A pallet is a flat panel that supports goods during their transportation. It is designed to be lifted by forklifts and pallet jacks. The demand for pallets in value terms is expected to grow at a faster pace than the demand in unit terms, because of an increase in the demand for expensive plastic pallets and the adoption of automation technology over the forecast period. The growing preference for pallet rental and pooling is also expected to increase the share of the pallet rental sector in the overall market by 2018.
Key Market Drivers
· Increase in Economic Activity
· Increased Retail Presence
· Increase in Manufacturing Output
· Modernization of Logistics Sector Driving Palletization
Key Market Trends
· Rise in Pallet Rental and Pooling Operations
· Rapid Growth of Modern Retailing Market
· Advances in Technology
“The demand for pallets depends on economic drivers, such as population growth and growth in disposable income,” says Faisal Ghaus, Vice President of TechNavio.
“Palletization is growing fast in China because companies are noticing an improvement in operational efficiency when goods are transported on pallets.”
To define the market circumstances in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.