Key Market Overview:
Industrial Vending Machine market size is expected to reach USD 5,058.11 Million by 2030 from the value of USD 2,792.70 Million in 2022, registering a CAGR of 7.9% during the forecast period (2023-2030)
Industrial vending machines are automated devices employed in industrial settings including factories, warehouses, and manufacturing facilities to store, organize, and dispense a wide range of industrial tools, equipment, and consumables. The self-service nature of industrial vending machines allows employees to access the required tools and materials at any time according to the requirements. Moreover, industrial vending machines are equipped with security features including password protection and biometric authentication that ensures authorized personnel to have access to the items stored in the vending machine.
The increasing adoption of automation and robotics serves as the key factor responsible for driving the growth of industrial vending machines market. Additionally, the increasing investment by key players in research and development to launch advanced industrial vending machines is also contributing significantly in driving the market growth. For instance, in May 2023, Asahi Group Holdings, Ltd. announced to install and demonstrate vending machines that are capable of absorbing CO2 from the atmosphere. Furthermore, the company plans to utilize the absorbed CO2 as an industrial raw material including concrete, and fertilizers, among others. Subsequently, the expansion of industrial automation and increasing investment by manufacturers in research and development serves as the key factors responsible for accelerating the market growth.
Industrial Vending Machine Market Report Coverage:
Growing demand of industrial vending machines in the manufacturing sector is propelling the market growth
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||5,058.11 Million|
|By Component||Hardware, Software, and Service|
|By Type||Carousel Vending Machine, Coil/Helix Vending Machine, Locker Vending Machine, Cabinet Vending Machine, and Others|
|By End-use||Manufacturing, Oil & Gas, Construction, Aerospace, and Other|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Airgas Inc., Apex Industrial Technologies, LLC, Asahi Group Holdings, Ltd., AutoCrib, Inc., Brammer, CribMaster, Fastenal Company, IMC Group, IVM Micrologistics, SecuraStock, Thundercomm America Corporation|
The increasing adoption of industrial vending machines in modern manufacturing facilities to provide improved efficiency, cost savings, and enhanced productivity is accelerating the growth of the market. Industrial vending machines enable real-time tracking of inventory, allowing manufacturers to monitor the usage of tools and supplies accurately. Moreover, the integration of advanced safety features in industrial vending machines reduces wastage and misuse of equipment and supplies. The controlled and authorized access to the industrial vending machines prevents unnecessary wastage of the tools and materials used in manufacturing industries, thus resulting in significant cost savings. For instance, in December 2020, Newport News Shipbuilding launched industrial vending machines providing point-of-use access for Personal Protective Equipment (PPE) and consumables for craftsmen and craftswomen. The machine utilizes a phased approach to monitor the usage of tools and store items including X33 paint shacks, weld metal issue stations, and orange shacks among others. In conclusion, the increasing adoption of industrial vending machines to promote a safer work environment in the manufacturing sector is propelling the growth of the market.
High manufacturing and maintenance cost of industrial vending machines is restraining the growth of the market
The cost of production, installation, and maintenance of industrial vending machines is significantly high, hampering the growth of the market. The high initial investment associated with purchasing and installing limits the adoption of vending machines by small enterprises. Additionally, the expenses related to the maintenance, technical support, and software updates further increases the upfront cost of industrial vending machines, thus limiting the growth of the market. Consequently, the aforementioned factors are majorly responsible for impeding the growth of the global industrial vending machine market.
Industrial Vending Machine Market Segmentation:
The component segment is trifurcated into hardware, software, and service. Hardware accounted for the largest market share in 2022 as hardware is the foundation of any vending machine, including industrial vending machines. The machines are primarily designed to dispense goods and materials in a secure and controlled manner. Additionally, industrial vending machines cater to businesses and industries that require strict control over the inventory and supplies. The businesses deal with high-value items, critical tools, and equipment, necessitating a level of security and monitoring which is best achieved through specialized hardware components. Moreover, industrial vending machines are subjected to more demanding environments and heavy usage compared to standard vending machines found in public spaces. The hardware component withstands harsh conditions and maintains functionality over extended periods, maintaining a higher level of quality and durability, hence contributing significantly in driving the market growth.
Services are projected to witness the fastest CAGR in the industrial vending machine market during the forecast period. The growth is attributed to the increasing demand for managed services including machine installation, maintenance, inventory management, and data analytics. In addition, industrial vending machines are integrating Internet of Things (IoT) technology to enable real-time data monitoring and analytics. Moreover, the increasing demand for services including predictive maintenance, usage analytics, and inventory optimization are further contributing to the market growth by streamlining the operations, reducing downtime. Furthermore, service providers also play a crucial role in customizing the vending solutions and integrating into existing supply chain systems, providing ongoing support and updates. In conclusion, the aforementioned factors are predicted to drive the growth of the services segment in the upcoming years.
