Global Automated Material Handling Equipment And Systems Market Growth, Share, Size, Trends and Forecast (2024 - 2030)
By Product;
Robots, Automated Storage and Retrieval System (AS/RS) - Unit Load, Mid & Mini Load, Vertical Lift Module (VLM), Carousel, and Shuttle, Conveyors Systems, Sortation Systems, Cranes, Warehouse Management System (WMS), Collaborative Robots, Autonomous Mobile Robots (AMR) - Goods-to-person picking robots, Self-driving Forklifts, Autonomous Inventory Robots, and Unmanned Aerial Vehicles, Automated Guided Vehicle (AGV) - Tow Vehicle, Unit Load Carrier, Pallet Truck, Forklift Truck, Hybrid Vehicles, and Others.By Vertical;
Aviation and E-commerce.By System Type;
Unit Load Material Handling and Bulk Load Material Handling.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2020 - 2030).Introduction
Global Automated Material Handling Equipment And Systems Market (USD Million), 2020 - 2030
In the year 2023, the Global Automated Material Handling Equipment And Systems Market was valued at USD 49,873.56 million. The size of this market is expected to increase to USD 91,757.93 million by the year 2030, while growing at a Compounded Annual Growth Rate (CAGR) of 9.1%.
The demand for automation in diverse industries is a driving force behind the growth of the Automated Material Handling (AMH) equipment market. Businesses are increasingly turning to automation to streamline manufacturing processes, aiming to enhance operational efficiency, trim labor costs, and elevate product quality. Material handling plays a pivotal role in modern production systems, encompassing the movement, storage, and safeguarding of materials and products crucial for ensuring a smooth flow of operations.
Effective material handling systems are indispensable for manufacturing, distribution, consumption, and disposal of goods, exerting a significant impact on overall system performance. Well-designed material handling systems have the potential to curtail labor expenses, minimize equipment outlays, and elevate product quality. By opting for the appropriate equipment types, manufacturers can ensure seamless flow of materials and products across the production spectrum, thereby accelerating production speeds, mitigating risks of damage to materials and products, and enhancing worker safety. Consequently, investment in material handling equipment is deemed essential for any manufacturing or production entity striving to optimize efficiency and streamline operations.
The automated material handling industry stands poised to benefit from the escalating trend toward smart factories. As robotics technology advances, robots have become increasingly agile and precise, enabling them to manipulate workpieces or products creatively and perform a wide array of tasks. Monitoring manufacturing processes, inclusive of picking, sorting, and conveying systems, is imperative for boosting efficiency and curtailing waste. Smart factories, integrated with automated systems, facilitate real-time monitoring of every process. Moreover, the industry is being propelled by intuitive technologies such as cloud-based software, Internet of Things (IoT), and machine learning (ML), enabling real-time data monitoring and analysis to pinpoint inefficiencies and optimize operations.
Cloud-based software is adept at monitoring equipment performance and identifying issues, while IoT sensors facilitate tracking of material and product movements throughout the supply chain. Consequently, the material handling industry is projected to witness sustained growth as manufacturers strive to enhance efficiency and minimize waste through the adoption of smart technologies. Machine learning algorithms further bolster these efforts by optimizing material flow, mitigating bottlenecks, and augmenting system productivity.
Global Automated Material Handling Equipment And Systems Market Report Snapshot
Parameters | Description |
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Market | Global Automated Material Handling Equipment And Systems Market |
Study Period | 2020 - 2030 |
Base Year (for Automated Material Handling Equipment And Systems Market Size Estimates) | 2023 |
Drivers |
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Restraints |
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Opportunities |
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Segment Analysis
Automated Material Handling Equipment and Systems encompass a wide array of products designed to streamline operations in various industries. Robotics plays a pivotal role in this domain, with robots being utilized for tasks ranging from picking and packing to inventory management. Additionally, Automated Storage and Retrieval Systems (AS/RS) offer efficient storage solutions, including Unit Load, Mid & Mini Load, Vertical Lift Module (VLM), Carousel, and Shuttle systems, optimizing warehouse space and retrieval processes.
In addition to robotics and AS/RS, conveyors, sortation systems, and cranes are integral components of automated material handling setups, facilitating the seamless movement and organization of goods within warehouses and distribution centers. These systems are vital for maintaining smooth operations and enhancing productivity, particularly in industries with high-volume throughput requirements. Moreover, Warehouse Management Systems (WMS) provide advanced software solutions for inventory tracking, order fulfillment, and overall warehouse optimization.
