Vertical Lift Module Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Delivery Type (Single-Level and Dual-Level), By Storage Type (Non-Refrigerated and Refrigerated), By End-User (Automotive, Metals & Machinery, Food & Beverages, Chemicals and Others), By Region, and By Competition, 2020-2030F

Market Overview

The Global Vertical Lift Module Market, valued at USD 840.00 Million in 2024, is projected to experience a CAGR of 8.80% to reach USD 1393.33 Million by 2030. A Vertical Lift Module (VLM) is an automated enclosed storage and retrieval system that utilizes vertical space to store materials on trays, delivering them to an operator at an ergonomic height. The market's expansion is primarily driven by the escalating demand for warehouse automation, essential for optimizing floor space, and the necessity to mitigate rising labor costs while enhancing operational efficiency and inventory accuracy.

According to MHI, the Material Handling Industry in the United States contributed $266 billion to the national GDP in 2024. While specific global VLM market figures from industrial associations are not readily available, this demonstrates the significant economic impact of the broader sector. A notable impediment to broader market adoption is the substantial initial capital investment required for VLM procurement, installation, and integration with existing warehouse management systems.

Key Market Drivers

Increased adoption of warehouse automation stands as a primary catalyst for the Global Vertical Lift Module Market, driven by continuous pressure on businesses to enhance operational efficiency and reduce manual labor dependency. Modern warehouses are integrating advanced systems to streamline processes, transforming traditional logistics. According to the 2024 MHI Annual Industry Report, published in March 2024, 82% of surveyed supply chain leaders intend to adopt robotics and automation technologies within the next five years, indicating a strong industry shift towards automated solutions. This widespread move directly favors VLMs, as they offer automated storage and retrieval capabilities that fit seamlessly into sophisticated intralogistics ecosystems. Complementing this, the demand for space optimization significantly influences VLM market expansion. As industrial real estate costs escalate, businesses must maximize vertical storage within existing footprints. VLMs excel here by leveraging overhead space, increasing storage density. For instance, Prologis Research stated in September 2023 that for every dollar of U. S. gross domestic product, at least 20% more logistics space is now required than before the COVID-19 pandemic, underscoring the critical need for efficient space utilization. VLMs address this by transforming underutilized vertical areas into productive storage.

The aggregate effect of these drivers is reflected in the market performance of key players. Kardex Holding AG, a prominent provider of automated storage solutions, reported robust growth in its 2024 financial results. According to Kardex Holding AG's 2024 Financial Results, published in March 2025, the company's net revenues grew by 12.6% to a record high of EUR 791.2 million, demonstrating strong market demand for these specialized systems. This financial performance highlights the increasing strategic importance of VLMs in contemporary supply chain operations, driven by their capacity to deliver both automation benefits and critical space efficiency across diverse industrial applications.

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Key Market Challenges

The substantial initial capital investment required for Vertical Lift Module procurement, installation, and integration with existing warehouse management systems presents a significant impediment to market expansion. This considerable upfront expenditure, encompassing not only the machinery but also the necessary infrastructure modifications and software integration, often strains the financial resources of potential adopters. Smaller and medium-sized enterprises, in particular, may find these costs prohibitive, limiting their ability to implement VLM solutions despite recognizing their operational benefits.

This challenge is directly reflected in broader automation investment trends. According to the Association for Advancing Automation (A3), North American robot orders declined by 30% in 2023 compared to the previous year, with 31,159 robots purchased, down from 44,196 in 2022. This reduction was partly attributed to a slower U. S. economy, higher interest rates, and companies lacking the necessary capital for immediate investment in automation technologies. Such economic pressures directly curtail the allocation of funds for high-value assets like VLMs, thereby slowing their broader market adoption and growth.

Key Market Trends

Two significant trends currently driving growth in the Global Vertical Lift Module Market are IoT and AI Integration for Enhanced Management, and Emphasis on Energy-Efficient and Sustainable VLMs. These distinct trends are reshaping VLM functionality and market expectations.

IoT and AI Integration for Enhanced Management fundamentally transforms Vertical Lift Module operational capabilities. This trend leverages smart sensors and artificial intelligence for predictive maintenance, real-time inventory visibility, and optimized storage, shifting from basic automation to intelligent system control. According to the 2025 MHI Annual Industry Report, published in March 2025, 35% of companies planning to use AI within two years are applying these technologies to inventory management. This enables VLMs to dynamically adapt to demand fluctuations, enhancing overall efficiency. In September 2024, Berkshire Grey Inc. announced a partnership with Kardex, a VLM provider, to integrate AI-enabled robotic solutions for picking and AutoStore operations. Such collaborations highlight the industry's shift towards smarter, data-driven VLM ecosystems.

