Material Handling Market - Forecasts from 2024 to 2029

Material Handling Market - Forecasts from 2024 to 2029

The material handling market is evaluated at US$167.83 billion for the year 2022 growing at a CAGR of 7.9% reaching the market size of US$285.813 billion by the year 2029.

The growing adoption of industrial automation solutions across various end-user industries is one of the key factors driving the global material handling market’s growth. As a result of the booming e-commerce industry, rising investments by manufacturers in the installation of various equipment at distribution centres and warehouses are also fueling the demand for material handling products and solutions across the globe. Moreover, the rigid regulations regarding worker safety require manufacturers to implement material-handling solutions in a hazardous work environment, which further drives the demand for material-handling products and services in the market.

Increasing demand for trucks and lifts

This growth is attributed to the shift towards automated lifts and trucks due to the expensive human workforce and the growing need to improve operational efficiency throughout the entire supply chain. An increasing number of construction projects in developing countries is driving the demand for small trucks and specialized heavy-lifting equipment. Moreover, the booming global logistics industry will further push the market’s growth over the next few years. Automated storage and retrieval systems (AS/RS) will witness the fastest growth during the forecast period owing to the increasing demand for automated machines and equipment that assist in reducing floor space, labour costs, and inventory levels to enhance productivity while reducing manufacturing cycle time.

The rising need for warehousing and distribution

The growing global third-party logistic industry is significantly driving the demand for material handling solutions. The entry of new startups in the growing global e-commerce industry is boosting the demand for 3PL solutions, as they rely on other logistic enterprises as part of the supply chain. Thus, there is a high demand for material handling solutions from the warehousing and distribution segment of the 3PL industry to smoothen the entire supply chain. Airport baggage handling applications are poised to experience significant market growth due to the growing global tourism industry. The increasing purchasing power and improving living standards in the developing economies of the world have led to a significant shift towards air travel. This has further led to a rise in the number of air travel passengers, which, in turn, will spur the demand for airport baggage handling solutions at airports.

By industry vertical, the manufacturing sector is projected to grow considerably during the forecast period

The rising global manufacturing activities and infrastructural development, especially in developing countries, will spur the demand for material handling solutions for timely production requirements and increased productivity. Moreover, high labour costs coupled with stringent regulations for providing a safer workplace are pushing manufacturers to shift from labour-intensive to capital-intensive production methods, thereby positively impacting the global material handling market growth. Additionally, the healthcare sector will witness the fastest market growth over the projected period due to the rising global geriatric population and the increasing cases of chronic diseases. The increase in demand for various medicines and medical devices will require the healthcare and pharmaceutical industries to opt for efficient material-handling solutions.

Asia Pacific is expected to grow at a high rate during the forecast period.

The rapid industrialization and rising manufacturing activities in developing Asian economies such as China, India, and South Korea are boosting the demand for material handling solutions. The growing e-commerce industry in India and China due to the rising use of smartphones and the proliferation of internet connectivity is also fueling the demand for material handling solutions for warehousing and distribution applications. The booming construction industry and investments in infrastructural development supported by favourable government initiatives and policies will further propel the growth of the Asia Pacific material handling market over the forecast years.

Market key launches
In May 2023, three new electric forklift models were introduced by Toyota Material Handling (TMH), the industry leader in material handling innovation, expanding its already impressive portfolio of material handling products and services. A Side-Entry End Rider, a Center Rider Stacker, and an Industrial Tow Tractor are among the new electric products that are being introduced. These products give customers access to unprecedented efficiency, versatility, and best-in-class performance while putting operator comfort first. This product has an ergonomic control handle with multiple functions that allow the operator to pick and place loads while facing forward and maintaining a clear line of sight. Best-in-class turning radius and speed reduction during turns will also be experienced by operators, making it simpler to transport loads when cornering and suitable for a variety of applications.

Segmentation:

By Product
Automated Guided Vehicles
Automated Storage and Retrieval Systems
Trucks and Lifts
Cranes & Hoists
Conveyor System
Others
By Application
Warehousing and Distribution
Airport Baggage Handling
Bulk Handling
Postal and Parcel Delivery
Assembly
Packaging
By Industry Vertical
Manufacturing
Healthcare
Chemical
Paper
Food and Beverage
Warehousing
Others
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Others
Middle East and Africa
UAE
Saudi Arabia
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Indonesia
Others