May 22, 2024

Australia Conveyor Maintenance Service Market Is Driven By Rising Industrial Automation

Conveyor systems are critical for material handling operations in these industries through the efficient transportation of goods over short or long distances. They provide advantages like reduced labor costs, increased productivity and operational efficiency. The growing adoption of Industry 4.0 technologies and demand for automation across industries has been a major driver for the installation of conveyor systems. However, downtime caused due to system breakdowns can significantly impact production workflows. Thus, regular maintenance through inspection, repairs, belt replacement and upgrades is vital to maximize uptime and ensure smooth operations.

The Global Australia conveyor maintenance service market is estimated to be valued at US$ 812.79 Bn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Australia conveyor maintenance service are Novo Nordisk A/S, AstraZeneca, Generex Biotechnology, Orion Pharma AB, Sanofi, Teva Pharmaceutical Industries Ltd., F. Hoffmann-La Roche, Hisamitsu Pharmaceutical Co.,Inc., Bayer AG, Eli Lilly and Company, Abbott, Tonghua Dongbao Pharmaceutical Co., Ltd., Merck & Co., Inc., TherapeuticsMD, Inc., Pfizer Inc., Allergan, BioSante Pharmaceuticals, Amgen Inc., Noven Pharmaceuticals, Inc., and QuatRx Pharmaceuticals. Growing demand from industries such as mining, food processing and logistics owing to need for optimized material & product handling operations is expected to drive the Australia conveyor maintenance service market during the forecast period. Rapid globalization of mining and industrial operations of Australian companies has further increased the requirement for reliable conveyor maintenance services across global locations.

Market Drivers

The key driver for the Australia Conveyor Maintenance Service Market Size is rising industrial automation. Automation has significantly increased the use of conveyor systems for material handling tasks in various process industries. It has enabled greater efficiency, speed and productivity of operations. However, the complexity of automated conveyor systems makes regular servicing and repairs important. Any breakdown can disrupt production workflows, leading to losses. Thus, companies rely on conveyor maintenance service providers for preventive maintenance through system checks, component replacements, upgrades and emergency repairs. Their services ensure optimal performance of conveyor assets over the long run, thereby maximizing uptime and minimizing disruption costs. This makes maintenance an essential enabler for the functioning of automated industrial operations.

The current geopolitical scenario is significantly impacting the growth of the Australia conveyor maintenance service market. The ongoing Russia-Ukraine war has disrupted the global supply chains and increased the prices of crucial raw materials like steel and fuel. This is negatively affecting the operations and maintenance activities of conveyor systems across various industries in Australia, including mining, agriculture, logistics etc. Manufacturers are facing higher input costs which are being passed on to the customers in the form of increased service charges. The conflict has also weakened the Australian dollar against the US dollar, making imports more expensive. This is adversely impacting the procurement of spare parts and components from overseas markets.

Moreover, the uncertainties arising from the conflict and rising inflation are dampening business sentiments and capital investments across sectors in Australia. Many companies are postponing or scaling down their conveyor upgradation/replacement projects due to the uncertain economic outlook. This is negatively impacting the demand for conveyor maintenance services in the short to medium term.

Going forward, service providers will need to focus on local sourcing and developing local supply networks to insulate themselves from global supply chain disruptions. Adopting smart maintenance strategies involving IoT, predictive analytics can help optimize service costs. Entering into long term service contracts and offering bundled service packages can provide revenue stability. Investing in training programs can help address the shortage of skilled workforce. Collaborating with manufacturers for product support can aid in ensuring seamless aftersales service.

In terms of value, the Australia conveyor maintenance service market is concentrated highly in Western Australia, New South Wales and Queensland due to the presence of major mining, logistics and heavy industries in these regions. Western Australia accounts for over 35% of the country’s total mining revenue and hosts large mines producing iron ore, gold, nickel and other minerals. This makes the conveyor service requirements substantial.

New South Wales is the fastest growing market mainly due to expansions underway in the ports sector to enhance container handling capacities. Significant terminal upgrade projects are ongoing in ports of Newcastle, Botany and Kembla to accommodate larger vessels. This is generating robust demand for conveyor system retrofits, overhauls and maintenance works. The modernization of grain handling infrastructure is additionally propelling the NSW market growth.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it