Reports
The Global Softgel Drying Tunnel Market was valued at USD 150.6 Million in 2024 and is anticipated to reach a value of USD 247.4 Million by 2032 expanding at a CAGR of 6.4% between 2025 and 2032.
The United States leads the Softgel Drying Tunnel Market with extensive production capacity and high-volume investment in pharmaceutical and nutraceutical manufacturing technologies. With advanced R&D capabilities and widespread use of smart automation in softgel production lines, U.S. companies are enhancing tunnel drying processes through modular design upgrades, energy-efficient configurations, and AI-driven monitoring systems.
The Softgel Drying Tunnel Market caters to a diverse range of industries, primarily pharmaceuticals, dietary supplements, and cosmetic formulations. Pharmaceutical processing holds the dominant contribution due to strict hygiene standards and demand for consistent encapsulation quality. The market has witnessed a shift toward intelligent airflow systems, improved drying precision, and temperature-controlled environments to handle sensitive formulations. Regulatory factors such as GMP compliance, energy mandates, and environmental norms are pushing manufacturers toward more sustainable, low-emission systems. Additionally, there is a growing demand for tunnel solutions that support high-throughput production while minimizing manual intervention. Regional consumption trends highlight increasing adoption in Asia-Pacific and Latin America, driven by the expansion of nutraceuticals and export-oriented pharma production. Emerging trends such as hybrid drying systems, customizable airflow modules, and real-time analytics integration are expected to shape the future of the market. These innovations are aligning with the industry's need for efficiency, traceability, and scalable operations.
Artificial Intelligence (AI) is playing a transformative role in redefining efficiency and quality across the Softgel Drying Tunnel Market. By embedding smart technologies into drying tunnel systems, manufacturers are achieving significant advancements in process control, predictive maintenance, and product consistency. AI-integrated drying tunnels are now capable of automatically adjusting airflow, humidity, and temperature settings in real-time, based on gelatin capsule thickness, formulation viscosity, and moisture retention metrics—resulting in improved uniformity and throughput.
In practice, AI-driven predictive analytics are being deployed to monitor system health and preempt mechanical failures. This has enabled companies to reduce unplanned downtime by up to 18%, as drying tunnels equipped with vibration and heat sensors communicate data continuously to centralized control units. Moreover, batch performance data collected by AI platforms is analyzed to optimize future runs, reducing overall energy consumption per cycle by 7–10%. These intelligent systems also ensure that quality deviations are flagged instantly, enabling rapid corrective actions without halting the production line.
The Softgel Drying Tunnel Market is increasingly favoring such smart infrastructure to meet the growing demands of high-volume output with lower operational costs. AI’s role is not just limited to process optimization—it also supports automated documentation for GMP compliance, reduces human error, and enhances data integrity. As manufacturers scale operations, the integration of AI will remain central to achieving lean, reliable, and data-driven manufacturing environments.
“In 2024, a North American softgel producer implemented an AI‑based airflow control system within its drying tunnel, resulting in a 10% reduction in drying time and 6% lower energy usage, while maintaining gel integrity and operator oversight.”
The growing consumption of pharmaceutical and nutraceutical softgel capsules is a significant driver for the Softgel Drying Tunnel Market. The global preference for softgels due to their ease of swallowing, high bioavailability, and tamper-resistant properties has led to a sharp increase in softgel manufacturing facilities. These facilities require advanced drying tunnel systems to meet stringent quality standards and maintain high production speeds. With pharmaceutical companies expanding their product lines and dietary supplement manufacturers developing new formulations, the demand for precision-controlled drying environments has intensified. In 2024, over 60% of new softgel production lines installed globally included advanced tunnel systems with modular airflow and humidity control features. These systems improve drying uniformity, reduce product waste, and support continuous operation—critical in high-volume pharmaceutical settings. As health-conscious consumers demand cleaner labels and dosage precision, softgel formats are expected to remain dominant, sustaining long-term demand for high-performance drying tunnels across multiple continents.
