Automated Material Handling Equipment Market size was valued at USD 64.19 billion in 2024 and is set to exceed USD 208.86 billion by 2037, registering over 9.5% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of automated material handling equipment is evaluated at USD 69.07 billion.
The market growth is attributed to the growing need for automation in the manufacturing industry to improve productivity and reduce labor costs. In the manufacturing industry, the production, storage, and movement of the product is crucial and the use of automated material-handling equipment is essential for smooth flow of operation. According to a recent report, in 2020, material handling equipment sales amounted to about 1.75 million units
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.5% |
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Base Year Market Size (2024) |
USD 64.19 billion |
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Forecast Year Market Size (2037) |
USD 208.86 billion |
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Regional Scope |
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By Component (Hardware, Software, Services)
Hardware segment is projected to dominate automated material handling equipment market share of over 55% by 2037. The segment growth can be attributed to the widespread use of hardware such as cranes and lifting equipment in various end-use industries such as manufacturing, construction, and automobiles. According to recent information, the use of mobile cranes has increased in recent years in construction sites.
Furthermore, as compared to traditional handling equipment, the continuous handling technology ensures smooth picking and packaging of goods. It also saves labor costs and reduces the delivery time.
By System (Unit Load, Bulk Load)
In automated material handling equipment market, unit load segment is likely to dominate revenue share of around 51% by the end of 2037. The segment growth can be attributed to its effective handling, storing, and distribution of products in various areas and load weights easily and also preventing any damage by restricting individual handling.
Moreover, single goods are combined into one unit which further allows for simple transfer. Various consumer goods are stored and shipped as unit loads while handling a single item. Industries are adopting AMHE due to its various benefits of handling several goods together by reducing the overall cost of handling.
Our in-depth analysis of the market includes the following segments:
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Component |
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System |
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Vertical |
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APAC Market Statistics
Asia Pacific industry is estimated to account for largest revenue share of 45% by 2037. The market growth in the region is also expected on account of the economic growth and the large adoption of automated solutions in various industries due to its advantages.
The rising production due to rapid industrialization in the China has increased the demand for automated material-handling equipment solutions in the electronic and automotive sectors.
The ongoing infrastructural development projects in India such as the construction of airports, bridges, and logistic centers have increased the need for better material handling equipment. According to a recent report, for the financial year 2021, the proportion of infrastructure investments to the GDP was estimated to be nearly 4%. Moreover, the use of AMHE in infrastructural projects facilitates transportation and cargo handling processes which boosts the market growth of AMHE.
North America Market Analysis
The North American region will also encounter huge growth for the automated material handling equipment market during the forecast period and will hold the second position owing to the digitalization of supply chain processes by the integration of IoT-enabled AMHE.
In the US, the growing concerns related to rising labor costs and the increasing presence of start-up companies that provide robotic solutions for warehouse automation stimulate the market growth of AMHE. According to a report, labor costs in the United States increased to 119.99 points in the fourth quarter of 2023 from 119.88 points in the third quarter of 2023.
Canada provides solutions for automated factories, warehouses, and storage facilities as it has the availability of many key players who offer automated material handling equipment technology to various industries which further expands the market size of AMHE.
The various key players in the automated material handling equipment market are Linamar, Fives Group, XCMG Group, Terex Corporation, and Cargotec Corporation among others.
Author Credits: Richa Gupta
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