Press release
Automated Material Handling Equipment Market: Booming e-commerce industry to generate more business opportunities
The development of e-commerce industry goes hand-in-hand with prosperity of the automated material handling industry. Stocking of products sold by e-commerce sellers is stored in warehouses, and to reduce time for sorting and stocking of these products, vertical lift modules, automated guided vehicles, automated storage and retrieval solutions as well as conveyor belts, seem to be the best tools. The advent of automation into other industries including manufacturing, marketing, supply chain, and more have brought a revolutionary change in the way businesses are done. Each and every aspect is now being substituted by appropriate automation mechanism that provides an opportunity to increase its work efficiency and also productivity. A spike on the demand side has forced businesses to move on to operations that take less time and increase efficiency. Also, the e-commerce industry is witnessing its peak periods and is one of the biggest users of these systems.Global Automated Material Handling Equipment Market is expected to grow from US$ 28,643.4 Mn in 2017 at a CAGR of 7.6% during the forecast period 2018 – 2025, to account to US$ 51,219.6 Mn by 2025.
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Growth in the recent years is primarily driven by the major factors, such as increasing need for improving operational efficiency and rising labor costs. Furthermore, the growth in the manufacturing sector has propelled the automated material handling equipment market growth to a significant extent. The Asia-Pacific region led the global automated material handling equipment market in 2017 and is expected to maintain the lead throughout the forecast period. This dominance is attributable to factors including rise in adoption and development of robotics and exponential growth in the e-commerce industry.
The global manufacturing industry is rapidly expanding as more and newer regions are investing to adopt manufacturing plants in their localities. As per the China Federation of Logistics and Purchasing (CFLP), the global manufacturing purchasing managers' index (PMI) accounted 55.1 in October 2017, which was down from 55.9 in September 2017 however, still at a comparatively high level. The PMI index remained above 53.5 since the beginning of 2017, signifying a sturdy recovery of manufacturing sector in developed countries, increasing industrial advancement in emerging market economies and intensifying commodities prices on the global automated material handling equipment market. Emerging economies such as China, India, Mexico, Brazil, Argentina, and Singapore have laid enhanced focus on the manufacturing industry to create jobs in the country and thereby increase GDP of their respective countries. Manufacturing initiatives such as “Make in India”, and “Make in China 2025” have ensured a healthy FDI pumping in these countries thereby enabling development. This expansion in the manufacturing industry is expected to embrace technological advancements in order to enhance the plant productivity, maintain edge with the customers and gain competitive advantage.
The global key players operating in the automated material handling equipment market are Daifuku Co. Ltd., Hyster-Yale Material Handling, Inc., Jungheinrich AG, Kion Group AG, Toyota Industries Corporation, Hanwha Corporation, John Bean Technologies Corporation, Kuka AG, Beumer Group Gmbh & Co., and Fives Group.
Strategic Insights
Few of the recent strategies by some of the players in automated material handling equipment market landscape are listed below-
2018: JBT Corporation has purchased FTNON. The company provides equipment and solutions for ready meals and pet food industries. Added to this, It also add on the robotic technology for cutting, and peeling the fruits and vegetables. The acquisition aims to expand the global penetration, aftermarket business of FTNON.
2018: Jungheinrich announced the opening of its Sales office in Serbia with the acquisition of the business of Jungheinrich dealer DunaV Export-Import DOO.
2018: Daifuku and Fast Retailing Group formed a partnership via automation of Fast Retailing’s Ariake warehouse. The partnership aims to expand the business of both the firms. The partnership includes introduction of state-of-the-art automation facilities and cooperation in logistics system.
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