Global Vertical Lift Module Market Grows at a Steady CAGR of 9.1%

Introduction

A Vertical Lift Module (VLM) is an automated storage and retrieval solution engineered to optimize vertical space utilization and enhance warehouse productivity. VLMs are computer-managed automated systems that utilize trays to stack items vertically in a condensed footprint, thereby boosting storage density and picking speed. These systems are extensively employed across the automotive, electronics, pharmaceuticals, and e-commerce industries for managing inventory and conserving space. The global vertical lift module (VLM) market includes systems and technologies that automate vertical storage and retrieval functions in warehouses, factories, and distribution hubs.

The market growth for vertical lift modules is primarily fueled by increasing demand for warehouse automation, labor cost savings, and quicker order processing. Technological innovations like integration with warehouse management platforms and IoT further drive global adoption. Additionally, the market is seeing steady traction from expanded usage of ASRS technology across multiple industries. As a fundamental feature in contemporary warehouse, logistics, and distribution setups, VLMs enable efficient inventory handling, maximize ground space, reduce manual fatigue, and streamline operations. Their utility highlights their critical role in process efficiency and optimized resource usage across sectors.

Market Dynamics

Rising automation in e-commerce fulfilment drives market growth

The surge in global e-commerce, forecasted to exceed USD 6.3 trillion in revenue by 2024, propels the need for faster and more precise order processing. VLMs are vital in e-commerce fulfilment centres, slashing picking time by up to 70% versus manual systems and improving accuracy to nearly 99%. These factors are essential in a market where rapid delivery—same-day or next-day—is now standard. VLMs perform pick-and-place operations autonomously, reducing labor dependency and minimizing mistakes and returns. They also offer high-density storage, allowing more goods to be housed in tighter spaces. Top e-commerce firms like Amazon rely on such automation systems, including VLMs, to support their delivery commitments.

• In October 2024, Amazon scaled up its automated fulfillment network globally, adopting VLMs from firms like Daifuku and Modula, particularly across Southeast Asia, where high-efficiency storage solutions are crucial.

With rising customer demands and SKU expansion, VLMs are becoming increasingly indispensable for scalable, competitive fulfillment operations.

Emphasis on sustainability and energy savings creates tremendous opportunities

Sustainability is becoming a critical factor driving opportunities in the VLM market, with producers now developing energy-conscious systems to meet environmental targets. Modern VLMs come with efficient motors, regenerative braking systems, and intelligent energy control mechanisms that lower power use by up to 40% compared to conventional systems. These advancements reduce operating expenses and help companies comply with tightening energy laws and sustainability goals. Environmental benefits also appeal to eco-aware stakeholders aiming to shrink their carbon footprint.

• For example, Hänel introduced EcoDrive and energy recuperation technology in all VLM units by mid-2024, helping clients in Germany and Scandinavia cut power usage by 40% through energy recapture from tray descent converted into electricity.

As more companies embrace sustainable practices, demand for green VLMs that merge automation with eco-efficiency is poised to rise. This trend encourages innovations in recyclable materials and circular economy concepts in automated storage solutions.

Regional Insights

Europe leads the global vertical lift module market, holding close to 42% of total market share, with high demand in Germany, the UK, France, and Italy. The region’s strong industrial base, notably in automotive, aerospace, and machinery, drives widespread adoption of ASRS systems. Germany, with its prominent automotive sector, contributes significantly due to large investments in lean warehousing and intelligent automation technologies.

In addition, the European Union’s rigorous environmental and energy efficiency policies motivate the shift to space- and energy-saving solutions like VLMs. European firms are early adopters of digital transformation and Industry 4.0, emphasizing data-centric automation and ergonomic workflows. This synergy between digitalization and sustainability supports VLM adoption, enabling businesses to enhance productivity while adhering to eco-regulations.

Key Highlights

• The global vertical lift module market size was valued at USD 2.07 billion in 2024 and is projected to grow from USD 2.26 billion in 2025 to USD 4.54 billion by 2033, exhibiting a CAGR of 9.1% during the forecast period (2025-2033).
• By delivery type, the market is bifurcated into single- and dual-level delivery. The single-level vertical lift module segment holds the largest market share.
• By storage type, the market is bifurcated into non-refrigerated and refrigerated types. The non-refrigerated type holds the largest market share.
• By end use, the market is bifurcated into automotive, metals and machinery, food and beverage, semiconductor and electronics, e-commerce, and others. The automotive segment holds the largest market share.
• Based on region, the global vertical lift module market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Europe dominates the global market.

Competitive Players

1. Kardex Group
2. Hanel Storage Systems
3. Ferretto Group S.p.a
4. AutoCrib, Inc.
5. Modula Inc.(System Logistics)
6. Weland Lagersystem AB
7. Schaefer Systems International Inc.
8. Automha SPA
9. Green Automated Solutions, Inc.
10. Stanley Black & Decker Storage Solutions
11. Savi Automation
12. Craftsman Storage Systems
13. Vidir Solutions, Inc.

Recent Developments

• In February 2025, DHL Supply Chain retrofitted a Singapore distribution hub with vertical modules from Modula to address land scarcity and rising real estate costs, optimizing SKU storage vertically in a limited footprint.
• In March 2024, Green Space Industrial, a leader in industrial solutions, announced the Modula Vertical Lift Module, a revolutionary step in storage technology that promises to revolutionize inventory management for companies worldwide.

Segmentation

1. By Delivery Type
   1. Single Level Delivery
   2. Dual Level Delivery
2. By Storage type
   1. Non-refrigerated Type
   2. Refrigerated Type
3. By End Use
   1. Automotive
   2. Metals & Machinery
   3. Food & Beverages
   4. Semiconductor & Electronics
   5. E-commerce
   6. Others
4. By Region
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa