Material Handling Equipment Market is Anticipated to Witness High Growth Owing to Increased Automation Across Industries
Material handling equipment are mechanical devices that are used to transport, store, control and retrieve materials or products throughout a facility or operation. They help improve efficiency and productivity by automating the movement and storage of materials like raw materials, packing materials, finished goods and others. Material handling equipment such as conveyors, automated storage & retrieval systems (AS/RS), automated guided vehicles (AGVs), cranes and others help transport bulk materials as well as packaged/cased goods in various industries like e-commerce, automotive, food & beverage, third-party logistics and others. They assist in reducing manual labor, improve workflow, free up space and minimize operational costs. With increasing automation and supply chain complexities across industries, the demand for efficient material handling equipment is growing significantly.
Material handling equipment market is estimated to be valued at USD 228.33 Bn in 2024 and is expected to reach USD 344.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6% from 2024 to 2031.
Key Takeaways
Key players operating in the material handling equipment are BEUMER GROUP, Daifuku Co., Ltd., Honeywell International, Inc., KION GROUP AG, Mecalux, S.A., Murata Manufacturing Co., Ltd., SSI SCHAEFER, Swisslog Holding AG, TOYOTA INDUSTRIES CORPORATION, Vanderlande Industries B.V. BEUMER GROUP and Daifuku Co. Ltd. together account for over 20% share of the global market.
Rising e-commerce sector is opening opportunities for Material Handling Equipment Market Trends manufacturers. The e-commerce industry is expected to grow at over 15% annually for next 5 years. This will drive strong demand for automated conveyors, sortation systems and robotic fulfillment.
Key players are focusing on global expansion strategies through acquisitions and partnerships to strengthen their presence across emerging economies in Asia Pacific, South America, Middle East and Africa. For instance, BEUMER GROUP acquired Australian based materials handling solution provider Automotion in 2021 to expand in APAC region.
Market drivers: Increasing labor costs and shortage of labor is driving increased automation across industries through investments in efficient material handling equipment. Rapid growth of industries like e-commerce, automotive, food processing are also fueling the market growth.
Market restraints: High initial investments required for automated material handling equipment poses a significant challenge, especially for small and medium enterprises. Lack of skilled workforce for operating and maintaining automated equipment can also limit the market potential to some extent.
Segment Analysis
The material handling equipment market is dominated by the warehouse and distribution equipment sub-segment. This sub-segment accounts for over 35% of the market share owing to increased trade activities across borders requiring efficient logistics and warehouse operations. Industrial trucks and automated storage and retrieval systems are witnessing high demand within the warehouse and distribution sub-segment due to growing need for handling bulk material efficiently in limited space.
Global Analysis
The Asia Pacific region is currently the fastest growing regional market for material handling equipment and is expected to maintain its dominance through 2031. Presence of emerging economies like China and India supplying to the increasing global consumption is driving investments in advanced manufacturing and warehouse infrastructure. Additionally, international trade agreements are boosting trade volumes requiring smooth material flows within and outside countries of the region. North America holds a significant share and is projected to grow at a steady rate during the forecast years due to high demand from booming e-commerce and automotive sectors continuously upgrading operations with automated solutions.
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