Automated Material Handling Equipment Market

Global Automated Material Handling Equipment Market, Segmentation by Product

The Global Automated Material Handling Equipment 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 Market, Segmentation by Vertical

The Global Automated Material Handling Equipment 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 Market, Segmentation by System Type

The Global Automated Material Handling Equipment 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 Market, Segmentation by Application

The Global Automated Material Handling Equipment Market has been segmented by Application into Assembly, Sorting, Labelling, Packaging, Transportation, Distribution, and Storage.

Assembly is a crucial application where automated equipment aids in the efficient and precise assembly of components, improving production line productivity and product quality. Sorting and labeling are essential processes in distribution centers and warehouses, where automated systems help streamline operations by accurately identifying and categorizing items for storage or shipping.

Packaging is another significant application area for automated material handling equipment, where systems such as robotic arms and conveyor belts are used to automate the packaging process, ensuring consistency, speed, and reliability in packaging operations. Transportation involves the movement of goods within a facility or between different locations, and automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) play a vital role in facilitating the seamless and efficient transportation of materials.

Distribution and storage represent critical stages in the logistics process, where automated material handling equipment is employed to optimize warehouse operations, improve inventory management, and enhance order fulfillment processes. Automated systems such as automated storage and retrieval systems (AS/RS), conveyor systems, and warehouse management systems (WMS) enable organizations to maximize storage capacity, minimize picking errors, and expedite order processing to meet customer demand efficiently.

Global Automated Material Handling Equipment Market, Segmentation by End User

The Global Automated Material Handling Equipment Market has been segmented by End User into Consumer electronics, 3PL, E-Commerce, Food & beverage, Healthcare, Chemical, and Others.

Consumer electronics is one of the prominent end-users, relying on automated systems to efficiently manage the movement and storage of electronic components and finished products within manufacturing facilities and distribution centers. With the growing demand for electronics products worldwide, the adoption of automated material handling equipment is expected to witness steady growth in this sector.

Third-party logistics (3PL) companies are another significant end-user of automated material handling equipment. These companies handle logistics operations for multiple clients across diverse industries, requiring advanced material handling solutions to optimize warehouse operations, streamline order fulfillment processes, and ensure timely deliveries. Automated systems enable 3PL providers to enhance operational efficiency, accuracy, and scalability to meet the evolving demands of their clients.

The e-commerce sector represents a rapidly growing market for automated material handling equipment. With the rise of online shopping and the increasing preference for home delivery services, e-commerce companies are investing in automated solutions to manage the influx of orders, improve order picking accuracy, and expedite order fulfillment. Automated material handling systems play a critical role in enabling e-commerce businesses to meet customer expectations for fast and reliable deliveries while minimizing operational costs and maximizing throughput.

Global Automated Material Handling Equipment Market, Segmentation by Geography

In this report, the Global Automated Material Handling Equipment 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 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.