Material Handling Integration Market Trends

Growth Drivers

• Growing Integration of Automation and Industry 4.0 - The growing adoption of automation and Industry 4.0 practices in different sectors is a reason for this growth. Integrated material handling solutions are becoming increasingly important as businesses move towards smarter production. As per a report, at the top of the list is the Internet of Things (IoT), which almost 72% of respondents said would have the greatest influence on industry 4.0 technology in their company. In line with the principles of Industry 4.0, these systems play an essential role in optimizing processes, ensuring seamless coordination, and enhancing efficiency. Furthermore, the market is experiencing strong growth, driven by demand from industry for advanced solutions to remain competitive in the era of automated and interconnected production, which leads to increased investment and innovation.
• Increased Adoption of Autonomous Mobile Robots (AMRs) - Manufacturers have been given more hope by the growth in demand for food & grocery products delivery and supply. In addition, massive automation is needed to cope with the growth of e-commerce as well as online shopping promotion. Therefore, automated guided robots, forklifts, and other material handling tools are gradually being integrated into their operations by e.g. online retailers such as Amazon, Walmart, Flipkart, and others that operate in this sector. This increased complexity is helping e-commerce retailers to deliver more precise, secure, and cost-effective deliveries with reduced labor resources. In addition, a major influence on the development of the market for material handling equipment is the improvement of the manufacturing sector.
• Growing Implementation of Warehouse Automation - The benefits of material handling integration solutions, such as integrated inventory management software and automated storage and retrieval systems (AS/RS), which enable warehouses to address labor- and demand-management-related challenges, such as shorter delivery times and increased efficiency, are also expected to hasten the adoption of warehouse automation. Following the epidemic, scalable procedures using material handling integration technology were established by warehouses to manage erratic demand. The effectiveness and flexibility of the technologies enable warehouses to manage spikes in order demand.

Challenges

• Higher Upfront Costs - Given the high initial costs associated with the implementation of integrated systems, the market for material handling integration is facing a challenge. Significant upfront costs may be incurred to acquire and install modern technology, automation equipment, or integrated solutions. Despite the long-term benefits, this financing barrier may discourage certain businesses, particularly smaller ones, from taking advantage of material handling integration and thus hinder market growth.
• Complexity Associated with Incorporation may Hinder Market Growth
• Unwanted Equipment Outages Result in Lost Output and Financial Losses which may Impede the Market Growth