The Automated Material Handling Equipment Market was valued at $34.7 million in 2022 and is estimated to reach $55.3 billion by 2028, with a CAGR of 7.90% from 2023 to 2028.
Equipment utilized for the transport, protection, control, and recovery of goods and materials is referred to as material handling equipment. For the quick movement of items, the location of supplies, and the creation of orders, they are employed in warehouses and manufacturing facilities. These services can increase manufacturing efficiency and offer a dependable, affordable means of shipping goods. Moreover, equipment enhances production processes by facilitating the safe, efficient, and quick delivery of goods to industrial facilities. In factories and warehouses, material handling equipment improves logistics, ensuring productivity. These solutions provide a quick, accurate, and cost-effective way to move products between manufacturing facilities.
Market Drivers and Restraints:
The adoption of cutting-edge technologies like RFID and IoT in the 3PL, food and retail, and e-commerce industries is propelling the automated material handling equipment market ahead, among other important aspects. These technologies will be used in production processes to speed up and reduce costs, improving accuracy and boosting customer satisfaction. The market demand is anticipated to be driven by rising labor expenses as well as the difficulties associated with providing perks including insurance for health and safety, pensions, paid time off, bonuses, and employee promotions. Some companies are adding machinery to cut down on the amount of employees in charge of the work. By lowering workplace accidents while storing and transporting items, the technology aids businesses in ensuring the wellbeing of their staff.
The initial cost of setting up and installing automated material handling equipment is high, which restricts the use of such equipment in sizable manufacturing firms. This is one of the factors holding back the automated material handling equipment market. Businesses can increase efficiency by using material handling equipment to automate all procedures. This lowers operating costs while assisting in the production of high-quality goods. Automated material handling systems are being installed by e-commerce and 3PL businesses more frequently to shorten the time it takes to deliver products to clients and to make sure that supplies are handled at warehouses and distribution centres in order to deliver goods on schedule.
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The report is segmented as follows:
The Automated Material Handling Equipment Market is segmented by Product; the Market is segmented by System Type; the Market is segmented by Software and Services; the Market is segmented by Function:
By System Type (Unit Load, Bulk Load)
By Product (Robots, ASRS, Conveyor and Sortation Systems, Cranes, AGV)
By Software & Services (Software, Services)
By Function (Assembly, Packing, Transportation, Distribution, Storage, Waste Management) (Assembly, Packaging, Transportation, Distribution, Storage, Waste Handling)
By 2018, it is anticipated that APAC would hold the greatest market share for material handling equipment. The growing understanding of material handling automation, the rising emphasis on robots and automation by advanced economies like China and Japan, and the thriving e-commerce sector are some of the key drivers causing APAC to account for the highest share of the global market. The growth of the market for AMH equipment in APAC has primarily been driven by China. In the upcoming years, it is anticipated that China's infrastructure for manufacturing and warehousing would improve, increasing demand for AMH equipment there.
Impact of COVID-19 pandemic on the market:
The global epidemic known as COVID-19 has spread throughout the world, causing disruption in a number of different businesses. This epidemic has impacted the leading figures in various businesses. The market for automated material handling equipment may be significantly directly impacted by the foreseen slowdown in the expansion of end-user industries. The COVID-19 epidemic caused a slowdown in the growth of the AMHE market. Yet, it also raised awareness of the advantages of unit load material handling systems among manufacturers and warehouse operators in the e-commerce, automotive, semiconductor, and electronics industries. As a result, it is anticipated that these industries will employ this technology more frequently.