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automated material handling equipment market. Market

ID: MRFR/Equip/66388-CR
200 Pages
MRFR Team
December 2025

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automated material handling equipment market. Market Summary

As per MRFR analysis, the Automated Material Handling Equipment market size was estimated at 70.0 USD Billion in 2024. The automated material handling equipment industry is projected to grow from 72.93 USD Billion in 2025 to 110.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 4.19 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The automated material handling equipment market is experiencing robust growth driven by technological advancements and evolving consumer demands.

  • The market witnesses increased adoption of robotics, enhancing operational efficiency across various sectors.
  • Integration of artificial intelligence is transforming automated systems, enabling smarter decision-making and process optimization.
  • Sustainability initiatives are gaining traction, prompting companies to adopt greener practices in their operations.
  • Rising e-commerce demand and labor shortages are key drivers, particularly influencing the warehouse management and food and beverage segments.

Market Size & Forecast

2024 Market Size 70.0 (USD Billion)
2035 Market Size 110.0 (USD Billion)
CAGR (2025 - 2035) 4.19%

Major Players

Dematic (US), Honeywell Intelligrated (US), KION Group (DE), Mitsubishi Logisnext (JP), Siemens (DE), Daifuku (JP), Toyota Industries (JP), FANUC (JP), Swisslog (CH), Vanderlande (NL)

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automated material handling equipment market. Market Trends

The automated material handling equipment market is currently experiencing a transformative phase, driven by advancements in technology and increasing demand for efficiency in logistics and supply chain operations. Companies are increasingly adopting automation solutions to enhance productivity, reduce labor costs, and improve safety in their operations. This shift towards automation is not merely a trend but appears to be a fundamental change in how materials are handled across various industries. As organizations seek to optimize their processes, the integration of automated systems is becoming more prevalent, suggesting a robust future for this market. Moreover, the growing emphasis on sustainability and environmental responsibility is influencing the automated material handling equipment market. Businesses are recognizing the importance of reducing their carbon footprint and are turning to automated solutions that promote energy efficiency and waste reduction. This focus on sustainability, combined with the need for improved operational efficiency, indicates that the market is poised for continued growth. As technology evolves, the potential for innovative solutions in automated material handling equipment seems boundless, paving the way for a more streamlined and eco-friendly approach to material management.

Increased Adoption of Robotics

The trend towards robotics in the automated material handling equipment market is gaining momentum. Organizations are increasingly integrating robotic systems to perform tasks such as picking, packing, and sorting. This shift not only enhances operational efficiency but also minimizes human error, leading to improved accuracy in material handling.

Integration of Artificial Intelligence

Artificial intelligence is becoming a pivotal component in the automated material handling equipment market. By leveraging AI, companies can optimize their operations through predictive analytics and real-time decision-making. This integration allows for smarter inventory management and enhances the overall efficiency of supply chain processes.

Focus on Sustainability

Sustainability is emerging as a critical focus within the automated material handling equipment market. Companies are prioritizing eco-friendly solutions that reduce energy consumption and waste. This trend reflects a broader commitment to environmental responsibility, as businesses seek to align their operations with sustainable practices.

Market Segment Insights

By Application: Warehouse Management (Largest) vs. Manufacturing (Fastest-Growing)

The automated material handling equipment market displays distinct dynamics across various applications. The Warehouse Management segment commands the largest share in this market, owing to the increasing adoption of automation in logistics and inventory control. As businesses aim for efficiency in operations, the demand for automated solutions in warehouses continues to rise, reflecting a significant trend toward modernization and technological integration in supply chain management.

Warehouse Management (Dominant) vs. Manufacturing (Emerging)

Warehouse Management stands out as the dominant application within the automated material handling equipment market, driven by the pressing need for operational efficiency and enhanced accuracy in inventory management. This segment includes systems that optimize storage, retrieval, and order fulfillment processes, allowing businesses to boost productivity. On the other hand, the Manufacturing sector is emerging as a significant player, propelled by Industry 4.0 initiatives and a shift toward smart factories that leverage robotics and automation. As manufacturers strive to improve processes and reduce labor costs, the integration of automated material handling solutions in manufacturing operations is gaining momentum, positioning it as a vital area of growth.

By End Use: Automotive (Largest) vs. Food and Beverage (Fastest-Growing)

In the automated material handling equipment market, the automotive sector holds the largest market share, attributed to the high demand for efficient production and assembly processes. Automotive manufacturers are increasingly adopting advanced technologies to enhance productivity and reduce operational costs, contributing to their dominant position in the market. Conversely, the food and beverage industry is witnessing rapid growth in automation, driven by the need for improved food safety, traceability, and efficiency in distribution and packaging processes.

