Automated Material Handling (AMH) Market Forecasts to 2028 – Global Analysis By System Type (Unit Load Material Handling Systems, Bulk Load Material Handling Systems), Software & Services, Equipment Type, and By Geography

Automated Material Handling (AMH) Market Forecasts to 2028 – Global Analysis By System Type (Unit Load Material Handling Systems, Bulk Load Material Handling Systems), Software & Services, Equipment Type, and By Geography

According to Stratistics MRC, the Global Automated Material Handling (AMH) Market is accounted for $40.29 billion in 2022 and is expected to reach $60.47 billion by 2028 growing at a CAGR of 7.0% during the forecast period. Automated material handling is a concept derived from material handling practices, which uses several types of machinery to help workers in a manufacturing establishment move the product under construction between assembly stations or moving completed goods to storage facilities. Automated material handling (AMH) equipment eliminates the need for human interference in a material handling process. Continuous rise in demand for automation with the advent of technologies such as robotics, wireless technologies, and driverless vehicles in different industries like food and beverages, retail, general manufacturing, pharmaceuticals, and post & parcel has revolutionized the adoption of automated material handling the equipment.

Globally, over 2.3 million material handling equipment orders were placed in 2021, an increase of more than 42 percent. At just over one million units, Asia-Pacific was the region to report increasing orders in 2021. Demand in the region rose by more than 66 percent between 2018 and 2021. In 2021, the material handling market in the United Kingdom decreased by 12.7 percent compared to 2020. The loss in unit sales is likely a result of the coronavirus pandemic and supply chain disruptions. The highest growth recorded in the period of consideration was in 2012, when the UK material handling market experienced an 18 percent growth.

Market Dynamics:

Driver:

Rapid growth in the E-commerce industry

The e-commerce industry is developing at a quick speed across the globe coming about in colossal interest for process mechanization. Key players like Amazon, Walmart, and others are progressively incorporating computerized answers for complete activities in a way that is proficient, exact, practical, and safe. For example, in January 2020, Amazon joined an arrangement with Baylo, a French automated programming startup. This business arrangement will increase the value of plan and foster creative automated answers for material dealing with trucks. This essential move will upgrade Amazon's stockroom material dealing with working, further facilitating the online business. Other than this, the ascent in the assembling industry is likewise a main consideration enhancing the market development. Offices proprietors are zeroing in on creating and delivery items to their clients at a quicker, less expensive rate and with expanded quality. Considering this, combination of robotized gear helps with having more powerful creation cycles lessens functional expenses and material waste.

Restraint:

High switching costs

The difficult element for the AMH equipment market is the monstrous ventures required at the underlying stage. The related expenses for the most part establishment, incorporation of clever sensors and programming arrangements, after deals administrations and convenient support builds the by and large proprietorship costs, making it hard for organizations to put resources into AMH equipment. Likewise, little and medium undertakings think that it is hard to change from regular material dealing with to mechanized items attributable to low creation result and venture returns, rebuilding of existing distribution centres, office plans, and others.

Opportunity:

Evolution of smart factories and industry 4.0

The growing inclination towards brilliant production lines is expected to help the material handling industry. The whole assembling floor including picking, arranging, and passing on frameworks require checking at each degree of interaction to measure the functional effectiveness and decrease wastages. In such situations, shrewd industrial facilities coordinated with mechanized frameworks empower observing of each cycle. Additionally, different natural advances implanted in material dealing with frameworks, for example, cloud network and information examination further develop resource execution and gives noteworthy data continuously. The joining of such mechanized frameworks introduced in offices further gives remote controller frameworks that assistance in giving better diagnostics and decrease charging time. Attributable to the previously mentioned factors, rising
industry 4.0 and shrewd manufacturing plant development is making a possible space for the
automated material handling equipment market.

Threat:

High initial investment

The initial cost required for the set up and integration of the automated material handling equipment is high, which limits the use of this equipment in heavy manufacturing organizations. Industries, such as automotive and electronics, where precision and accuracy play a major role, use automated systems to meet international quality standards. Industries with high labor costs are anticipated to use robotic systems and automated guided vehicles to reduce their labor costs and produce high quality products.

