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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
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.
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.
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 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.
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.
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.
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.
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
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.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 8.3% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Type |
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By Systems |
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By End User |
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By Region |
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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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