Material Handling Equipment Market Size

Material Handling Equipment Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The material handling equipment market is set for considerable growth. It is estimated to be worth $ 227,468.8 billion in 2024 and to rise to $ 3,378,998.7 billion by 2032. The compound annual growth rate (CAGR) for this market is 5.07% between 2024 and 2032. This growth is driven by the growing automation of warehouses and distribution centers. It is also driven by the increasing investment in advanced material handling equipment to improve efficiency and reduce costs. The integration of robotics, artificial intelligence, and the Internet of Things (IoT) is changing the face of material handling. These innovations are enabling real-time tracking, improved inventory management, and enhanced safety. The result is a more efficient operation. These trends are also driving the growth of the material handling equipment market. Key players such as KION Group AG, Toyota Industries, and Jungheinrich AG are taking advantage of these opportunities through strategic initiatives such as new product launches and collaborations. For example, KION Group has focused on the development of smart warehouse solutions. On the other hand, Toyota Industries has launched advanced AGVs to meet the evolving needs of the industry. These strategic initiatives are expected to further accelerate market growth and intensify the competition.

Regional Market Size

Regional Deep Dive

The Material Handling Equipment Market is experiencing significant growth across the globe, owing to advancements in technology, increasing automation in industries, and rising demand for efficient logistics solutions. In North America, the market is characterized by the presence of major players and a focus on innovation. In Europe, the trend is towards sustainable practices and smart manufacturing. The Asia-Pacific region is expanding rapidly, due to the industrialization and urbanization taking place in the region. Growth in the Middle East and Africa is largely due to the construction of new industries and the expansion of existing ones. Latin America, though growing slowly, is gradually adopting modern material handling equipment to enhance productivity.

North America

• E-commerce has increased the demand for automation in the material handling industry. Companies such as Amazon have invested heavily in robots and artificial intelligence to optimize their supply chains.
• It was not until the American regulations for factory safety were established in the OSHA regulations that the American manufacturers adopted the modern material-handling equipment.
• IoT is gaining ground in material handling equipment, with Honeywell and Zebra Technologies leading the way in developing smart solutions that increase efficiency.

Europe

• The European Union’s Green Deal is influencing the market for material handling equipment, promoting the green economy and leading to a greater investment in eco-friendly technologies and practices.
• Electric and hybrid material-handling technology is gaining ground. With KION and Jungheinrich, the focus is on reducing carbon footprints and achieving greater energy efficiency.
• Industry 4.0 has been introduced in many European countries.

Asia-Pacific

• The demand for industrial materials handling equipment is growing in China and India. The local manufacturers are expanding their businesses.
• Hence the Make in India program, which is a government initiative, will be able to promote the development of the logistics industry.
• The automation of warehouses and distribution centers is rapidly increasing. This has boosted demand for automatic guided vehicles and robots, with Daifuku and Murata Machinery at the forefront.

MEA

• The new Vision 2030 plan for Saudi Arabia, which is aimed at developing the country’s economy, is a good example of the demand for material-handling equipment in the construction and logistics sectors.
• The region is witnessing a growing trend towards automation in warehousing. The trend is evident in the investment made by companies such as Al-Futtaim and Al Bahar in modern material-handling equipment.
• A number of regulations aimed at improving the safety and efficiency of logistics are putting companies under pressure to replace their old equipment with new models that meet the new standards.

Latin America

• The automation of material handling is being gradually introduced in the region. For example, companies such as Proeza are investing in new equipment to increase the efficiency of their supply chains.
• Economic conditions have forced manufacturers to introduce new, cost-effective products and to offer their local customers new, more affordable options.
• In Mexico and Brazil, government support for the logistics and manufacturing sectors is encouraging the investment in modern materials handling equipment.

Did You Know?

“The development of automation in the material handling equipment market is expected to be considerable. By 2025, the share of automation in this market is estimated to be about 30%.” — Market Research Future

Segmental Market Size

The Material Handling Equipment (MHE) market, which plays a key role in ensuring the smooth running of supply chains and warehousing, is currently growing at a steady rate. The main driver of this growth is the increasing need for automation in logistics and warehousing, which is in turn driven by the need to increase productivity and reduce labour costs. Furthermore, regulatory initiatives to improve working conditions and efficiency are pushing companies to invest in MHE solutions.

At the moment, the introduction of this type of material handling equipment is at an advanced stage. The leading companies in this field are Amazon and Wal-Mart, which have introduced AGVs and robots into their warehouses. The main areas of application are the control of inventories, the provision of goods, and transport within warehouses. Several trends, such as the increase in e-commerce and the trend towards a sustainable economy, are pushing this development forward. Companies are looking for ways to optimize their processes and reduce their carbon footprint. The Internet of Things, artificial intelligence, and machine learning are determining the development of this sector and are enabling smarter and more efficient material handling processes.

Future Outlook

The market for material handling equipment is set to experience a significant growth from 2024 to 2032. The projected market value is expected to increase from $227.47 billion to $337.9 billion, at a strong compound annual growth rate (CAGR) of 5.07%. This growth is driven by the growing need for automation and efficiency in the supply chain, which is a result of the digital transformation in various industries. This has led to the rising demand for material handling solutions such as AGVs and robots, which are expected to gain a higher level of penetration in the e-commerce, manufacturing and logistics industries.

Artificial intelligence and the Internet of Things are two of the main new technological trends that will revolutionize the material handling sector. These new trends will enable real-time data analysis, the emergence of preventive maintenance, and a better management of inventories, which will bring operational efficiency. Furthermore, the growing importance of the environment and the regulatory requirements for reducing the carbon footprint will lead to the use of greener solutions, such as electric forklifts and energy-saving conveyors. In the end, the market will not only expand, but also evolve to meet the growing demand for sustainable and smart material handling solutions.

In the course of the next five years the development of omni-channel distribution will have a decisive influence on the market. By 2032, it is expected that the material handling equipment market will have shifted towards a higher degree of automation and interconnectedness, with an estimated thirty percent of all equipment equipped with smart technology. This will not only increase the operational capabilities of the equipment but also create new opportunities for innovation and growth, putting the sector at the center of the supply chain.