Automotive (Dominant) vs. Food and Beverage (Emerging)

The automotive segment is characterized by its long-standing integration of automated material handling systems, focusing on enhancing assembly line efficiency and product throughput. This sector's dominance is underpinned by ongoing investments in robotic automation and the deployment of intelligent systems that streamline operations. On the other hand, the food and beverage segment is emerging rapidly due to heightened consumer demand for automation in processing and packaging. This sector emphasizes compliance with safety standards and the need for quick responses to market shifts, which spans technological advancements in robotics and IoT, significantly driving its growth.

By Equipment Type: Automated Guided Vehicle (Largest) vs. Robotic Arm (Fastest-Growing)

The automated material handling equipment market is primarily characterized by a diverse range of equipment types, amongst which the Automated Guided Vehicle (AGV) holds the largest market share. In contrast, the Robotic Arm segment is rapidly gaining traction, driven by advancements in robotics technology and increased adoption across various industries. Conveyor Systems, Sortation Systems, and Palletizers also contribute significantly to this market landscape, but AGVs and Robotic Arms lead the way in terms of innovation and market acceptance.

AGV (Dominant) vs. Robotic Arm (Emerging)

Automated Guided Vehicles are currently recognized as the dominant force in the automated material handling equipment market, attributed to their versatility and efficiency in various applications such as warehousing and distribution centers. In contrast, Robotic Arms represent an emerging segment, driven by the growing demand for precision manufacturing and automation in tasks like assembly and packaging. The AGV technology is well-established with extensive operational deployments, while Robotic Arms are becoming increasingly sophisticated with AI integration, making them invaluable for complex operations. This dichotomy highlights AGVs as a stable choice for foundational logistics tasks, whereas Robotic Arms are rapidly transforming how businesses approach automation.

Get more detailed insights about automated material handling equipment market. Market

Regional Insights

North America : Market Leader in Automation

North America is poised to maintain its leadership in the automated material handling equipment market, holding a significant 35.0% share. The region's growth is driven by increasing demand for efficiency in logistics and warehousing, alongside advancements in technology. Regulatory support for automation and safety standards further catalyzes market expansion, making it a hub for innovation and investment in automation solutions. The competitive landscape is characterized by major players such as Dematic and Honeywell Intelligrated, which are leading the charge in technological advancements. The U.S. stands out as the primary market, with a robust infrastructure and a strong focus on e-commerce logistics. Companies are increasingly investing in automation to enhance operational efficiency, positioning North America as a key player in the global market.

Europe : Innovation and Sustainability Focus

Europe is witnessing a robust growth trajectory in the automated material handling equipment market, accounting for 20.0% of the global share. The region's emphasis on sustainability and efficiency is driving demand for advanced automation solutions. Regulatory frameworks promoting green technologies and operational efficiency are pivotal in shaping market dynamics, encouraging investments in innovative solutions that align with environmental goals. Leading countries such as Germany and the Netherlands are at the forefront, with a strong presence of key players like KION Group and Vanderlande. The competitive landscape is marked by a focus on technological innovation and sustainability, with companies investing heavily in R&D to meet evolving market demands. This positions Europe as a critical region for advancements in automated material handling technologies.

Asia-Pacific : Emerging Market Potential

The Asia-Pacific region is emerging as a significant player in the automated material handling equipment market, holding a 12.0% share. Rapid industrialization, coupled with the growth of e-commerce, is driving demand for automation solutions. Governments are increasingly supporting automation initiatives through favorable policies and investments in infrastructure, which are crucial for enhancing operational efficiency across various sectors. Countries like Japan and China are leading the charge, with major companies such as Mitsubishi Logisnext and Daifuku making substantial contributions to the market. The competitive landscape is evolving, with a focus on integrating advanced technologies like AI and IoT into material handling systems. This positions the Asia-Pacific region as a burgeoning hub for innovation in automation solutions.

Middle East and Africa : Untapped Market Opportunities

The Middle East and Africa region is gradually recognizing the potential of automated material handling equipment, currently holding a 3.0% market share. The growth is primarily driven by increasing investments in infrastructure and logistics, as well as a rising demand for efficiency in supply chain operations. Governments are beginning to implement policies that support automation, which is expected to catalyze market growth in the coming years. Countries like the UAE and South Africa are leading the way in adopting automated solutions, with a growing presence of international players. The competitive landscape is characterized by a mix of local and global companies, all vying to capture the emerging opportunities in this region. As the market matures, the focus will likely shift towards integrating advanced technologies to enhance operational efficiency.

