Market Trends of Europe Conveyors Industry
This section covers the major market trends shaping the Europe Conveyors Market according to our research experts:
Airports are Expected to Hold Significant Growth
- Conveyors and sortation systems are also widely used in the airport industry to satisfy the increasing demand for reliability and sorting speed to handle all baggage (from check-in to loading into the luggage hold). Baggage handling conveyors are extensively used in all the country's airports, especially in Heathrow, the United Kingdom's busiest airport. Post-Brexit, the level of continued consolidation, the convergence of low-cost and full-service business models, and Europe's openness to foreign-carrier competition and control continue to intensify pressure on the European airport industry.
- Domestic airlines in Europe are continually investing in product improvements and customer service by employing automated conveyors, sorters, and automated storage systems. For instance, since December 2019, London Stansted Airport has been investing EUR 59 million in a new baggage delivery system, updating the massive network of conveyor belts and lifts underneath the main terminal, which transports up to 30,000 bags every day. The project is expected to be completed by the end of 2021.
- The increase in global passenger volumes and the need to facilitate more flights with shorter connection times increase the number of automated solutions at airports. Fives Group, a significant intralogistics service provider, has installed a wide range of sortation technologies across various airports in France. The flexibility of sorter layouts allows tailor-made solutions to be designed to satisfy the customers' requirements. Alstef, another player in conveyor and sortation systems, installed the first cross-belt sorter in France for baggage-sorting application. The sorter can process up to 8,000 bags per hour, depending on the configuration.
- As Europe's economies have come to a standstill due to the outbreak of COVID-19, so has the European airport network. Restrictions to travel and lockdowns imposed by countries in the region and airlines grounding most of the fleet have resulted in passenger traffic at Europe's airports falling off a cliff. According to Airport Council International (ACI), passenger traffic fell by -59.5% during March 2020, dragging the first quarter passenger traffic down by -21%. But while Europe's airports still handled 5.1 million passengers on 1 March (-11.7% compared to the same day in 2019), the traffic had reduced to 174 thousand by 31 March (-97.1% compared to the same day in 2019). However, once the lockdown is lifted, the air traffic's normalcy is expected to attain gradually by the end of 2020.
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Germany is Expected to Hold Significant Share
- The German automotive industry has been leading the technological innovations in the global automotive industry, integrating smart technologies. The strong support from the government and increasing investments from leading automobile manufacturers, such as BMW, Ford, among others, in the last few years, have brought significant transformations in the country's automotive sector. In June 2020, Tesla Inc. announced rework plans for its factory located near Berlin and ensured its first European plant could produce cars in about a year. The company assumes that within the first half of 2021, cars will be rolling off the conveyor belt there.
- The food and beverage segment is expected to account for a significant share in Germany. In October 2019, SEW-EURODRIVE (Pty) Ltd. supplied 64 MOVIGEAR servo motors to a major OEM that, in turn, designed, manufactured, and provided a weighing conveyor system to a German-based company in the frozen fish and vegetable packing sector. The system is equipped with a central conveyor fed by eight small conveyors, each containing the various frozen-food products mixed according to the specification. Each conveyor has a separate load cell to determine the exact weight of the component products.
- To be competitive, most SMEs in Germany employ automatic conveyors to reduce costs, thus, increasing the scope for conveyors in the sector. Dorner Europe started manufacturing 2200 Series Conveyors at their factory in Jülich, Germany. This step enabled customers throughout Europe to take delivery of their equipment much faster compared to earlier. In February 2019, Dorner Europe set-up and assembled an order for twenty-five 2200 Series iDrive Conveyors, integrating with the robot. The iDrive conveyor is used for integrating with other machines and robots because of the space-saving integrated motor.
- In December 2019, SSI Schaefer's customer service team completed the project for Office Depot to adapt the system in the distribution center in Germany to the company's current challenges. With the two latest conveying system loops by SSI Schaefer, seven loops are installed in the logistics center. There, the target cartons and source bins are transported and distributed between storage locations, shipping preparation, picking stations, and goods-out. The smartly adapted bypasses relieve the system and ensure higher throughput of the shipping cartons on the almost 5km conveying system.
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