The verticals of aviation and e-commerce represent key sectors driving the adoption of automated material handling equipment and systems. In the aviation industry, these technologies are used for tasks such as baggage handling and logistics, ensuring efficient operations in airports and aviation facilities. Similarly, the e-commerce sector relies heavily on automated material handling solutions to manage the rapid influx of orders and streamline fulfillment processes, meeting the demands of online consumers effectively. Additionally, the categorization of systems into Unit Load Material Handling and Bulk Load Material Handling reflects the diverse needs and applications across different industries, catering to both individual product handling and bulk material movement requirements.
Global Automated Material Handling Equipment And Systems Segment Analysis
In this report, the Global Automated Material Handling Equipment And Systems Market has been segmented by Product, Vertical, System Type, and Geography.
Global Automated Material Handling Equipment And Systems Market, Segmentation by Product
The Global Automated Material Handling Equipment And Systems Market has been segmented by Product into Robots, Automated Storage and Retrieval System (AS/RS), Conveyors Systems, Sortation Systems, Cranes, Warehouse Management System (WMS), Collaborative Robots, Autonomous Mobile Robots (AMR), Automated Guided Vehicle (AGV).
In 2022, the robots segment emerged as the market leader, capturing a significant revenue share of 24%. The growth of this segment is propelled by the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies, which enhance the capabilities of robotic systems within the automated material handling (AMH) equipment market. A prime example is the Collaborative Autonomy Platform utilized by Third Wave Autonomation Reach forklifts. This platform incorporates ML and AI, offering fleet management software with intelligent features and remote assistance capabilities, thereby optimizing forklift operations and driving growth in the robots segment.
The warehouse management system (WMS) segment is poised for substantial growth in the forecast period. WMS software provides a comprehensive suite of features and functionalities, including inventory management, order processing, and shipping and receiving. By leveraging an effective WMS, businesses can significantly reduce paper usage in warehousing operations by automating processes such as counting, receiving, monitoring, and dispatching. For instance, Maersk, as of March 2023, has enhanced its warehouse fulfillment process speed by implementing new software and scanning technology in its WMS. This initiative, according to Steve Belardi, Vice President of Operations at Performance Team in the U.S., has enabled them to efficiently meet the escalating demand for faster order fulfillment for mobile and store orders while simultaneously improving accuracy.
Global Automated Material Handling Equipment And Systems Market, Segmentation by Vertical
The Global Automated Material Handling Equipment And Systems Market has been segmented by Vertical into Aviation and E-commerce.
In 2022, the e-commerce segment emerged as the frontrunner in the market, commanding a substantial share of over 18% of the global revenue. The e-commerce industry, characterized by rapid growth, heavily relies on automated material handling (AMH) equipment to streamline its warehousing and fulfillment operations. This reliance has fueled a surge in demand for AMH equipment, as these systems are adept at efficiently managing large volumes of orders, thereby diminishing the need for manual labor. Furthermore, there is a growing emphasis on workplace safety, and AMH equipment plays a pivotal role in enhancing safety by mitigating the risk of accidents and injuries. A notable development in this realm occurred in March 2022 when Swisslog Holding AG entered into a partnership with Berkshire Grey, aimed at providing robotic solutions to e-commerce and retail customers. This collaboration sought to address the challenges posed by labor shortages while meeting the evolving demands of consumers.
The third-party logistics (3PL) segment is poised for significant growth in the foreseeable future. 3PL companies leverage various types of AMH equipment to ensure the efficient and accurate handling of goods within their operations. By integrating these systems, 3PL providers can attain end-to-end visibility and control over the entire supply chain, spanning from product storage to final delivery. This integration fosters better coordination, swifter response times, and enhanced customer service. Additionally, there is a notable trend in 3PL warehouses toward the adoption of collaborative robots, or cobots. Unlike traditional industrial robots, cobots are designed to collaborate harmoniously with human workers, assisting them with tasks such as picking, packing, and sorting. This collaborative approach not only enhances worker safety but also reduces labor costs and boosts productivity within 3PL facilities.
Global Automated Material Handling Equipment And Systems Market, Segmentation by System Type
The Global Automated Material Handling Equipment And Systems Market has been segmented by System Type into Unit Load Material Handling and Bulk Load Material Handling.
