Vertical Lift Module (VLM) Market, By Storage Type (Temperature Controlled Refrigerator, Non-refrigerator), By Delivery Type (Single-level Delivery, Dual-level Delivery), By Loading Capacity, By End Use, By Distribution Channel & Forecast, 2024 – 2032

Vertical Lift Module Market Size

Vertical Lift Module Market was valued at approximately USD 1.7 billion in 2023 and is anticipated to register a CAGR of 8.8% between 2024 and 2032. Vertical lift modules (VLMs) are advanced storage systems that help businesses make the most of their warehouse space. They work by using vertical space efficiently, storing items in trays that move up and down inside a tall, enclosed unit. When an item is needed, the VLM quickly brings the right tray to an access point, making it easy for workers to retrieve or store items.
 

Vertical lift modules (VLMs) enable warehouses to store significantly more goods in the same footprint by making use of vertical space that increases the overall efficiency of the warehouse, which in turn fuels market demand. In the vertical lift module (VLMs) market, companies are always looking for ways to maximize warehouse space even further. This might involve designing VLMs that can reach higher, fit into tighter spaces, or hold more items per tray. Some VLMs now use smart software to organize items better, reducing wasted space. Others might have features like adjustable trays or the ability to handle different types of items in the same unit. By continually improving these systems, VLM manufacturers help businesses store more goods in less floor space, which can save money and improve efficiency.
 

One big challenge in the vertical lift module (VLM) market is the high upfront cost. These advanced storage systems are expensive to buy and install, which can be a major hurdle for many businesses, especially smaller businesses. The price tag often includes not just the VLM unit itself, but also costs for delivery, setup, and sometimes changes to the warehouse to accommodate the new system. This large initial investment can make some companies hesitant to adopt VLMs, even if they could benefit from them in the long run.
 

The higher initial investment of vertical lift modules (VLMs) in comparison to regular shelving is one of the challenges they encounter in the market. Even while VLMs maximise space and increase productivity over the long run, some organisations may find the initial cost prohibitive. Conventional shelves are a dependable and reasonably priced choice.
 

Vertical Lift Module Market Trends

The vertical lift module (VLM) market is growing as more businesses look for ways to save space and improve efficiency in their warehouses and storage facilities. One big trend is the increasing use of advanced technology in VLMs. Many new models now come with smart software that can track inventory in real-time, predict when items will be needed, and even integrate with other warehouse systems. This makes VLMs not just storage units, but key parts of a smarter, more connected warehouse.
 

Moreover, VLMs are now being adopted in retail, healthcare, and even offices. Companies are also asking for more customized VLMs that can handle specific types of items or fit into unique spaces. As e-commerce continues to grow, there's also increasing demand for VLMs that can handle quick, small item picking for online orders. Overall, the market is moving towards more flexible, intelligent, and specialized VLM solutions to meet diverse business needs.
 

Vertical Lift Module Market Analysis

Based on storage type, the market is segmented into temperature-controlled refrigerator and non-refrigerator. The non-refrigerated segment held the maximum share in the market with revenue of USD 1.1 billion in 2023, which is anticipated to grow at a CAGR of 8% during the forecast timeframe.
 

The non-refrigerated VLMs are used to store a wide variety of items that don't need to be kept cold, which covers most products in warehouses, factories, and offices. They can handle anything from small electronic components to larger boxes of supplies, tools, or finished products. They are versatile and can be used in many different industries. They're often used in manufacturing to store parts, in retail backrooms to keep inventory organized, or in offices to manage documents and supplies.
 

Based on delivery type, the market is segmented into single-level delivery and dual-level delivery. The single-level delivery segment held 63.9% of the total market share in 2023 and is anticipated to grow at a CAGR of 8.2% during the forecast period. The single-level delivery segment of vertical lift modules (VLMs) refers to systems that have one access point or delivery area, usually at a comfortable working height for operators. Single-level delivery VLMs are designed with a single opening where items are retrieved or stored. When an operator needs an item, the VLM moves the correct tray to this single access point. This design is straightforward and efficient for many warehouse operations.
 

