Vertical Lift Module Market

Vertical Lift Module Market Overview 

The global Vertical Lift Modules (VLMs) Market size was valued at USD 1.76 billion in 2024 and is predicted to reach USD 1.91 billion by the end of 2025. The industry is predicted to reach USD 2.93 billion by 2030 with a CAGR of 8.9% from 2025 to 2030.

The Vertical Lift Module (VLM) market is experiencing significant growth driven by several factors. As real estate costs rise globally, industries are turning to VLMs as a solution to optimize space and reduce the need for extensive floor areas, especially in urban environments. VLMs help maximize vertical space, improving storage density and operational efficiency. Additionally, automation in inventory management through VLMs enhances real-time tracking and minimizes errors, particularly in sectors requiring high precision. The ergonomic design of VLMs also plays a critical role in enhancing workplace safety, reducing injuries, and improving productivity. However, the high initial costs of VLM systems can be a barrier, particularly for smaller businesses. Despite this, there is a growing opportunity for retrofitting existing facilities with VLM technology, offering a more sustainable and cost-effective way for companies to modernize their operations without the need for new construction.

Rise in Real Estate Sector Fuel Vertical Lift Module Market Growth

With the soaring cost of commercial real estate globally, maximizing vertical space has become imperative. VLMs offer a space-saving solution by storing inventory in high-density vertical columns. According to Kardex, VLMs reduce floor space requirements by up to 85% compared to traditional shelving systems. This capability directly appeals to industries operating in urban environments where warehouse space is limited and expensive. As industrial and e-commerce players strive to optimize operations within tighter footprints, VLMs are emerging as a preferred choice, driving their market scope and growth potential.

Smart Inventory Management with Automation Drives the Vertical Lift Module Market Growth

The push for streamlined inventory control is another key driver for the market. Traditional storage methods lead to disorganized stock, misplacement, and delayed fulfillment. VLMs, integrated with warehouse management systems (WMS), enable real-time inventory tracking and access, significantly improving operational efficiency. Modula and SSI Schaefer have showcased how VLMs minimize picking errors and increase throughput in distribution centers. These advancements help companies maintain accuracy and efficiency, which is especially critical in industries like pharmaceuticals and aerospace, where precision is non-negotiable.

Workplace Safety and Human-Centric Design Boosts Vertical Lift Module Market Growth

Workplace safety and ergonomics are no longer just compliance concerns, they are strategic priorities. VLMs eliminate the need for bending, climbing, or walking long distances, thereby reducing workplace injuries. As noted by White Systems and FCB, ergonomic access points and automated item retrieval reduce strain on workers and enhance productivity. By aligning with modern occupational health standards, companies leveraging VLMs are not only protecting their workforce but also boosting overall efficiency.

High Initial Costs Hinder Vertical Lift Module Market Growth

While vertical lift modules (VLMs) offer significant long-term benefits, their substantial initial investment deters smaller businesses. The costs associated with VLM implementation include the hardware, integration with existing IT systems, and employee training. Although providers such as Modula and Conveyco offer scalable solutions, affordability continues to be a key obstacle for SMEs. In industries with narrow profit margins, the return on investment take several years, presenting a challenge for broader market adoption.

Sustainable Modernization Creates Opportunity for Market Growth

A standout opportunity lies in retrofitting existing facilities with vertical lift module (VLM) technology. Instead of constructing new storage infrastructures, companies enhance their current layouts by integrating vertical modules. This approach is particularly beneficial for older facilities aiming to modernize without incurring massive capital expenditures. For instance, the U.S. Navy’s recent deployment of Modula VLMs in its logistics center in San Diego exemplifies how retrofitting improve capacity and reduce downtime. As sustainability and resource efficiency gain prominence, retrofitting offers an attractive path to modernization.

In 2025, Modula introduced the Flexibox at the LOGIMAT exhibition, marking a significant advancement in automated storage solutions. The Flexibox is designed to optimize internal logistics and picking processes, enhancing efficiency and maximizing the use of available space across various industries. This innovation underscores Modula's commitment to providing versatile and efficient storage solutions that align with the evolving needs of modern warehouses. 

Market Segmentation and Scope of the Study

The vertical lift module market report is segmented on the basis of storage type, load capacity, per tray load capacity, height, configuration, delivery type, application, distribution channel, industry vertical, and region. On the basis of storage type, the market is divided into temperature-controlled refrigerator and non-refrigerator. On the basis of load capacity, the market is segmented into below 20 tons, 20–40 tons, and above 40 tons. On the basis of per tray load capacity, the market is segmented into up to 300 kgs, 300 kgs–500 kgs, and above 500 kgs. On the basis of height, the market is segmented into less than 10 meters, 10–15 meters, and above 15 meters. On the basis of configuration, the market is segmented into internal bay and external bay. On the basis of delivery type, the market is segmented into single level and dual level. On the basis of application, the market is segmented into wave picking, batch picking, consolidation, sorting, replenishment, and others. On the basis of distribution channel, the market is segmented into direct sales and indirect sales. On the basis of industry vertical, the market is segmented into metals & machinery, e-commerce, consumer electronics, food and beverage, electronics, healthcare, chemicals, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis 

North America remains a dominant force in the global vertical lift modules (VLMs) market, driven by the growing adoption of automated storage solutions across various industries, including manufacturing, logistics, and healthcare. The region's market size is bolstered by increasing demand for space-efficient storage systems and the shift towards sustainable operations. Major players, such as Kardex and Modula, have made substantial investments in innovation, particularly in energy-efficient VLMs. In fact, Kardex's latest product, the Shuttle XP, is designed with intelligent automation features to improve warehouse efficiency and reduce energy consumption. Furthermore, as e-commerce continues to thrive in North America, companies are increasingly adopting VLM technology to streamline order fulfillment and reduce labor costs. However, challenges persist, including the high initial investment for VLM systems, which limit widespread adoption, particularly among smaller businesses. Still, the region’s strong technological infrastructure and focus on automation provide ample growth potential.

