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I AgreeAnalysis of Automated Material Handling Equipment Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global automated material handling (AMH) equipment market is valued at US$ 46 billion in 2022 and is expected to top a valuation of US$ 91 billion by 2032, registering a CAGR of 7% from 2022 to 2032.
Material handling encompasses a broad spectrum of operations, such as movement, storage, protection, and management, that occur during the manufacturing, warehousing, distribution, consumption, and disposal of items and materials. It is now regularly carried out using automated material handling equipment to decrease human interference and boost logistics management.
Automated material handling equipment aids in production planning, forecasting, inventory control, flow and process management, resource allocation, and after-sales support and services. As a result, many businesses are turning to automated material handling equipment to enhance customer service, minimize inventory, cut delivery times, and lower total handling costs.
The introduction of new technologies into automated material handling equipment, such as AI, IoT, machine learning, and robotics, is a major factor projected to drive the sales growth of automated material handling equipment during the forecast period. These technologies provide smooth and real-time order picking in production operations, allowing enterprises to speed up their material handling procedures.
Moreover, employing sophisticated technology, such as Automated Guided Vehicles (AGV), in distribution centers enables enterprises to manage enormous numbers of repetitive material movements, resulting in increased throughput. Such technologies enable automobiles to make routing decisions based on real-time feedback from environmental circumstances as well as with the ease of navigational modifications.
Leading organizations in the agriculture, aerospace, construction, and automotive industries are employing advanced automated material handling equipment to modernize manufacturing processes, boost flexibility in warehouse operations, and improve supply chain transparency.
Moreover, since the food and beverage businesses have higher sanitation requirements than other businesses, automated material handling equipment has found widespread use in the food and beverage industry. The USDA (The United States Department of Agriculture) and FDA (Food and Drug Administration) require high sanitary conditions for systems that transport goods.
Furthermore, the increasing use of automated material handling equipment in packaging applications is expected to provide substantial growth opportunities in the automated material handling systems market during the forecast period.
Numerous governments have initiated programs and financial allocations for industrial infrastructure projects, which are expected to increase demand for automated material handling equipment.
Moreover, increasing demand for high accuracy in material handling is driving significant initial expenditures and innovations in designing and creating a bespoke system capable of increasing productivity and order fulfillment precision.
Key market players are heavily investing in automated systems since they are more productive and can be used in a variety of applications such as warehousing and distribution, airport baggage handling, manufacturing and bulk handling, and postal and parcel delivery.
Report Attributes |
Details |
---|---|
Market Size in 2022 |
US$ 46 Billion |
Projected Market Value (2032) |
US$ 91 Billion |
Global Market Growth Rate (2022-2032) |
7% CAGR |
Asia Pacific Market Value (2021) |
US$ 19 Billion |
European Market Growth Rate (2022-2032) |
8% |
North American Market Growth Rate (2022-2032) |
6% |
Key Companies Profiled |
|
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“Advent of Industry 4.0 and Smart Factories”
The material handling industry is expected to benefit from the advent of Industry 4.0 and smart factories. Nowadays, the entire production line, encompassing selecting, sorting, and transporting systems, needs monitoring at every stage to evaluate operational effectiveness and decrease waste.
Smart factories connected with automated technologies allow monitoring of all processes in such settings. Furthermore, many intuitive technologies included in material handling systems, like data analytics and cloud connectivity, increase asset performance and give usable real-time data. Incorporating such automated systems deployed in facilities also gives wireless remote control systems that aid in better diagnostics and decrease commissioning time.
“Booming e-commerce Industry to Promote Market Growth”
The e-Commerce industry is expanding rapidly around the world, creating a high need for process automation. Walmart, Amazon, and other major vendors are progressively incorporating automated technologies to perform operations precisely, efficiently, safely, and cost-effectively.
Furthermore, the growth in the manufacturing industry is a significant factor in increasing the demand for automated material handling equipment. Facility owners are attempting to manufacture and ship products to customers more quickly, at a lesser cost, and with higher quality. As a result, more and more facility owners are adopting automated material handling devices.
