Pallet Racking Market Size, Share and Trends 2024 to 2034

Pallet Racking Market Size and Forecast 2024 to 2034

The global pallet racking market size is calculated at USD 11.23 billion in 2024 and is projected to hit around USD 27.34 billion by 2034, representing a solid CAGR of 9.31% from 2024 to 2034. Growing demand for pallet-racking systems is the primary factor fueling the market growth. Also, the rise in contract logistics and distribution services, along with the cost-effective movement of goods, can propel market growth shortly.

Pallet Racking Market Key Takeaways

• North America dominated the pallet racking market with the largest market share of 36% in 2023.
• Asia Pacific is estimated to show the fastest growth over the studied period.
• By system, the conventional segment accounted for the highest market share of 40% in 2023.
• By system, the customized racking system segment is expected to grow at the fastest rate over the forecast period.
• By system racking type, the selective racking segment led market and generated over 32% of market share in 2023.
• By system-racking type, the pushback-racking segment is expected to show significant growth during the projected period.
• By load capacity, in 2023, the 5 - 15 tons load capacity segment has contributed the highest market share of 31% in 2023.

U.S. Pallet Racking Market Size and Growth 2024 to 2034

The U.S. pallet racking market size is evaluated at USD 3.03 billion in 2024 and is predicted to reach around USD 7.53 billion by 2034, growing at a CAGR of 9.51% from 2024 to 2034.

North America dominated the pallet racking market in 2023. The dominance of the region can be attributed to the enhanced pallet racking system in the market along with the region's well-established distribution network that stimulates the storage of goods across wide areas. Furthermore, North America’s leadership in the market is based on its innovative technologies and strong infrastructure. The region also continues to expand and advance in its industrial footprint, which is important for pallet racking market growth.

• In September 2024, Heliene Inc., a customer-provider of OMCO Solar and North American-made solar PV modules, leading factory-direct producers of solar trackers have partnered to provide a bundled, domestically designed module and racking solution for the U.S. solar market.

Asia Pacific region is expected to show the fastest growth over the studied period. The growth of the region can be linked to the growing demand for structured logistics solutions in developing nations like China and India. Moreover, this region's pallet racking market is rapidly growing due to increased urbanization and e-commerce activity. Therefore, demand for advanced pallet racking systems is rising.

Market Overview

Pallet racking is a type of storage system utilized in warehouses and distribution facilities to manage and store palletized goods. It is made of beams, upright frames, and pallet supports which then forms levels or shelves for storing palletized items. These systems are key component in warehouse facilities for organizing goods properly. Pallet racking is mainly used to improve vertical storage space while maintaining quick inventory access.

Pallet Racking Market Growth Factors

• The growing need for adaptable and scalable storage solutions is expected to boost market growth soon.
• Flexibility and adaptability offered by the racking system can propel market growth shortly.
• The ability of racking systems to effectively maximize warehouse space can contribute to market expansion in the upcoming years.

Role of AI in Pallet Racking

Artificial Intelligence (AI) algorithms can predict and analyze storage patterns, and businesses can make firm decisions on stock levels and pallet placement. This level of intelligence confirms that goods are stored effectively by reducing storage capacity and retrieval times. Furthermore, the proactive approach of AI can cut maintenance costs and reduce downtime, which can lead to smooth warehouse operations.

• In March 2024, Robotics and data intelligence company Dexory launches a first-of-its-type, AI-powered logistics engine to help warehouses optimize inventory management, maximize operational efficiency, and improve the o warehouse agility and responsiveness.

Market Scope

Market Dynamics

Driver

Improved inventory management

Pallet racking makes inventory more accessible and organized. They offer clear routes for forklifts and other equipment to track the goods that are to be retrieved quickly and efficiently. Additionally, Businesses can utilize strategies to adopt systematic inventory management methods like Last-In-First-Out (LIFO) and First-In-First-Out (FIFO), depending on their requirements. This can also lead businesses to cut the need for larger warehouse facilities.

• In November 2022, Pallet racks and other material handling equipment were supplied in the southern states by U.S. Pallet Racks, Inc., which was introduced as a Premier Stocking Distributor for Nucor Warehouse Systems. In addition, U.S. Pallet Racks offers wire deck, pallet supports, guarding, and structural cantilever racks.
• In September 2023, A brand-new robotic pallet loader from Haas hit the market. Three zero-point pallets, a light curtain, a pallet rack, a loading station, and a Haas 25 kg capacity robot are all included in this adaptable and reasonably priced pallet loading system. With Haas UMCs and small and medium VMCs, the RPL is plug-and-play compatible. The remote jog handle and Haas control are used for all setup and operation.