In 2022, the unit load material handling segment emerged as the dominant force in the market, capturing a substantial revenue share of over 60%. This segment encompasses activities related to the movement and storage of single entities, such as pallets and containers, each carrying a single load despite comprising multiple individual items. Unit load material handling equipment offers a cost-effective and efficient solution for transporting numerous items simultaneously, compared to the labor-intensive process of moving each item individually.
The bulk load material handling segment is poised for significant growth in the coming years. This segment focuses on optimizing efficiency, reducing costs, and enhancing safety within material handling operations. Bulk load equipment carriers play a crucial role in achieving these objectives by minimizing manual labor and associated costs, thereby streamlining task execution. Moreover, the utilization of bulk load equipment ensures greater accuracy and control in inventory management, mitigating issues such as damage, misplacement of items, and other logistical challenges.
Global Automated Material Handling Equipment And Systems Market, Segmentation by Geography
In this report, the Global Automated Material Handling Equipment And Systems Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Global Automated Material Handling Equipment And Systems Market Share (%), by Geographical Region, 2023
In 2022, Asia Pacific emerged as the dominant force in the global automated material handling equipment market, commanding a significant share of over 39% of the total revenue. This region has witnessed remarkable growth in recent years, driven by escalating demand for automated material handling systems across diverse industries such as e-commerce, automotive, and food & beverage. Notably, key players like Daifuku, Toyota Industries, and SSI Schaefer have played instrumental roles in fostering market expansion in Asia Pacific. For example, in July 2022, JAKA Robotics, based in China, secured USD 150 million in a Series D funding round. The infusion of funds aims to fuel the company's global expansion initiatives and bolster research and development endeavors aimed at crafting next-generation collaborative robots.
North America is poised to exhibit the highest compound annual growth rate (CAGR) from 2023 to 2030. Renowned for its technological prowess, North America serves as a breeding ground for innovation in automated material handling equipment. Companies in this region are channeling significant investments into research and development endeavors to create increasingly efficient, adaptable, and intelligent systems. A notable example is ABB's announcement in March 2023 regarding the expansion of its manufacturing facility in Auburn Hills, Michigan. This expansion initiative not only signifies ABB's commitment to innovation but also paves the way for the wider adoption of automated material handling equipment. Moreover, the expansion is expected to generate new employment opportunities in the region, thereby bolstering ABB's socio-economic contributions to the local community.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Automated Material Handling Equipment And Systems Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Increasing Demand for Automation
- Need to Improve Operational Efficiency
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Cost Reduction Initiatives - Cost reduction initiatives in automated material handling equipment and systems are primarily driven by the need to improve operational efficiency. By automating tasks previously performed manually, businesses can significantly reduce labor costs and minimize the risk of errors or accidents. For example, the implementation of automated picking systems can streamline order fulfillment processes in warehouses, leading to faster order processing times and reduced labor expenses.
Automation allows for the optimization of resource utilization, leading to cost savings across various aspects of operations. Automated material handling systems can dynamically allocate resources such as equipment, labor, and space based on real-time demand and operational requirements. This enables businesses to minimize idle time, maximize throughput, and achieve higher levels of productivity without the need for additional resources.
Automation reduces the occurrence of unplanned downtime by improving equipment reliability and minimizing the likelihood of breakdowns. Automated systems often incorporate predictive maintenance features, which use data analytics and machine learning algorithms to anticipate maintenance needs and schedule preventive maintenance activities. By proactively addressing maintenance issues, businesses can avoid costly downtime and reduce overall maintenance expenses, contributing to significant cost savings over time.
Restraints:
- Implementation Challenges
- High Initial Investment Costs
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Compatibility Issues with Legacy Systems - Compatibility issues with legacy systems pose a significant restraint in the adoption of automated material handling equipment and systems. Many manufacturing facilities and warehouses still rely on legacy systems that may not be compatible with modern automated solutions. Integrating new automated equipment with existing legacy systems can be complex and costly, requiring additional customization and configuration. This can lead to disruptions in operations and delays in implementation, hindering the adoption of automated material handling solutions.
Legacy systems often lack the necessary connectivity and interoperability features required to seamlessly integrate with modern automated equipment. This can result in data silos and inefficient communication between different components of the material handling system. As a result, organizations may struggle to achieve the full benefits of automation, such as real-time monitoring, data analytics, and process optimization. Compatibility issues with legacy systems can therefore limit the effectiveness and efficiency of automated material handling operations.
