The global conveyor systems market has consolidated competitive landscape, and a handful of players have captured a substantial market share. The demand for conveyor belts has been tracing an upward graph and the market players are eyeing the lucrative opportunities that float in the global market. The expertise of the leading market players coupled with their effective business hacks have helped them reach the pedestal of growth. The top market players that held around 50% of the total market share in 2017 are Schaefer Systems International Inc., Daifuku Co. Ltd., Dematic Group, and Murata Machinery Ltd. These market players have used quality and durability as their unique selling point and are expected to thrive on the same propositions over the coming years. Furthermore, these leading market players are expected to resort to a range of strategies to retain their dominance in the global market for conveyor systems. On the other hand, the local and regional players are projected to rely on reducing their operational and manufacturing costs to increase their profit margins. Mergers, strategic alliances, partnerships, and acquisitions are also expected to be a key highlight of the global market for conveyor systems. There are strong barriers to the entry of new players in the global market because of the strongholds of the existing vendors. Besides this, the sustenance of new entrants in this largely consolidated global market would suffer major roadblocks.
A report published by Transparency Market Research (TMR) analyses the trends and opportunities floating in the global market for conveyor systems. The report forecast key indicators of growth such as market value, regional market share, and growth rate. The global market for conveyor systems is expected to grow at a CAGR of 3.5% over the period between 2017 and 2025. The global market was valued at US$4697.1 mn in 2016 and is expected to reach a value of US$6312.5 mn in 2025.
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Need for Safe Working Conditions Drives Demand
The operational efficiency offered by conveyor systems is the primary driver of demand within the global market. The industrial sector involves the transfer of voluminous amounts of goods inside the manufacturing unit, which propels demand within the global market for conveyor systems. Furthermore, the deployment of conveyor systems across a manufacturing unit relieves the burden of the laborers and enhances their productivity. The safety and wellbeing of laborers alongside a reduction in the overall production time are some of the advantages of conveyor systems in the industrial sector. The conveyor belts used on airports are also in great demand across the globe which further adds to the relevance of conveyor systems in contemporary times.
High Costs of Conveyor Systems to Hamper Market Growth
The demand for conveyor systems comes from multiple industries which enhances the growth prospects of the global market. However, the installation of conveyor systems is a herculean process that incurs heavy expenses for the industrial unit. Hence, the small and medium-sized manufacturers cannot afford to deploy conveyor systems across their unit; this takes a huge consumer base away from the market players. Besides this, the heavy costs incurred on the repair and maintenance of conveyor systems also obstructs market growth.