Europe vertical lift module market held the maximum share of around 39% of the total market in 2023 and is anticipated to register a CAGR of 8.2% between 2024 and 2032. Europe is a significant player in the vertical lift module (VLM) market. Many European countries, especially Germany, Italy, and France, have been quick to adopt VLMs in their warehouses and factories. This is partly because land is often expensive in Europe, so businesses are keen to make the most of their space by building upwards with VLMs. Additionally, the European VLM market is known for its focus on high-quality, technologically advanced systems. Many leading VLM manufacturers are based in Europe, and they're constantly innovating to make their products more efficient and user-friendly. European businesses are also increasingly interested in VLMs that can help them meet sustainability goals by reducing energy use and optimizing space.
 

North America: In terms of country, the U.S. the vertical lift module market held the maximum share in North America of around USD 87.2% in 2023 and is expected to grow at a CAGR of 8.5% in the forecasted timeframe. The United States is a major market for vertical lift modules (VLMs), with growing adoption across various industries. American businesses, particularly in manufacturing, distribution, and e-commerce, are increasingly turning to VLMs to maximize storage space and improve efficiency in their operations. The US market is characterized by a strong focus on automation and integration with other warehouse technologies.
 

Europe: The European market accounted for a CAGR of around 8.9% in the forecasted timeframe.  The vertical lift model market is experiencing robust growth driven by the increasing need of efficient storage solution and automation in warehousing and logistics. European companies are adopting VLMs to optimise their storage space enhance picking accuracy and streamline their inventory management processes.
 

Germany is a key player in the vertical lift module (VLM) market, both as a producer and a user of this technology. The country is known for its strong manufacturing sector and emphasis on efficiency, Germany has embraced VLMs in many industries, especially automotive, electronics, and logistics. German companies are often at the forefront of VLM innovation, developing systems with advanced automation and integration capabilities.
 

Asia Pacific: In terms of country, China is rapidly becoming a significant player in the vertical lift module (VLM) market. As the country's manufacturing and e-commerce sectors continue to grow, there's an increasing demand for efficient storage solutions. Chinese businesses are turning to VLMs to maximize space in their warehouses and factories, especially in crowded urban areas where land is expensive. The government's push for industrial modernization and automation has also boosted interest in VLMs.
 

Vertical Lift Module Market Share

Key players in the market are Auto Crib, Ferretto SpA, Hanel Buro, Kardex, and Modula Group. Together these companies have a market share of 30%-35% of the total market with fierce competition in this market and driving continuous advancements and the introduction of new features to meet the evolving demands. These companies are known for their wide range of vertical lifts products from basic models to advanced smart modules with innovative features.
 

Vertical Lift Module Market Companies

Major companies operating in the market include:

• Auto Crib
• Conveyor Handling Company
• ELF Automation
• Ferretto SpA
• Hanel Buro
• ICAM SpA
• Kardex
• LISTA
• Macalux, SA
• Modula Group
• Rabatex Group
• SSI Schafer
• Vidir Solutions, Inc.
• Vidmar
• Weland Solutions
   

Vertical Lift Module Industry News

• In January 2024, Kardex Remstar, recently unveiled its next generation vertical lift module, the Kardex VLM shuttle XP, designed to offer higher storage facility and improve energy efficiency. This new model incorporates advanced automation features and real time inventory tracking capabilities making it idle for industries with high storage demands.
   
• In October 2023, Hanel Storage Systems, has announced the expansion of its production facility in Germany. The expansion aims to increase the company’s manufacturing capacity to meet the rising global demand for vertical lift modules.
   
• In December 2023, Modula entered a strategic partnership with a leading robotic form to integrate robotic picking solution with its vertical lift modules. This collaboration aims to provide fully automated storage and retrieval systems significantly improving picking speeds and accuracy in warehouses.
   

The vertical lift module market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD billion) from 2021 to 2032, for the following segments:

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Market, By Storage Type

• Temperature-Controlled refrigerator
• Non-refrigerator

 Market, By Delivery Type

• Single-level delivery
• Dual-level delivery

Market, By Loading Capacity

• Up to 500 kg/tray
• 500-700 kg/tray
• Above 700 kg/tray

Market, By End Use

• Automotive
• Food & Beverage
• Retail and Logistics
• Metals and machinery
• Chemicals
• Others

Market, By Distribution Channel

• Direct Sales
• Indirect Sales

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA