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
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.
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.
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:
By application, the global FIFO racks market is segmented as follows:
- Food storage houses
- High volume storage units
- Distribution centres
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
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.