Key Players and Competitive Insights

The automated material handling equipment market is currently characterized by a dynamic competitive landscape, driven by technological advancements and increasing demand for efficiency in logistics and warehousing. Key players such as Dematic (US), Honeywell Intelligrated (US), and KION Group (DE) are strategically positioned to leverage innovation and digital transformation to enhance their operational capabilities. These companies are focusing on integrating advanced technologies such as AI and IoT into their systems, which not only improves operational efficiency but also enhances customer satisfaction through tailored solutions. The collective strategies of these firms contribute to a competitive environment that is increasingly centered around technological prowess and customer-centric solutions.In terms of business tactics, companies are increasingly localizing manufacturing to reduce lead times and optimize supply chains. This approach appears to be a response to the growing need for agility in operations, particularly in the face of fluctuating market demands. The market structure is moderately fragmented, with several key players holding substantial market shares, yet leaving room for smaller firms to innovate and capture niche segments. The influence of major players is significant, as they set benchmarks for quality and technological advancement that smaller companies often strive to meet.

In November Dematic (US) announced the launch of a new automated storage and retrieval system designed to enhance warehouse efficiency by up to 30%. This strategic move underscores Dematic's commitment to innovation and positions the company to capitalize on the growing demand for automation in logistics. By improving storage density and retrieval speed, this system is likely to attract a broader customer base seeking to optimize their operations.

In October Honeywell Intelligrated (US) unveiled a partnership with a leading e-commerce platform to develop customized automated solutions for order fulfillment. This collaboration is indicative of Honeywell's strategy to expand its market reach and enhance its service offerings. By aligning with a major player in the e-commerce sector, Honeywell is poised to leverage synergies that could lead to increased market penetration and revenue growth.

In September KION Group (DE) completed the acquisition of a robotics firm specializing in autonomous mobile robots. This acquisition is strategically significant as it allows KION to enhance its product portfolio and integrate cutting-edge robotics technology into its existing offerings. The move is expected to strengthen KION's competitive position in the market, particularly as demand for autonomous solutions continues to rise.

As of December the most pressing trends in the automated material handling equipment market include a pronounced shift towards digitalization, sustainability, and AI integration. Companies are increasingly forming strategic alliances to enhance their technological capabilities and market reach. This trend suggests a future where competitive differentiation will hinge less on price and more on innovation, technology, and the reliability of supply chains. The evolution of the market appears to be steering towards a landscape where agility and technological advancement are paramount, reshaping how companies compete and succeed.

Key Companies in the automated material handling equipment market. Market include

Future Outlook

automated material handling equipment market. Market Future Outlook

The automated material handling equipment market is projected to grow at a 4.19% CAGR from 2025 to 2035, driven by technological advancements, increased automation, and rising demand for efficiency.

New opportunities lie in:

  • Integration of AI-driven predictive maintenance solutions
  • Development of autonomous mobile robots for warehouse logistics
  • Expansion of e-commerce fulfillment centers utilizing advanced handling systems

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

automated material handling equipment market. Market End Use Outlook

  • Automotive
  • Food and Beverage
  • Pharmaceutical
  • Electronics
  • Aerospace

automated material handling equipment market. Market Application Outlook

  • Warehouse Management
  • Manufacturing
  • Distribution
  • Retail
  • Construction

automated material handling equipment market. Market Equipment Type Outlook

  • Automated Guided Vehicle
  • Conveyor System
  • Robotic Arm
  • Sortation System
  • Palletizer

Report Scope

MARKET SIZE 202470.0(USD Billion)
MARKET SIZE 202572.93(USD Billion)
MARKET SIZE 2035110.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)4.19% (2025 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledDematic (US), Honeywell Intelligrated (US), KION Group (DE), Mitsubishi Logisnext (JP), Siemens (DE), Daifuku (JP), Toyota Industries (JP), FANUC (JP), Swisslog (CH), Vanderlande (NL)
Segments CoveredApplication, End Use, Equipment Type
Key Market OpportunitiesIntegration of artificial intelligence and robotics enhances efficiency in the automated material handling equipment market.
Key Market DynamicsRising automation trends drive demand for advanced material handling solutions, enhancing efficiency and reducing operational costs.
Countries CoveredNorth America, Europe, APAC, South America, MEA
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