The global market for packaging equipment market will grow from its current value of more than $38 billion, pushing past $47 billion by 2024, according to a new research report by Global Market Insights, Inc.
The growing adoption of automation in several industrial sectors is driving that packaging equipment market growth. Technological advancements provide several advantages to these industries. For example, smart sensors offer fault detection, data collection, mobile connectivity, remote monitoring, and production control. Many of the technological features boost factory efficiency. Industries currently relying on traditional packaging will be getting rid of their legacy machinery and replacing it with innovative equipment that opens the doors to mass production, thereby propelling the packaging machinery market growth.
The demand for packaging equipment is also driven by the development of energy-efficient equipment and the growing demand for personal care goods in consumer-friendly packages. Growing demand for packaging robots from several industries is also a key factor fueling the growth in the packaging market. These machines play key roles in ensuring product safety and quality throughout the value chain. Equipment manufacturers are also emphasizing green machines with minimal environmental impact.
On the downside, the high costs associated with developing and installing this equipment are restricting the packaging equipment market growth. Small companies cannot afford to purchase these machines, forcing them to continue using manual packaging techniques rather than automated systems; this in turn leads to the adoption of the rental business model in which business rent machines rather than purchase them. In addition, the increasing maintenance costs for new equipment are also holding back industry demand. Periodical maintenance and checks must be done on newer machines to ensure the proper operation and safety of the equipment.
One of several bright spots in the packaging market is palletizing equipment. More companies are beginning to use it in several industrial sectors due to the automated functions it provides. It is being used in handling heavy loads and stacking cases, bags, bottles, and cartons for packing and labeling products. Several advantages of these machines include easy circulation of commodities, manual and automatic handling, and reduced risks of damaging product and worker injuries. Several companies have adopted automated palletizing machines to increase manufacturing capabilities, deliver high-quality end-products, and efficiently manage their processes.
Overall, the food and beverage industry accounted for more than 55% of the market share in 2017. This segment enjoyed the growing demand for new machinery from developing markets coupled with the increase in spending on a wide range of processed and ready-to-go food the beverage products. To satisfy this growing demand, several major food and beverage companies 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 wide range of new products that require innovative or newer packaging machinery.
The packaging equipment market in Asia Pacific is expected to witness 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 manufacturing machines. Stringent regulations that mandate pharmaceutical companies follow certain standards for packaging drugs are also driving growth in the packaging machinery market. Several industrial players in the region are deploying packaging equipment that handles liquid and solid packaging to fulfill product requirements.
Major players operating in packaging equipment market are Bausch & Ströbel Maschinenfabrik Ilshofen GmbH Co. Kg, IMA S.P.A., Körber AG, Marchesini Group S.P.A., Multivac Group, Robert Bosch GmbH, Romaco Pharmatechnik GmbH, Accutek Packaging Equipment Companies, Inc., ACG Worldwide, Svanguard Pharmaceutical Machinery, Inc., Aetna Group, B&H Labeling Systems, Barry-Wehmiller Companies, Inc., Krones Group, GEA Group, and Illinois Tool Works, among others.
Companies are differentiating their products by developing several technologies that simplify the packaging process and improves productivity. For example, SIG plans to deploy IoT technology in its offerings to provide intelligent packaging solutions to its customers. The technology will be provided by GE Digital to add it into machines provided by the company. This will let customers build an end-to-end digital platform, which will provide data-driven intelligent monitoring and control of the processes.
