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China’s Racking Industry: Navigating Growth Amid Global Challenges

June 23 2025

China’s warehouse racking sector is poised for robust growth, with market size projected to reach ¥280 billion ($39 billion) by 2030, up from ¥150 billion in 2025. The industry is shifting from low-cost, mass-produced racks to high-tech, customized solutions tailored for e-commerce, cold chain logistics, and advanced manufacturing.

In 2025, automated racking systems account for 30% of the market, up from 15% in 2024, driven by demand from giants like JD.com and Alibaba. These systems integrate robotic armsAGVs (Automated Guided Vehicles), and AI-powered inventory tracking to slash operational costs. For example, Geek+’s P800V6 picking robot, with its ultra-thin design, boosts storage density by 4% while accelerating order fulfillment.

Green initiatives are also gaining momentum. The Chinese government’s “Carbon Neutrality” targets are pushing manufacturers to adopt low-carbon steelwater-based coatings, and modular designs that reduce waste. Firms like Shanghai Jingxing are pioneering recyclable aluminum racks that cut energy use by 20% compared to traditional steel.

Despite opportunities, the sector faces challenges, including overcapacity and price wars. To stay competitive, smaller players are focusing on niche markets, such as cold storage racking (which now accounts for 10% of demand) or exporting to Southeast Asia. Meanwhile, M&A activity is rising, with larger firms acquiring tech startups to bolster their IoT and AI capabilities.