Market Overview of the Automated Material Handling Equipment Market
The Automated Material Handling Equipment (AMHE) market refers to the industry that produces and provides automated solutions for the movement, storage, and transportation of goods within manufacturing facilities, warehouses, and distribution centers. These systems typically include conveyors, robots, automated guided vehicles (AGVs), and other technologies that enhance efficiency, reduce labor costs, and improve inventory management. The AMHE market is driven by the growing demand for streamlined supply chain operations and increased automation across industries like manufacturing, e-commerce, and logistics. It plays a crucial role in optimizing material handling processes, ensuring timely deliveries, and enhancing overall productivity.
Market Size:
- 2022: USD 31.20 Billion
- 2030: USD 60.43 Billion
- CAGR (2023-2030): 9.34%
Market Dynamics of the Automated Material Handling Equipment Market
The surge in e-commerce activity and the widening array of available product options.
Customers want different things when it comes to moving stuff around, like getting things on the same day, dealing with uncertain amounts of stuff, and having things personalized just for them. But companies that make things need to do this quickly and deal with complicated shipping because they have more places to store stuff, and those places need to be closer to the people who buy things. Also, there's more risk involved, which means they have to spend more money on things that might change (like workers and space), and because each order is unique, they have to handle smaller orders more often. For instance, warehouse cranes and hoists frequently help with the loading and unloading of items into storage bays; conveyors aid in the swift selection of the appropriate resources depending on production demands; and ASRS technologies can effectively shift storage bays to save pickup time.
Restraining Factor:
Market expansion is being hampered by high equipment costs:
A big challenge for the AMH (Automated Material Handling) equipment market is that it needs a lot of money in the beginning. This includes the costs of installing and connecting smart sensors and software, as well as taking care of the equipment after it's installed. All of this adds up and makes owning this equipment more expensive. This can make it hard for companies to decide to invest in AMH equipment. It's especially tough for smaller companies because they often have lower production levels and might not see the benefits of automation right away. They would also need to change how their warehouses are set up, which can be complicated and costly.
Current Trends on Automated Material Handling Equipment:
Technological development in the Automated Material Handling Equipment industry:
The emergence of new technologies helps manufacturers to improve productivity, capability and profitability. For instance, there are three equipment use cases in the material-handling market such as warehouse management, shop floor operations, and field operations. Accuracy, dependability, and cost-effectiveness are some of the success factors that are similar to these fields. Picking and sorting efficiency as well as monitoring precision are important success factors in warehouse management. Low operating expenses and prompt product delivery to production lines are typically valued in shop-floor operations. The field-operations use case also benefits from mechanical skills like ports, mining, and building, as well as from the ability to manage several operations at once.
Segment Analysis of the Automated Material Handling Equipment Market
The automated material handling equipment market is segmented by Product type, system type, component, application, industry vertical, and region. On the basis of product type, the automated material handling equipment market is segmented into guided vehicle, storage & retrieval system, crane, robotic system, and conveyor & sortation system. by system type, the market is bifurcated into unit load, and bulk load. component-wise, the market is divided into hardware, software, and services. Further the market is segmented by application as assembly, packaging, transportation, distribution, storage, and waste handling. By industry vertical as automotive, chemical, aviation, semiconductors & electronics, e-commerce, food & beverages, healthcare and others.
By Product Type
The Automated Guided Vehicle segment is anticipated to grow at the highest CAGR over the forecast period.
The Automated Guided Vehicle (AGV) is expected to grow at the fastest CAGR over the forecast period. AGV system benefits across various industries due to their ability to self-sufficiently move materials and goods within a facility. The following are the most used types of AGV’s towing, fork trucks and heavy load carriers. They are designed in such a way that repetitive actions or faster performance of delivering raw materials, keep loads stable, and complete simple tasks with more accuracy. AGVs run continuously, unlike human labourers, and only pause to recharge or repair themselves.
By System Type
Material handling systems are divided into two main types including unit load and bulk load systems. Unit load systems handle individual or grouped items, such as boxes or pallets, with a focus on precise handling and product identification. In contrast, bulk load systems manage loose materials or products in bulk quantities, prioritizing efficient transport and storage of large volumes. The choice between these system types depends on the specific nature and handling requirements of the materials or products involved. The unit load material handling segment is projected to grow at the highest CAGR over the forecast period. This is due to several benefits offered by unit load handling systems. This system is used across all industries such as automotive, chemical, food & beverage, e-commerce, and others, as it helps to load many items simultaneously. This solution helps to reduce the time of loading and unloading items, the number of trips, and also the cost of handling. The exponential growth of e-commerce industry will drive the segment growth.
