REACH STACKER MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The reach stacker market is estimated to be valued at USD 2.37 Bn in 2024 and is expected to reach USD 3.48 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

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The demand for reach stackers is driven by growing seaborne trade activities and increasing container handling activities at ports and intermodal terminals. Reach stackers are made up of an over-cab design with narrow clearance for enhanced maneuverability and access, are electrically powered for reduced emissions, and feature an angled mast and telescopic forks to retrieve shipping containers stacked multiple rows deep. Advancing technologies such as automated guided vehicles, diesel particulate filters, and electric power trains to reduce environmental impact will further push the demand for reach stackers in the coming years. Developing economies in Asia Pacific continue to invest heavily in port infrastructure development supporting trade, which will drive the need for modern cargo handling equipment such as reach stackers.

Growing Cargo Shipping Industry

The reach stacker market is witnessing strong growth in demand driven primarily by the expanding cargo shipping industry globally. Major ports across countries are investing heavily in improving their infrastructure and cargo handling capacities to keep up with rising trade volumes. This has significantly driven the demand for sophisticated cargo handling equipment such as reach stackers. With world merchandise trade projected to grow further in the coming years, ports and logistics hubs are scrambling to upgrade their fleets with advanced reach stackers that can work efficiently even in constrained areas. For instance, in October 2023, the World Trade Organization projected that the volume of world merchandise trade is expected to grow by 3.3% in 2024.

Reach stackers appeal to port authorities and terminal operators as they provide fast and flexible stacking and destacking of containers compared to traditional equipment. Their ability to traverse shorter distances and maneuver precisely even in cramped quay spaces allows swift clearing of container ships for faster turnarounds. This has become a critical capability, given how even minor delay in ship schedules can massively disrupt complex port operations and global supply chains. Reach stackers purchased in large numbers by ports also help improve productivity through intensive multi-shift operations. With technology progressing rapidly, equipment manufacturers are also offering reach stackers equipped with advanced features like driver-assistance, telematics, and safety systems that further boost efficiency for busy ports.

Market Concentration and Competitive Landscape

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Strict Emission Norms Forcing Replacement Demand

Another major factor contributing to healthy growth of the reach stacker market is the implementation of stringent emission norms across countries for diesel-powered vehicles and equipment. International standards like IMO's Tier II and Tier III along with domestic regulations in regions, such as Europe and North America, have led to a gradual phasing out of older, high-emission reach stackers. This is driving replacement demand as ports, logistics parks, and terminals upgrade to modern electric, hybrid, or lower-emission diesel models. For example, the state of California which has some of the world's busiest ports recently announced a plan to transition all cargo handling equipment to zero-emissions by 2030.

Original equipment manufacturers are aggressively promoting their latest low-carbon reach stacker series to capture this replacement wave. Hybrid and electric variants which produce negligible exhaust are being purchased in large numbers to meet environmental targets. Even diesel models now feature advanced emission control systems and optimized engines to slash particulate and nitrogen emissions by over 90% compared to earlier trucks. Compliance with tough norms has however increased costs, making replacement a necessity for fleet owners. The tightening of emission rules worldwide is therefore expected to sustain long-term.

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Market Challenges: Trade Barriers

The reach stacker market faces several challenges. Strict emission regulations imposed by environment agencies threatens the sales of conventional diesel equipment. Developing electric and automated solutions requires huge investments and the current battery technology limits machine performance. The market is also fragmented with many local and regional players. Consolidation through mergers and acquisitions is driving up competition. Geopolitical tensions and global trade wars impact equipment prices and supply chains. Economic slowdowns dampen the demand from terminal operators and logistics companies.

Market Opportunities: Adoption of Automation and Telematics

Ports and terminals worldwide are expanding their capacity to handle growing trade volumes. This drives the need to modernize material handling fleets. There is a rising demand for automated, connected and electric machines equipped with sensors and telematics. Outsourcing of material handling activities to third-party logistics providers is on the rise. 

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Insights, by Lifting Capacity - Operational Flexibility Drives Demand for 31-45 Ton Capacity Reach Stackers

The 31-45 ton lifting capacity segment is estimated to dominate the reach stacker market with 53.3% market share in 2024 owing to its flexibility in handling a wide range of container loads. Reach stackers in this segment can efficiently handle loads from 30-45 tons, allowing port and terminal operators to use a single machine across different jobs. Lighter loads below 30 tons can be handled but with less productivity compared to specialized smaller capacity machines. Loads above 45 tons require heavier, less maneuverable models. For instance, Terex Corporation, a U.S.-based company and worldwide manufacturer of lifting and material-handling equipment, offers up to 45 ton capacity reach stackers that can fulfill the requirements of even the most difficult handling tasks.

