Automated Material Handling Equipment Market, By Product Type [Robotic Systems, Automated Storage & Retrieval System, Conveyors & Sortation Systems, Warehouse Management Systems, Others], By Systems Type [Bulk Handling Systems, Engineered Systems, Unit Ha

Automated Material Handling Equipment Market, By Product Type [Robotic Systems, Automated Storage & Retrieval System, Conveyors & Sortation Systems, Warehouse Management Systems, Others], By Systems Type [Bulk Handling Systems, Engineered Systems, Unit Handling Systems, Storage, and Transport], By End-user Industry [Aviation, Automotive, E-commerce, Food and Beverages, Ports, Others], and Region, Opportunities and Forecast, 2016-2030F

Global Automated Material Handling (AMH) Equipment Market size was valued at USD 35.45 billion in 2022 and is projected to reach USD 74.46 billion by 2030, growing at a CAGR of 9.72% from 2023 to 2030. The fourth industrial revolution, also known as Industries 4.0 is constantly transforming the packaging and manufacturing line of different market verticals. Furthermore, advanced technology integrating with automated systems enhances gross productivity and efficiency. Resumed production lines post-pandemic have been adopting automated systems and replacing manual material handling for efficient use of labor and regulatory compliance. New distribution channels with the boom of e-commerce platforms globally are also responsible for the higher application of automated technology in moving goods from one end to another.

Automated material handling (AMH) equipment is a crucial tool for facilitating the transportation of goods in manufacturing and packaging facilities. As the shipping industry expands, consumer-oriented markets are expected to experience significant growth. Key functions of this equipment include tag installation, reading, sortation, and organization. The market is influenced by dynamic product developments, 5G connectivity, and improved e-commerce interfaces. Growth is expected due to the expansion of e-commerce warehouses, integration of engineering warehouses, and development of aviation warehouse storages. Artificial intelligence and machine learning also drive the development of autonomous smart vehicles for goods transportation. Integrating these machines and automated vehicles through the Internet of Things (IoT) will reshape the market's future trajectory.

Rising Adoption of AMH Systems Transforms Material Handling Landscape

Automated material handling (AMH) systems gain a significant advantage over manual material handling thanks to their enhanced space optimization, intelligent planning, and highly scalable operability. This shift toward automation is evident across businesses of all sizes and various public and government organizations. Manual carts and vehicles are increasingly being replaced by automated vehicles known for their higher speed and precision.

End-user industries are embracing AMH equipment to enhance workplace safety and minimize the risk of contamination. These automated material handling systems are also proficient at accurately locating materials and optimizing supply chain cycles. Industries such as food and beverages, aviation, and port operators have integrated this equipment into their warehouse operations. Commonly used equipment in these settings includes controllers, wheels, casters, automated storage, and vehicles. The development of advanced 5G smart warehouses represents the ultimate solution for addressing challenges such as labor shortages, complex operations, and logistical complexities. Technologies like automated guided vehicles and automated storage and retrieval systems (AS/RS) are revolutionizing various processes by eliminating the need for human intervention. However, the market may face challenges in terms of slow adoption due to the dynamic and competitive landscape of the e-commerce sector.

Industry 4.0 Innovations Poised to Bridge Skills Gap and Transform Warehouse Automation

Key components of Industry 4.0, such as augmented reality, additive manufacturing, automated robotics, and big data analytics, are expected to address the skills gap that has emerged due to the impact of COVID-19 and economic disruptions. The pandemic has created a shortage of skilled labor, and economic challenges have hindered workers' learning and development processes. Consequently, industrial end-users actively seek alternatives that offer enhanced precision, increased productivity, and greater efficiency.

Industries worldwide are also seeking solutions to streamline their logistics and segregation processes. Advanced smartphone connectivity and smart sensors have simplified loading and unloading using guided vehicles. Warehouse management systems have improved picking and stock management. The integration of automated software and hardware equipment is poised to revolutionize the journey of warehouse automation. Automated inventory control platforms are set up to eliminate the need for manual inventory logging, stocktaking, and cycle counting. As a result, this equipment, equipped with guided feeds, IoT integration, and AI, is expected to replace unskilled labor in this context.

Government Aid and Support for Equipment Research and Automation

Across the globe, various think tanks and organizations are urging governments to encourage the implementation of robotics, the Internet of Things (IoT), and other automation technologies to enhance production and efficiency. In July 2023, the Information Technology and Innovation Foundation published an article advocating for government authorities to support the adoption of robotics in logistics facilities. Notably, even emerging economies like India and China are embracing the latest trends in warehousing and logistics.

India is set to activate its newly developed National Logistic Policy by the end of 2023, which is expected to have an impact on the market for automated material handling equipment. Additionally, the government's tax policies designed to enhance return on investment (ROI) significantly contribute to increased market traction. However, it's important to note that the higher costs associated with retrofitting and system updates are anticipated to restrain widespread adoption.

Collaborative Robots become the New Co-Worker in Warehouse Management

In terms of equipment type, the robotic system takes the lead in the market when considering market share. This segment commanded a market share of 24% in 2022, primarily due to the heightened precision and efficiency offered by robots. The segment's expansion is further driven by the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies and the presence of collaborative robots, often referred to as cobots.