By Component
In material handling, components are categorized into three main types: hardware, software, and services. Hardware includes the physical equipment like conveyors and robots. Software involves control and optimization systems such as warehouse management software. Services encompass maintenance, training, consulting, and support to ensure smooth and efficient material handling operations. Together, these components form integrated solutions that enhance efficiency and effectiveness in material handling processes.
Regional Analysis
North America Automated Material Handling Equipment Market dominates the overall market:
Due to the implementation of new technologies and the growing demand for effective material handling, North America and Europe regions are expected to have significant growth over the forecast period. Increasing demand for durable as well as non-durable products which is enforcing the manufacturing companies to adopt automated material handling equipment.
Asia Pacific is projected to grow at the fastest CAGR during the anticipated period, from 2023 to 2030. Emerging countries such as China and India are focusing to deploy new technologies in several industries which are projected to surge the market growth in coming years. Automotive, food & Beverage, and e-commerce industries are expected to adopt automated material handling systems in order to meet government policies regarding hygiene and cleanliness.
Competitive Analysis of the Automated Material Handling Equipment Market
The major players operating in the market are Daifuku Co.Ltd., Manitowoc Company, Inc., Bosh Rexroth, Honeywell International, Dematic Group S.A.R.L, Toyota Industries Corporation, Swisslog Holding AG, Hyster Yale Materials Handling, Siemens AG, JBT Corporation, Jungheinrich AG, KUKA AG, KION Group AG, Xuzhou Heavy Machinery Co.Ltd., Bastian Solution, Inc. and others.
Snapshot
| Attributes | Details |
| Market Size in 2022 | USD 31.20 Billion |
| Market Forecast in 2030 | USD 60.43 Billion |
| Compound Annual Growth Rate (CAGR) | 9.34% |
| Segmentation | By Product Type, by Application, and by Geography |
| By Product Type |
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| By Application |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2016 to 2021 |
| Forecast Year | 2023 to 2030 |
Impact of the COVID-19 pandemic on the Automated Material Handling Equipment Market:
The outbreak of Covid-19 has negatively impacted the material handling equipment industry’s growth. Although the material handling sector was expected to rise in 2020, several businesses have been making adjustments ever since the COVID-19 outbreak started. Along with having a noticeable impact on people's health, COVID-19 has had a big impact on the material handling, manufacturing, and commercial sectors in the United States.
Many small companies in the United States have been forced to close permanently as a result of the global pandemic and the ensuing public regulations. Through indefinite firm closures, staff layoffs, and restructuring of business operations, processes, and procedures, COVID-19 has had some impact on the majority of industries.
Automated Material Handling Equipment Market Report Scope
By Product Type
- Guided Vehicle
- Storage & Retrieval System
- Crane
- Robotic System
- Conveyor & Sortation System
By System Type:
- Unit Load
- Bulk Load
By Component:
- Hardware
- Software
- Services
By Application:
- Assembly
- Packaging
- Transportation
- Distribution
- Storage
- Waste Handling
By Industry Vertical:
- Automotive
- Chemical
- Aviation
- Semiconductors & Electronics
- E-Commerce
- Food & Beverages
- Healthcare
- Others
Recent Developments:
In March 2022, Viastore completes TICO's line of goods and services as an acknowledged system integrator in the intralogistics industry, enabling the business to provide an integrated range of intralogistics solutions in the future. Viastore expands the long-term potential of all three business sectors through its relationship with TICO, from automated solutions and software to the service industry.
In December 2022, manufacturer of automated material handling equipment Daifuku, which was recently named the best in the business has announced plans to build a new production facility in India.
Building material suppliers and other businesses are receiving an increasing number of orders as a result of the present boom in construction projects. Daifuku anticipates that the market for intralogistics automation will continue to grow quickly because India's economy is now the one with the fastest rate of growth in the world. In order to fully utilize the new plant's production capacity, we intend to hire 250 additional people.