Reach stackers between 31-45 tons offer the ideal balance of lifting power and maneuverability for most applications. They can pick up and transport standard 20-40 foot containers efficiently without being restricted or overloaded. This versatility enables them to be utilized for multiple tasks like loading and unloading of vessels, stacking containers in yards, intra-terminal transfers, etc., thus optimizing asset utilization. The segment also benefits from favorable total cost of ownership - the initial equipment cost is lower than larger models while fuel and maintenance expenses are also competitive.

Major equipment suppliers have also tailored their product lines to focus on 31-45 ton models. Market leaders like Konecranes and Kalmar offer a wide range of machines within this capacity, configured with different boom and outreach combinations. This allows end users to select configurations best suited for their space and throughput requirements. An expansive dealer and service network provides strong after-sales support. Financing options from manufacturers further improve accessibility of these mid-range models.

In conclusion, the proven performance and versatile capabilities of 31-45 ton reach stackers across different job profiles and container loads have made this the preferred choice among port and terminal operators globally. With strong product backing from leading OEMs as well, the segment is anticipated to remain the volume driver of the overall reach stacker market.

Insights, by Propulsion - Growing International Trade Drives Demand for IC Engine Powered Reach Stackers

The IC engine segment is estimated to dominate the reach stacker market with 70.2% market share in 2024 owing to its initial cost effectiveness and proven reliability. Though more expensive to maintain over time, the upfront purchase price of diesel models is significantly lower than electrically-powered variants.

International seaborne trade has grown consistently in the last decade, increasing workload at ports. Container throughput has increased annually, necessitating higher operational productivity through mechanization. However, large capital investments deter port operators from quickly overhauling existing equipment to adopt new technologies like electric or hybrid vehicles. The stable performance and serviceability of tried-and-tested diesel engines provide reassurance in high-pressure environments. For instance,

Replacing engines during mid-life repairs and overhauls also contributes to ongoing demand. Existing units remain in the field for 10-15 years on average before full replacement. Engine OEMs with specialized dealer networks catering to specific industrial segments are able to provide standardized, low-cost support for common problems. This sustainably lowers total operational costs compared to one-off maintenance of advanced systems.

Certain ports also lack infrastructure to rapidly charge electric models between shifts. Investments in grid upgrades, charging stations and battery disposal systems require long-term planning. Till renewable energy and automation transforms global supply chains, diesel will continue playing a crucial role in powering cargo movement worldwide, sustaining IC engine reach stacker sales.

Insights, by End User - Growth of Port Capacity Drives Demand from Terminal Operators

Ports and terminals is estimated to dominate the market in 2024 with market share of 68.6% due to their extensive reliance on mechanized equipment like reach stackers. As global trade expands consistently, governments’ fast-track port infrastructure development to sustain economic growth. Major projects underway across Asia Pacific, Africa, and Latin America involve the construction of new terminals and expansion of existing facilities.

Larger terminal footprints require deploying additional fleet of yard equipment. Reach stackers are versatile machines that can efficiently load and stack containers across stacked lanes and transit areas. Their telescopic boom and sideways reach allow stable operation even in confined spaces between rows of containers. Market leaders have developed specialized platforms for ports with unique features like all-weather cabin sealing, anti-corrosion coating, etc.

Larger projects also involve Greenfield development requiring set up of equipment from scratch. While previously owners relied on second-hand units, the scale of ongoing projects enables direct purchase of new reach stackers. Major global terminals handled by operators like DP World, PSA and APM Terminals have long-term plans to continually modernize fleets. This ensures replacing older models approaching end-of-life with latest compliant units featuring enhanced safety, telematics and automation.

In conclusion, as international trade drives global port capacity expansion mainly in developing economies, terminal operators will remain the prime consumers of reach stackers to efficiently handle escalating container volumes. Ongoing infrastructure modernization worldwide provides a multi-year demand pipeline.

For instance, in June 2023, Kalmar, part of Cargotec, cargo handling machinery manufacturer, signed an agreement to supply French multimodal terminal operator BTM with two Kalmar electric reachstackers. The machines will be operated at Terminal Ouest Provence (TOP), a new multimodal development due to be completed in Q2 2024. The order was booked in Cargotec’s Q2 2023 order intake and the machines are scheduled to be delivered during Q1 2024. 