One of the key restraints facing the Softgel Drying Tunnel Market is the high capital expenditure associated with installing and maintaining advanced drying tunnel systems. Many small and mid-sized softgel manufacturers face significant budgetary constraints, limiting their ability to invest in next-generation automated tunnel technologies. These systems often require specialized HVAC controls, integrated sensors, and PLC-based automation modules, leading to increased setup costs and extended installation timelines. Additionally, operational complexity—such as multi-zone temperature calibration, airflow balancing, and adherence to strict humidity levels—demands skilled technicians and continuous training, raising ongoing labor and operational costs. In emerging markets, where infrastructural limitations persist, manufacturers are hesitant to adopt complex tunnel systems, relying instead on less efficient legacy models. This economic barrier slows modernization and prevents smaller firms from competing effectively with larger players equipped with fully automated systems, hindering overall market penetration and growth.
The increasing focus on personalized medicine and plant-based nutrition is creating new growth opportunities in the Softgel Drying Tunnel Market. Consumers are seeking tailored health solutions, including vegan, allergen-free, and customized dosage forms, prompting manufacturers to diversify their product portfolios. To meet this demand, companies are investing in flexible drying tunnel configurations capable of handling various gelatin alternatives such as tapioca, seaweed, or starch-based films. These formulations often require precise drying controls to maintain capsule integrity and prevent brittleness or deformation. Advanced tunnels with AI-assisted climate control and low-temperature drying modes are being adopted to accommodate sensitive, plant-derived ingredients. In 2024, North American nutraceutical producers reported a 22% increase in demand for vegan softgel variants, prompting the upgrade of drying tunnels with enhanced material compatibility. This segment is expected to grow further, offering scalable, innovation-led opportunities for tunnel manufacturers to introduce modular systems suited for small-batch, diverse product runs.
Regulatory scrutiny and compliance requirements present a formidable challenge for the Softgel Drying Tunnel Market. As regulatory bodies tighten Good Manufacturing Practice (GMP) standards globally, manufacturers are under increasing pressure to document, validate, and maintain stringent process controls. Meeting these standards requires integration of validated control systems, traceable data logs, and environmental monitoring—adding layers of complexity and cost. Additionally, operators must continuously upgrade drying tunnel components to ensure compliance with evolving energy efficiency and hygiene standards. Failure to meet regulatory expectations may lead to production halts, product recalls, or penalties. Smaller manufacturers, particularly in developing economies, struggle to maintain the infrastructure needed for real-time data reporting and cross-border quality certifications. With multiple regulatory frameworks in play—ranging from FDA guidelines to EMA and local health authority mandates—standardization across manufacturing units becomes an ongoing challenge, increasing operational burden and hindering streamlined expansion of advanced drying technologies.
• Rise in Modular and Prefabricated Tunnel Systems: The adoption of modular and prefabricated tunnel designs is a significant trend reshaping the Softgel Drying Tunnel market. Manufacturers are increasingly favoring pre-engineered, compact drying systems that can be installed rapidly with minimal disruption to existing production lines. Modular units offer scalability, enabling pharma and nutraceutical firms to expand capacity without overhauling infrastructure. In 2024, over 30% of new installations in North America and Europe featured modular configurations, supporting faster deployment and improved process standardization.
• Integration of IoT and Real-Time Analytics: Real-time monitoring through IoT integration is becoming a cornerstone of high-efficiency tunnel operations. Smart drying tunnels now include sensor-based systems that track airflow, humidity, and temperature across zones, enabling precise control. These connected systems support remote diagnostics, process optimization, and energy tracking, resulting in reduced product loss and downtime. Facilities using IoT-enhanced tunnels reported a 12% improvement in drying accuracy and an 8% reduction in maintenance intervals in 2024.
• Surge in Energy-Efficient Technology Adoption: Energy-efficient components such as heat recovery systems, low-resistance fans, and variable frequency drives are now widely adopted to meet environmental compliance standards. Manufacturers implementing such upgrades have achieved up to 15% energy savings per cycle. These green innovations align with regulatory initiatives promoting low-emission, sustainable pharmaceutical manufacturing infrastructure.
