Market Trends of Vertical Lift Module (VLM) Industry
Food and Beverage Sector is Expected to Grow Significantly
A significant number of food and beverage companies are tormented by older carousels to facilitate picking, which are now being replaced with vertical lift modules (VLMs). These systems have greatly increased the cube utilization of facilities by allowing these companies to run seamlessly within space constraints.
- Since the industry has huge inventories, the VLMs are made with ergonomic designs and trays that can hold more than 1,000 pounds each. The overall heights of the VLMs range from 15 feet to 75 feet.
- Also, vertical lift modules (VLMs) must be used to keep workers from getting hurt, which is important for worker safety.As a result of the "Made in China 2025" strategy, China is likely to have a lot more factories that use automation by 2025.It fuels the nation's vertical lift module (VLM) business. Continuous investments made by businesses in their logistics divisions have a significant impact on the growth of the vertical lift module market.
- Due to the pandemic, there has been the worst labor shortage globally. Strict regulations and COVID-19 guidelines and protocols to follow have created a huge gap in supply and demand for labor in the food and beverage industry. Therefore, many organizations are also looking for cost-cutting methods, such as lower wages and layoffs, considering the global scenario. Many organizations are thus looking to upgrade their warehouses with solutions like VLM to be more efficient; however, the high cost of solutions, fluctuating global economies, and uncertainty in the business hamper the application of such solutions.
- Edge by Ascential, a top provider of e-commerce services, says that over the next few years, the digital sector is likely to grow, even though physical stores are still the most common way to sell food. It is expected that online sales in this sector will grow from 174 billion US dollars in 2021 to more than 275 billion US dollars in 2026. E-commerce is anticipated to represent around 7.6% of total grocery sales globally that year.
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Asia-Pacific is Expected to Experience Significant Growth
- Asia-Pacific is expected to grow the most quickly because it is home to China, the world's biggest manufacturing hub and biggest exporter. Automation in China is expected to cut costs by 30% by 2025, and also, by virtue of the 'Made in China 2025' initiative, manufacturing units are expected to increase rapidly in the country. This factor drives the market for the vertical lift module (VLM) in the country.
- Additionally, another fastest-growing economy in the world is India. With India's ambitious plan of 'Make in India," manufacturing and its consequential distribution and logistics activities are expected to witness exponential growth.
- India is also the second-most populous nation in the world, and consumption dominates its economy.Based on the most recent data from the United Nations, India has a population of 1,423,061,201 people.The UN estimates the July 1, 2023 population at 1,428,627,663. Additionally, according to the Economic Survey 2023, India, the nation will grow at a rapid rate of 6 to 6.8% in FY 2024.
- India is also making strides in its logistics and warehouse capabilities, and there are a number of projects, such as the DDF (Dedicated Freight Corridor) Sagar Mala Project, dedicated to e-commerce, logistics, and warehouse operations. India has a total of 11 major ports and 168 smaller or intermediate ports. This makes it possible for a lot of cargo to move along the Indian coast from the islands. This will also require a huge network of warehouses and storage units, making the studied market in the region and during the studied time period a huge market.
- So, the above factors should make the vertical lift module (VLM) in the Asia-Pacific region look good during the forecast period.
Also, to stop the COVID-19 coronavirus from spreading, almost every company was putting in place social distance, safety standards, and protocols to make sure warehouse and factory workers were safe. This got a lot of attention. Thus, organizations were reevaluating their operations in facilities with a lower workforce. The outbreak negatively impacted the hosting of expos and trade shows and was expected to affect the marketing and sales specifics of smaller regional players amid the market incumbents.
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