Reach Stacker Market - Growth, Trends, and Forecasts (2022 - 2027)

The Reach Stacker Market was valued at USD 2,369.09 million in 2021 and is expected to surpass a net valuation of USD 3,216.76 million by 2027 end, registering a solid CAGR growth of 5.23% over the forecast period.

Owing to the increasing trade activities between economies and government spending on building new ports and increasing the capacity of existing ports to increase the volume handling capacity of the ports, the reach stacker market is expected to witness prominent demand during the forecast period.

The outbreak of COVID-19 has led to an initial decline in both global production and international trade. Muted manufacturing facilities across the globe have substantially reduced the demand for imports. Moreover, the lockdown in China was a serious disruption for the industry which led to hinder the global supply chain. As China is the acts a pivotal role in global industrial production, short-term economic effects were initiated from the contraction of global demand, primarily for merchandise goods. A contraction in demand for multiple products has been experienced throughout the year 2020, like electronic equipment (such as computers and peripherals, video game consoles, etc.), mobile phones, exercise equipment, home equipment, medical equipment like surgical masks, gowns, and disinfectants, the majority of which have been produced in China, has made up for the decline in demand that was further flown in ports which impact on the demand for reach stacker.

In addition, with increasing trade tensions between two major economies of the world China and the United States, the global maritime trade is witnessing a slowdown in trade volumes globally, which is affecting the ports as they are not being utilized to their maximum outputs. These trade tensions are expected to ease up soon as both countries are working on finding solutions for the problem and increasing trade as this is hurting both economies badly.

Although, over the longer-term period, rising demand for hybrid and electric power trains in reach stacker is expected to elevate the demand. In addition, to strict government norms for improving the air quality, many port operators are opting for hybrid port equipment which are following the pollution levels at the same time increases operational efficiency. Also, technological advancement has enabled port operators to use autonomous vehicles and the internet of things for ensuring the safety of the crew.

Asia-Pacific has been the key hotspot for the reach stacker demand. This is attributed to a handful list of strategic ports situated in India, China, Japan, and South Korea that resonate with strong potential in overall maritime trade activities.

Considering these factors and developments, demand for reach stackers is expected to witness a high growth rate during the forecast period.

Key Market Trends

Electric Reach Stacker to Gain Momentum

Globally increasing carbon emissions and climate change have come up as a potential challenge for governing bodies of major developed and developing countries. The transportation sector holds a major contribution to greenhouse effects, accounting for around 24% of global Co2 emissions. In concern to minimalize the carbon emission from the transportation sector, technologies of low-carbon emission or zero carbon emission are required to be deployed at a vast scale.

In context to zero carbon emission technologies, alternative fuel vehicles (AFV) offers significant energy sustainable transportation and came up as a potential innovation to address the issue. In the logistics and goods services sector which even holds large share in the GDP, zero emission vehicles are quickly seeking opportunities to electrify the complete ecosystem. For instance, in July 2022, Port of Helsingborg of Sweden order their first all-electric Kalmar reach stacker. The electric reach stacker has wheelbase of 6.5 meters and carries 587 KWh battery pack to deliver power. In addition, the equipment comes with lifting capacity of 45, 32 and 16 tons variant.

With the increase in trade activities between the nations, the capacity of the existing ports, as well as demand for new ports development, remains the major concerned point for the governments globally. To match the demand, the governments are planning accordingly and spending funds for the development of existing ports as well as new ports under various initiatives.

Considering these development and factors, demand for electric reach stacker is expected to remain on the positive side of the graph.

Asia-Pacific Remains the Largest Market

Despite the ongoing trade war between two major economies of the world, the United States and China, the trade exports to other parts of the world witnessed high demand and kept the ports in the region busy. During the forecast period, it is expected that the trade tensions between these two countries will ease, and trade will be back to normal which will accelerate the export volumes from the region. The region accounts for around 40% of the total trade by volume globally. The governments in the region are spending aggressively with a future outlook to develop ports with high capacity while at the same time keeping the environment clean.

China has a total of 34 major ports and 2000 minor ports which are expanding the country's trade route. Many of these ports are globally relevant in terms of economic and historical contributions to global trade volumes. In addition, 158 ports which are situated on China's eastern and southern coasts also play the most crucial role in import-export activities. Chinese authorities are also accelerating their pace of developing world-class ports. With a very competitive aim to achieve breakthroughs in green, smart and safe development of major ports, with enhanced scale at regional and other ports by the year 2025. By 2035, major ports should advance to world-class levels and by 2050, several world-class port clusters should be formed, with leading development levels.

In India, which is also a fast-developing nation, more than 90% of trade by volume is conducted via the country's maritime route, there is a continuous need to develop India's ports and trade-related infrastructure to accelerate growth in the manufacturing industry and to assist the 'Make in India' initiative. There are 13 major ports in country which cumulatively handles most of the trade volume of cargo and container traffic. Further, over the west coast, Kandla, Mumbai, Mangalore, Mormugao, JNPT and Cochin are equipped with ports. whereas east coast ports are situated on Chennai, Visakhapatnam, Tuticorin, Kolkata, Paradip and Ennore.

Expanding number of ports enables the region to exhibit immense demand for the reach stacker for material handling, transportation services. The major players in the region are developing innovative, efficient and clean fuel equipment for the ports in the region to reduce the carbon footprints at the same time increasing the output efficiency.

In June 2022, Kalmar has announced its recent delivery of three Eco reach stackers to be delivered to North China Yantai Port to enhance overall efficiency, financial stability and sustainability of port. The Yantai Port is located in the north of Shandong Peninsula which is an most essential node for the 21st-century maritime silk route. In addition, the Kalmar and Yantai Port have consistently maintained longer-term working relationships since the 1990s.

Considering this development, reach stacker is expected to witness high growth rate in Asia-pacific region during the forecast period.

Competitive Landscape

The Reach Stacker Market is consolidated, with few players ruling the complete market share. Some of the prominent companies in the Reach Stacker Market are CVS Ferrari, Kalmar, Konecranes, Liebherr, and others. The major players in the country are entering into a strategic partnership with global leaders to gain considerable market share. For instance,

• In July 2022, Kalmar decided to spin off its care business division to focus on the wider spectrum of reach stackers, straddle carriers, shuttle carriers, spreaders, and forklifts.
• In March 2020, Konecranes has received the largest ever reach stacker contract from Germany. The order for 39 reach stackers was won with Konecranes' distributor Richter Fordertechnik GmbH & Co. KG. and the deliveries are scheduled to begin in Q3 2020 and run until Q1 2021 for different handling capacities of 22-ton, 16-ton and 6-ton containers.

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