The packaging equipment market is set to grow from its current market value of more than $38 billion to more than $47 billion by 2024, according to a new research report from Global Market Insights Inc. (Selbyville, DE).
The growing adoption of automation in several industrial sectors is driving growth. Technological advances provide several advantages to industries using these products in packaging applications. For instance, smart sensors offer fault detection, data collection, mobile connectivity and remote monitoring, boosting efficiency in processes and operations performed in factories. Industries using traditional packaging equipment are focusing on substituting legacy machinery with new innovative equipment to enable mass production.
Demand for packaging equipment is primarily driven by the development of energy-efficient equipment, increasing adoption of automated packaging machines and consumer demand for personal care goods. Growing demand for packaging robots from several end-use industries is also a key factor in the packaging machinery market. These machines play a key role in ensuring product safety throughout the value chain. Equipment manufacturers are emphasizing solutions that have minimal environmental impact.
High costs associated with the development and installation of packaging equipment is restricting market growth. Small companies cannot afford to purchase these machines, forcing them to implement manual packaging techniques over automated systems, leading to adoption of an equipment rental business model. In addition, increasing maintenance costs are further hindering industry demand. Periodic maintenance and checks need to be performed to ensure proper operation of the equipment.
Palletizing equipment is experiencing a high adoption rate in several industrial sectors owing to the automated functions provided by the machines. These help in handling heavy loads and stacking cases, bags, bottles and cartons for packing and labeling. Advantages of these machines include easy circulation of commodities, manual and automatic handling, and reduced risk of product damage and worker injuries. Several companies are adopting automated palletizing machines to increase their manufacturing capabilities, deliver high-quality end-products and efficiently manage their processes.
The food and beverage industry accounted for more than 55% of packaging machinery market share in 2017. The packaging equipment market has witnessed growing demand for new machinery from developing markets due to the increase in spending on a wide range of processed and ready-to-go food and beverage products. To satisfy demand, several major companies operating in the food and beverage industry are looking to expand in untapped markets by building new plants and purchasing new machinery. In addition, with changing consumer preferences, food and beverage companies are expected to introduce a range of new products that require innovative or newer packaging machinery.
Asia Pacific is expected to see steady growth and will reach $18 billion by 2024, owing to the rise in the number of pharmaceutical companies. Countries including India, China, Japan and South Korea are moving toward automation and adoption of smart industrial solutions in the manufacturing processes. Stringent regulations that mandate pharmaceutical companies to follow certain standards for the packaging of drugs are positively driving the packaging machinery market. Several industrial players in the region are deploying liquid and solid packaging machinery to fulfill product requirements.