Global Automated Material Handling (AMH) Equipment Market - 2022-2029

Global Automated Material Handling (AMH) Equipment Market - 2022-2029
Market Overview

Automated Material Handling (AMH) Equipment Market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 9.10% during the forecast period (2022-2029).

AMH refers to any automation that lessens or does away with the need for people to check items in and out-organize materials or transport totes and bins storing library contents. Check-in devices, sorters, conveyors, singulators, stackers & unstackers, totes, bins, trolleys and tote carriers are a few examples of the mechanical equipment used in AMH systems.

An AMHS uses conveyors, vertical elevators and autonomous vehicles to move material utilizing route and process step information given by the MES. The position of material or carrier for transport by the AMHS is determined using various technologies, including RFID, barcoding, optical character recognition (OCR), near-field communication or ultra-wideband indoor tracking.

Market Dynamics

The rise of the automated material handling equipment business is driven by the increasing use of automated storage and retrieval technologies due to COVID-19. On the other hand, the high prices of AMH equipment are projected to hinder market expansion.

The e-commerce sector's increasing use of automated technologies

The e-commerce industry is booming due to the unprecedented increase in online shoppers following the emergence of COVID-19. In reaction to the COVID-19 epidemic, the imposition of social distance rules, lockdowns and other precautions has prompted consumers to choose online shopping. As a result, there has been a rise in business-to-consumer and business-to-business e-commerce. The rise in B2C sales is most visible in online sales of medications, household items and food.

However, such rapid expansion in the e-commerce industry has put enormous pressure on companies to acquire and deliver many products in a short period. As a result, e-commerce enterprises have included automation in their operations. Mini loads or shuttles transport a case or tote to a goods-to-operator pickup station, the most efficient way to process orders. Most distribution centers operate on the operator-to-goods principle, which states that the operator must go to obtain the product.

Increasing technological progress

Better and more effective automated solutions are being released onto the market as new technologies arise. For instance, robotic systems do tasks with higher accuracy and precision and help to reduce operational expenses. Vision automated guided vehicles, for example, use new technologies to increase output while assuring safety and reducing personnel costs.

By implementing cutting-edge technologies, automated systems of higher quality and greater adaptability are produced, improving the market in the long run. Innovations have a minimal impact on the market for AHM equipment. However, it is anticipated to develop due to the e-commerce sector's growing usage of automated material handling technology to speed up client product delivery.

High initial expenditure

Small and medium-sized businesses (SMEs) are crucial to the economic growth of a nation. SMEs provide large enterprises with raw materials and components. Therefore, material handling operations are crucial to the supply networks of these SMEs. However, SMEs cannot completely automate their supply chain operations due to the high initial costs of implementing AMH equipment.

Small enterprises must rely on manual/traditional material handling procedures since they cannot afford automated solutions. Some enormous firms lower their up-front expenditures by leasing equipment, renting industrial trucks or buying old equipment. It is anticipated to hinder the sale of new equipment.

COVID-19 Impact Analysis

The COVID-19 epidemic and the stoppage in the operation of numerous industries slowed market growth in 2020. The COVID-19 pandemic has sped up the long-term trend toward production automation. Although there is great potential for sophisticated robotics and improvements are being made all the time, the traditional issues of cost and scale will probably keep much of today's automated technology in use for a very long time.

As a result of the pandemic, the automated material handling equipment market experienced a decline in 2020 compared to the previous year. It resulted in the closure or suspension of manufacturing facilities in most industrial units globally. While companies like Amazon are renowned for their innovation in warehouse and distribution, small-to-medium-sized businesses are likely to see a return on investment from the core automated technologies, reducing operational costs, reallocating labor to tasks that add value and boosting productivity. 2020 has marked the turning point for many facilities in making these solutions crucial for doing business.

Segment Analysis

By system, the automated material handling (AMH) equipment market is segmented into unit load material handling systems and bulk load material handling systems.

Unit load systems are increasingly being used

Most industrial goods are transported in unit loads, or groups of items, as they move through the supply chain. Unit loads make the process of material handling, storage and distribution easier and more effective. Unit loads also decrease handling expenses and the risk of damage by minimizing individual unit handling. Systems for logistics and material handling had to advance due to Industry 4.0's novelty to keep up with the development of new technologies.

The AMH market saw a slowdown in growth due to the COVID-19 epidemic. However, it also raised awareness of unit load material handling systems among manufacturers and warehouse operators in the e-commerce, automotive, semiconductor and electronics industries. As a result, an increase in such technology in these industries is projected.

Geographical Analysis

The rising urbanization and e-commerce in Asia-Pacific

Asia-Pacific is expanding mostly due to rising urbanization, rising e-commerce sales and a substantial presence of technology companies. Businesses invest in operations for research and development to stay competitive. One of the most significant e-commerce hubs in the world has emerged as Asia-Pacific. Due to the region's expanding middle-class population in China, India and Indonesia, as well as the rising popularity of mobile devices, retail e-commerce in the region saw enormous growth.

China has been a major market in the growth of Asia-Pacific AMH market. Furthermore, rising demand for AMH goods in manufacturing, automotive and e-commerce, among others, is fuelling market expansion. The 2020 Beijing International Intelligent Warehousing and Material Handling Technology Expo (SMTS 2020) was held in Beijing. The event featured innovative material handling equipment such as AGV automatic guided truck, handling & conveying system, forklift, trailer, tractor, palletizing robot and handling robot.

Competitive Landscape

The automated material handling sector is highly fragmented and competitive. Product releases, substantial expenditure on R&D, partnerships & acquisitions and so on are the primary growth methods these organizations use to stay competitive.

Major market companies include Daifuku Co. Ltd., Kardex Group, KION Group, KNAPP AG, JBT Corporation, Jungheinrich AG, TGW Logistics Group GmbH, SSI Schaefer AG, Mecalux SA and System Logistics S.p.A.

JBT Corporation

Overview: John Bean Technologies Corporation (JBT) is a global leader in providing high-value technological solutions to the food and beverage industries, emphasizing proteins, liquid meals and automated guided vehicles. Through its FoodTech segment, JBT designs manufacture and services sophisticated products and systems for multinational and regional food firms. JBT's AeroTech segment sells vital equipment and services to domestic and international air transportation customers.

Product Portfolio: The Automated Systems business develops robotic automated guided vehicle systems for a repeated material movement that are stand-alone and fully integrated. JBT AV solutions include automated warehousing and distribution, pharmaceutical manufacturing material handling systems, driverless forklifts for food/beverage transport and a healthcare automated supply delivery system.

Key Development: JBT displayed its Warehouse Freezer AGV at ProMatDX in April 2021, which can operate in temperatures ranging from -10oF to 110oF. The automated guided vehicle (AGV) has a lift capacity of 2,500 pounds and a three-stage hydraulic mast with integrated side shift and tilt.

Furthermore, it has a range of lift heights, ranging from 357 inches (or less) to 422 inches. The Warehouse Freezer AGV can travel bidirectionally at up to 5.9 feet per second and has a minimum aisle width of 11.5 feet. It also features a 48 VDC battery and two lift speeds: 10 inches per second for lowering and 11 inches per second for raising.

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The global automated material handling (AMH) equipment market report would provide access to an approx. 61 market data table, 59 figures and 204 pages.

Target Audience 2022
• Automated Material Handling (AMH) Equipment Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Automated Material Handling (AMH) Equipment Manufacturers