Industrial Vending Machine Market

Global Industrial Vending Machine Market Size (2023 to 2028)

As per our analysis report, the global industrial vending machine market is expected to reach USD 7 billion by 2028 from USD 2.6 billion in 2023, growing at a compound annual growth rate (CAGR) of 10.2% during the forecast period.

Global Industrial Vending Machine Market Share Insights:

• The North American region recorded the highest share of the global market and is expected to continue its domination in the coming years due to the presence of key market players and increasing government investments.
• The personal protection equipment (PPE) segment held the largest share of the industrial vending machine market during the forecast period due to the increasing emphasis on workplace safety.

MARKET DRIVERS:

Similar to the regular vending machines that deliver food or beverages, the industrial vending machines offer different types of equipment and materials for the employees, especially at the work site. The increasing need for proper monitoring and maintenance of inventory and reduced waste in several industries is the primary factor driving the global industrial vending machine market. Also, the focus on decreasing the retrieval time, proper management of the inventory reorders, and decreasing the walk-around time in industries is promoting the growth of the industrial vending machine market. In addition, the concerns related to the employee's safety and minimizing expenses associated with restocking are also supporting the growth in the industrial vending machine market.

The stringent government regulations about the safety of the workforce and mandated use of personal protective equipment (PPE) in the working environment further drive the adoption of industrial vending machines. The increasing urbanization coupled with the rapid industrialization in several parts of the world is also promoting the business of these vending machines. Also, the advances in technology increased the adoption of new features like radio frequency identification (RFID) tags, the Internet of Things (IoT), improved display systems, and advanced software solutions in these machines. Besides, the recent developments in data collection and analysis enhanced the restocking and inventory management, along with customized services according to the industry. Cloud integration also offers a one-stop solution for companies to manage inventories in multiple locations in a hassle-free manner. Moreover, the ongoing transition towards Industry 4.0 in enterprises is likely to create more growth opportunities in the industrial vending machine market.

MARKET RESTRAINTS:

The major challenge in the industrial vending machine market is the initial investment related to the installation and integration of advanced software in those machines, which is restricting some small and medium enterprises. It is essential to maintain these machines timely as any errors can lead to huge downtime and more expenses. The transition from the traditional infrastructure to the new cloud-based structure that supports the integration of different equipment is also a constraint to global market growth. In addition, the slow adoption of advanced vending machines due to the requirement for huge maintenance and security costs is further limiting the worldwide market. Also, the compliance challenges in some of the highly regulated work environments, mixed with the lack of tailored vending machines to suit the specific needs of the market, challenge the adoption of these vending machines. Moreover, the questions related to the environmental impact of these machines are also supposed to constrain the market to some extent in the forecast period.

Impact of COVID-19 on the industrial vending machine market:

The COVID-19 pandemic had an initial negative impact on the global industrial vending machine market. The lockdown restrictions around the world resulted in supply chain disruptions and the movement of raw materials that impacted the installation of new machines and maintenance of the existing ones. These restrictions forced the companies to temporarily shut down their operations, which led to the halt of the manufacturing process and deployment of the machines. Also, the changes in government and individual preferences to spend more on essential products reduced the focus on these products during the pandemic. The social distancing measures implemented as a part of these restrictions reduced the number of working employees in the industries, pushing the employers to cut down expenses and invest more in sustainability. Other than the PPE kits, the vending machines were not properly used in several working environments. The remote working trend exploded during the COVID-19 pandemic, creating new pathways for manufacturers to develop cost-effective and reliable products. However, the market slowly gained traction after the ease of lockdown conditions. Furthermore, the technological advancements that are touted to develop touch-free vending machines with more software features are foreseen to propel this market during the forecast period.

REPORT COVERAGE:

This research report on the global industrial vending machine market has been segmented and sub-segmented into the following categories.

Industrial Vending Machine Market – By Type:

• Cabinet Vending
• Carousel Vending
• Vertical Lift
• Scale Vending
• Coil Vending

The coil vending machines segment accounted for the lion’s share of the global industrial vending machines market during the forecast period. The advantages offered by the coil machines such as easy maintenance, affordability, more space for storage, and limited power consumption are supporting the growth of the segment. On the other hand, with the advances in technology, the carousel vending machines segment is expected to expand at a considerable growth rate in the coming days. Carousel machines are being integrated with new features like RFID tags, facial detection, cashless payments, etc., which will drive their requirement in all types of enterprises in the future. 