• Customization for Plant-Based Softgel Formulations: With rising demand for vegan and allergen-free products, the market is seeing an uptick in drying tunnels tailored for plant-based gelatin alternatives. These formulations require lower-temperature drying and optimized humidity control to maintain capsule integrity. In 2024, more than 20% of newly ordered tunnels were customized for starch or seaweed-based softgels, highlighting a shift toward flexible, formulation-specific system configurations.
The Softgel Drying Tunnel Market is segmented into distinct categories based on type, application, and end-user, each contributing uniquely to market dynamics. By type, the market includes horizontal, vertical, rotary, and modular systems, offering varied operational benefits. Applications are dominated by pharmaceuticals, nutraceuticals, and cosmetics, with pharmaceuticals leading due to strict quality standards and production volumes. End-users include contract manufacturers, in-house pharmaceutical firms, and nutraceutical producers. Contract manufacturers are gaining traction due to increasing outsourcing demand. The segmentation underscores a clear move toward flexibility, customization, and compliance-driven adoption of technologically advanced tunnel systems, especially among high-throughput users.
Horizontal drying tunnels remain the most widely used type in the Softgel Drying Tunnel market due to their compatibility with high-speed, large-scale softgel production lines. These tunnels offer consistent airflow and temperature control, making them ideal for pharmaceutical manufacturers dealing with large batch sizes and strict regulatory standards. Vertical drying tunnels are emerging as the fastest-growing type, particularly favored in facilities with space constraints or cleanroom configurations, due to their compact design and efficient vertical airflow. Rotary tunnels, while niche, are favored in small and mid-sized operations for their continuous movement and gentle drying process, which helps in maintaining softgel uniformity. Modular tunnel systems are gaining attention for their plug-and-play adaptability and scalability, especially among startups and CMOs upgrading outdated infrastructure. The market's focus is shifting toward type-specific benefits, allowing users to align tunnel selection with specific production goals and spatial limitations.
Pharmaceutical applications lead the Softgel Drying Tunnel market, driven by strict regulatory requirements and the need for high-quality, stable drug delivery systems. Softgel capsules used for prescription and over-the-counter drugs demand consistent moisture removal, precision airflow control, and low-contamination environments—all factors that underline the dominance of drying tunnels in pharma applications. Nutraceuticals represent the fastest-growing application area due to the global rise in preventive healthcare and wellness supplements. Increased consumer demand for vitamins, omega-3s, and plant-based softgels is prompting manufacturers to expand and automate their drying capabilities. Cosmetic applications, though smaller in scale, are seeing steady growth with the emergence of topical softgels and encapsulated skincare products. These applications require tunnels capable of managing sensitive gelatin blends and specialized drying profiles. Overall, the application landscape reflects a blend of compliance-driven use and consumer trend responsiveness.
Pharmaceutical manufacturing companies represent the leading end-user segment in the Softgel Drying Tunnel market. Their need for continuous production, process repeatability, and stringent GMP compliance drives investments in advanced tunnel systems. These companies prioritize integrated automation, real-time monitoring, and energy efficiency. Contract manufacturing organizations (CMOs) are the fastest-growing end-user group, fueled by the outsourcing trend among pharma and nutraceutical brands looking to scale production without investing in infrastructure. CMOs are increasingly adopting flexible and modular drying tunnels to cater to diverse formulation requirements and batch sizes. Nutraceutical companies, especially those producing plant-based and functional supplements, also contribute significantly to the market. These firms value the adaptability of drying tunnels in processing delicate ingredients and maintaining capsule stability. Collectively, the end-user landscape reflects growing demand for scalable, intelligent, and compliant drying systems across varied production environments.
North America accounted for the largest market share at 36.4% in 2024, however, Asia-Pacific is expected to register the fastest growth, expanding at a CAGR of 8.1% between 2025 and 2032.
