Vertical Lift Module Market size is expected to surpass USD 4.4 Billion by the end of 2036, growing at a CAGR of 9% during the forecast period, i.e., 2024 – 2036. In the year 2023, the industry size of vertical lift module was over USD 1.5 Billion. The growth of VLMs will be fueled by the expansion of the retail industry. Warehouse services, which mainly rely on vertical lift modules, are growing along with retail. Ahold Delhaize USA and Americold will construct two fully automated frozen warehouses, it was announced in May 2020. The goal of the initiative is to boost cold-storage capacity by 24 million cubic feet, or 500,000 square feet, by constructing the two frozen facilities in collaboration with Americold. By 2020, e-commerce's percentage of retail sales is expected to jump from 16% to 19%, according to UNCTAD.
The strict government rules for improving workplace safety are also a significant component driving the market. Workers must wear safety fall protection, regardless of the fall distance, according to the Occupational Safety and Health Act's amended criteria. Because of this, worker safety—which deals with preventing any accidents or incidents—becomes crucial, which increases the use of vertical lift modules (VLM). According to ILO estimates, about 2.3 million men and women worldwide die from work-related illnesses or accidents each year, or more than 6000 people per day. Each year, there are over 160 million cases of work-related disease and 340 million occupational accidents worldwide.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 9% |
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Base Year Market Size (2023) |
~ USD 1.5 Billion |
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Forecast Year Market Size (2036) |
~ USD 4.4 Billion |
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Regional Scope |
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Delivery Type (Single-Level Delivery, Dual-Level Delivery)
The single-level delivery segment is expected to hold 58% of the vertical lift module market share owing to the increasing sales of automobiles and increasing demand for automotive parts, followed by the growing demand for quicker storage, and maximum storage space. As a result of the growing demand for single-level delivery systems, the vertical lift module market will expand the fastest. In 2021, 9.2 million US automobiles were made. In 2021, the US produced 9.2 million automobiles, up 4.5% from the previous year. Manufacturing of motor cars and their components employs 923,000 Americans, while auto dealers employ 1,251,600.
Storage Type (Non-Refrigerated Storage, Refrigerated Storage)
Vertical lift module (VLM) market from the non-refrigerated storage segment is expected to hold 68% revenue share. The best option for the industrial industries is non-refrigerated vertical lift module storage. The effective handling and storage of goods without the need for a temperature-controlled environment is necessary for non-refrigerated vertical lift module storage. With the biggest concentration in Asia and the largest market share for third-party logistics, there were 681,000 warehouses worldwide in 2020.
Our in-depth analysis of the global market includes the following segments:
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Delivery Type |
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Storage Type |
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Maximum Load Capacity |
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Configuration |
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Industry |
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European Market Forecast
Europe held the greatest portion of the vertical lift module market with a revenue share of around 33%. The promotion of new goods, technological improvements, and warehouse space optimization are the drivers that are fueling Europe's need for vertical lift modules. Europe is a market with enormous potential, and major industrial sectors like automotive and aviation have seen a surge in the number of vertical lift module installations in the region.
APAC Market Statistics
The Asia Pacific is estimated to hold 25% share of the global vertical lift module (VLM) market. The growth of the vertical lift module storage market in the APAC region is being fuelled by important factors such as the booming semiconductor and electronics industries, the rising need for warehousing management solutions, and automated material handling systems. For instance, as of March 31, 2022, Japan had about 138.33 thousand battery electric passenger automobiles, up from over 125.86 thousand the year before.
Author Credits: Abhishek Verma, Hetal Singh
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