Industrial Vending Machine Market Size, Share, Growth, Trends Analysis, Regional Outlook And Segment Forecasts 2021-2028

Vision Research Reports says the global industrial vending machine market size is projected to surpass around USD 4.8 billion by 2028.

The global industrial vending machine market size was valued at USD 2.5 billion in 2020 and is anticipated to grow at a CAGR of 9.8% from 2021 to 2028.

The increasing need for downtime cost reduction in companies is expected to drive the growth of the market over the forecast period. Industrial vending machines are expected to lower operational downtime by enabling companies to efficiently manage their inventory. Moreover, these systems are available in different types such as carousel and coil vending machines and are designed by original equipment manufacturers (OEMs) to cater to diverse requirements across various end-use industries.

Increasing regulations in companies concerning employee safety are expected to drive the growth of the market. Vending machines for personal protective equipment (PPE) are increasingly being implemented in manufacturing and oil and gas companies to enable the efficient usage of protective equipment such as gloves, goggles, and helmets. Furthermore, maintenance, repair, and operations (MRO) machines are installed at maintenance facilities in aviation industries, where downtime is unfavorable for business operations.

OEMs are developing industrial vending machines that are IoT-enabled. For instance, vending machines are connected to the internet enable data management of inventory usage and tracking of inventory to prevent fraudulent activities such as theft. Moreover, these systems are connected to the cloud to enable remote access to data. Thus, the company can carry out effective management of the inventory and prevent unnecessary expenses on inventory replenishment.

Type Insights

The coil vending machine segment is expected to register the highest growth rate over the forecast period. These machines hold more inventory compared to other product types, consume less power, and are easy to maintain, making them more economical. As a result, the segment is anticipated to attain a dominant market position by 2027.

Carousel vending machines are used for products such as tools, cutters, and small testing equipment. These products occupy less floor space and are therefore widely adopted by SMEs. Moreover, this equipment is cost-efficient and hence economical for companies. Other types of equipment involve cabinets and lockers that are custom-designed based on the end use. These cabinets and lockers are generally used for MROs, which are stocked in comparatively higher quantities and volume.

Product Insights

The personal protective equipment (PPE) segment is expected to witness remarkable growth over the forecast period. Growing emphasis on employee safety has driven the implementation of industrial vending machines to store personal protection equipment. In addition, increasing regulations regarding employee safety are expected to drive the demand for industrial vending machines for PPE equipment. Moreover, along with industrial vending machines, industry vendors provide PPE supplies as well, thereby increasing their adoption.

Maintenance, repair, and operations (MRO) supply such as tools, spare parts, sealants, coatings, tool kits, and testing equipment are required the most during downtime. Thus, MRO equipment is stocked and maintained on a large scale in industries where the cost of downtime is high. MRO supplies are also an important part of the floor inventory and hence tracking them is essential for many industries such as manufacturing, oil and gas, and aviation. Industrial vending machines provide an easy way to track and maintain MRO supplies, thereby driving the segment growth.

End-use Insights

Manufacturing was the largest end-use segment for industrial vending equipment in 2019. Industrial vending machines are widely adopted in the manufacturing sector owing to the high costs associated with operational downtime. Industrial vending machines also help improve operational efficiency and keep a track on the supply usage. North America is projected to witness lucrative growth owing to the numerous manufacturing SMEs in the region.

Oil and gas are expected to emerge as the fastest-growing segment over the forecast period owing to the high cost of equipment such as drilling tools and PPE equipment. Furthermore, employee safety is a high priority in this industry due to its hazardous work environment. Other end-use industries include aviation and military and defense. The high cost associated with unnecessary downtime drives the adoption of industrial vending machines in these industries.

Regional Insights

In 2019, North America accounted for the largest share of over 40.0% of the market owing to the presence of numerous OEMs and distributors based in the region. North America-based companies are pioneers in most technologies in the manufacturing industry, which subsequently contributes to the growth of the regional market. Furthermore, growing awareness regarding worker safety and hazardous work environments drives the regional demand for industrial vending machines.

Asia Pacific is estimated to be the fastest-growing market over the forecast period. The growing number of SMEs in the region drives the product demand. Moreover, countries such as China and Japan are home to several OEMs, thereby driving the regional market growth. As countries such as China, India, and South Korea adopt upcoming manufacturing and production practices, the region is anticipated to gain traction in the latter part of the forecast period.

Key Players

Key players in the global market include Fastenal Company; AutoCrib, Inc.; Apex Industrial Technologies LLC; Silkron; SupplyPro, Inc.; SupplyPoint; CribMaster; CMT Industrial Solutions; IVM Ltd.; Brammer; and Grainger, Inc. From these companies, Fastenal Company has emerged as the dominant vending solution provider, especially in North America. Fastenal’s exceptional performance can be attributed to the unique offerings and servicing model the company has adopted in the U.S.

The market is highly competitive. Entry for new players is difficult due to the high investment required for manufacturing infrastructure, such as factories and warehouses. Furthermore, existing players provide additional services such as consulting, maintenance, and supply of inventory, which creates entry barriers for new companies. Therefore, small-scale players in the market collaborate or partner with major players to enter into the industry.

Market Segmentation

Type Outlook

  • Carousel Vending Machine
  • Coil Vending Machine
  • Others

Product Outlook

  • Maintenance, Repair & Operations
  • Personal Protective Equipment
  • Others 

End-use Outlook

  • Manufacturing
  • Oil & Gas
  • Others

Regional Outlook

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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