Automated Material Handling Equipment Market Forecasts to 2030 - Global Analysis By Product Type, System Type, End User, Distribution Channel and By Geography

According to Stratistics MRC, the Global Automated Material Handling Equipment Market is accounted for $33.7 billion in 2024 and is expected to reach $61.3 billion by 2030, growing at a CAGR of 10.5% during the forecast period. Automated material handling equipment is composed of devices and systems that make it easier to move, store, and manage materials in a facility. The manufacturing, warehousing, and logistics sectors make extensive use of these solutions, which include robotic arms, automated guided vehicles, conveyor systems, and automated storage and retrieval systems.

According to the International Federation of Robotics, US manufacturers heavily invested in automation, leading to a 12% increase in industrial robot installations, totaling 44,303 units in 2023.

Market Dynamics:

Driver:

Increased efficiency and productivity

Automated material handling equipment significantly enhances efficiency and productivity in warehouses and distribution centers. These systems reduce manual labor, minimize errors, and optimize space utilization. They enable faster order processing, improved inventory management, and round-the-clock operations. By streamlining material flow and reducing bottlenecks, companies can handle higher volumes of goods with greater accuracy and speed. As businesses strive to meet growing consumer demands and tighter delivery schedules, the adoption of automated material handling equipment becomes crucial for maintaining operational excellence.

Restraint:

High initial investment

The high initial investment required for implementing automated material handling equipment poses a significant barrier to adoption, especially for small and medium-sized enterprises. The costs include not only the equipment itself but also installation, integration with existing systems, and staff training. Many companies struggle to justify the substantial upfront expenses, despite the long-term benefits. The complexity of these systems often necessitates ongoing maintenance and potential upgrades, adding to the total cost of ownership.

Opportunity:

Growing e-commerce industry

Due to rising online retail expansion, there is an increasing need for efficient order fulfillment and warehouse management systems. Automated solutions help e-commerce companies handle high volumes of orders, manage diverse product ranges, and meet customer expectations for fast and accurate deliveries. The demand for same-day and next-day delivery services further drives the adoption of automated systems to streamline picking, packing, and sorting processes. Additionally, the rise of omnichannel retail strategies requires flexible and scalable material handling solutions, creating fertile ground for innovation and market growth.

Threat:

Competition from low-cost providers

The automated material handling equipment market faces a threat from low-cost providers offering simpler, less advanced solutions. These competitors, often from emerging economies, can produce equipment at lower costs due to reduced labor expenses and less stringent regulations. While their products may lack some advanced features, they appeal to price-sensitive customers and smaller businesses with limited budgets. This competition can lead to price pressures and reduced profit margins for established manufacturers. Additionally, as low-cost providers improve their technology and quality over time, they may capture a larger market share, potentially disrupting the competitive landscape.

Covid-19 Impact:

The COVID-19 pandemic initially disrupted the automated material handling equipment market due to supply chain interruptions and reduced manufacturing activities. However, it subsequently accelerated adoption as businesses sought to enhance operational resilience and reduce reliance on manual labor. The surge in e-commerce and the need for contactless operations further boosted demand for automated solutions, particularly in industries like healthcare and retail. This shift is likely to have a lasting impact on market growth.

The automated storage & retrieval systems (ASRS) segment is expected to be the largest during the forecast period

The automated storage & retrieval systems (ASRS) segment is expected to dominate the market due to its versatility and efficiency in managing inventory. ASRS solutions optimize warehouse space utilization, reduce labor costs, and improve order accuracy. They are particularly valuable in industries with high-volume storage and retrieval needs, such as e-commerce, retail, and manufacturing. The growing demand for just-in-time inventory management and the need for faster order fulfillment drive the adoption of ASRS. Additionally, advancements in ASRS technology, including AI and machine learning integration, enhance their capabilities and appeal to a broader range of industries, further solidifying their market leadership position.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is poised for significant growth in the market due to increasing automation in automotive manufacturing and supply chain operations. Automated solutions help automotive companies improve production efficiency, reduce errors, and manage complex inventory systems. The industry's focus on lean manufacturing principles and just-in-time production aligns well with the benefits of automated material handling equipment. Furthermore, the shift towards electric vehicle production requires flexible and adaptable manufacturing processes, driving the demand for advanced automation solutions. As automotive companies strive to optimize their operations and remain competitive, the adoption of automated material handling equipment is expected to accelerate, contributing to the segment's high growth rate.

Region with largest share:

The Asia Pacific region is projected to account for the largest market share during the forecast period due to rapid industrialization, a growing e-commerce sector, and increasing adoption of automation in manufacturing. Countries like China, Japan, and South Korea are at the forefront of technological advancements and have a strong presence in automotive, electronics, and logistics industries. The region's large population and rising consumer demand drive the need for efficient material handling solutions. Government initiatives promoting smart manufacturing and Industry 4.0 further boost the market.

Region with highest CAGR:

The Asia Pacific region is projected to achieve the highest CAGR during the forecast period, driven by the rapid growth of e-commerce, particularly in countries like India and Southeast Asian nations, which fuels the demand for automated warehousing solutions. Increasing labor costs and a shift towards high-value manufacturing in countries like China and Japan accelerate the adoption of automation. The region's focus on technological innovation and digital transformation across industries creates a favorable environment for advanced material handling systems.

Key players in the market

Some of the key players in Automated Material Handling Equipment Market include Daifuku Co., Ltd., KION GROUP AG, SSI SCHAEFER, Toyota Industries Corporation, Honeywell International Inc., Jungheinrich AG, Kardex Group, JBT Corporation, Murata Machinery, Ltd., KNAPP AG, BEUMER Group, Vanderlande Industries B.V., Swisslog Holding AG, Mecalux, S.A., Witron Logistik + Informatik GmbH, TGW Logistics Group, Interroll Group, and Fives Group.

Key Developments:

In February 2024, Honeywell International Inc. partnered with Hai Robotics to deliver flexible, high-density storage and retrieval solutions to distribution centers. This collaboration integrates Hai Robotics' autonomous case- and tote-handling mobile robotics solutions with Honeywell's Momentum Warehouse Execution Software, aiming to optimize space utilization, boost productivity, and address workforce challenges.

In June 2022, The Beumer Group, Beckum/Germany, one of the leading international manufacturers of systems in the field of conveying and loading systems, palletizing and packaging technology, sorting and distribution systems has acquired FAM GmbH, Magdeburg/Germany, a supplier of conveying systems and loading technology. The purchase agreement signed at the beginning of May was legally executed on 9 June 2022. This significantly strengthens the Beumer Group's market position in the large equipment sector as well.

Product Types Covered:

• Automated Storage & Retrieval Systems (ASRS)
• Conveyors
• Automated Guided Vehicles (AGVs)
• Industrial Robots
• Automated Cranes
• Palletizing & Depalletizing Systems
• Other Product Types

System Types Covered:

• Unit Load Material Handling System
• Bulk Load Material Handling System

End Users Covered:

• Automotive
• Chemical
• Aviation
• Semiconductor & Electronics
• E-Commerce
• Food & Beverage
• Healthcare
• Metals & Heavy Machinery
• Third party logistics (3PL)
• Retail
• Other End Users

Distribution Channels Covered:

• Original Equipment Manufacturers (OEMs)
• System Integrators
• Direct Sales
• Value-Added Resellers
• Distributors

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances