure, rural regions often lack adequate transportation networks and modern warehousing facilities.
The said disparity hampers the widespread adoption of industrial racking systems in rural areas, limiting market growth opportunities.
Logistical hurdles such as poor road connectivity and limited access to electricity pose challenges for deploying advanced racking solutions in remote locations, constraining market expansion efforts in India's rural landscape.
Cost Constraints
Cost constraints, and affordability issues pose significant challenges for small enterprises looking to invest in industrial racking solutions.
The initial investment required for purchasing and installing industrial racking systems can be substantial, especially for businesses operating on tight budgets.
Ongoing maintenance costs and expenses associated with retrofitting existing warehouses with racking infrastructure further deter small enterprises from adopting these solutions.
As a result, many small businesses resort to traditional storage methods or opt for cheaper alternatives, limiting the market penetration of industrial racking systems among smaller players and impeding overall market growth in India.
Technological Advancements
India Industrial Racking Market creates a wide range of opportunities, primarily driven by technological advancements propelling innovation in racking systems.
Emerging technologies such as automation, robotics, and the Internet of Things (IoT) are revolutionizing the warehousing and logistics landscape, offering opportunities for the development of smarter, more efficient racking solutions.
Integration of automation technologies enables the implementation of automated storage and retrieval systems (AS/RS), and robotic picking solutions, enhancing warehouse productivity and reducing labour costs.
Furthermore, IoT-enabled racking systems equipped with sensors and real-time monitoring capabilities provide valuable insights into inventory management, optimizing warehouse operations and enhancing supply chain visibility.
Expansion of Cold Storage Facilities
The expanding demand for cold storage facilities presents a significant opportunity for the industrial racking market in India.
With the rise of e-commerce, pharmaceuticals, and food and beverage industries, there is a growing need for temperature-controlled storage solutions to preserve perishable goods and sensitive materials.
The demand is further amplified by the increasing focus on food safety regulations and the growing preference for fresh and organic products among consumers.
Due to this, there is a surge in the construction and expansion of cold storage warehouses equipped with specialized industrial racking systems designed to efficiently store and retrieve perishable items.
Capturing this opportunity requires the development of racking solutions tailored to the unique requirements of cold storage facilities, including robust designs capable of withstanding extreme temperatures and ensuring product integrity throughout the supply chain.
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Market Segment by Carrying Capacity |
Market Value Share 2023 |
|
Medium Duty |
50% |
Based on carrying capacity, the India industrial racking market is further sub-segmented into light duty, medium duty and heavy duty, where the medium duty sub-segmentation dominates the market share.
Medium-duty racking systems hold the largest market share in India, as these racks are highly preferred for SKU storage management. Medium-duty industrial racking systems can store shelf loads between 0.25 tons and 1 ton and are mostly used in the Indian market for various industry verticals.
Medium-duty racks are durable, robust, cost-effective and flexible shelf-mounting systems that reduce space usage due to their upright nature, which makes them appropriate for a wide range of storage applications in facilities, warehouses, offices, and retail outlets.
E-commerce Contributes One-third of Total Demand Generation
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Market Segment by End Use |
Market Value Share 2023 |
|
E-commerce |
33% |
Based on end use segmentation, the market is further classified into automotive, construction and e-commerce industry, where the e-commerce industry own major market share.
The e-commerce sector has seen a sudden surge in its demand in the past decade, which eventually fuels the demand for innovative storage solutions.
The e-commerce sector emerges as a key driver, generating substantial demand for advanced racking solutions to optimize warehouse operations.
With the exponential growth of online retail platforms, there is an escalating need for efficient storage infrastructure to manage inventory and expedite order fulfilment.
As e-commerce continues to thrive, the demand for innovative racking systems tailored to the specific requirements of online retailers is expected to soar.
Leading the charge with thriving manufacturing and E-commerce hubs, Maharashtra emerges as the top regional market due to its vibrant industrial landscape, housing major manufacturing centers and burgeoning E-commerce hubs.
Cities like Mumbai, Pune, and Nagpur serve as pivotal nodes for warehousing and logistics operations, driving significant demand for industrial racking solutions to optimize storage and distribution processes.
Spearheading industrialization and logistics development, Tamil Nadu stands out as a prominent regional market, propelled by robust industrialization and a well-developed logistics ecosystem.
With key cities such as Chennai, Coimbatore, and Tirupur serving as manufacturing and trade hubs, the state witnesses substantial demand for industrial racking systems to support the storage and handling of diverse goods across various industries.
Gujarat emerges as a key regional market fostering growth with thriving manufacturing and trade activities driven by its dynamic manufacturing sector and strategic location as a major trade gateway.
Cities like Ahmedabad, Surat, and Vadodara host significant industrial clusters and logistics facilities, fueling demand for industrial racking solutions to streamline warehouse operations and meet the evolving needs of businesses.
Leveraging technology and innovation for warehouse optimization, Karnataka emerges as a top regional market characterized by its emphasis on technology-driven solutions and innovation.
With Bangalore serving as a leading technology hub and a growing presence of E-commerce players, the state witnesses increasing adoption of advanced industrial racking systems to enhance warehouse efficiency and support the booming logistics sector.
August 2022
Kardex, a leading racking system provider, signed an acquisition deal with a startup company called Rocket Solutions, a developer of the latest standardized innovative automatic storage and retrieval system, to expand its business portfolio into the storage and logistics sector.
September 2022
SSI Schaefer, one of the leading warehouse racking solution providers, signed a partnership deal with Coca-Cola to provide innovative storage solutions.
June 2023
Godrej Storage Solutions launched its new vertical carousel system to enhance warehouse efficiency, enabling seamless warehouse operations.
The major competitors in the India industrial racking market are primarily evaluated based on their product or service offerings, their financial statements, developments and the approaches implemented, the company's position in the global market scenario and its geographical reach.
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Attributes |
Details |
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Forecast Period |
2024 - 2031 |
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Historical Data Available for |
2019 - 2023 |
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Market Analysis |
US$ million for Value |
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Key Regions Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Carrying Capacity
By End Use
By Ownership
By Design
By Region
To know more about delivery timeline for this report Contact Sales
The India Industrial Racking market size was valued at US$545.3 Mn as of 2023.
The India industrial racking system is estimated to be valued at US$990.4 Mn in 2031.
Rack & Rollers, Kardex AG, Jungheinrich AG, Daifuku Co. Ltd., SSI Schaefer, and Godrej Group are some of the leading companies in the market.
The e-commerce segment continues to hold a dominant share of the market.
The India industrial racking market is estimated to witness a CAGR of 8.9% by 2031.
