Increasing Demand for Material Handling Equipment to Enhance Warehouse Productivity
The past couple of decades have witnessed exponential rise in trade volumes around the world as a result of a number of free trade agreements, including NAFTA, AFTA, and TPSEP, among others. The commendable rise in the seaborne trade is one of the primary factors expected to drive the expansion of the global reach stacker market in the upcoming years. The demand for material handling equipment such as reach stacker continues to move in the upward trajectory, due to the booming e-Commerce sector, significant growth in the activity across seaports worldwide, booming industrial sector particularly in developing regions, and increasing focus on boosting economic growth.
The material handling equipment space has evolved at a rapid pace over the past decade due to advancements in technology and considerable improvements in the application of various engineering concepts. Players operating in the current reach stacker market are increasingly focusing on the development of customized reach stackers as per the requirement of clients from various industrial domains. In addition, improving the efficiency and quality of the products is another parameter the players operating in the current market landscape are expected to focus on to gain a competitive edge during the forecast period.
At the back of these factors, increasing trade, rise in seaborne trade, and rising demand for reach stacker from the industrial sector, the global reach stacker market is anticipated to surpass the US$ 600 Mn mark by the end of 2030.
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High Demand for Warehouse Applications to Aid Market Growth
Although the demand for reach stacker for warehouse applications is expected to remain most prominent, the demand from seaports and terminals has witnessed consistent growth over the past few years– a trend that is expected to gain further momentum during the assessment period. Warehouse management has gradually gained considerable spotlight over the past few years, due to a significant boom of the e-Commerce sector worldwide. The adoption of reach stacker across the warehouses has witnessed considerable growth to ensure optimum efficiency, workflow, and productivity. This factor is expected to propel the global reach stacker market during the forecast period. As the name suggests, reach stackers are primarily designed for reach and stack application in which, the use of conventional forklifts is restricted due to their height and reach. Reach stackers continue to have a positive influence on the warehouse storage fleet, and offer a practical solution for applications that require reaching and stacking of materials within the warehouse. Furthermore, as reach stacker provides added advantage of working in narrow aisles and reach a height of up to 14 meters, the adoption continues to witness growth.
Some of the most widely used reach stackers include side loaders, pallet jacks, cranes, and turret trucks. Due to mounting environmental concerns and evolving regulatory landscape, the demand for hybrid and electric reach stackers is on the rise.
Market Players Focus on Expanding Product Portfolio to Gain Competitive Edge
Due to the evolving industrial and regulatory landscape, market players operating in the current reach stacker market are compelled to diversify their product range and offer customized solutions to their end users to gain a competitive edge. For instance, Konecranes announced the launch of the first-of-its-kind hybrid reach stacker that is expected to comply with emission guidelines, boost productivity, minimize fuel consumption, and improved operator performance. Similarly, due to the increasing focus on minimizing carbon emissions, in September 2020, XCMG announced the launch of an electric reach stacker that is integrated with a maintenance-free battery and a smart power management system and energy recycle technology.
Demand to Remain Steady amid COVID-19 Pandemic
The growth of the global reach stacker market is likely to remain steady amid the ongoing COVID-19 pandemic, as the e-Commerce sector has witnessed considerable movement in 2020. The shutdown of brick and mortar stores and restrictions on movement, transport, and trade led to a sizeable rise in the number of online orders due to which, warehouse management gained notable spotlight. Although the low trade activity, especially in the first half of 2020, is likely to hinder the demand for reach stackers, the market is projected to witness steady growth in 2020.
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Reach Stacker Market: Overview
- The global reach stacker market is anticipated to expand at a CAGR of ~4% during the forecast period, owing to increase transportation of goods and commodities across the globe. This, in turn, is likely to increase the demand for reach stacker across various industries and ports. Major material handling manufacturers are investing to increase the load carrying capacity of reach stackers. However, the introduction of electric and hybrid reach stackers is anticipated to boost the reach stacker market across the globe.
- The logistics industry is continuously witnessing rapid transformation, emerging technologies are carving the future of logistics, including the incorporation of GPS and automated material handling equipment and biometrics. Additionally, the Internet of Things (IoT) has the potential to transfer data through networks, while ensuring safety and security drivers of reach stackers.
- Increasing investment in improvement of quality and size of ports by various countries is anticipated to boost the storage capacity of ports. However, major countries are upgrading their ports and also investing on maintenance of ports, which, in turn, is projected to increase the size of the ports, which is estimated to directly increase the capacity of container handling and the import & export capacity of containers at the port.
- Introduction to autonomous and semi-autonomous reach stacker is likely to propel the reach stacker market across the globe. Development of ports and increase in exchange of goods across developing countries are anticipated to propel the reach stacker market across the globe.
- Rise in the number of containers at ports and increase in number of global businesses that require container handling equipment are expected to drive the demand for reach stackers during the forecast period. Growing trend of online shopping has increased the demand for advanced material handling equipment in warehouse centers. E-commerce and third-party logistics companies in the market are increasingly installing reach stackers in warehouses and distribution centers to store products in order.
Challenges for Reach Stacker Market
- Various governments in Europe, the Americas, and rest of the world have shut down manufacturing plants, as a result the forceful quarantine in order to reduce the spread of the infection. This is likely to restrain the reach stacker market in the year 2020. However, aggressive monitory policies have been enacted by several governments across the globe in order to reduce financial losses caused by the coronavirus pandemic, which is estimated to drive the global reach stacker market in 2021.
- Growing seaborne activities across the globe is likely to increase the demand for deck cranes to lift heavy cranes. This is likely to pose a challenge for the reach stacker market across the globe. High initial cost is required for the installation of reach stacker, which is also a key factor that restrains the reach stacker market across the globe.