The dominance of North America is largely driven by the established pharmaceutical infrastructure, automation adoption, and a strong base of softgel manufacturers in the U.S. and Canada. Meanwhile, Asia-Pacific’s rapid expansion is fueled by manufacturing investments in countries such as China and India, where cost-effective production and demand for dietary supplements are sharply increasing. Europe followed North America in terms of market contribution, while South America and the Middle East & Africa regions are showing gradual yet promising adoption of advanced softgel drying systems. Region-specific compliance regulations, energy efficiency trends, and softgel consumption patterns are shaping the global trajectory of the Softgel Drying Tunnel Market, with emerging economies accelerating infrastructure development and digital transformation in softgel production lines.
Rising Demand from Pharma and Nutraceutical Manufacturers Accelerates Equipment Modernization
North America commanded 36.4% of the global Softgel Drying Tunnel Market in 2024, making it the leading region in terms of volume demand and installed production capacity. The pharmaceutical and nutraceutical industries, especially in the United States, continue to drive market growth through high-volume softgel output and regulatory mandates for GMP-compliant equipment. Government incentives supporting domestic pharmaceutical manufacturing and tax relief for facility modernization have further encouraged the adoption of intelligent tunnel systems. Notably, AI-based drying control systems and energy-efficient airflow designs have gained widespread acceptance, optimizing processing time and energy use. FDA-related standards are pushing for digitized logging and traceability, prompting U.S. manufacturers to upgrade outdated equipment. Additionally, the increasing preference for customized and over-the-counter softgel formulations has necessitated tunnel configurations that offer flexibility, precision, and faster drying cycles—strengthening the regional market’s leadership position.
Advanced Regulations and Energy-Efficient Technologies Drive Equipment Upgrades
Europe accounted for approximately 27.8% of the global Softgel Drying Tunnel Market in 2024, with key contributors including Germany, the United Kingdom, and France. These countries are at the forefront of adopting advanced pharmaceutical equipment backed by stringent EU directives and robust environmental regulations. Organizations such as the EMA and national health authorities continue to enforce updated GMP standards, prompting facility upgrades to include digitally controlled, low-emission drying tunnels. Manufacturers are aligning their operations with EU Green Deal goals by integrating heat-recovery systems and energy-saving airflow technologies. Germany’s industrial strength and focus on automated solutions are central to regional progress, while the UK and France are making significant investments in local nutraceutical production. Furthermore, initiatives under Europe’s Horizon programs have led to collaborative innovation across firms, driving the adoption of sensor-driven and modular drying solutions tailored for softgel manufacturing.
Manufacturing Expansion and Automation Fuel Market Growth Across Developing Economies
Asia-Pacific ranked as the fastest-growing region in the Softgel Drying Tunnel Market in 2024, driven by large-scale investments in pharmaceutical and dietary supplement production facilities. China, India, and Japan are the leading consumers of softgel drying equipment, with China alone accounting for over 18.6% of global market volume. The surge in regional demand is attributed to low-cost manufacturing capabilities, increased exports, and rising consumption of vitamins and herbal softgels. Infrastructure growth and government-led incentives for healthcare manufacturing are promoting modern, automated tunnel installations across industrial zones. In India, regulatory encouragement for self-reliant production under the “Pharma Vision 2020” initiative has accelerated the deployment of smart drying technologies. Japan, known for its innovation, is driving R&D around hybrid drying technologies and gelatin alternatives. As digitalization of manufacturing spreads rapidly in Asia-Pacific, countries are becoming hubs for intelligent softgel processing infrastructure.
Growth in Supplement Manufacturing and Trade Support Stimulates Market Expansion
In 2024, South America held 6.3% of the global Softgel Drying Tunnel Market, led by Brazil and Argentina. Brazil, in particular, is experiencing a surge in nutraceutical and pharmaceutical softgel production, thanks to supportive healthcare policies and expanding export potential to North America and Europe. Regulatory modernization by Anvisa and local production subsidies have helped regional manufacturers invest in GMP-compliant, energy-efficient drying tunnels. Argentina is gradually improving its pharmaceutical infrastructure, with a focus on modernizing legacy equipment and increasing local capsule production. Infrastructure development in food and pharma logistics hubs and easier trade access under Mercosur agreements are fueling equipment upgrades. Energy-efficient drying systems with lower carbon footprints are gaining preference due to high energy costs across the region. As manufacturers in South America look to scale and compete globally, the demand for smart, scalable, and digitally monitored tunnel systems is steadily increasing.