Europe’s VLM market is experiencing robust growth, fueled by the region’s strong focus on sustainability and automation in various sectors, such as logistics, automotive, and consumer goods. With a market characterized by high demand for energy-efficient and space-saving solutions, Europe is a hotbed for innovation in VLM technology. For example, Hänel Storage Systems, a leading European player, has been focusing on integrating advanced digital technologies into its VLM offerings, allowing for seamless management of inventory and reduced energy consumption. Countries like Germany and the UK are adopting VLMs in their manufacturing and warehousing sectors to optimize operations and enhance productivity. However, strict regulations and the high cost of retrofitting existing facilities remain challenges for some businesses. The growing emphasis on sustainability and automation in Europe, however, presents a lucrative opportunity for VLM providers to capitalize on the demand for eco-friendly and highly efficient solutions.

The Asia-Pacific (APAC) region is witnessing one of the fastest-growing markets for vertical lift modules. With the increasing pace of industrialization, rapid growth in the e-commerce sector, and rising demand for automation in manufacturing and warehousing, APAC offers immense growth potential. Countries such as China, Japan, and India are at the forefront of adopting VLMs, driven by their expanding manufacturing capabilities and large-scale logistics operations. For example, China’s focus on smart manufacturing and warehouse automation has led to an uptick in the adoption of VLM solutions across its logistics and automotive industries. The market share in this region is also supported by the government’s push for technological innovation and digitization, particularly in smart warehousing and supply chain management. While challenges related to infrastructure, high upfront costs, and technical know-how persist, the region’s fast-paced growth and increasing interest in automation offer substantial opportunities for VLM manufacturers to expand their footprint.

The Rest of the World (RoW) region, which includes Latin America, the Middle East, and Africa, presents a mixed landscape for the VLM market. While these regions lag behind North America, Europe, and APAC in terms of overall market size and adoption, they are beginning to show increased interest in automated storage solutions. In Latin America, countries like Brazil and Mexico are slowly embracing VLM technology, particularly in sectors like automotive and food processing. In the Middle East and Africa, there is growing awareness of the benefits of VLM systems, particularly in the logistics and retail sectors. However, the key challenge for this region is the lack of robust infrastructure and high initial costs, which slow down the rate of adoption. Despite these hurdles, the untapped potential in emerging markets offers a significant opportunity for VLM providers to expand their offerings and cater to the growing demand for automation and efficient storage solutions.

Strategic Developments in the VLM Industry

Key players in the global vertical lift modules (VLMs) industry are aggressively investing in innovation, sustainability, and digital integration to expand their market share and meet the rising demand for automated storage solutions. Companies such as Kardex, Modula, and Hänel have adopted strategies centered around technological enhancement, global expansion, and industry partnerships. In a recent development, Modula launched its next-generation system, Modula Next, in April 2024, combining VLM technology with smart inventory control to support traceability in manufacturing and logistics operations. Similarly, Kardex introduced energy-efficient upgrades to its Shuttle XP systems, incorporating intelligent sensors and space optimization algorithms, thereby addressing the growing need for sustainable and compact storage solutions. Despite these advances, challenges remain, high initial capital costs and integration hurdles with legacy systems continue to slow adoption, particularly among small to medium-sized enterprises. However, opportunities are also emerging rapidly. For instance, the increasing demand for retrofitting older facilities as demonstrated by the U.S. Navy’s successful deployment of Modula VLMs at its San Diego logistics center, reflects a strong shift toward cost-effective modernization. As automation and warehouse digitization continue to reshape logistics, players that focus on scalable, ergonomic, and energy-efficient solutions are well-positioned to capture long-term growth in an evolving global market.

Key Benefits

• The report provides quantitative analysis and estimations of the vertical lift module market from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the vertical lift module market, including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the vertical lift module market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Vertical Lift Module Market Key Segments

By Storage Type

• Temperature Controlled Refrigerator

• Non- Refrigerator

By Load Capacity

• Below 20Tons

• 20-40 Tons

• Above 40 Tons 

By Per Tray Load Capacity

• Upto 300 kgs

• 300 Kgs- 500 Kgs

• Above 500 Kgs

By Height

• Less than 10 mts

• 10 mts-15 mts

• Above 15 mts

By Configuration

• Internal Bay

• External Bay 

By Delivery Type

• Single Level

• Duel Level

By Application

• Wave Picking

• Batch Picking

• Consolidation

• Sorting

• Replenishment

• Others

By Distribution Channel

• Direct Sales

• Indirect Sales

By Industry Verticals

• Metals & Machinery

• E Commerce

• Consumer Electronics

• Food and Beverage

• Electronics

• Healthcare

• Chemicals

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Modula Inc.

• Mouser Electronics 

• Vidmar Group

• White Systems 

• Green Automated Solutions

• Toyota Industries Corporation

• Storage and Retrieval Solutions, Inc.

• Constructor Group 

• Ferretto Group

• Lista AG

• Addverb

• Kardex

• Vidir Vertical Solutions

• Craftsman Storage System

• Rabatex Industries

• Armes Main

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 1.76 billion
Revenue Forecast in 2030	USD 2.93 billion
Growth Rate	CAGR of 8.9% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Real estate costs on the rise fuel vertical lift module market growth Smart inventory management with automation drives vertical lift module market growth Workplace safety and human-centric design drive vertical lift module market growth
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.