Automated Material Handling Equipment Market

Global Automated Material Handling Equipment Market Size (2023 to 2028)

The global automated material handling equipment market size is expected to reach USD 57.23 billion by 2028 from USD 42.89 billion in 2023, registering a CAGR of 5.9 % from 2023 to 2028.

Automated material handling equipment uses advanced technologies such as robotics, machine learning, the Internet of Things, and artificial intelligence to move goods from one place to another during manufacturing and distribution. It is also used to store, control and protect the goods throughout the process. The equipment for handling the goods is classified into positioning, unit load formation, storage, and transport equipment. For example, automated material handling equipment uses conveyors, vertical elevators, and autonomous vehicles to move material and RFID, Barcoding, and optical character recognition (OCR) for the identification of products and near field communication or ultra-wideband indoors for detecting the material location.

MARKET DRIVERS:

The wide adoption of automated material handling equipment across various industries is one of the major factors propelling the growth of the global market. The widespread use of automated material-handling equipment in industries such as automotive, healthcare, food& beverages, chemicals, aviation, and heavy machinery is driving the market growth during the forecast period. Further, AMH equipment improves the efficiency and productivity of the process. The semi-automated AMH equipment needs a minimal amount of labor, while fully automated doesn't need any human intervention and prevents any risk of workforce injuries. In addition, the adoption of Industry 4.0 and increasing e-commerce platforms are fuelling the demand for AMH equipment. Moreover, rising technological advancements for easy handling are significantly contributing to the growth of the automated material handling equipment market.

The increasing demand for smart factories in developing economies such as India, Brazil, Mexico, and Indonesia for monitoring manufacturing processes that include picking to packing. It improves efficiency and saves a lot of time. This provides a lucrative opportunity for the expansion of the market. The growing trend of integrating new and old factories with integrated automated systems is also offering numerous opportunities to the automated material handling equipment market. Further introduction of advanced technologies such as cloud-based software, machine learning, and the Industrial Internet of Things (IIoT) that can track real-time data and optimize operations is fuelling the market growth in coming years.

MARKET RESTRAINTS:

High costs associated with integration and maintenance are one of the major factors hindering global market growth. The installation and integration of software, sensors, and timely maintenance will hamper the growth of the automated material handling equipment market. The whole automation of manufacturing and warehousing activities will be costly, and the layout of the factory should be redesigned to accommodate the infrastructure. Further, Small and medium-scale industries find it difficult to switch traditional operations to an automated integration system, which will hinder the market. Moreover, the high cost of switching from one software to another impedes the growth of the automated material handling equipment market.

Impact of COVID-19 on the automated material handling equipment Market:

The COVID-19 pandemic broke out in November 2019 in China province. In no time, it spread to almost 200 countries, and the U.N. reported it as a deadly virus infection of the 21st century. International organization officials instructed Every nation to prevent the virus from spreading. Coupled with humanitarian losses, the world also faced severe economic crises and a high rate of inflation. Countries such as Brazil, Pakistan, and Sri Lanka have faced severe economic crises. The processing and non-Processing industries have shut down their production facilities partially or wholly due to the pandemic crisis. The global markets faced a crisis with supply chain disruptions and challenges in imports-exports. Even Supply and demand mismatches have been reported globally and resulted in crises for interconnected economies globally. Global markets are negatively impacted by the implications of the ongoing pandemic and crises. The automated material handling equipment market has witnessed a mixed impact. The industries are halted or run on low workforce and limited operations. Several governments even stalled their investments in infrastructure development. However, the increase in demand for remote work has created a surge in the demand for automated material-handling equipment. Further, significant growth in the market is observed with stabilizing markets.

REPORT COVERAGE:

This research report on the global automated material handling equipment market has been segmented and sub-segmented into the following categories.

Automated Material Handling Equipment Market - By Product Type:

• Robots
• Automated Storage and Retrieval Systems (AS/RS)
• Conveyors Systems
• Sortation Systems
• Cranes
• Warehouse Management Systems
• Collaborative Robots
• Autonomous Mobile Robots (AMR)
• Automated Guided Vehicle (AGV)
• Tow Vehicle

The Robot segment is anticipated to hold the largest market share product-wise in the automated material handling equipment market during the forecast period. The integration of advanced technologies like artificial intelligence, the Internet of Things (IoT), and machine learning in the robotic system enhances its performance and completes the work with more precision and agility. These factors are driving the growth of the market in the period. Further significant growth is observed in the warehouse management system during the forecast period owing to an increase in 3PL companies and logistics. E-commerce also requires inventory management as products are shipped to destinations.

Automated Material Handling Equipment Market - By System Type:

• Unit Load Material Handling
• Bulk Load Material Handling

The unit load material handling segment is expected to generate the largest market revenue in automated material handling equipment during the forecast period. The unit load is about handling and moving a single entity. It is easier to handle and quicker to transfer to the destination. Further, the E-commerce industry is witnessing rapid growth in this period. It requires handling goods simultaneously; this reduces lead time and lowers the operation cost. At the same time, bulk load handles a large number of products at a time. The carriers reduce the number of labor working in the shipment and deliver the goods without any misplacement in the pharmaceutical and automotive industries.

Automated Material Handling Equipment Market - By Vertical:

• Automotive
• Semiconductor & Electronics
• E-Commerce
• 3PL
• Metals & Heavy Machinery
• Food & Beverages
• Chemicals
• Healthcare
• Aviation
• Others

The e-commerce segment recorded the largest market revenue in the automated material handling equipment market during the forecast period. With an increase in online platforms, companies are relying on automated material-handling equipment. Many big product companies are also installing EQH equipment in warehouse facilities. This equipment can handle a large volume of products and reduce the man force. This prevents the risk of accidents and assists the demand of consumers, fuelling market growth. The next largest market shareholder during the forecast period is the 3PL segment. The 3PL companies are integrating the process to have end-to-end visibility throughout the process. The maintenance of the whole supply chain will give better coordination, faster response time, and enhancement in customer service. These factors are contributing to the growth of the automated material-handling equipment market.

Automated Material Handling Equipment Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

The Asia-pacific segment held a market share of 39% in 2022 and is anticipated to sustain the majority of the market share in automated material handling equipment during the forecast period. The growing demand for automated manufacturing and warehousing activities in the automotive, e-commerce, food, and beverage industries in the Asia-Pacific region is driving the market. Countries such as China are leading manufacturing hubs in the region. It is automating its whole manufacturing process, which is fuelling its growth. At the same time, Korea is adopting Industry 4.0 and automating their convection factories into automation. Furthermore, Government investments in Japan, which is predominantly a manufacturing nation, are further driving the growth of automated material handling equipment in the region. Moreover, the rise in demand for robotic manufacturing for precise and efficient production is blistering the market in the region. The following market growth is registered in the North American region during the forecast period. The companies in the region are investing in research and innovation of automated software. Further adoption of automated handling in manufacturing and warehousing facilities is driving the growth of the market in the region.

KEY MARKET PLAYERS:

Some of the major companies operating in the global automated material handling equipment market are Daifuku, Kion, SSI Schaefer, Honeywell International, Toyota Material Handling, Hyster-Yale Material Handling, Jungheinrich, Hanwha, JBT and KUKA.

RECENT HAPPENINGS IN THE MARKET:

• In 2022, Toyota Material Handling introduced 22 new electric vehicle models. These products include a wide range of warehousing and distribution solutions that help warehouse companies keep pace with the movement of goods.
• In 2021, Hyster- Yale Materials Handling, Inc. participated in the virtual global industrial conference and stated their views about the industry and the future it upholds.