Industrial Vending Machine Market – By Industry:

• Manufacturing
• Construction
• Oil & Gas
• Aerospace
• Healthcare
• Other Industries

The manufacturing industry dominated the worldwide market in 2022 and is expected to grow at a notable CAGR during the forecast period due to the increasing industrialization and focus on employee safety during production processes. Personal protection equipment kits are in high demand in the manufacturing sector due to heavy workloads and risky operations. Also, the need to reduce walk-around time, improve the efficiency of operations, manage inventory, and decrease downtime are further promoting the use of industrial vending machines in this sector.

The construction industry is expected to record substantial growth in the foreseen period owing to the spike in the construction of both residential and commercial projects around the globe. Safety equipment is pivotal for the people working in construction, and vending machines can help offer the required tools and components with less hassle. In addition, these machines can reduce overall waste and control expenses while improving the overall productivity of work.

Similarly, oil & gas is another niche industry that requires the highest levels of safety, and the vending machines here can help support quick operations by providing safety tools within a shorter time. Moreover, industries like healthcare, aerospace, and others will also witness increased use of vending machines with the adoption of new technologies like IoT.

Industrial Vending Machine Market – By Product:

• Personal Protection Equipment
• Maintenance, Repair and Operations (MRO)

 The PPE products witnessed higher growth in recent years and are likely to register the same trend in the forecast period. The strict government regulations related to the workplace safety of the employees are the major factor for the burgeoning demand for PPEs. The protection equipment, comprising of gloves, shoes, helmets, glasses, vests, and so on, is crucial in industries like construction, manufacturing, and oil & gas.

MRO products are also garnering attention slowly in several small and medium enterprises to improve business productivity and reduce wastage. These products may include testing tools, coatings, sealants, spare parts, and others, which are offered through vending machines and can shrink downtime and limit operational expenses. 

Industrial Vending Machine Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

North America, being the home to some of the leading industry players, holds the dominant share of the industrial vending machine market. The USA, in particular, is leading the market in this area because of the surge in government safety precautions and the adoption of PPEs in the working environment. The increasing investments in new technologies to improve the efficiency of operations in certain industries are also driving the business in this region.

The Asia Pacific region is estimated to record the highest growth in the coming years due to increasing manufacturing and construction activities in nations like China, India, Japan, and South Korea. The easy availability of raw materials, increasing population, and rising investments in new technologies are touted to fuel this local market in the future.

European nations are also predicted to expand at a notable rate with the blooming trend of replacing conventional industrial practices with new technologies. The spike in research and development activities in nations like Germany, Italy, France, and the United Kingdom will offer more growth potential for this economy.

The Middle East and African nations like the United Arab Emirates, Saudi Arabia, South Africa, and others are funding more in manufacturing, healthcare, and construction industries, which is anticipated to propel business growth in this region.

Latin America region has been a smaller player in the industrial vending machine market. However, there is a growing interest and adoption of new technologies in industrial activities, which will boost the local economy.

KEY MARKET MANUFACTURERS:

AutoCrib, Inc., SecuraStock, Brammer, SupplyPoint, Airgas Inc., Apex Industrial Technologies, LLC, IMC Group, IVM, Inc., CribMaster, Fastenal Company, Silkron, SupplyPro, Inc., CMT Industrial Solutions, Azkoyen Group, Sandenvendo America, Inc., Crane Merchandising Systems, Fuji Electric Co. Ltd and Bianchi Industry.

NOTABLE HAPPENINGS IN THIS MARKET IN THE RECENT PAST:

• In May 2023, TASNEE, a leading industrial and petrochemical company, and V-LINE GROUP, a notable supply chain solutions provider, collaborated to launch the first pilot project of adding industrial vending machines at the former company’s facility in Saudi Arabia.
• In 2022, IVS Group, an Italian vending machines company, and World line, a leader in payment solutions, joined hands to implement cashless payment options for vending machines in several European nations like Italy, France, and others.