“Increasing Demand for Customized and Personalized Products”
As online buyers' expectations for customized and personalized products expand, e-commerce businesses have more difficulty meeting complicated requests through manual processes.
Customers nowadays want these customized products to be delivered at a low cost and on the same day as normal orders. Due to the massive trend of customized orders, warehouse operators and manufacturers have been forced to improve their picking and sorting procedures' effectiveness and speed to obtain financial success.
Furthermore, due to the added intricacy, manual processing of customized orders raises the possibility of errors. Automated material handling equipment like robotic pickers, autonomous material handling equipment, automated storage & retrieval systems (ASRS), automated-guided vehicles (AGV), conveyors, and automated sorters can help handle customized orders more efficiently while also minimizing error rates.
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“Huge Initial Investments to Set Up Automated Material Handling Equipment”
The key obstacle restricting the sales of automated material handling equipment is the huge investments required at the initial stage.
Moreover, the related expenditures, which primarily include installation, the integration of software solutions and intelligent sensors, post-sales assistance, and timely upkeep, raise the total cost of ownership, making it more challenging for businesses to invest in automated material handling equipment.
Furthermore, small and medium-sized businesses struggle to transition from traditional material handling to automated products due to poor production yield and investment gains, as well as the reorganization of existing warehouses, facility layouts, and other factors.
Demand for automated material handling equipment in Asia Pacific touched US$ 19 billion in 2021. Japan and South Korea are major forces behind the increasing demand for automated material handling equipment in Asia Pacific.
Japan is largely a manufacturing nation. Its manufacturing industry contributes approximately 20% to the nominal GDP, while other developed countries contribute closer to 10%.
Moreover, South Korea has embraced the Fourth Industrial Revolution. South Korea intends to build 30,000 smart factories by 2023.
The European market is projected to grow at a CAGR of 8% during the forecast period.
Europe has emerged as the most notable adopter of industrial automation due to significant investments in the Industry 4.0 revolution.
The German automotive industry is one of the world's biggest manufacturing sectors.
Germany is a major user of automated material handling solutions.
The North American market is expected to grow at a CAGR of 6% during the forecast period. Currently, the United States is dominating North America.
The country's automotive industry is strongly concentrating on mass manufacturing of vehicles, which is sparking the demand for automated material handling equipment, as the automotive industry highly depends on numerous tiers of suppliers who provide and deliver sub-components of each vehicle produced in plant facilities.
The sales of unit load material handling systems are expected to rise during the forecast period. Unit load material handling systems integrate individual goods into a single unit, allowing for simple transfer with forklift trucks or pallet jacks.
These systems allow effective handling, storing, and distributing in a variety of dimensions and load weights while reducing handling expenses and damage by restricting individual handling.
Industrial and consumer products move through the supply chain as unit loads. Numerous industries are embracing unit load material handling systems due to the benefits of handling multiple goods at the same time, minimizing the number of trips and the time necessary for loading and unloading, and lowering the total cost of handling.
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The automated material handling equipment market is extremely competitive. Key players in the automated material handling equipment market are using growth tactics such as product launches, significant investment in research & development, and partnerships and acquisitions to maintain the intense competition.
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The global automated material handling equipment market is valued at US$ 46 billion in 2022.
The market for automated material handling equipment is expected to reach US$ 91 billion by 2032.
Sales of AMH equipment are estimated to increase at a CAGR of 7% through 2032.
Robots, automated storage & retrieval systems (ASRS), conveyors & sortation systems, and cranes are considered automated material handling systems.
Asia Pacific is expected to lead the global market over the decade.
The North American AMH equipment market is set to grow at a CAGR of 6% through 2032.
Flexlink AB, Bastian Solutions, Toyota Industries Corporation, KION Group AG, BEUMER Group GmbH & Co. KG, Murata Machinery, Ltd., Swisslog Holding AG, Daifuku Co., Ltd., SSI SCHAEFER, Honeywell Intelligrated, Hytrol Conveyor Co., Inc., Jungheinrich AG, Ka