Warehouse Racking System Market: Top Benefits & Common Types of Pallet Racks

Warehouse Racking System Market Size

Proper inventory management is integral to warehouse operations, which is also a challenge faced by warehouse professionals. This can be eased by selecting the right warehouse racking system. A warehouse racking system is a storage solution for racking materials in horizontal rows on multiple levels. As per Inkwood Research, the global warehouse racking system market is set to register a CAGR of 4.08% during the forecast period, 2023-2032.

Businesses today are prioritizing warehouse optimization, given the surging e-commerce operations and the increasing home delivery trends. Accordingly, companies are streamlining warehouse operations through tactics like pallet racking to meet the increasing demand for speedy goods delivery. Pallets are a major component in a supply chain and substantially influence overall efficiency.

Inkwood Research’s analysis of the global warehouse racking system market by type includes drive-in racking and drive-through racking, selective pallet racking, cantilever racking, pallet flow racking, and pushback racking. As per our evaluation, selective pallet racking is the largest revenue-generating and fastest-growing type in the market. It is expected to garner a revenue share of 44.31% and a CAGR of 4.58% by 2032.

In this blog, we take a look at the top benefits & common types of pallet racks:

Top Benefits of Pallet Racks

  • Space Saving

The foremost benefit of a pallet racking system is maximum storage space. It uses more vertical space over floor space, facilitating more storage capacity. Similarly, an increased storage capacity will result in increased revenue. The forklift trucks can drive into the racks, enabling easy handling of goods.

For instance, push-back racking systems expand storage capacity for high-density product stock-keeping units (SKUs). In addition, drive-through or drive-in pallet racks save space by minimizing the number of aisles within a warehouse for efficient workflow management.

  • Enhanced Warehouse Safety

Safety is a topmost priority in any industry. Warehouse safety rules should encompass worker logistics, height restrictions, machinery operations, and pallet & load weight. As a result, the demand for rapid fulfillment and convenience has increased in the last few years in warehouses alongside warehouse injuries. As per a 2020 study by the US Bureau of Labor Statistics, there were around 4.8 injuries among warehousing & storage workers for every 100 full-time employees.

A busy warehouse can immensely benefit from a pallet racking strategy as it eliminates common hazards that cause injuries, minimizes clutter, and streamlines workflow. Additionally, pallet racking systems are designed to meet the capacity, weight, and height needs of warehouses, which enables safe & proper loading and storage.

  • Minimal Damage to Merchandise

Merchandise wrapped on a pallet and secured on solid beams and wire decking is less prone to fall or accidental damage. Pallet racks can aid in keeping goods safe and reducing unnecessary transportation. Also, enhanced material handling increases profits by minimizing waste and damaged merchandise.

Common Types of Pallet Racks

  1. Double-Deep

Double-deep racks are created by placing one row of selective racks behind another. It can increase the storage capacity by 40% and is the least-expensive method to create high-density storage.

  1. Selective Pallet Rack

As the most versatile and popular pallet racking system, a selective pallet rack helps in effective space utilization. It also offers easy access to every load stored through any forklift. It is available in easy-to-clean structural and debris-resistant steel, which is ideal for food-handling operations. Moreover, it is recommended for low-turnover retail, manufacturing, and general warehousing.

  1. Pallet Flow Rack

Pallet flow racks use a first-in/first-out (FIFO) loading system and sloping racks. New pallets are added at the higher end and removed from the lower end. Also, pallet flow racks can increase the storage capacity twice or thrice more than drive-in or conventional pallet rack systems. These are ideal for food distribution centers, freezer warehouses, and storage of perishable, high-volume consumer goods.

  1. Drive-In/Drive-Thru Rack

The drive-in rack utilizes a common entry/exit, while a drive-thru rack has a separate entry and exit. It requires a smaller number of aisles.

Key features of drive-in/drive-thru racks:

  • Highly rigid and strongly welded frame construction
  • Enables the use of structural or roll-formed steel components with several rail and arm combinations
  • Designed for functionality and longer durability
  • Minimizes space costs
  • High-density storage solution

Such racks are recommended for high-turnover retail products, general warehousing, freezer/cooler, etc.

Warehouse Racking System Market Future Outlook: Expanding 3PL Services

3PL (Third-Party Logistics) helps online retailers in supply chain management. The prevailing 3PL services include inventory & warehouse management, retail distribution, shipping arrangement, returns and exchanges. The flourishing e-commerce industry is the primary growth driver of 3PL activities worldwide. Since warehouse activities are part of 3PL, the expanding 3PL services are set to augment the global warehouse racking system market demands.

By Akhil Nair


Which are the leading players in the global warehouse racking system market?

Vanderlande Industries BV, SSI Schaefer Group, Kardex Holding AG, Daifuku Co Ltd, etc., are among the leading players in the global warehouse racking system market.

Which is the prominent end-user of the global warehouse racking system market?

Retailers are the prominent end-user of the global warehouse racking system market.