Vertical Lift Module (VLM) Market Analysis

Vertical Lift Module Market Analysis

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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.