Market Size of Vertical Lift Module (VLM) Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.00 % |
| Fastest Growing Market | North America |
| Largest Market | Asia-Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vertical Lift Module (VLM) Market Analysis
The vertical lift module (VLM) market is expected to register a CAGR of 8% over the forecast period. Because of Industry 4.0, factories and warehouses are now more likely to use automated solutions.
- Vertical lift modules form a significant part of the solution due to the shifted focus on smart intralogistics. Intralogistics experienced significant disruption over the past decade due to changes in end markets as preferences evolved from using VLMs as a mere space management tool to deriving operational benefits from connected solutions. This is one of the significant factors that is driving the market.
- Further, another major factor that is driving the market is the stringent government regulations for increasing workplace safety. The Occupational Safety and Health Act, in its updated standards, has also mandated safety fall protection for employees, regardless of the fall distance. Hence, the safety of the workplace, which deals with the prevention of any injury or incident, becomes critical, thereby increasing the adoption of a vertical lift module (VLM).
- Also, more retailers are using small-format distribution centers in areas with a lot of people. This means that square footage is limited and expensive, and the need for flexible, scalable, automated VLMs that can handle high volumes in small spaces is expected to grow and drive the retail market.
- However, on the flip side, the high cost of the vertical lift module (VLM) and the high maintenance associated with them are a few factors that are restraining the market's growth in the forecasted period.
- COVID-19 was expected to contribute to market growth in the future. This was due to the focus on automation in industries such as automotive, food and beverage, and logistics, so as to maintain social distancing and stress worker safety.
Vertical Lift Module (VLM) Industry Segmentation
A vertical lift module (VLM) is a closed system with an inserter and an extractor in the middle. This makes it easy for stored trays to be found and taken out automatically.When stored items were brought to the operator, the search time was cut by a lot, which increased productivity by 66%.
The studied market divides VLM into groups based on the end-user industries, such as automotive, food and beverage, and retail, and gives a detailed analysis of specific use cases and application areas. Also, the analysis of geography leaves out major countries in North America, Europe, and the Asia-Pacific region.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By End-user Industry | |
| Metal and Machinery | |
| Automotive | |
| Electrical and Electronics | |
| Retail/Warehousing/DistributionCenter/Logistics Center | |
| Life Sciences | |
| Food and Beverage | |
| Other End-user Industries |
| By Geography | ||||||||
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| Latin America | ||||||||
| Middle East and Africa |
Vertical Lift Module (VLM) Market Size Summary
The vertical lift module (VLM) market is poised for significant growth, driven by the increasing adoption of automated solutions in factories and warehouses as part of the Industry 4.0 movement. This shift towards smart intralogistics has transformed VLMs from simple space management tools to integral components that offer operational benefits through connectivity. The market is further bolstered by stringent government regulations aimed at enhancing workplace safety, which mandate the use of VLMs to prevent workplace injuries. The retail sector, particularly, is witnessing a surge in demand for flexible and scalable VLMs due to the rising need for efficient space utilization in small-format distribution centers. However, the high costs and maintenance requirements of VLMs pose challenges to market expansion.
The Asia-Pacific region is expected to experience the fastest growth in the VLM market, driven by initiatives like China's "Made in China 2025" and India's "Make in India," which are set to boost manufacturing and logistics activities. The region's burgeoning economies and population density further contribute to the demand for automated storage solutions. The COVID-19 pandemic has also accelerated the shift towards automation across various industries, including food and beverage, to maintain social distancing and ensure worker safety. Major players in the market, such as Kardex Group and Modula Inc., are expanding their global presence through strategic collaborations and technological advancements, while smaller companies are gaining traction by securing new contracts and entering untapped markets.
Vertical Lift Module (VLM) Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Adoption among Warehouse Owners due to Reduced Floor Space
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1.1.2 Significant Advantage over Traditional Storage and Retrieval Systems
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1.2 Market Challenges
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1.2.1 Increasing Energy Consumption Concerns and Huge Infrastructural Costs
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2. MARKET SEGMENTATION
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2.1 By End-user Industry
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2.1.1 Metal and Machinery
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2.1.2 Automotive
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2.1.3 Electrical and Electronics
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2.1.4 Retail/Warehousing/DistributionCenter/Logistics Center
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2.1.5 Life Sciences
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2.1.6 Food and Beverage
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2.1.7 Other End-user Industries
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2.2 By Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.2 Europe
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2.2.2.1 Germany
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2.2.2.2 United Kingdom
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2.2.2.3 France
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2.2.2.4 Italy
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2.2.2.5 Spain
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2.2.2.6 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 China
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2.2.3.2 Japan
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2.2.3.3 South Korea
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2.2.3.4 Rest of Asia-Pacific
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2.2.4 Latin America
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2.2.5 Middle East and Africa
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Vertical Lift Module (VLM) Market Size FAQs
What is the current Vertical Lift Module (VLM) Market size?
The Vertical Lift Module (VLM) Market is projected to register a CAGR of 8% during the forecast period (2024-2029)
Who are the key players in Vertical Lift Module (VLM) Market?
Kardex Group, Hänel Storage Systems, Ferretto Group S.p.a, Modula Inc.(System Logistics) and AutoCrib Inc. are the major companies operating in the Vertical Lift Module (VLM) Market.
