The Wearhouse racking business is at an all time high with a serious market share capture as different segments right from Food & Beverages, pharmaceutical, retail, automotive, aerospace, packaging and industrial forecasting a major requirement for storage & storage related solutions.
Higher economic growth rate, better infrastructure and increase in urbanization has resulted in more consumer presence in India, which has in turn catapulted the need of warehouses to cater to the increased inflow. However this is also the case with US where the CAGR is increasing at 4.5% year on year.
Global Market Analysis
An important factor driving the growth of this market is the increasing need of pallet rack systems for economical storage and transportation of goods. The growth of e-commerce has also helped increase the demand for warehouses as it helps in the distribution of products from one place to another across territories at much higher pace. This industry has also benefitted from rapid increase in potential logistic carriers & distributors in a number of developed and developing nations.
Right from food storage due to the demand in various countries for cold food which also plays a pivotal role in storing and transporting the same at proper timelines have catapulted the need for racking solutions among most of the developing countries where the market is quite ripe with factors like factory automation solutions being integrated along with the same.
Worldwide Constraints In Expansion of Racking
The unavailability of defined warehouse racking has led to a lot of uncertainty in the developing markets as well. The automated storage racking solutions are a completely different platform which helps in the least dependency in a storage & distribution business. The implementation of this definitely takes time and knowledge of the product, slowly with the advent of networking a lot of companies are taking up this challenge and solving the need to completely automate their factories.
Segment Analysis for the right Racking Solution
Based on the type of racks, the selective pallet racking system became the most significant segment in the market and expected to reach USD $875.77 Mn by 2026. It allows for quick repair of broken pieces as well as height and pallet housing modification of metal beams. In this sort of racking, a basic design structure combined with a plan for secure item handling satisfied its requirements. A considerable increase of online retail businesses like Amazon, Flipkart, and Walmart, for example, is boosting market demand. Furthermore, the top 250 players in the globe generate an average retail revenue of about USD 4400 billion. Direct access racking solutions are becoming increasingly popular since they provide for simple access to things. Objects between the racks may be easily accessed using forklifts and hydraulic machinery. The expensive cost of installing these racks, on the other hand, is likely to limit their market expansion.
How big is the Indian Market for Racking Solutions ?
Market Sizing & Projection
According to the detailed research done by Knight Frank, the story of modern Indian warehousing is a little over a decade old when logistics companies such as Future Value chain built the first Grade A warehouses in the country. The entry of institutions, lured by the vast opportunity presented by a growing economy with a consumption base of over 1.3 bn people, made the Indian
warehousing market a compelling investment proposition. The introduction of the Goods and Services Tax and the prolific growth seen in the e-commerce and 3PL sectors caused warehousing demand to grow at a CAGR of 44% in the FY 2017 – 2020 period. While the pandemic in FY 2021 has caused demand to drop during the year, the longer-term demand potential for
warehousing properties continues to remain strong. However, there is a need to quantify this demand and with this in mind, we have endeavored to estimate the size of the opportunity in the warehousing market over the FY 2022 – 2026 period. Demand for warehousing properties is an outcome of the business performance of its constituent occupier groups, which in turn are very highly correlated with the country’s GDP growth.
We established this relationship by comparing the progression of the sales of our seven major occupier groups and the GDP over the FY 2014 – 2020 period. For this exercise, we used the net sales of 3,754 listed and unlisted companies. India’s GDP growth forecasts were used to estimate sales and transaction activity of these major occupier groups in the top eight Indian cities for the
FY 2022 – 2026 period.
The availability and subsequent rollout of vaccines will play a key role in market recovery and determine the speed of recovery. A speedy vaccination drive will help improve demand but current supply side constraints such as the increase in construction costs and tight labour conditions are expected to weigh the market down in FY 2022. The market will likely see a more meaningful recovery from FY 2023 onward with the bulk of
vaccinations in the country having been completed.
Contributing factors for building a better & efficient Racking Solution
Pallet racks are among the most popular & efficient means of storage in this segment while the production of the same is also a big challenge that needs to have various contributors to make the manufacturing of the pallet racks both economical and in high volumes for the kind if demand in the developing market like India.
The pointers for building this namely, raw material, roll forming process, tube sizing, connector forming, pallet racking beam welding and powder coating. While most of the process are done by local resources two of the process that are critical for the efficient process are the Racking beam welding and roll forming of the tubes.
Solving the critical issues of Welding of Racking Beams by Welding Automation
With the help of a right welding automation solution the critical areas of welding the Pallet Racking Beam can be solved. By consistent research on this subject for more than 14 months the team from Nikit Engineers developed an automated process solution that could weld the beams automatically after loading the beam or tube along with the connector in the fixture setup of the machine. This machine christened rightfully as the Racking beam Welder solves all the major welding related problems, right from the roll formed beams, rectangular tube beams to the C beams.
The system has a total of more than 20 plus interpolative closed loop servo motors that interact & collectively positions according to the different designs of the pallets which are taught with our Nikit Teach User Interface. Setting for a particular beam design can be completed within a few minutes and the same can be stored into more than 500 recipes. Here the recall of such recipes is also very convenient with the natural memory library that exists in this system for faster recall & production.
The Racking Beam Welder can process a full welded beam of up to four faces on each side being fully welded at a rate of under 30 second for 40 square beams to max 60 second for larger rectangular & roll formed beams. Complication of beam design is not at all a problem for such system because of the presence of so many individual axes motors and design configuration which allows the operator to teach according to the profile required on each side with different configurations.