Another challenge associated with compatibility issues is the risk of system downtime and reduced reliability. Incompatibility between new automated equipment and legacy systems can lead to technical glitches, software conflicts, and hardware failures. This can result in unplanned downtime, production delays, and increased maintenance costs. To mitigate these risks, organizations may need to invest in upgrades or replacements for their legacy systems, adding further complexity and expenses to the adoption of automated material handling solutions.
Opportunities:
- Integration of Artificial Intelligence (AI) and Machine Learning (ML)
- Adoption of Smart Factory Concepts
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Technological Advancements and Innovations - Technological advancements and innovations in automated material handling equipment present opportunities for enhancing efficiency and functionality. These advancements include the integration of Artificial Intelligence (AI) and Machine Learning (ML) algorithms, enabling systems to analyze data in real-time and optimize operations. For example, the development of advanced sensors and IoT-enabled devices allows for better monitoring of equipment performance and predictive maintenance, leading to reduced downtime and increased productivity.
With technological advancements, automated material handling systems can be tailored to meet specific industry requirements and adapt to changing operational needs. Manufacturers can leverage modular designs and flexible configurations to customize systems according to their workflow processes and space constraints. Moreover, innovations such as collaborative robots (cobots) equipped with advanced safety features enable seamless interaction between humans and machines, enhancing operational flexibility and agility.
The rapid pace of technological innovation opens doors for the integration of emerging technologies into automated material handling systems. For instance, the adoption of Augmented Reality (AR) and Virtual Reality (VR) technologies can revolutionize training programs and maintenance procedures by providing immersive experiences and real-time guidance. Additionally, advancements in data analytics and cloud computing offer opportunities for optimizing supply chain visibility and decision-making processes, leading to improved inventory management and customer service levels.
Competitive Landscape Analysis
Key players in Global Automated Material Handling Equipment And Systems Market include:
- Daifuku
- Kion
- SSI Schaefer
- Honeywell International
- Toyota Material Handling
- Hyster-Yale Material Handling
- Jungheinrich
- Hanwha
- JBT
- KUKA
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Product
- Market Snapshot, By Vertical
- Market Snapshot, By System Type
- Market Snapshot, By Region
- Global Automated Material Handling Equipment And Systems Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Increasing Demand for Automation
-
Need to Improve Operational Efficiency
-
Cost Reduction Initiatives
-
- Restraints
-
Implementation Challenges
-
High Initial Investment Costs
-
Compatibility Issues with Legacy Systems
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- Opportunities
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Integration of Artificial Intelligence (AI) and Machine Learning (ML)
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Adoption of Smart Factory Concepts
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Technological Advancements and Innovations
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Automated Material Handling Equipment And Systems Market, By Product , 2022 - 2032 (USD Million)
- Robots
- Automated Storage and Retrieval System (AS/RS)
- Unit Load, Mid & Mini Load
- Vertical Lift Module (VLM)
- Carousel
- Shuttle
- Conveyors Systems
- Sortation Systems
- Cranes
- Warehouse Management System (WMS)
- Collaborative Robots
- Autonomous Mobile Robots (AMR)
- Goods-to-person picking robots
- Self-driving Forklifts
- Autonomous Inventory Robots
- Unmanned Aerial Vehicles
- Automated Guided Vehicle (AGV)
- Tow Vehicle
- Unit Load Carrier
- Pallet Truck
- Forklift Truck
- Hybrid Vehicles
- Others
- Global Automated Material Handling Equipment And Systems Market, By Vertical , 2020 - 2030 (USD Million)
- Aviation
- E-commerce
- Global Automated Material Handling Equipment And Systems Market, By System Type, 2020 - 2030 (USD Million)
- Unit Load Material Handling
- Bulk Load Material Handling
- Global Automated Material Handling Equipment And Systems Market, By Geography, 2020 - 2030 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Automated Material Handling Equipment And Systems Market, By Product , 2022 - 2032 (USD Million)
- Competitive Landscape
- Company Profiles
- Daifuku
- Kion
- SSI Schaefer
- Honeywell International
- Toyota Material Handling
- Hyster-Yale Material Handling
- Jungheinrich
- Hanwha
- JBT
- KUKA
- Company Profiles
- Analyst Views
- Future Outlook of the Market
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