Restraint

Safety concerns

Pallet racking systems confront a big challenge in terms of safety. Improperly loaded pallets racks beyond their weight capacity and insufficient rack maintenance can result in collapses or falling goods. However, these incidents can endanger warehouse workers and cause some operational problems. To manage safety issues, pallet racking systems should be maintained and inspected on a regular basis.

Opportunity

Growth in the e-commerce sector

The requirement for pallet racking in the e-commerce industry is anticipated to increase substantially over the projected period due to the increasing number of warehouses and businesses in different countries. Furthermore, High-tech telecommunication technologies, including 4G and 5G network technology, are increasingly becoming more extensively used, which can help the industry to grow in the utilization of internet-based buying in the retail field.

• In August 2024, Slant 3D launched a new plugin for Shopify, enabling a new era of on-demand manufacturing. the advanced feature of this service can manage logistic process more swiftly.

System Insights

The conventional segment dominated the pallet racking market in 2023. The dominance of the segment can be attributed to the growth of the e-commerce industry, which is leading to a larger demand for warehousing. Additionally, the growth of automation in the racking system is the key contributor to the expansion of the conventional segment. Advances in storage technology and material handling can support the growth of the pallet racking market further.

The customised racking system segment is expected to grow at the fastest rate over the forecast period. The growth of the segment can be linked to the increasing demand for customised racking systems from the pharmaceutical and healthcare industry, which requires specialized warehousing solutions to manage and store the products. Also, the demand for customized storage systems such as cold storage facilities is rising owing to the growth of e-commerce, food and beverage, and pharmaceuticals industry.

• In January 2024, Maersk, the global integrated logistics company, unveiled its Cold Store facility at Mehsana, Gujarat. Being built exclusively for HyFun Foods, the brand-new facility will provide temperature-controlled customized storage solutions for destroyable frozen processed food items.

Racking Type Insights

The selective racking segment led the pallet racking market in 2023. This is due to the segments' ability to provide a maximum balance of storage and access. The increasing demand for selective pallets from various industries such as retail, food & beverage, and automotive can propel the segment growth soon. However, this system ensures maximum safety and flexibility in load operational facilities through their designed rails and rollers. Hence, selective pallet racks are prominent in fulfilling these demands.

The pushback-racking segment is expected to show significant growth in the pallet racking market during the projected period. The growth of the segment can be driven by higher storage density offered by this system than other racking systems. A push-back racking system is utilized to raise the storage density to expand the space available in warehouses. Furthermore, this system introduces an organized space that can help to store things in a small place with greater convertible space and labels.

Load Capacity Insights

In 2023, the 5 - 15 tons load capacity segment dominated the pallet racking market by holding the largest market share. The dominance of the segment can be credited to the advantages offered by the segment in boosting warehousing capital investments. The medium-sized shelf has a reasonable structure and unique shape, and it is also easy to assemble and disassemble, allowing for free adjustment of the layer. It also has a long-lasting and strong bearing capacity, driving the segment's growth in the pallet racking market.

Pallet Racking Market Companies

• Elite Storage Solutions (US)
• Ridg-U-Rak (US)
• Averys (France)
• AR Racking (Spain)
• Daifuku (Japan)
• SSI SCHAEFER (US)
• Hannibal Industries (US)
• Mecalux (Spain)
•  KION Group (Germany)
• Steel King (US)
• Advance Storage Products (US)

Recent Developments

• In August 2023, Swedish Agro Machinery AB stated that SSI Schaefer logistics solutions would be installed in its new 3,700-square-meter warehouse, along with a combination of its spare parts storage system. Pallets of the SSI logimat Vertical Lift Modules, cantilever racks, and shelves are all part of the system. 
• In September 2022, Bayer and renowned logistics provider GXO Logistics Inc. teamed up to launch a new warehouse location. At the company's new 350,000-square-foot facility in Kearney, Nebraska, GXO will oversee warehouse support for Bayer's Crop Science division, including all shipping and receiving operations.
• In August 2022, the company Kardex, which makes racking solutions, purchased stock in Rocket Solutions, a startup that creates the newest, most modern, standardized autonomous retrieval and storage systems.

Segments covered in the Report

By System

• Mobile Racking
• Conventional
• Shuttle Racking and Hybrid/Customized Racking

By System Racking Type

• Cantilever Racking
• Selective Racking
• Push Back Racking
• Drive-In Racking
• Pallet Flow Racking
• Others

By Load Capacity

• Up to 5 Ton
• 5-15 Ton
• Above 15 Ton

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa