According to the new research report titled “Conveyor System Market Forecast to 2027 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 11903.88 million by 2027, registering a CAGR of 5.5% from 2020 to 2027.
In the past few years, increase in vehicle production, particularly in the developed regions, such as North America and Europe, has driven the conveyor system market. The demand for commercial vehicles and passenger cars, primarily in developing countries, is increasing. For instance, as per the International Tin Association Ltd., in 2014, China reported the production of 24 million vehicles, and it would increase to 364 and 607 million by 2030 and 2050, respectively. Therefore, growing investment in the automotive industry has fueled the demand for conveyor systems. According to the Center for Automotive Research, a non-profit organization, in 2018, automakers such as FCA, GM, Ford, Hyundai, Nissan, Volkswagen, and Toyota invested US$ 4.8 billion in the automotive industry. Besides, in Europe, automotive investment in research and development (R&D) has increased by 6.7% to reach US$ 67.09 billion annually. In vehicle production plants, it is important to have high control and high quality in all operations carried out in the industry; thus, the automotive industry is highly implementing conveyor systems in their vehicle production plants. The conveyor systems help vehicle production plants to keep control and have free space for new operations. As the conveyor system mitigates the labor work, it reduces the company’s investment on staff training. Thus, rising vehicle production and growing adoption of conveyor systems in the automotive industry are boosting the growth of the market.
As per the WHO, as of November 3, 2020, there were around 46,840,783 confirmed COVID-19 cases globally, including 1,204,028 deaths, and the number is growing at varying rates in different countries. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in 2020 and it is likely to continue in 2021 as well. The outbreak has created significant disruptions in primary industries, such as logistics, retail, and e-commerce. The sharp decline in the international logistics business industry is negatively impacting the growth of the global conveyor system market. The factory shutdowns, travel bans, trade bans, and border lockdowns to combat the outbreak have adversely affected the logistics industry.
Growth in e-commerce industry and increase in vehicle production are driving global conveyor system market. However, the concerns over environmental impact of mining activities may hinder the market growth. Despite limitations, growing digitization is creating opportunities for conveyor system, which is anticipated to bolster the growth of the conveyor system market.
Key Findings of Study:
The global conveyor system market is fragmented into five major regions—North America, Asia Pacific (APAC), Europe, Middle East & Africa (MEA), and South America (SAM). The market in APAC is projected to experience a significant growth during the forecast period.
Nevertheless, significant strategic initiative by industry players are observed in the market; for instance, on November 2020, Siemens launched a new compact and powerful drive system specifically designed for horizontal conveyor applications. The drive system comprises a motor, frequency converter, and gearbox.
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