Material Handling Robotics Market size was valued at USD 29.4 billion in 2024 and is projected to reach USD 82.7 billion by the end of 2037, rising at a CAGR of 9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of material handling robotics is evaluated at USD 32 billion.
The increasing prevalence of AI, automation technologies, and the increasing usage of robotics in warehousing and logistics are some of the major factors driving the growth of the material handling robotics market. Material handling robotics is gaining widespread adoption in industries for automating the tasks of palletizing, pick-and-place operations, and inventory management in the most effective and cost-efficient manner, hence saving labor costs. Additionally, various government initiatives toward the modernization of supply chain operations and the encouragement of industrial automation are driving market growth.
Governments worldwide are also investing in robotics and automation initiatives, offering prospects for smart manufacturing and logistics infrastructure. Moreover, material handling robotics market players are paying attention to the integration of cognitive robotics into their operations to tackle labor shortages and improve warehouse safety. For example, in October 2024, Stow Group introduced Movu Robotics, a brand focused on intelligent robotic solutions for material handling with scalable systems for warehouse automation. This growing emphasis on sustainable and efficient material handling solutions places the material handling robotics market in a strategic position for strong growth over the coming years.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9% |
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Base Year Market Size (2024) |
USD 29.4 billion |
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Forecast Year Market Size (2037) |
USD 82.7 billion |
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Regional Scope |
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Product (Articulated Material Handling Robots, Scara Material Handling Robot)
Articulated robots segment is expected to account for more than 71% material handling robotics market share by the end of 2037, considering the versatility and precision that articulated robots show in handling various tasks. In the applications of articulated robots, a wide range stretches from palletizing to welding and assembly. In April 2024, Liberty Robotics introduced VPick and VPack, AI-powered articulated models for palletizing and depalletizing, primarily highlighting their leading position in industrial automation. The segment shows an increase in demand for both flexible and efficient robotic solutions.
Application (Pick & Place, Palletizing/De-Palletizing)
By 2037, pick and place segment is projected to dominate over 67% material handling robotics market share, as it plays a crucial role in disrupting warehouse and manufacturing automation. In this segment, robots facilitate higher efficiency and minimize errors in inventory management. KION North America announced in May 2024 its collaboration with Fox Robotics in developing autonomous forklifts optimized for no-contact pick-and-place tasks, further underlining the growing importance of this segment. This will continue to remain the dominant application because of its wide usage in logistics and production.
Our in-depth analysis of the material handling robotics market includes the following segments:
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Product |
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Application |
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End use |
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North America Market Analysis
North America material handling robotics market is poised to account for revenue share of more than 55% by the end of 2037, driven by highly developed industrial infrastructure, widespread adoption of automation, and significant investments in robotics technologies. Accordingly, it has sparked continuous innovation and market enlargement for the improvement of operational safety and efficiency in the region. E-commerce, automotive, and manufacturing industries are some key drivers behind the growth as these robotics help improve productivity by lowering costs. The strategic partnerships forged across companies accelerate the development of advanced robotic solutions that are tailored to regional needs.
The U.S. is leading the material handling robotics market due to the rapid adoption of robotics, and companies are continuously investing in new technologies to improve material handling processes. In November 2023, SSA Terminals, LLC ordered 33 terminal tractors equipped with fully automated high-power Quick Charging Connector (QCC) systems. This initiative is expected to enhance operational efficiency by reducing charging times and minimizing equipment downtime. Innovation and favorable regulatory support are fueling these advances in the country. The U.S. also has a large research community with collaboration between start-ups and established companies, which is driving the market growth.
With the support of the government for robotics innovation and its cooperation, the material handling robotics market is steadily growing in Canada. The country's focus on developing sustainable and efficient robotic solutions involves a number of investments and partnerships. For example, CopCoesia expanded its U.S. and Canada presence when it acquired Automation & Modular Components LLC in February 2024, further proving the region's commitment to investment in high-end automation. Applications of material handling robotics in industries such as warehousing, logistics, and manufacturing drive this adoption.
Asia Pacific Market Analysis
Asia Pacific material handling robotics market is set to witness growth rate of over 7.5% till 2037, driven by surging demand from the e-commerce segment and rapid industrial automation across key economies such as China, India, and Japan. The region also benefits from a robust manufacturing ecosystem and heavy government initiatives in support of automation projects. Burgeoning labor costs and the need for streamlined warehouse operations act as additional accelerating factors for the market.
The material handling robotics market in India is amongst the fastest-growing industries in the world, enabled by advances in AI and robotics. In April 2024, Addverb Technologies opened its Software Development Center at Noida to reinforce AI-powered warehouse management systems. This move underlines the ambition of India in bringing forward innovative logistics and manufacturing solutions. Initiatives such as the "Make in India" program have meanwhile lured in substantial foreign investment, further strengthening the nation's local manufacturing capabilities.
China continues to lead robotics adoption in the region, driven by growing government investments and a relentless e-retail sector. According to the National Bureau of Statistics, total retail sales in China consumer goods market reached about CNY 41,860.5 billion (approximately USD 5,786.31 billion) in 2023. Online buyers increased from 34 million in 2006 to more than 915 million by 2023, promoting the rapid expansion of the country's online purchasing market. The surge has created an urgent need for higher-functioning warehouse robotics that will expedite order fulfillment efficiency. The strategic positioning by China regarding automation and self-reliance ensures that its robotics market will see robust, long-term growth.
The material handling robotics market is highly competitive with several big players' presence, such as ABB Pte Ltd, Staubli International AG, Adept Technology Inc., Machinery Automation & Robotics Pty Ltd, Daihen Engineering Co Ltd, Denso Wave Inc, Epson America, Inc, FANUC CORP, KUKA Robotics Corporation, and Nachi Robotic Systems Inc. Many of the listed companies have invested in R&D and various forms of partnerships to provide specific solutions catering to industry needs.
In November 2024, Agility Robotics, supported by Amazon, announced plans to implement its first automated storage and retrieval system (AS/RS) in January 2025. This initiative aims to enhance warehouse efficiency by integrating advanced robotics into fulfillment operations, reducing manual labor, and accelerating order processing times. This development reveals the market focus on integrating advanced technologies for streamlining operations with lower labor dependence to improve productivity and ensure continued growth and innovation in the material handling robotics industry.
Here are some leading players in the material handling robotics market:
Author Credits: Richa Gupta
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