According to a recent market research study, the global market for conveyor systems is projected to reach $9.85 billion by 2026 – up from $7.65 billion in 2020. The cause for over $2 billion worth of growth? Simply put, high demand for automation.
Material handling processes are among the most laborintensive in manufacturing, warehousing and other logistics operations, making it a high-value automation proposition. And with conveyor a foundational component of those automated systems, continued growth is inevitable.
But what’s behind these automation trends, and what challenges might such growth in demand pose to the industry at large?
Bellwether Industries: E-commerce and Automotive
“...e-commerce and automotive are two industires with a large appetite for conveyors”
A recent Forbes article cited COVID-19 as accelerating e-commerce growth for 4-6 years, with online spending growing 77% year-over-year. For context, a spike of such magnitude is uncommon even during the holiday peak season. According to the same report, the 2019 holiday season drove just a 13% increase compared to the same period the year prior.
The automotive industry has been wading through the effects of various component shortages this year and exploring ways to build in redundancy to limit future related disruptions. You can read about the issue in our blog from last month here, but that’s only one storyline shaping this industry. Automotive manufacturers from Ford to GM keep announcing additional investments to support electric vehicle production.
The bottom line is that e-commerce and automotive are two industries with a large appetite for conveyors. Whether fulfilling direct to consumer orders, supplying and storing automotive components, or actually assembling vehicles, conveyor plays a critical role.
Managing Challenges That Come With Growing Demand
With escalated demand not only on the horizon but already in motion, the question is: can the conveyor industry keep up?
Long lead times for conveyors can cause major disruption for automated material handling systems. While lead times may normally be a few weeks in normal circumstances, the aftermath of the COVID-19 pandemic and various component shortages can extend lead times to a matter of months or even a year. Be sure to plan ahead, as long lead times can leave systems integrators and end-users alike scrambling for an alternative or left with projects on hold.
Another challenge can be the nature of the items the conveyor must carry. Is a degree of customization necessary? For example, moving large automotive components like tires and wheels is a different proposition than handling standard corrugate boxes and polybags typical of e-commerce. What’s more, the rise of the direct-to-consumer model in industries like furniture means the challenge of bulky items is coming to e-commerce and parcel distribution facilities, too. When considering custom conveyors, be sure to bear in mind the experience of the manufacturer, lead time, and integration capability.
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