Palletizer Market Size, Share & Industry Analysis, By Technology (Robotic, Low Level or Floor Level and High-Level), By Product Type (Bag, Case, Bag, Pail, and Others), By Application (Food and Beverage, Cosmetic & Personal Care, Healthcare & Pharmaceuticals, Others) and Regional Forecasts, 2021-2028

The global palletizer market size was valued at USD 1.67 billion in 2020 and is projected to grow from USD 1.74 billion in 2021 to USD 2.32 billion in 2028, exhibiting a CAGR of 4.2% during the forecast period (2021-2028). Asia Pacific dominated the palletizer market with a market share of 43.11% in 2020.

The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with palletizers witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 3.0% in 2020 as compared to the average year-on-year growth during 2017-2019.

A palletizer is a machine that is utilized in compiling products on a pallet. It is designed and manufactured to align, organize, and pack different products on a pallet for freight forwarding. Its implementation is dependent on the requirements of the end-users.

The growing consumer awareness about the quality of products coupled with the high demand for convenience products and increased disposable income are the driving factors of the market. Additionally, there is a sprouting need for mixed load palletizing across the food and beverage industry, owing to its requirement for multiple products in diverse applications. The shifting focus towards innovative ways, i.e., utilization of hybrid palletizing machines, is improving the functionality and simplifying the human-machine interface (HMI). It is, therefore, boosting the global palletizing machinery market growth.

COVID-19 Impact: High Demand for Essential Products to Simultaneously Elevate Market

The incessantly evolving COVID-19 pandemic has adversely impacted the manufacturing sector across the globe. However, the global palletizer market experienced low impact amid the Pandemic. It has generated a health emergency wherein the demand for pharmaceuticals & healthcare products sharpened. This, in turn, resulted in a growing demand for pick-and-place robots. Additionally, governmental bodies across the globe are extensively working for the quick supply of machines and worker’s safety. For instance, the overall impact on the packaging industry has been monitored by ‘The Association for Packaging and Processing Technologies (PMMI).’

Moreover, manufacturing processes in most affected countries including China, Northern Italy, South Korea, and the U.S. (partially), are now on track. Furthermore, manufacturers such as Kawasaki Heavy Industries, Ltd., Honeywell Intelligrated, ABB, BW Packaging Systems, and others are increasing their investments in the automatic machine market to cope up with the current situation. It is eventually increasing the demand for these machines across the end-use industries including, Food and Beverage, Healthcare & Pharmaceuticals, automotive, and others. Therefore, the global market share is moderately affected by the COVID-19 pandemic.

LATEST TRENDS

Heavy Demand for Hybrid Palletizers is a Prominent Trend

The changing necessities from the packaging industry have resulted in the advancement of hybrid machinery. The hybrid structure makes it cost-effective machinery that includes additional expenses including troubleshooting, hardware maintenance, and others. It positions cases upright before layer formation. This, in turn, allows machinery in conveying products up-ended in the palletizer easily. Additionally, it reduces the complex robot controllers’ need that eventually maintains a standard control platform of conventional machinery. Additionally, the leading manufacturers such as Honeywell Intelligrated and others emphasize hybrid technology to expand their product portfolio. For instance, Honeywell Intelligrated’s ‘750 Hybrid’ is a mid-speed product for handling cartons, bags, and other packaging types.

DRIVING FACTORS

Popularity of Human Machine Interface (HMI) to Propel Market Growth

Nowadays, the human-machine interface or HMI is controlling the world of the manufacturing sector. It is reconfiguring the machinery for multiple product layers and various case sizes and handling pallet patterns. Robotic palletizing safeguards constant motion at the end of the line process; thus, increases the output and decreases downtime. This very factor compliments the evolution of HMI in palletizing processing. Also, the market participants are intensifying their selling strategies by shifting towards automation to achieve upper production rates. For instance, in August 2019, PremierTech and Bühler Group collaborated to develop automated palletizing, food-safe bagging, and other solutions. Such adoptions are expected to drive the palletizer market growth during the forecast period.

RESTRAINING FACTORS

High Initial Investments in Manufacturing to Impede Market Growth

The capital expenditure required for research & development and manufacturing processes at the initial stage is primarily hampering the market growth. The manufacturers are anticipated to make large investments in manufacturing technologically advanced palletizing machines. Additionally, it requires periodic maintenance for their efficient operations, incurring high after-sales services cost to the manufacturers. Small and medium-sized manufacturers find it challenging to incorporate the unnecessary maintenance cost. This, in turn, is hindering the market growth.

SEGMENTATION

By Technology Analysis

Improved Human-machine Interface to Propel Robotic Palletizer Segment Growth

Amongst technology segments, robotic technology is anticipated to witness the highest compounded annual growth rate (CAGR). It is owed to its features including, flexibility to adapt product dimensions and complicated layer patterns. Additionally, it does not convey the risk of injury owing to improved human-machine interface thus, fueling the robotic palletizing machinery market growth.

High-level palletizers are projected to portray substantial market growth attributed to their application in carrying load products from above the ground level.

