; Automated Material Handling Equipment Market Share, Forecast

Automated Material Handling Equipment Market

Automated Material Handling Equipment Market Size, Share, and Analysis, By Type (Automated Guided Vehicles, Automated Storage & Retrieval Systems, Cranes, Robots, WMS, Sortation & Conveyors Systems, Collaborative Robots, and Others), By Systems (Unit Load Material Handling and Bulk Load Material Handling), By End User (Healthcare, Chemicals, Aviation, Automotive, E-Commerce, Semiconductor & Electronics, Food & Beverages, Metals & Heavy Machinery, and Others), By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034

Published on: May-2024
Report Code: FG INEQ 02001
No. of Pages: 170-350
Report Format: PDF

Automated Material Handling Equipment Market is projected to grow at a CAGR of 8.3% in the forecast period (2024-2034), with the market size valued at USD 50.1 billion in 2023 and expected to reach USD 120.4 billion by 2034.

Product Overview

Automated material handling equipment is a range of machinery and systems that are designed to automate different aspects of material handling processes within several industries like manufacturing, logistics, retail, and healthcare. These systems are integrated with advanced technologies such as robotics, artificial intelligence, sensors, and software to manage the movement and retrieval of goods in a facility or warehouse. They include automated storage and retrieval systems, automated guided vehicles, conveyor systems, and robotic solutions. Automated material handling offers multiple benefits such as high operational efficiency and better utilization of space. Furthermore, the capabilities of automated material handling systems have been greatly improved by technological innovations such as robotics, artificial intelligence, and machine learning.

Market Highlights

Automated Material Handling Equipment Market is expected to exhibit a CAGR of 8.3% during the forecast period, 2024-2034

Automated material handling equipment market is anticipated to reach USD 120.4 billion, growing at a CAGR of 8.3% during the forecast period, due to the rising demand for automation across various industries such as manufacturing, e-commerce, automotive, healthcare, and food and beverage. This growth is driven by several of the benefits offered by automation, such as better operational efficiency, low labour costs, and better inventory management. In addition, the market is highly competitive, with major players such as Dematic, Daifuku, Honeywell Intelligrated, Siemens AG, and Murata Machinery promoting innovations and partnerships to gain a competitive edge in the market. Thus, the momentum of the automated material handling equipment market is expected to rise as industries are increasingly recognizing the value of automated material handling solutions in improving their operations.

Source: Fatpos Global

Automated Material Handling Equipment Market Segmentation

Automated Storage and Retrieval Systems dominate considering higher demand and revenue share in the market

Automated material handling equipment market is segmented based on Type into Automated Guided Vehicles, Automated Storage & Retrieval Systems, Cranes, Robots, WMS, Sortation & Conveyors Systems, Collaborative Robots, and Others. Automated storage and retrieval systems are expected to lead the market, as high demand for efficient warehousing with the need for space usage is increasing the adoption of automated storage and retrieval systems. These systems help in the optimization of storage capacity, which improves picking and retrieval times. They can be customized for different industries such as food & beverage, pharmaceuticals, and general merchandise. Subsequently, automated guided vehicles are simple and more cost-effective for repetitive tasks; while the increase in the collaboration of human robots for tasks like assembly and inspection has been improving the growth of the market.

Unit Load Material Handling Systems have been leading the market due to better scalability, and automation capabilities.

Automated Material Handling Equipment Market, is classified based on Systems into Unit Load Material Handling and Bulk Load Material Handling. The growth of unit load material handling systems has been significant, as these systems can handle different individual items, that align with the growing trend of e-commerce and the need for efficient picking and order fulfilment. Unit load systems can address the needs of diverse industries, such as warehouses and distribution centers to manufacturing facilities, while simultaneously offering sleeker and modular design to various warehouse layouts. Moreover, these systems can be integrated easily with other automation solutions like AS/RS, conveyors, and robots. Alternatively, bulk load material handling systems are primarily known for handling large quantities of loose materials such as grains, liquids, and powders.

Market Dynamics

Growth Drivers

Cutting the Costs of Labour is Essential for the Growth of Automated Material Handling Equipment

Saving costs have been the major aspect of the adoption of automated material handling equipment. Manual labour is often very expensive, as a result, automation of operations is usually preferred as it provides several cost benefits by reducing any form of human intervention in tasks such as picking and transporting materials. This reduction in labour costs helps in improving the effectiveness of operations and profitability for companies. In addition, automated storage and retrieval systems also help in simplifying operations by recovering and delivering items, while eliminating the need for manual searching and walking. Furthermore, automation also helps reduce the dependence on the availability of skilled workforce, which is beneficial for regions where labour shortages are more common.  

Growth in E-Commerce Sector Has Been Significant for the Automated Material Handling Systems

Automated material handling equipment plays an essential role in enabling faster order fulfilment in the e-commerce sector where customers expect fast services. It streamlines the processes such as picking, packing, and sorting, thus allowing companies to meet customer expectations and maintain competitiveness in the online marketplace. In addition, automation also helps in improving the efficiency of warehouses which is crucial for e-commerce businesses that are operating with limited space. Besides, automation reduces errors in manual order-picking processes and ensures the accuracy of orders, along with customer satisfaction.