The type segment is classified into carousel vending machine, coil/helix vending machine, locker vending machine, cabinet vending machine, and others. Coil/helix vending machine accounted for the largest market share in 2022 as the machines provide a systematic and automated way to manage inventory. Additionally, coil vending machines offer improved automation and automatically tracks usage and restocks, reducing the need for manual intervention. Moreover, the machines have built-in security features including individual user access control, PIN codes, and biometric authentication. The enhanced security features ensure that only authorized personnel access specific items, increasing accountability and reducing the risk of misuse. Furthermore, the machines are equipped with advanced software that provides real-time data on usage patterns, item popularity, and inventory levels. The data is utilized to optimize inventory management, thus contributing considerably in boosting the growth of coil/helix vending machine segment.
Carousel segment is anticipated to register the fastest CAGR in the industrial vending machine market during the forecast period. Carousel vending machines are designed to maximize storage capacity within a compact footprint and store a large number of items in a vertical configuration. In addition, carousel vending machines offer a systematic and organized way of storing and dispensing items, reducing the time for searching tools and supplies, thus leading to increased productivity. Furthermore, carousel vending machines are tailored to meet the specific needs of different industries and businesses. The machines are equipped to dispense a wide range of items, from small components to larger tools, catering to diverse requirements. For instance, IVM Micrologistics introduced SaveSpring, a compact three-in one carousel vending machine for industrial settings. The machine is capable of encompassing 540 different products along with offering improved customization, hence contributing significantly in propelling the growth of carousel segment.
By End Use
The end user segment is categorized into manufacturing, oil & gas, construction, aerospace, and others. The manufacturing segment accounted for the largest market share in 2022 as industrial vending machines allow manufacturers to control and monitor the distribution of tools and equipment to the workforce. Monitoring helps to prevent unauthorized access to expensive tools and ensures that employees have the necessary tools readily available for the tasks. In addition, by tracking every transaction, industrial vending machines provide real-time inventory visibility. Manufacturers analyze usage patterns, identify trends, and optimize inventory levels, leading to cost savings. Moreover, industrial vending machines are integrated with asset management systems, allowing companies to track the movement and usage of specific assets, including specialized equipment and instruments. Consequently, the aforementioned factors are responsible for driving the adoption of industrial vending machines in the manufacturing sector.
The aerospace sector is projected to witness the fastest CAGR during the forecast period. Aerospace companies utilize a wide array of specialized tools for aircraft maintenance, assembly, and repair. Industrial vending machines efficiently track and manage the distribution of these tools to technicians and engineers. Additionally, each tool is tagged with RFID or barcodes, allowing the vending machine to ensure accountability, prevent loss, and reduce tool downtime. Moreover, aerospace manufacturing and maintenance requires a significant number of consumables, such as adhesives, fasteners, safety gear, lubricants, and other materials. Industrial vending machines provide a convenient and automated way to dispense the items while maintaining control over the usage and inventory levels.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America region accounted for largest market share in the year 2022, owing to the robust and diverse manufacturing sector. The expanding manufacturing sector raises the demand for industrial vending machines to efficiently manage inventory and supplies for various manufacturing processes. Additionally, North America is at the forefront of technological advancements, including industrial automation and smart vending solutions. The regions emphasis on innovation is leading to the development of cutting-edge industrial vending machines with IoT capabilities, data analytics, and remote monitoring, hence contributing considerably in driving the market growth. Moreover, the presence of key players in the region including Hudson Group, Airgas Inc., and Apex Industrial Technologies, LLC are launching advanced vending machines to offer convenience to users. For instance, in June 2020, Hudson Group launched Personal Protection Equipment (PPE) vending machines at Houston Space Center and 27 airports in North America. The advanced touch-screen machines are installed to provide essential items including hand sanitizer wipes and disposable face masks to airport workers and travelers, thus contributing remarkably in bolstering the market growth in the region.
Asia Pacific is anticipated to register the fastest CAGR in the industrial vending machine market during the forecast period. The growth is credited to the rapid industrialization, with several countries namely India, China, and Japan witnessing significant growth in manufacturing and production sectors. The increasing industrial activities raises the demand for efficient and automated solutions including vending machines to manage supplies and consumables. In addition, Asia Pacific region is at the forefront of technological advancements in recent years. Vending machines in the region benefit from the latest innovations, namely IoT integration, cloud-based solutions, and advanced analytics. Industrial vending machines help to streamline inventory management, enhance productivity, and reduce the need for manual intervention, thus offering cost-effective solutions to enterprises. Furthermore, the expanding industrial sector is also raising the demand for industrial vending machines to provide real-time tracking of inventory levels, timely restocking, and data-driven insights to optimize inventory, leading to better supply chain management. Subsequently, the above-mentioned factors are contributing notably in bolstering the growth of the industrial vending machine market in Asia Pacific.
Industrial Vending Machine Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the industrial vending machine market. Key players in the market include-
• Airgas Inc.
• Apex Industrial Technologies, LLC
• AutoCrib, Inc.
• Asahi Group Holdings, Ltd.
• Fastenal Company
• IMC Group
• IVM Micrologistics
• Thundercomm America Corporation