Regional Insights

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North America is expected to maintain its steady growth in the global reach stacker market. The U.S. is home to several major equipment manufacturers and port operators, giving it a significant advantage. Companies based in the U.S. and Canada have strong distribution networks across the continent as well as in parts of Latin America and Asia. Moreover, growth of the e-commerce industry has led to increased demand for container handling equipment at warehouses and distribution centers in the North American region. Strict emission regulations have also pushed manufacturers to develop more technologically advanced and environment-friendly reach stackers.

A key market driver is the presence of the largest container ports. Major ports on both the east and west coasts handle high volumes of container traffic every year. Efficient cargo handling is a priority for port operators, ensuring a continuous requirement for additional reach stackers. North America is also taking the lead in automation and adoption of electric and hybrid equipment. Government incentives and private investment are encouraging manufacturers to shift to cleaner fuel options. This focus on new technologies makes North America an attractive testing ground for product development.

The Asia Pacific region is estimated to dominate the market with market share of 41.2% in 2024, led by China, is the dominant market for reach stackers. Rapid economic expansion across Southeast Asia has boosted trade volumes significantly. Countries like India, Indonesia and Vietnam are investing heavily in expanding port and logistics infrastructure to capitalize on their strategic locations. Growing manufacturing activity has increased the need for material handling at industrial facilities as well. Major global equipment brands have set up local assembly plants in Asia to cater to rising in-country demand.

Favorable economic conditions have facilitated strong private participation in infrastructure projects. Affordable labor and availability of low-cost raw materials provide cost advantages to equipment manufacturers based in China and India. They are aggressively targeting emerging markets through competitive pricing. At the same time, local sourcing norms adopted by certain governments create opportunities for domestic suppliers. The Asia Pacific region's increasing trade volumes and ongoing infrastructure investments point towards continued dominance in the global reach stacker market landscape in the future.

Market Report Scope

Key Developments

• In June 2023, Kalmar, a part of Cargotec, cargo handling machinery manufacturer, announced the introduction of a range of new sustainability options for its eco-efficient electric reach stacker at the TOC Europe conference in Rotterdam, the Netherlands. The new options will make the Kalmar electric reach stacker the world’s most sustainable reach stacker.
• In May 2023, Cargotec, a cargo handling equipment provider such as reach stackers, partnered with SSAB, a U.S.-based steel company, to introduce SSAB Zero, a fossil carbon emission-free recycled steel for the cargo and load handling industry. Cargotec plans to gradually start using this steel in its products.
• In December 2023, Kalmar, a part of Cargotec (a cargo handling equipment provider such as reach stacker), began the production of its electric reach stacker and essential forklift truck range at the company’s Shanghai manufacturing plant
• In January 2024, Kalmar, part of Cargotec, has received a large order from leading Norwegian logistics service provider Wallenius Wilhelmsen to supply four heavy electric forklift trucks, two electric reach stackers and three heavy terminal tractors for the company’s US logistics network.

*Definition: The reach stacker market consists of manufacturers and suppliers of reach stackers. Reach stackers, also known as container handlers, are heavy-duty vehicles used in ports and intermodal terminals to stack containers. They are equipped with an adjustable horizontal boom that can reach containers stacked several positions high, making them more flexible and efficient than traditional forklifts for container handling applications. The reach stacker market has seen strong growth in demand from the shipping industry as global containerized cargo volumes have increased over the years.

Market Segmentation

•  Lifting Capacity Insights (Revenue, USD BN, 2019 - 2031)
  • Below 30 Ton
  • 31 to 45 Ton
  • Above 45 Ton
•  Propulsion Insights (Revenue, USD BN, 2019 - 2031)
  • IC Engine
  • Electric
  • Hybrid
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Ports and Terminals Operators
  • Logistics Companies
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East
• Key Players Insights
  • Anhui Heli
  • Clark
  • Doosan Corporation
  • Hyundai Motor Company
  • Konecranes
  • Mitsubishi Electric India Pvt. Ltd.
  • Pettibone Traverse Lift, LLC
  • SANY America
  • Toyota
  • Terex
  • Mobicon Systems
  • Hoist Material Handling, Inc.
  • Landoll Corporation, LLC
  • Crown Equipment Corporation
  • LiuGong
  • Liuzhou Liugong Forklift Co., Ltd.
  • Hangcha Group
  • NC Nielsen
  • Kalmar
  • Manitou
  • Mantrac Group