The implementation of new warehouse management systems (WMS) leverages robotic technology to enhance supply chain and operational processes. For instance, various brands employ articulated robotic arms for tasks like picking, packing, palletizing, and receiving. Overall, the market's growth is propelled by improved accuracy, reduced mental and physical strain on human workers, and the simplification of complex manual tasks.

Unit Handling Systems Dominate Material Handling Equipment Market

When categorized by system type, the market is divided into several segments, including bulk handling systems, engineered systems, unit handling systems, as well as storage and transport. Among these, the unit handling system stands out as the dominant segment in the market. This is primarily attributed to its widespread adoption, especially through e-commerce platforms where efficient handling of individual units is crucial. The aviation industry also significantly contributes to this segment, employing unit handling systems for efficiently loading and unloading goods, particularly in cargo operations.

Moreover, unit handling systems play a pivotal role in warehouse management systems, aiding in space and cost optimization. In fact, this segment secured a substantial market share in 2022, highlighting its prevalent use and importance in various industries.

Asia Pacific's E-commerce Revolution: China and India Leading the Way

The Asia Pacific region has emerged as a powerhouse in various industry verticals, with particular focus on the booming e-commerce sector. Among the nations in this region, China and India have come into sharp focus as highly promising markets for e-commerce. Both countries boast enormous populations and have strategically designed industrial policies to bolster economic growth. China, renowned for its vast manufacturing and production-based economy, has been at the forefront of global industrial expansion. India, on the other hand, has launched initiatives such as ""Make in India"" to accelerate the automation process and stimulate domestic manufacturing.

Japan, a traditionally dominant manufacturing nation, is also undergoing significant transformation in its material handling processes to enhance productivity and precision. Key sectors like automotive and electronics manufacturing play a pivotal role in Japan's economy, emphasizing the country's commitment to staying at the forefront of technological advancements and operational efficiency. This collective shift towards automation and modernization is propelling the Asia Pacific region into a dominant force across various industries.

Impact of COVID-19

The COVID-19 pandemic significantly impeded research and development operations, resulting in restrictions on product development. However, it also fostered a heightened demand for automation, mainly due to labor shortages created by the pandemic's impact. Lockdowns and disruptions to logistics and transportation channels led companies to seek automated systems to reduce labor costs. Moreover, the pandemic disrupted supply chains and distribution networks, contributing to further challenges. The market is expected to recover from these setbacks over the forecast period gradually. Factors such as the accelerated adoption of warehouse automation, the integration of IoT and ML technologies, and the availability of cost-effective warehouse management system (WMS) solutions are anticipated to play a pivotal role in rejuvenating market growth that was previously hampered.

Impact of Russia-Ukraine War

The logistics and warehousing sectors have felt the effects of the Russia-Ukraine conflict. Regions in Russia and Ukraine affected by the war have also affected e-commerce platforms operating within these areas. Numerous vendors, including those in aviation and automation, have relocated their production operations away from these two nations. Since February 2022, more than 500 companies have withdrawn from the Russian market, adversely impacting the global market. Nevertheless, supply chain disruptions caused by Russian sanctions are expected to be addressed by implementing automated and AI-driven technologies in logistics, warehousing, and various other critical aspects of the product life cycle. This technological integration is seen as a solution to mitigate the challenges posed by the ongoing conflict.

Key Players Landscape and Outlook

The Market is highly competitive and comprises several major players. Companies compete based on various factors, including product features, pricing, reliability, and after-sales service. Additionally, several emerging players in the market are focused on providing innovative and customized material handling equipment. The market is also characterized by mergers, acquisitions, and partnerships, with companies seeking to expand their global footprint and gain a competitive edge. Companies continuously invest in research and development and strive to create novel and cutting-edge products. Furthermore, they are expanding their range of offers to meet the increasing demand for automated material handling equipment’s across various regions worldwide.

In March 2023, Kardex Solutions and SVT partnered to enable full End-to-End pick and pack solution. The solution is expected to hold the end users with rapid integration and deployment of autostore technology.

In March 2023, THiRARobotics Co., Ltd. unveiled its latest generation of autonomous mobile robots, with the aim of transforming logistics, warehousing, manufacturing, and healthcare processes.

In December 2023, Daifuku revealed its plan to invest USD 55 million to develop an equipment facility in Hyderabad in 2 lakh sq. feet space.

In August 2022, Interroll celebrated its 20th anniversary in China by inaugurating a new plant in Suzhou. With two decades of achievements in the Chinese material-handling sector, Interroll has positioned itself for prospects in the Asia-Pacific and China regions. The newly operational Suzhou plant effectively doubles their production capacity to meet the growing demand.

In August 2022, Interroll marked its 20th year in China by launching a state-of-the-art plant in Suzhou. After two decades of accomplishments in the Chinese material-handling industry, Interroll has strategically positioned itself for future opportunities in the Asia-Pacific and China regions. The newly established Suzhou facility serves as a significant milestone, effectively doubling their production capacity to address the increasing demand in the market.