Procurement Outlook
A conveyor system is an efficient and quick mechanical handling and transporting apparatus. It is responsible for automatically transporting packages and materials within a pre-specified route or area. The entire system of conveyor belts helps minimize human error, lower handling risks at the workplace, and reduce the cost of labor. One of the most important components of this conveyor system is its belts. Packages are loaded onto the conveyor belt and it is these belts that move in a predefined direction moving the materials for transportations along with it.
Demand Outlook
The global market for conveyor belts was valued at USD 4.5 billion in 2020 and is expected to grow at a steady CAGR of 3.36% to reach USD 5.3 billion by 2025. The market for conveyor belts is driven by both new installations as well as replacements. The market for conveyor belts can be segregated into three categories. They are flat belts, modular belts, cleated belts. Of these, flat belts are the most popular options opted by the end-users of conveyor belts. The steady growth of urbanization feeds to the growing need for automated transportation. This is one of the driving reasons for the growth of conveyor belts. Cost Drivers
The projected demand for conveyor belts is on a constant rise and for most markets, the several markets in the APAC, the supply of conveyor belts are lower than the supply of conveyor belts. This, in itself, would push the cost of conveyor belts and drive the value market of the product. Additionally, the cost of rubber has witnessed an upward trend. Since natural rubber makes up a significant cost of the conveyor belts, the rising costs of rubber result in the cost of conveyor belts increasing. This, in addition to the fact that the supply of conveyor belts is yet to meet the demand, solidifies the rising cost of conveyor belts.
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