FIFO Racks Market: Overview

FIFO (First In First Out) rack is an inventory management system which allows inventory placed into a rack system first to be removed first. A FIFO rack flow storage system is used for doubling or tripling the warehouse-capacity. FIFO racks are custom designed inclined gravity flow racks for increasing production efficiency, improving picking efficiency and achieving lean manufacturing flow. Now a days, many industrial sectors are adopting a wide array of FIFO rack systems that match the need of their warehouse design, kind of goods and materials stored, capacity intended, and the specific picking process employed. These racks are widely used for bulk storage management, especially in food distribution centres, freezer cold storage high volume consumer good storage-warehouses. It is anticipated that, rising demand for systematic racking system for a cost-effective and timely movement of goods will help the FIFO racks to show a good growth rate in the market.

FIFO Racks Market: Dynamics

Drivers:

FIFO racks are equipped with easily moving roller bases which help the consumers to handle the racks in a very easy and convenient way. These robust built, user friendly FIFO racks are generally made of corrosion free-finest metals. A FIFO rack can be used as Kanban system and it reduces spoilage of product. Apart from these qualities, cost effectiveness is one of the key factors which is driving the growth of the FIFO rack in the packaging industry.

Restraints:

Sometimes, FIFO racks can be more costly investment than other storage systems and poor accessibility to all pallets might hinder the growth of these racks in the market. 

Opportunities:

Increasing awareness about warehouse space management

Increasing awareness about the ideal and superb use of space through online and offline supply channels (like distribution house, storage centres, stockyards etc.) are likely to accelerate the growth of the FIFO rack in the industry. It offers cost-effective and very systematic storage management for bulky and fragile objects. From 2013 it has been notices that the rents for multitenant distribution warehouses have been increasing continuously and it is ranging in between of 13%–16% in USA which is acting as a catalyst for the growth of FIFO racks market in USA.

Rising demand for packaged food and beverage

According to Shakti Jakhar (ead analyst-Technavio for warehouse and storage research), the for providing on-time delivery relating to the growth of consumption of packaged food and beverages is augmenting the demand for warehouses near the urban areas which augurs well for the growth of the FIFO racks market during the forecast period. The demand for packaged food is growing along with the rising population and helping the FIFO racks to grow in the industry.

Growing e-commerce sales increasing demand for warehouses

Various online retail platforms (such as Amazon) have increased the size and locations of their warehouse distribution centres. For increasing the delivery-speed, warehouses are required to be located close to population centres. This factor is responsible for the major growth happened to overall warehouse need in US. The above factors are stimulating and creating new opportunities for the growth of FIFO racks market.

FIFO Racks Market: Covid19 Impact

The pandemic situation created by Corona virus has widely affected the economic scenario of all the industries. Change in supply chain management system, low production rate of FIFO racks, slightly declined growth rate in e-commercial sites are some of the major factors which are creating obstacles in the growth of the FIFO racks market.

FIFO Racks Market: Segmentation

The global FIFO racks can be segmented by product, material and application.

By product, the global FIFO racks market is segmented as follows:

  • Selective pallet racks
  • Drive-through racks
  • Gravity flow systems

By material, the global FIFO racks market is segmented as follows:

  • Plastic
  • Metal

By application, the global FIFO racks market is segmented as follows:

  • Food storage houses
  • High volume storage units
  • Distribution centres
  • Warehouses

FIFO Racks Market: Regional Outlook

North America is expected to lead the global FIFO racks market owing to a well-established distribution network, early adoption of racking systems, and continuous innovations in optimizing storage structure. Asia-Pacific region is estimated to show a rapid growth rate due to the high population growth rates in China and India, which in turn creates a high demand for packaged food. Europe is expected to stimulate the retail sector in the region which will positively create impact on the FIFO racks market’s growth. Middle East & Africa region and Latin America are expected to show steady growth rates in near future due to the growth of the retail and food industries, which is the main contributor to the development of new warehouses, which in turn is expected to stimulate the demand for FIFO racks.

FIFO Racks Market: Key Players

  • Star Interiors Private Limited
  • Simplex Profilo Systems
  • Westfalia Technologies, Inc
  • MACRACK (Australia) Pty. Ltd
  • SPS Ideal Solutions Inc
  • REB Storage Systems International

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