Covid-19 Impact

The material handling industry has unquestionably faced challenges that resulted from the COVID-19 pandemic. As a result, social distancing has changed how the average manufacturing company and distribution facility functions. To accommodate this protocol, material handling companies have had to change how they typically operate, which in turn impacts their productivity, sales, and profits.

The unit load material handling systems segment is expected to be the largest during the forecast period

The unit load material handling systems segment is estimated to have a lucrative growth. The increasing demand for automated material handling equipment in the e-commerce industry is expected to fuel the market of unit load material handling systems during the forecast period. These systems are widely used in various industries as they are cost-effective and can handle several items simultaneously, thereby reducing the number of trips, the time required for loading and unloading, and the cost of handling. Owing to the COVID-19 pandemic, the AMH equipment market faced a bump in its growth. In addition, it also created awareness amongst the manufacturers and warehouse operators in the ecommerce, automotive, and semiconductor and electronics industry regarding the benefits of unit load material handling systems. Hence, an increase in the adoption of such equipment in these industries is expected.

The warehouse management system (WMS) segment is expected to have the highest CAGR during the forecast period

The warehouse management system (WMS) segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the increasing globalization of supply chain networks, growing awareness about WMS among small and medium-sized enterprises (SMEs), and rising adoption of cloud-based warehouse management system solutions. Rising demand for highly sophisticated warehousing and logistics infrastructure is also expected to drive the growth of the warehouse management system. The COVID-19 pandemic has resulted in the implementation of social distancing measures, subsequently impacting the services and client delivery systems of companies. The miscommunication as a result of social distancing has compelled transport companies to dump the incoming stock wherever possible in a warehouse, and workers have to waste a lot of time in tracking the required product. The implementation of warehouse management systems solves this along with several other issues resulting from the pandemic.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to the boundaries like developing interest for assembling cycle and stockroom units. Moreover, expansion in assembling limits and reception of material dealing with strategies to improve creation capacities in numerous districts for the most part South Korea, China, and Taiwan are driving the development of the market. For example, Coca-Cola organization opened stockrooms in Singapore esteemed around USD 57 million to have mechanized capacity and recovery frameworks.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period owing to the rapid growth in the sales through e-commerce market, rise in demand for durable and non-durable goods eventually compelling manufacturing companies to adopt extensive assembly lines and material handling equipment.

Key players in the market

Some of the key players profiled in the Automated Material Handling (AMH) Market include Bastian Solutions, Inc., Bosch Rexroth, Daifuku Co. Ltd, Dematic Group S.A.R.L, JBT Corporation, KION Group, Murata Machinery Ltd., Siemens AG, SSI Schaefer AG, Swisslog Holding AG, Toyota Industries Corporation, and Yale Europe Materials Handling.

Key Developments:

In October 2020, SSI Schaefer was contracted by Coop, one of the leading food retailers in Sweden, for intralogistics to provide a cutting-edge, energy-efficient, and highly automated logistics solution for its new 77,000-m² distribution center in Eskilstuna.

In June 2020, Yale Europe Materials Handling, a subsidiary of Hyster-Yale Material Handling, has increased its distribution coverage in this fast-growing market by extending the coverage of the Spanish dealer SETEGAR.

In September 2020, KION Group expanded its production facility in Støíbro (Czech Republic), by adding a third factory building.

System Types Covered:
• Unit Load Material Handling Systems
• Bulk Load Material Handling Systems

Software & Services Covered:
• Warehouse Management System (WMS)
• Transportation Management System (TMS)
• Maintenance and Repairs
• Training and Software Up-gradation

Equipment Types Covered:
• Mobile Robot
• Automated Storage and Retrieval System
• Automated Conveyor
• Palletizer
• Sortation System

Functions Covered:
• Autostore
• Cross Docking
• Distribution
• Inspection
• Moving System
• Order Packing/Picking
• Prepacking
• Receiving
• Returns
• Shipping
• Sortation
• Storage

Applications Covered:
• Assembly
• Packaging
• Transportation
• Distribution
• Storage
• Waste Handling

End Users Covered
• Airport & Aviation
• Automotive
• Food And Beverages
• Retail/Warehousing/ Distribution Centers/Logistic Centers
• General Manufacturing
• Pharmaceuticals
• Post and Parcel
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements