Vertical Lift Module Market By Product Type (Single-Level Delivery, Dual-Level Delivery); By Storage Application (Tool and Parts Storage, Inventory Management, Document Archival, Cold Storage and Medical Supplies); By End User (Industrial and Manufacturing, Pharmaceuticals and Healthcare, Retail and E-Commerce, Aerospace and Automotive, Logistics and 3PLs); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Vertical Lift Module Market will witness a strong CAGR of 8.1% , valued at approximately USD 1.92 billion in 2024 , and is projected to reach USD 3.07 billion by 2030 , confirms Strategic Market Research.

 

Vertical lift modules (VLMs) are high-density automated storage and retrieval systems that use an enclosed vertical design with movable trays. These systems optimize storage by utilizing overhead space while significantly improving picking accuracy and floor utilization — making them highly relevant in today’s fulfillment-heavy, space-constrained environments.

 

From 2024 through 2030, the VLM market is at an inflection point. Rising labor costs, warehouse space shortages, and same-day delivery expectations are converging to push industries toward automation. VLMs are no longer just for spare parts or tools — they’re being deployed in pharma logistics, aerospace hangars, hospital supply rooms, and even e-commerce fulfillment centers. These units are playing a strategic role in minimizing manual handling while maximizing order speed.

 

A few macro forces are shaping this shift:

• Labor shortages across logistics and manufacturing are forcing automation investments.

• E-commerce growth is pushing demand for fast, accurate, and scalable order picking solutions.

• Regulatory mandates in pharmaceuticals and food safety are raising requirements for inventory traceability — something VLMs excel at through built-in tracking features.

• Real estate pressures , especially in urban logistics hubs, are encouraging vertical storage solutions to conserve floor space.
   

Key stakeholders in this market include:

• Original Equipment Manufacturers (OEMs) like Kardex , Modula, and Hänel , who are innovating in tray speed, load capacity, and IoT connectivity.

• Third-party logistics providers (3PLs) integrating VLMs for high-mix, low-volume operations.

• Hospitals and pharma companies using VLMs for secure, climate-controlled storage of sensitive materials.

• Retailers and direct-to-consumer brands investing in VLMs for micro-fulfillment centers near urban zones.

• Facility integrators and automation consultants , who advise on layout and integration with warehouse management systems (WMS).

Here’s the truth: while robotics and AMRs grab headlines, VLMs are quietly becoming indispensable in workflows where floor space, traceability, and pick accuracy are mission-critical.

 

Market Segmentation And Forecast Scope

The vertical lift module market can be broken down across four strategic dimensions: By Product Type, By Storage Application, By End User, and By Region . These groupings reflect how buyers evaluate automation solutions — not just based on size or cost, but also use-case specificity, environmental demands, and facility integration.

By Product Type

• Single-Level Delivery

• Dual-Level Delivery

Single-level delivery VLMs still dominate in 2024, accounting for about 62% of market share. They’re simpler to operate and easier to integrate in legacy facilities. That said, dual-level delivery systems are gaining traction, especially in high-throughput sectors like automotive and pharma — where parallel tray access reduces picking time dramatically.

Use case insight: Dual-level units are increasingly installed in micro-fulfillment centers, where split-case picking efficiency matters more than max storage density.

 

By Storage Application

• Tool and Parts Storage

• Inventory Management

• Document Archival

• Cold Storage and Medical Supplies

VLMs have evolved beyond simple tool cabinets. Inventory management is now the fastest-growing segment, driven by e-commerce and aftermarket service parts logistics. As product SKUs multiply and order cycles shrink, automated vertical storage lets operators store more, track better, and pick faster.

Document archival is declining in relevance due to digitization. But cold storage and climate-controlled VLMs are becoming a niche opportunity in healthcare and biotech.

 

By End User

• Automotive and Aerospace

• Retail and E-commerce

• Pharmaceutical and Healthcare

• Industrial and Manufacturing

• Food and Beverage

• Logistics and Warehousing

Industrial and manufacturing remains the largest segment by revenue in 2024. These environments rely heavily on VLMs to store dies, tools, and components in lean production setups.

But the real momentum is in pharmaceutical and healthcare — which is expected to see the fastest CAGR through 2030. That’s because hospitals, med device makers, and biotech firms all require secure, traceable, and compact storage — VLMs check every box.

Example: A regional hospital in the U.K. recently installed VLMs in its central sterile supply department, freeing up 40% of floor space while improving order accuracy by over 90%.

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa (MEA)

Europe currently leads due to high automation penetration in Germany, Switzerland, and the Nordics. But Asia Pacific is set to grow fastest, as manufacturers in China, South Korea, and India modernize logistics infrastructure to stay globally competitive.

North America is catching up, especially in retail fulfillment and pharmaceuticals. Meanwhile, Latin America and MEA remain underpenetrated — but have clear white space potential, particularly as regional 3PL networks expand.

Scope Note: VLM adoption still skews toward industries with stable SKUs, high-value parts, and strict traceability. But as costs come down and interfaces improve, the market could shift rapidly toward dynamic, multi-SKU storage use cases — especially in urban logistics.

 

Market Trends And Innovation Landscape

Let’s be honest — the vertical lift module space isn’t often in the spotlight. But beneath the surface, there’s a lot happening. The sector’s undergoing a quiet transformation as new technologies and shifting logistics needs reshape what customers expect from “just a storage system.”

1. Smart Automation and IoT -Enabled Systems

Modern VLMs are no longer mechanical towers. They’re getting smart. Vendors are embedding IoT sensors , touchscreen HMI panels , and AI-driven pick optimization into their units. These upgrades help track inventory levels in real time, detect mechanical issues before they escalate, and even recommend re-slotting to improve retrieval efficiency.

One integrator put it this way: “A VLM without real-time diagnostics or ERP connectivity? That’s yesterday’s model.”

 

2. Integration with Warehouse Management Systems (WMS)

A major shift is the seamless integration of VLMs with WMS and ERP platforms. Older systems often operated as standalone units. Today, plug-and-play API capabilities are table stakes. VLMs are now fully integrated into fulfillment networks — receiving digital pick lists, updating inventory counts automatically, and enabling batch-picking workflows across multiple stations.

Some providers are also pushing voice-picking and vision-guided assistance directly at the retrieval point, cutting training time and error rates.

 

3. Vertical Fulfillment for E-Commerce and Urban Logistics

E-commerce players are experimenting with VLMs in micro-fulfillment hubs . These hubs — often squeezed into tight urban spaces — need dense, high-speed storage solutions. VLMs fit perfectly. Combined with AMRs (autonomous mobile robots) or conveyors, they’re helping brands achieve sub-two-hour deliveries in crowded cities.

One last-mile fulfillment pilot in Tokyo deployed four VLMs for single-SKU, high-frequency items, reducing pick times by 40% compared to traditional shelving.

 

4. Cold-Chain and Cleanroom-Compatible Modules

An emerging trend? VLMs customized for controlled environments . In biotech, pharma, and semiconductor cleanrooms, even dust is a liability. Some OEMs are now offering modules with HEPA filtration , low-emission materials , and refrigerated compartments .

Expect this niche to grow as biologics manufacturing and gene therapy labs look for high-density, secure storage in highly regulated environments.

 

5. Modular Expansion and Retrofit-Friendly Designs

Vendors are finally addressing the reality of legacy facilities. The latest VLM models are modular , meaning they can be extended vertically or upgraded later with automated doors, lifts, or sensor arrays — without tearing down walls. Some companies are even offering mobile VLMs on reinforced bases, ideal for temporary warehouse expansions or construction zones.

 

6. Partnerships and M&A Activity

We’re also seeing more strategic alliances between VLM manufacturers and automation integrators, particularly in the U.S. and Europe. These tie-ups aim to bundle VLMs with robotics, picking arms, and analytics into turnkey automation suites.

Example: A European VLM firm recently partnered with a major WMS provider to launch a “warehouse-in-a-box” solution for small manufacturers.

 

Bottom Line: Innovation here isn’t about flashy robots. It’s about precision, uptime, and seamless integration. The new generation of VLMs is smarter, cleaner, and more connected — designed for an omnichannel world that values speed, traceability, and adaptability.

 

Competitive Intelligence And Benchmarking

The vertical lift module market may appear niche at first glance, but competition is heating up. A handful of global manufacturers dominate, each with distinct go-to-market strategies, regional strongholds, and innovation bets. Unlike broader warehouse automation, VLMs require a sharp focus on precision engineering, software integration, and service delivery — making this a battle of both hardware and experience.

Kardex Group

A clear category leader, Kardex is widely known for its Kardex Remstar VLM systems. The company focuses on:

• End-to-end lifecycle support, including retrofitting and modernization services

• Deep integration with ERP platforms like SAP and Oracle

• Customizable configurations for aerospace, electronics, and pharma clients

With a strong base in Europe and growing traction in North America, Kardex often wins large contracts by offering total facility design services.

 

Hänel Storage Systems

Hänel competes head-to-head with Kardex and has carved a niche through:

• German engineering and robust build quality

• Strong service and distributor network in the U.S.

• Cleanroom-compatible and energy-efficient VLM systems

Hänel’s Rotomat and Lean-Lift lines are known for long service life and low maintenance needs — appealing to manufacturers and hospitals alike.

 

Modula Inc.

An Italian powerhouse with U.S. manufacturing, Modula is the fastest-scaling player. Their strategy centers on:

• Offering highly modular, quick-install systems for midsize operations

• Bundling VLMs with conveyor belts and pick-to-light systems

• Aggressive marketing in North America and Southeast Asia

Modula is especially strong among e-commerce and third-party logistics clients who need rapid deployment and high throughput.

 

SencorpWhite

SencorpWhite , based in the U.S., focuses on tailored VLM systems for:

• Aerospace and defense

• Government archives and controlled-access facilities

• Healthcare and cleanroom logistics

They often play in the high-security, low-tolerance segment — where documentation, traceability, and ruggedness matter more than pure speed.

 

System Logistics (A Member of Krones Group)

System Logistics approaches VLMs as part of a broader automation portfolio, often integrating them into:

• Food and beverage plants

• Large-scale AS/RS deployments

• Hybrid storage systems for industrial clients

Backed by the Krones Group, their focus is more solution-driven than product-led, appealing to companies looking for facility-wide automation rather than piecemeal upgrades.

 

Ferretto Group

Another European player, Ferretto provides high-density storage solutions tailored to manufacturing and heavy industry. They’re gaining ground in Eastern Europe and Latin America through:

• Steel-intensive, long-span VLM units

• Integrated software solutions for material tracking

• Service partnerships with local integrators

While smaller than Modula or Kardex , Ferretto is a serious competitor in verticals that demand ruggedized performance.

 

Competitive Dynamics Snapshot

• Europe remains the innovation and manufacturing hub, but North America is emerging as the fastest-demanding market, especially in pharmaceuticals and defense.

• Aftermarket services — such as preventive maintenance, software upgrades, and tray reconfiguration — are becoming key revenue streams.

• The next front in competition? AI-powered inventory algorithms and remote diagnostics that boost ROI beyond just space savings.

To be honest, this market isn’t about who has the tallest tower. It’s about who delivers uptime, software flexibility, and long-term value without disrupting operations.

 

Regional Landscape And Adoption Outlook

Vertical lift module adoption is unfolding at very different speeds across the globe. While mature economies are layering VLMs into broader automation strategies, developing regions are just starting to explore the technology — often driven by multinationals or government-led modernization initiatives. Let’s break it down by region.

North America

The U.S. and Canada form one of the most active VLM markets globally. Key adoption drivers include:

• A sharp rise in e-commerce warehousing , especially in urban and suburban hubs

• Labor shortages pushing 3PLs and retailers to automate order picking

• Healthcare regulations that favor traceable, climate-controlled inventory storage

VLMs are increasingly standard in pharma warehouses, defense depots, and automotive plants. Hospitals are also coming onboard, using them for central supply storage and surgical kit organization.

Example: A U.S.-based healthcare logistics firm installed 20+ VLMs in regional hubs to automate high-value drug handling, cutting shrinkage by over 70%.

 

Europe

Europe has long led the VLM market, especially in:

• Germany, Switzerland, and the Netherlands , where space is at a premium and precision engineering is embraced

• France and the Nordics , where sustainability goals are accelerating vertical storage deployment

What sets Europe apart is the cleanroom and energy-efficient focus — Hänel and Kardex both offer low-emission systems tailored to EU building and safety codes. Also, subsidies and automation grants from EU programs continue to support adoption in small- and mid-sized enterprises.

 

Asia Pacific

Asia Pacific is the fastest-growing region , expected to post a double-digit CAGR through 2030. Major growth factors:

• Industrial expansion in China, India, and Southeast Asia

• Government investments in smart logistics parks and digital infrastructure

• Growing e-commerce footprints in countries like South Korea, Australia, and Vietnam

That said, adoption is uneven. While large manufacturing firms in Japan and South Korea deploy cutting-edge VLMs, smaller facilities in India or Indonesia often face price sensitivity and infrastructure barriers.

One Modula distributor in Vietnam noted, “We’re seeing demand pick up fast — but many clients need financing help or phased rollouts.”

 

Latin America

The region is just warming up to VLM technology. Brazil, Mexico, and Colombia lead the way — primarily in:

• Automotive spare parts storage

• Consumer goods distribution hubs

• Food & beverage manufacturers needing temperature-controlled storage

Adoption remains limited due to high import costs and lower automation readiness, but partnerships with European OEMs are slowly expanding awareness and access.

 

Middle East and Africa (MEA)

The MEA region is largely untapped but has clear potential in:

• UAE and Saudi Arabia , where logistics infrastructure is being upgraded rapidly

• South Africa , with rising demand in pharmaceuticals and mining supply chains

However, high capital costs, limited local expertise, and long lead times continue to slow market entry. In many cases, VLM systems are deployed only by multinationals or state-funded research and defense organizations.

 

Key Regional Takeaways

• Europe leads in installed base and innovation.

• North America is catching up fast in healthcare, retail, and defense logistics.

• Asia Pacific offers the biggest upside — but needs localized support and affordable options.

• Latin America and MEA remain white space for VLM vendors — particularly those offering flexible pricing and financing.

The bottom line? Global demand is rising, but success hinges on regional customization — in pricing, tech support, and regulatory compliance.

 

End-User Dynamics And Use Case

Vertical lift modules are no longer niche equipment tucked into maintenance rooms or engineering corners. They've moved to the frontlines of inventory management, fulfillment, and production logistics. That said, different industries are adopting VLMs for very different reasons — from compliance and traceability to space savings and labor efficiency.

1. Industrial and Manufacturing

Still the core segment for VLM adoption. In factories, VLMs are used to:

• Store heavy tools, dies, fasteners, and assemblies

• Reduce walking time in lean manufacturing setups

• Enable just-in-time delivery of parts to workstations

This segment appreciates durability, high load capacities, and forklift-friendly trays . Many plants now run VLMs alongside AGVs or conveyors, creating semi-automated pick zones.

 

2. Pharmaceuticals and Healthcare

This end-user category is growing fastest — and not just for obvious reasons.

Hospitals use VLMs for:

• Central sterile supply storage

• High-value drug inventory

• Minimizing stockouts in surgical suites

Pharmaceutical manufacturers rely on VLMs to store:

• Controlled substances in secure, traceable environments

• Clinical trial samples needing precise environmental conditions

• Serialization-compliant packaging materials

The big win here? Traceability . Built-in tracking software and access control features help meet stringent FDA and EU pharma regulations.

 

3. Retail and E-Commerce

Retailers and D2C brands are starting to look beyond shelving. VLMs now support:

• Same-day or next-day order fulfillment in micro-fulfillment centers

• Split-case picking of high-volume SKUs

• Secure storage for returns and refurb goods

Smaller VLM footprints make them suitable for back-of-store or dark warehouse setups — a model growing fast in urban centers.

 

4. Aerospace and Automotive

These sectors use VLMs for everything from avionics spares to body panel components. Key benefits include:

• Floor space recovery (especially in crowded hangars or assembly areas)

• Faster access to maintenance-critical items

• Reduced human error in pick operations

In fact, some OEMs have embedded VLMs directly onto assembly floors , integrating them with MES systems for real-time part dispatching.

 

5. Logistics, 3PLs, and Distribution Centers

Third-party logistics players are investing in VLMs to optimize multi-client inventory zones — especially for SKUs that:

• Move infrequently but are high-value

• Require batch picking

• Need strict lot and expiry tracking

For these users, the emphasis is on integration and speed — not just storage.

 

Use Case Highlight

A regional distribution center in Singapore supplying pharmaceuticals to hospitals was facing regulatory pressure to improve audit trails and reduce shrinkage. The team installed six climate-controlled VLMs integrated with their warehouse management system (WMS). Each access point required biometric authorization, and every pick was timestamped. Over 12 months, they reported:

• 99.2% inventory accuracy

• Elimination of lost stock events

• 30% reduction in order turnaround time

Result: The system passed regulatory inspection without any flagged discrepancies, and the operation was scaled to other facilities.

 

Bottom Line: VLM adoption isn’t about industry type — it’s about need. If a facility values space, speed, and traceability, VLMs are on the table. And for industries under pressure to do more with less, they’re moving from optional to essential.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Past 2 Years)

•  Kardex launched a next-gen VLM model in 2023 featuring adaptive tray height detection and integrated AI algorithms for automatic re-slotting — reducing unused tray space by over 25% per unit.

•  Modula Inc. opened a new manufacturing facility in Franklin, Ohio, in late 2023 to meet surging U.S. demand, allowing faster delivery times and lowering unit cost by localizing production.

• Hänel Storage Systems debuted a cleanroom-certified VLM with built-in particle filters, targeting pharmaceutical labs and electronics manufacturing — particularly in European and Japanese markets.

• SencorpWhite partnered with a defense logistics contractor in 2024 to deploy secure VLMs in military facilities across the U.S., enabling encrypted access and 24/7 tracking of classified tools.

• System Logistics integrated its VLM technology with autonomous mobile robots (AMRs) in a proof-of-concept deployment in Italy, optimizing parts dispatch across a multi-floor assembly plant.

 

Opportunities

• Pharma and Healthcare Expansion
  With growing global demand for biologics, vaccines, and personalized medicine, hospitals and pharma companies need secure, high-density storage solutions with traceability. VLMs fit this need better than most alternatives.

• Smart Urban Warehousing
  E-commerce’s shift to urban micro-fulfillment is creating a new space for compact automation. VLMs are ideal for last-mile storage hubs that need to maximize vertical space in tight real estate markets.

• Green Building Initiatives
  LEED-certified and energy-efficient warehouses increasingly favor VLMs over traditional shelving. Their low energy footprint, especially when equipped with regenerative drive systems, gives them an edge in sustainability-focused procurement.

 

Restraints

•  High Initial Cost
  Despite strong ROI over time, VLMs still require significant upfront capital. Smaller firms and budget-constrained hospitals often can’t afford these systems without subsidies or leasing models.

• Technical Skill Gaps
  Installation and maintenance require trained personnel. Many regions — particularly in LATAM, Africa, and Southeast Asia — lack local support teams, which slows adoption and raises operational risks.

To be honest, the market has momentum — but price and training are still real hurdles. Vendors that solve these two will be the ones to unlock the next wave of global growth.
 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 1.92 Billion
Revenue Forecast in 2030	USD 3.07 Billion
Overall Growth Rate	CAGR of 8.1% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Product Type, By Storage Application, By End User, By Geography
By Product Type	Single-Level Delivery, Dual-Level Delivery
By Storage Application	Tool and Parts Storage, Inventory Management, Document Archival, Cold Storage and Medical Supplies
By End User	Industrial and Manufacturing, Pharmaceuticals and Healthcare, Retail and E-Commerce, Aerospace and Automotive, Logistics and 3PLs
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Germany, China, India, Japan, Brazil, UAE, etc.
Market Drivers	- Labor shortages and rising warehouse costs - Urban logistics pushing vertical storage - Pharma demand for traceable, secure inventory
Customization Option	Available upon request