Emphasis on Energy-Efficient and Sustainable VLMs represents a critical trend driven by environmental considerations and reduced operational costs. Manufacturers are developing VLMs with advanced features including regenerative braking systems, high-efficiency motors, and intelligent power management to minimize energy consumption. This aligns with broader industry sustainability goals, providing economic benefits through lower utility expenses and corporate environmental responsibility. The MHI Report 2024 Sustainability, published in March 2024, indicates that the MHI Group aims to reduce total CO2 emissions from its business activities by 50% by 2030 compared to 2014 levels. Dematic, a material handling solutions provider, introduced its Ecodrive software, which can reduce CO2 emissions by 10-15% in automated warehouses by optimizing process control efficiency. These innovations contribute to a more environmentally sound and cost-effective supply chain.

Segmental Insights

The Single-Level segment is experiencing rapid growth within the Global Vertical Lift Module Market, emerging as a leading component in this sector. This accelerated expansion is primarily driven by its inherent advantages in optimizing storage density, which is crucial for maximizing facility space, especially in urban environments. Furthermore, Single-Level Vertical Lift Modules enhance operational efficiency through faster and more accurate retrieval processes, significantly improving inventory management. Their design also contributes to superior worker safety and ergonomics by delivering items at a consistent, accessible height, thereby minimizing manual handling and reducing potential errors. These benefits make Single-Level solutions highly appealing across diverse industries such as e-commerce, automotive, and pharmaceuticals, where precise, rapid, and space-efficient material handling is paramount.

Regional Insights

Europe holds a leading position in the Global Vertical Lift Module Market, driven by its profound commitment to industrial automation and operational efficiency. This dominance is significantly influenced by stringent regional regulations concerning occupational health and safety, which encourage the adoption of advanced, secure storage solutions. High labor costs and the increasing value of warehouse space further compel European businesses to invest in Vertical Lift Modules for superior space utilization and reduced operational expenditure. The region's robust manufacturing base, especially in the automotive and machinery sectors, along with supporting initiatives such as the EU's Digital Europe Programme, consistently fuels demand for these automated systems.

Recent Developments

• In October 2025, Kardex, a Swiss intralogistics solutions provider, opened its new Australian office in Lidcombe Business Park, Western Sydney. The opening ceremony featured live demonstrations of the company's Vertical Lift Module (VLM) and AutoStore Grid systems. The showcased VLM is a goods-to-person system, designed to enhance storage capacity within a compact footprint. This modular VLM also aims to improve productivity by delivering items directly to the operator, simplifying usage. The expansion into Australia with a new office and showroom underscores Kardex's commitment to providing localized support and advanced automation solutions, directly impacting the global Vertical Lift Module Market through regional growth and product visibility.

• In May 2025, ISS Material Handling announced a new partnership, becoming a Sales Channel Partner for Hänel Storage Systems. This collaboration facilitates the distribution of Hänel’s innovative storage solutions, including its Vertical Lift Modules (VLMs, also known as Hänel Lean-Lift). The Hänel Lean-Lift Vertical Lift Module is recognized for delivering high-density, heavy-duty vertical storage and efficient workflows, optimizing material organization for various pick velocity requirements. This strategic alliance aims to broaden the reach of Hänel's VLM technology, supporting businesses in maximizing storage per square foot and enhancing operational efficiency within the global market.

• In March 2025, Modula Inc., a prominent manufacturer of automated storage and retrieval solutions, launched Flexibox. Unveiled at ProMat 2025, Flexibox is a high-speed, scalable automated storage solution built upon Vertical Lift Module (VLM) technology, designed to enhance order fulfillment efficiency and flexibility across various industries. This new product features a central elevator with a telescopic fork capable of retrieving multiple bins simultaneously. Flexibox integrates with advanced warehouse management system (WMS) software to accelerate order fulfillment and reduce operator wait times, contributing to the advancement of VLM applications in the Global Vertical Lift Module Market.

• In March 2024, SSI SCHAEFER introduced LOGIONE, new stand-alone software designed specifically for the operation of its SSI LOGIMAT Vertical Lift Module. This software launch represents an advancement in controlling VLM systems independently, offering enhanced functionality for warehouse processes. The development enables optimized management of small parts storage and retrieval, contributing to greater efficiency and flexibility in intralogistics operations. By providing dedicated software for its vertical lift modules, SSI SCHAEFER is addressing the evolving needs for streamlined inventory control and operational autonomy within the Global Vertical Lift Module Market.

Key Market Players

• Kardex Holding AG
• Hanel GmbH & Co. KG
• Ferretto Group S.p.a
• AutoCrib, Inc.
• Modula Inc.
• Weland Lagersystem AB
• Schaefer Systems International Inc.
• Automha S.p.A.
• Mecalux, S.A.
• Stanley Black & Decker, Inc.

Report Scope:

In this report, the Global Vertical Lift Module Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vertical Lift Module Market, By Delivery Type:

o   Single-Level

o   Dual-Level

• Vertical Lift Module Market, By Storage Type:

o   Non-Refrigerated

o   Refrigerated

• Vertical Lift Module Market, By End-User:

o   Automotive

o   Metals & Machinery

o   Food & Beverages

o   Chemicals

o   Others

• Vertical Lift Module Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Vertical Lift Module Market.

Available Customizations:

Global Vertical Lift Module Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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