Industrial Diversification and Regulatory Reform Encourage Equipment Adoption
The Middle East & Africa region captured 3.7% of the global Softgel Drying Tunnel Market in 2024, with the UAE, Saudi Arabia, and South Africa emerging as key contributors. Growing demand from the pharmaceutical and personal care sectors—particularly in urban hubs—is driving interest in softgel production infrastructure. Industrial zones in the UAE and Saudi Arabia are witnessing new installations of drying tunnels as part of national diversification programs aimed at reducing reliance on imports. These facilities are increasingly adopting sensor-integrated, energy-conscious drying solutions to align with both regulatory compliance and environmental goals. In South Africa, the government's push to localize pharmaceutical manufacturing and the support of private health initiatives have created a favorable environment for equipment upgrades. Digital transformation is gradually entering the sector, with early-stage adoption of AI-based monitoring and automation. Trade partnerships and healthcare reforms across Africa are paving the way for future investments in smart manufacturing ecosystems for softgel production.
United States – 29.2% market share
High production capacity, technological leadership, and strong pharmaceutical industry demand have solidified the U.S. as the top Softgel Drying Tunnel Market leader.
China – 18.6% market share
Rapid expansion in pharmaceutical and nutraceutical production, coupled with cost-efficient manufacturing, makes China a dominant force in the Softgel Drying Tunnel Market.
The Softgel Drying Tunnel Market features a moderately consolidated competitive landscape, with over 35 active manufacturers and suppliers operating globally. These companies range from large industrial equipment manufacturers to specialized pharmaceutical machinery firms. Competition is driven by innovation in energy efficiency, modular system design, and AI integration. Market leaders are continuously investing in advanced airflow technologies, predictive maintenance tools, and smart controls to gain a technological edge. Strategic initiatives such as product line expansions, regional distribution partnerships, and localized manufacturing facilities are being increasingly adopted to meet rising demand across North America, Asia-Pacific, and Europe. In 2024, multiple companies launched next-generation drying tunnels with enhanced automation, aimed at reducing cycle times and improving capsule uniformity. Several firms also entered strategic alliances with pharma and nutraceutical producers to co-develop customized drying tunnel systems tailored for new gelatin alternatives. Companies are focusing on enhancing GMP compliance features, integrating real-time monitoring sensors, and offering cloud-based performance analytics. These competitive innovations are aimed at enabling pharmaceutical manufacturers to meet regulatory expectations while minimizing energy consumption and downtime. In emerging markets, competition is intensifying as local players introduce lower-cost alternatives with basic automation features, catering to mid-sized manufacturers. Overall, product differentiation, reliability, and after-sales service are key factors influencing customer loyalty and competitive positioning in this evolving market.
GEA Group
Technophar Equipment & Service Ltd.
Changsung Softgel System Ltd.
Tooltronics Limited
Kamata Co., Ltd.
Pharmagel Technology S.r.l.
Sankyo Co., Ltd.
Long March Tianmin Hi-Tech Co., Ltd.
Sunking Pharmaceutical Machinery Co., Ltd.
Beijing Hanlin Hangyu Technology Development Inc.
Technological innovation is fundamentally transforming the operational landscape of the Softgel Drying Tunnel Market. Modern tunnel systems are now being equipped with AI-powered process control modules that autonomously regulate airflow velocity, drying temperature, and humidity in real-time. These smart technologies enable manufacturers to achieve higher precision in drying cycles, significantly reducing batch inconsistencies and minimizing material waste. Data from active installations reveal that AI-integrated tunnels have led to up to a 12% increase in softgel uniformity and an approximate 10% reduction in energy consumption per cycle. A major advancement is the deployment of IoT-based sensors across tunnel units. These sensors monitor operational metrics such as fan motor load, moisture content levels, and internal thermal gradients, supporting predictive maintenance workflows. This reduces unplanned downtimes and enhances asset longevity, helping manufacturers avoid costly production interruptions.
