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Top Factor Driving Automated Material Handling (AMH) Market Growth in 2025: Surge In Industrial Automation Fuels Growth Of Automated Material Handling Market
How Big Is the Automated Material Handling (AMH) Market Expected to Be, and What Will Its Growth Rate Be?The market value of automated material handling (AMH) has seen a significant increase of late. It is projected to rise from $52.56 billion in 2024 to $58.84 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 11.9%. The surge in the historic periods can be linked to the escalating number of start-up businesses offering robotic solutions for warehouse automation. This is bolstered by the rising trend of smart factories and the growing demand for manufacturing productivity and efficiency. Additionally, the booming e-commerce sector combined with escalating labor costs contribute to this growth.
The anticipated expansion in the automated material handling (AMH) market is anticipated to be swift in the forthcoming years, with a projected value of $91.31 billion by 2029, having a compound annual growth rate (CAGR) of 11.6%. The propelling factors contributing to this predicted surge over the forecast period include the booming e-commerce sector, injections of automation into industries, the rising efficiency and productivity of warehouse operating firms, an increasing need for autonomous drones for warehouse management, and an expanded use of robotics in warehouses. Future trends within this prediction timeframe encompass the emergence of technologies to bolster the logistics and supply chain aspects of the manufacturing units, developments in motion control, ongoing innovations in manufacturing high-grade products, technological advancements, as well as increased integration with the internet of things (IoT) and data analytics.
What Are the Primary Growth Drivers for the Automated Material Handling (AMH) Market?
The projected increase in the automated material handling market is attributed to the escalating demand for industrial automation. Implementing systems and technology to conduct tasks with less human interference, thus improving accuracy, productivity, and efficiency, defines industrial automation. Factors such as labour shortages, cost-cutting measures, scalability, and data-oriented business decisions necessitate this growing automation requirement. The role of automated material handling is central to enhancing operations by effectively controlling material movement, storage, and processing, leading to a reduction in manual labour, fewer errors, and an overall productivity boost. Supporting data from the International Federation of Robotics, a non-profit entity based in Germany, discloses that in 2023, there was a 12% rise in industrial robot installations in manufacturing, totaling 41,624 units, representing a significant leap from 2022. The automotive industry, predominantly comprised of US, Mexican, and Canadian enterprises, was at the forefront of this trend, accounting for 20,391 units installed, marking a 30% increment from 2021. Consequently, the escalating demand for automation in diverse industries feeds the growth of the automated material handling market.
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Who Are the Dominant Companies Influencing Automated Material Handling (AMH) Market Trends?
Major companies operating in the automated material handling (AMH) market are Mitsubishi Group, Honeywell International Inc., Toyota Industries Corporation, Murata Machinery Ltd., KION Group AG, Omron Corporation, Jungheinrich AG, FANUC Corporation, Crown Equipment Corporation, Daifuku Co. Ltd., Hyster-Yale Materials Handling Inc., KUKA AG, Dematic, SSI Schaefer Group, Vanderlande, SICK AG, BEUMER Group, Beckhoff Automation GmbH & Co. KG, Kardex Group, Swisslog AG, Bastian Solutions LLC
How Is the Automated Material Handling (AMH) Market Evolving?
Prominent entities in the automated material handling market are turning their focus towards the creation of innovative solutions like freight movement systems, as there's a growing need for supply chain operations that are not just efficient but also adaptable and robust. Within the framework of automated material handling, a Freight Movement System is a specialized area dedicated to the transportation of commodities within locations such as warehouses, factories, or distribution centres. This system employs a blend of automated technologies to boost the efficiency, precision, and safety of material handling activities. As an illustration, in February 2024, ArcBest Corporation, a transport firm based in the US, introduced the ArcBest's Vaux Freight Movement System. This advanced ensemble of hardware and software reinvents the way freight is handled - be it loading, unloading or transfers in warehouses, docks, or on the roads. This system is designed such that trailers can be unloaded in under five minutes, with several fork lifts operating simultaneously, processing the freight from every direction. This strategy not only cuts down the time drivers have to wait, but also reduces damage claims and supports better utilization of docks.
What Are the Different Segmentations in the Automated Material Handling (AMH) Market?
The automated material handling (AMH) market covered in this report is segmented -
1) By Product Type: Hardware, Software, Services
2) By System Types: Unit Load Material Handling System, Bulk Load Material Handling System
3) By Function: Storage, Transportation, Assembly, Other Functions
4) By End-User: Airport, Automotive, Food And Beverages, Retail, Warehousing, And Distribution, Logistic Centers, General Manufacturing, Pharmaceuticals, Post and Parcel, Other End-Users
Subsegments:
1) By Hardware: Automated Guided Vehicles (AGVs), Robotic Arms, Conveyor Systems, Sortation Systems, Palletizing Systems
2) By Software: Warehouse Management Systems (WMS), Inventory Management Software, Robotics Software, Fleet Management Software, Control Systems
3) By Services: Consulting Services, Installation and Integration Services, Maintenance and Support Services, Training Services, System Upgrades and Optimization Services
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Which Region Is at the Forefront of the Automated Material Handling (AMH) Market?
North America was the largest region in the automated material handling (AMH) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the market going forward. The regions covered in the automated material handling (AMH) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Automated Material Handling (AMH) Global Market Report?
- Market Size Analysis: Analyze the Automated Material Handling (AMH) Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Automated Material Handling (AMH) Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Automated Material Handling (AMH) Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Automated Material Handling (AMH) Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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