Restraints

Integrating Automation Solutions with Existing Infrastructure and Systems Requires Careful Planning and Expertise

Integration complexity creates a significant challenge in the automated material handling equipment market as it impacts the implementation and adoption. Technical expertise is important for integrating equipment with existing infrastructure and systems like warehouse management systems and conveyor systems, where the shortage of skilled workers can obstruct operations. Thus, careful planning is necessary to ensure compatibility between new equipment and existing systems, which can be time-consuming. These challenges can act as a barrier to entry in small and medium-sized companies, while also creating a demand for integration services. Therefore, manufacturers must focus on modular designs to simplify the integration process and help in the smooth incorporation of automated material handling equipment.

Recent Developments

  • In 2023, Kion Group acquired Dematic, which is a leading supplier of intralogistics solutions. The company has also formed a significant strategic partnership with Microsoft to leverage cloud-based solutions and AI for intelligent warehouse management within their automation offerings.
  • In 2023, Daifuku Co., Ltd, launched new iterations of their existing automated storage and retrieval system (AS/RS) solutions which all focus on improved efficiency and integration with warehouse management systems. They have also focused on new eco-friendly automated solutions.
  • In 2023, SSI Schaefer expanded their global market footprint by opening new manufacturing facilities and centers to cater to the rising demand for automated solutions.                                                            
  • In 2023, Vanderlande Industries, has focused on the e-commerce boom, with developments in their automated fulfillment center solutions which are specifically designed for bigger e-commerce corporations.
  • In 2023, Honeywell has integrated new technologies such as AI or machine learning into their existing automation solutions, focusing on features like predictive maintenance or real-time process optimization.

Automated Material Handling Equipment Market

Key Players:

  • Kion Group AG
  • Daifuku Co., Ltd.
  • SSI Schaefer
  • Vanderlande Industries
  • Honeywell Intelligrated
  • Hanwha
  • Toyota Material Handling
  • JBT
  • Knapp AG
  • Bastian Solutions LLC
  • Beumer Group
  • Fives Group
  • TGW Logistics Group
  • Mecalux, S.A.
  • System Logistics Corporation
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Automated material handling equipment market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region dominates the automated material handling equipment market as the region has been experiencing major development and growth in manufacturing sectors such as automotive, electronics, and consumer goods. The rise in e-commerce further helps towards faster order placement and effective operations, leads leading to higher adoption in the Asia Pacific region.

Simultaneously, regions such as North America have seen strong growth in the market due to higher adoption of automation, while Europe has also faced significant growth with a deeper focus on modern technologies. Furthermore, Latin America, and Middle East & Africa have been emerging markets with rising rates of automation, but the growth has been limited by initial investment costs.

Source: Fatpos Global

Impact of Covid-19 on Automated Material Handling Equipment Market

Covid-19 pandemic had an intricate impact on the automated material handling equipment market. Various short-term disruptions were witnessed in the supply chain due to lockdown restrictions, that resulted in major delays in equipment delivery. Additionally, due to economic uncertainties, there was a decline in investments, while labour shortages were also experienced.  However, in the long term, the pandemic helped in increasing the focus on automation. The increase in e-commerce boosted the demand for automated solutions to meet multiple needs. Furthermore, businesses are increasingly considering automation to reduce labour costs and dependence on the workforce.

Automated Material Handling Equipment Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Automated Material Handling Equipment Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 8.3% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Type

  • Automated Guided Vehicles
  • Automated Storage & Retrieval Systems
  • Cranes
  • Robots
  • WMS
  • Sortation & Conveyors Systems
  • Collaborative Robots
  • Others

By Systems

  • Unit Load Material Handling
  • Bulk Load Material Handling

By End User

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

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions (FAQ):

Automated Material Handling Equipment Market size was valued at USD 50.1 billion in 2023 and is projected to reach the value of USD 120.4 billion in 2034, exhibiting a CAGR of 8.3% during the forecast period.

Automated material handling equipment refers to a range of machinery and systems that are designed to automate various aspects of material handling processes within different industries.

The Automated Storage & Retrieval Systems segment and Unit Load Material Handling Systems segment accounted for the largest automated material handling equipment market share.

Key players in the Automated Material Handling Equipment Market include Kion Group AG, Daifuku Co., Ltd., SSI Schaefer, Vanderlande Industries, Honeywell Intelligrated, Hanwha, Toyota Material Handling, JBT, Knapp AG, Bastian Solutions LLC, Beumer Group, Fives Group, TGW Logistics Group, Mecalux, S.A., System Logistics Corporation, and Other Prominent Players.

Cutting the costs of labour and growth in the e-commerce sector are the factors driving the automated material handling equipment market.

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