Material Handling Equipment Market Will Grow At Highest Pace Owing To Increasing Automation Across Industries
Material Handling Equipment Market Will Grow At Highest Pace Owing To Increasing Automation Across Industries
Blog Article
Material handling equipment is used for the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. This includes conveyor belts, cranes, lifting equipment like forklifts, industrial trucks, and automation equipment among others. Material handling equipment reduces manual effort, improves operational efficiency and ensures smooth flow of materials across various stages of production. The growing need for mechanization and automation across industries such as automotive, food & beverage, e-commerce, third party logistics and warehousing is promoting the adoption of technologically advanced material handling equipment.
Material handling equipment market is estimated to be valued at USD 242.51 Bn in 2025 and is expected to reach USD 369.73 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.2% from 2025 to 2032.
Key Takeaways
Key players operating in the Material Handling Equipment market are BEUMER GROUP, Daifuku.
The thriving e-commerce Material Handling Equipment Market Demand combined with increasing penetration of third party logistics companies is fueling demand for material handling equipment. The rapid growth in the warehouse sector worldwide is also propelling market growth.
Technological advances include increased automation, robotics, internet of things (IoT) integration and data analytics which are enhancing material handling processes, reducing manual effort and improving operational efficiency.
Market Trends
Growing utilization of automated guided vehicles (AGVs) - Automated guided vehicles reduce the need for manual intervention in material movement, improving productivity. Integration of IoT and AI is enabling remote monitoring and predictive maintenance of AGVs.
Rising deployment of robotics - Collaborative robots or cobots are gaining popularity due to their flexibility and affordability. Their deployment in small and medium scale warehousing is gaining traction.
Market Opportunities
Increasing focus on supply chain automation in emerging markets - Markets such as China, India, Brazil and Mexico offer high growth potential driven by rapid industrialization and evolving supply chain infrastructure in these developing economies.
Adoption of Industry 4.0 technologies - The material handling industry is gradually embracing technologies such as augmented reality, 3D printing and cloud robotics which can create new business models and modernize infrastructure.
Impact of COVID-19 on Material Handling Equipment Market Growth
The outbreak of COVID-19 pandemic has negatively impacted the growth of the material handling equipment market. During the initial months of the pandemic, supply chains disruptions, restrictions on transportation, and lockdowns imposed by various governments globally led to closure of production facilities. This consequently lowered the demand for material handling equipment from end-use industries such as automotive, semiconductors, food and beverage, and others. However, with increasing vaccination rates and relaxation of norms, the market is recovering gradually.
The pre-COVID growth of the market was majorly driven by rising e-commerce activities, growth of the automotive industry, and increasing investments in warehousing and logistics infrastructure development globally. Post-COVID, the demand is expected to rise steadily owing to rising automation and integration of advanced technologies in material handling systems. Market players are focusing on development of innovative and automated equipment to improve productivity and efficiently handle increased online orders. Industry 4.0 technologies such as Internet of Things, machine learning, robotics, and automation are being incorporated to a great extent.
To sustain long-term growth, manufacturers need to invest more in R&D for new product development, focus on lean manufacturing, adopt innovative supply chain strategies, and expand presence in developing markets through partnerships and collaborations. Trends towards warehouse automation and adoption of automated guided vehicles are likely to open new opportunities. Customers are also preferring rental and leasing models for short-term requirements, necessitating flexible service offerings by market participants.
Geographical regions where Material Handling Equipment market is concentrated in terms of value
The market for material handling equipment witnesses high concentration in developed regions including North America and Europe. Countries such as the U.S., Germany, the UK, and France account for substantial market share owing to strong presence of major automotive OEMs and prominent logistics companies. Asia Pacific is also a fast-growing region driven by economic development, rising manufacturing activities, and expanding e-commerce industry in countries such as China, Japan, and India. Investments in automation are growing at a rapid pace in these nations to enhance production capacity and efficiency.
Fastest growing region for Material Handling Equipment market
Asia Pacific region is projected to grow at the fastest pace during the forecast period. This can be attributed to ongoing infrastructure development projects, expansion of ports and container terminals, growing need for WMS and automation in emerging economies, and rising labor costs driving adoption of material handling equipment. Additionally, capacity expansions undertaken by global automakers and electronics manufacturers are creating high demand within nations like China, India, Vietnam, and Indonesia. Government initiatives to promote industrialization and Make-in-India campaign are boosting regional market growth.
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