Global Vertical Lift Module (VLM) Market Size By Type (Single Level Delivery, Dual Level Delivery), By Application (Automotive, Industrial Manufacturing), By Region, And Segment Forecasts, 2023 to 203...

The Global Vertical Lift Module (VLM) Market was valued at USD 1.9 billion in 2023 and is projected to surpass USD 3.8 billion by 2031, registering a CAGR of 8.9% during the forecast period from 2023 to 2031.

The increasing demand for automated storage and retrieval systems (ASRS), the need for space optimization in warehouses, and the growing adoption of Industry 4.0 technologies are the primary factors driving the market. VLMs offer high storage efficiency, improved picking accuracy, and enhanced operational productivity, making them ideal for use in industries such as manufacturing, retail, healthcare, and logistics.

Market Drivers

Rising Need for Warehouse Automation:

The rapid expansion of e-commerce, coupled with the demand for faster order fulfillment, is driving the adoption of automated storage systems such as VLMs.

Automation helps businesses reduce labor costs and improve accuracy, boosting overall warehouse efficiency.

Space Optimization in Warehouses:

VLMs enable efficient utilization of vertical space, reducing the footprint of storage areas.

This is particularly beneficial for urban warehouses and facilities with space constraints.

Adoption of Industry 4.0 Technologies:

The integration of AI, IoT, and data analytics in VLMs enhances inventory tracking, order accuracy, and predictive maintenance, making them an essential part of smart warehousing.

Market Restraints

High Initial Investment Costs:

The cost of purchasing and integrating VLMs into existing warehouse systems is high, making adoption challenging for small and medium-sized enterprises (SMEs).

Technical Complexity and Maintenance Challenges:

Proper maintenance and software integration require skilled professionals, posing a challenge for businesses with limited technical expertise.

Market Opportunities

Expansion in Emerging Markets:

Developing regions in Asia-Pacific and Latin America are witnessing significant growth in logistics and warehousing, creating opportunities for VLM manufacturers.

Advancements in AI and Robotics:

The evolution of AI-driven robotics and automated picking systems is expected to enhance the efficiency of VLMs, making them more attractive to various industries.

Market by System Type Insights

Single-Level VLMs dominated the market in 2023, offering cost-effective and space-efficient solutions for small and medium-scale storage needs.

Multi-Level VLMs are expected to witness the highest growth due to their advanced automation capabilities and ability to store high volumes of inventory.

Market by End-use Insights

Retail & E-commerce accounted for the largest share in 2023, driven by the rising need for efficient order fulfillment solutions.

Healthcare & Pharmaceuticals are experiencing rapid growth, as VLMs help in managing medical supplies, pharmaceuticals, and laboratory inventory efficiently.

Automotive & Industrial Manufacturing sectors are increasingly adopting VLMs for component storage and assembly line integration.

Market by Regional Insights

North America dominated the market in 2023, fueled by advanced warehouse automation in the U.S. and Canada.

Europe is expected to grow steadily, driven by increasing labor costs and stringent efficiency regulations.

Asia-Pacific is projected to witness the highest growth rate due to the booming e-commerce industry, rising warehousing investments, and industrial automation in countries like China, India, and Japan.

Competitive Scenario

Key players in the Global Vertical Lift Module Market include:

Kardex Group

SSI Schaefer

Modula S.p.A

Hänel Storage Systems

AutoStore

Mecalux S.A.

Vidir Machine, Inc.

EffiMat Storage Technology

Ferretto Group

SencorpWhite, Inc.

These companies are focusing on technological innovations, strategic partnerships, and expanding their global presence to strengthen their market position. Notable developments include:

In 2023, Kardex Group launched an AI-powered VLM solution, integrating predictive analytics for improved warehouse efficiency.

Modula S.p.A partnered with a leading e-commerce player in 2024 to deploy large-scale automated storage systems across fulfillment centers.

Hänel Storage Systems introduced an advanced robotic picking system in 2025, enhancing accuracy and operational speed.

Scope of Work – Global Vertical Lift Module (VLM) Market

Key Market Developments

Kardex Group launched AI-powered VLM systems in 2023, integrating real-time inventory tracking for enhanced operational efficiency.

Modula S.p.A expanded its production capacity in 2024, catering to the growing demand for automated storage solutions in logistics hubs.

SSI Schaefer partnered with a leading supply chain company in 2025, implementing VLMs in over 50 warehouses across North America and Europe.

FAQs

What is the current market size of the Global Vertical Lift Module (VLM) Market?

The market was valued at USD 1.9 billion in 2023.

What is the major growth driver of the Global Vertical Lift Module (VLM) Market?

The key growth driver is the increasing adoption of warehouse automation and space optimization solutions.

Which is the largest region during the forecast period in the Global Vertical Lift Module (VLM) Market?

North America held the largest market share in 2023, with major investments in warehouse automation.

Which segment accounted for the largest market share in the Global Vertical Lift Module (VLM) Market?

Retail & E-commerce led the market in 2023 due to the growing demand for efficient order fulfillment.

Who are the key market players in the Global Vertical Lift Module (VLM) Market?

Major players include Kardex Group, SSI Schaefer, Modula S.p.A, Hänel Storage Systems, AutoStore, Mecalux S.A., and Vidir Machine, Inc.

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