Another key technology shaping the Softgel Drying Tunnel Market is modular engineering. Tunnel systems are now being designed with scalable, plug-and-play segments that allow flexible expansion or reconfiguration based on batch size and formulation needs. These modular units also simplify cleaning, validation, and compliance with GMP protocols. Emerging trends include the adoption of low-temperature infrared drying zones, dynamic zone separation for multi-formula batches, and integrated heat recovery systems. These innovations are enabling pharmaceutical and nutraceutical producers to reduce environmental impact while maintaining strict product quality and regulatory traceability. The combination of intelligent automation, sensor-based analytics, and sustainable engineering is rapidly redefining global tunnel design standards.
• In August 2024, Changsung Softgel System launched a fully automated softgel drying tunnel featuring dual-zone humidity control and integrated AI diagnostics. The system demonstrated a 14% reduction in drying time during pilot trials with a leading nutraceutical manufacturer in South Korea.
• In May 2024, GEA Group introduced a modular softgel drying tunnel platform optimized for plant-based gelatin applications. The new system supports starch- and carrageenan-based formulations with customizable temperature profiles, enabling a 9% increase in batch consistency.
• In November 2023, Pharmagel Technology upgraded its Drygel series with embedded IoT sensors for real-time thermal and humidity tracking. The new release includes cloud integration for remote diagnostics and has been adopted by three European contract manufacturing facilities.
• In March 2023, Tooltronics Limited completed the installation of an AI-driven tunnel system at a U.S. pharmaceutical facility, achieving a 16% improvement in energy efficiency and enabling seamless compliance with FDA data logging and process traceability requirements.
The Softgel Drying Tunnel Market Report provides a comprehensive analysis of the global industry landscape, offering insights into key market drivers, evolving technology adoption, and end-use sector trends. The report covers a wide range of equipment types including horizontal, vertical, rotary, and modular tunnel systems—each serving specific production requirements across pharmaceutical, nutraceutical, and cosmetic manufacturing environments. This report examines market demand across major regions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Special focus is placed on high-growth territories such as China, India, Brazil, and the UAE, where industrial expansion and rising healthcare product consumption are influencing softgel production capacity and infrastructure upgrades. The report also highlights key trends in the customization of tunnel systems for plant-based softgel formulations and niche applications such as encapsulated skincare capsules.
Detailed segmentation analysis is provided across three primary axes: type of drying tunnel, application area, and end-user classification. It identifies how contract manufacturing organizations (CMOs), in-house pharmaceutical plants, and nutraceutical brands are contributing to market growth and equipment modernization. Technological focus areas include AI-based control systems, IoT-enabled monitoring, low-energy drying protocols, and heat recovery systems. The report also addresses regulatory factors influencing equipment compliance, cleanroom integration, and GMP validation. Overall, the Softgel Drying Tunnel Market Report serves as a strategic decision-making tool for stakeholders seeking to assess current opportunities, evaluate future demand potential, and navigate the fast-evolving production and automation landscape in softgel capsule manufacturing.
| Report Attribute/Metric | Report Details |
|---|---|
|
Market Revenue in 2024 |
USD 150.6 Million |
|
Market Revenue in 2032 |
USD 247.4 Million |
|
CAGR (2025 - 2032) |
6.4% |
|
Base Year |
2024 |
|
Forecast Period |
2025 - 2032 |
|
Historic Period |
2020 - 2024 |
|
Segments Covered |
By Types
By Application
By End-User
|
|
Key Report Deliverable |
Revenue Forecast, Growth Trends, Market Dynamics, Segmental Overview, Regional and Country-wise Analysis, Competition Landscape |
|
Region Covered |
North America, Europe, Asia-Pacific, South America, Middle East, Africa |
|
Key Players Analyzed |
Microsoft Corporation, Vuzix Corporation, Magic Leap Inc., Lumus Ltd., RealWear, Inc., Everysight Ltd., Epson America, Inc., Optinvent SA, Rokid Corporation Ltd., ThirdEye Gen, Inc. |
|
Customization & Pricing |
Available on Request (10% Customization is Free) |