The Low level or floor level segment is expected to capture the highest palletizer market share as it offers direct access to every product. Additionally, it can carry products from the ground level and has the highest palletizing capacity with the better pallet build quality.

By Product Type Analysis

Increasing Utilization of Robotic Palletizers to Boost Bulk Segment Growth

Among product types, the bulk segment is projected to witness the highest CAGR owing to the rising utilization of robotic palletizing machinery. It performs activities such as palletizing cans and bottles without operator intervention.

The case segment is expected to witness steady growth attributed to its ability to obtain maximum cases/minute on low and high-level palletizers than robotic machines. Additionally, it mostly handles firm-shaped packages. The pail and bag segment is expected to witness slow growth in the forecast period.

By Application Analysis

Reduced Transportation Time of Drugs to Bolster Healthcare & Pharmaceuticals Segment

The healthcare & pharmaceuticals segment is set to witness the highest CAGR in the forecast period. It is attributed to the increasing consumption of medicines. Additionally, these machines enhance the speed of the packaging processes that lessen the transportation time of the drugs. The COVID-19 pandemic has accelerated the need for medicines that have also fueled these type of machine’s demand.

The food and beverage segment is capturing the maximum market share in the global market. It is because the companies are utilizing robotic and high-level machines that handle multi-case sizes and layers of pattern that reduces the product damage and enhances production efficiency. The remaining segments are expected to witness steady growth in the future ahead.

REGIONAL INSIGHTS

This market is segmented across North America, Europe, Asia Pacific, the Middle East and Africa, and South America and is further divided into countries.

Asia Pacific is expected to witness the largest market share, owing to the adoption of automatic palletizing machines in the commercial and manufacturing sectors. Additionally, leading market players are establishing their manufacturing plants across India, China, and some south-east Asian countries where the cost of production is low.

India to Witness Highest CAGR Owing to Installation of Advanced Robotic Facilities

In recent years, leading manufacturers are establishing their manufacturing plants across India to support the robotic palletizing sector. For instance, in July 2020, ABB India opened an innovative robotic facility in Bengaluru, India, to support the digital transformation of manufacturing in India. The facility comprises a demonstration center in which the cutting-edge technologies in material handling and gluing will be showcased.

The market in North America and Europe is estimated to grow steadily in the future ahead owing to the stable regional market. In North America, the strong economic growth, increased e-commerce activity, and presence of key manufacturers such as BW Packaging Systems, KHS Group, A-B-C Packaging Machine Corporation, Krones AG and others, are fueling the market growth.

In Europe, manufacturers have a presence across Germany, Italy, Denmark, Switzerland, and other countries. Specifically, the market in Europe is driven by Italy and Germany. The Italian Government’s Industry 4.0 incentive scheme is proving to be aiding the growth of the market in Italy.

The market in South America, and the Middle East and Africa is expected to grow moderately owing to the stable adoption of this type of machinery in the manufacturing industry. However, the emerging urbanized population across UAE, Saudi Arabia, Brazil, and others demands packaged food that is expected to fuel the market growth in the future ahead.

KEY INDUSTRY PLAYERS

Prominent Market Players to Develop Advanced Palletizing Technologies to Expand their Product Portfolios

Prominent players are adopting modern technologies including robotic and hybrid palletizing machines, to expand their business portfolio. Additionally, these companies are setting up complete systems with existing conveyors and other material handling equipment that is expanding its utilization across applications.

ABB is Integrating its Palletizing Machine Portfolio to Expand its Market Reach

ABB is emphasizing integrating an automatic palletizing machinery portfolio to strengthen its market brand and thereby increase productivity. For instance, in November 2019, a Discrete and Robotics Automation business unit of ABB, named ‘B&R,’ integrated its robotic portfolio into the automation portfolio. It allows B&R to supply machine builders, a wide range of ABB robots such as SCARA, articulated arm, delta, and palletizing robots with various payloads in various sizes.

LIST OF KEY COMPANIES PROFILED:

• Fuji Yusoki Kogyo Co., Ltd. (Germany)


• Kawasaki Heavy Industries, Ltd. (Japan)


• A-B-C Packaging Machine Corporation (U.S.)


• Krones AG (Germany)


• ABB (Switzerland)


• KUKA AG (Germany)


• BW Packaging Systems (U.S.)


• KHS Group (Germany)


• Honeywell Intelligrated (U.S.)


• BEUMER GROUP (Germany)

KEY INDUSTRY DEVELOPMENTS:

• April 2020: PremierTech introduced the ‘AR-225 model’, a faster robotic palletizer that delivers ~25 bags/minute. It lowers the downtime with its pallet magazine and dispenser that handles pallets of different sizes.


• October 2018: Honeywell Intelligrated showcased associated solutions for palletizing equipment that is automated. It provides equipment diagnostics, real-time equipment monitoring, and asset-level insights to boost performance and reliability.

REPORT COVERAGE

The report provides detailed information regarding various insights into the market. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide the financial competency of the market research. The information gathered in the research report has been taken from several primary and secondary sources.

Report Scope & Segmentation