Global Automated Material Handling Market to Reach USD 85.1 Billion by 2031, Growing at 8.3% CAGR - TMR

The global automated material handling market is undergoing a paradigm shift with transformative technologies and innovations setting the stage for unprecedented growth. As industries across the globe pivot towards automation, enhanced efficiency and productivity in warehouses and storage facilities are rapidly emerging as key competitive differentiators. The market, valued at USD 40.9 billion in 2021, is projected to grow at a compound annual growth rate (CAGR) of 8.3%, reaching an estimated USD 85.1 billion by 2031.

Market Overview

Automated material handling equipment and systems have become essential assets for warehouse operators and supply chain professionals alike. These systems, which encompass a range of solutions from automated conveyors to advanced robotic systems, are instrumental in handling, sorting, and storing materials effectively. By reducing manual intervention and streamlining operations, these systems contribute to enhanced cycle times, improved picking accuracy, reduced contamination risks, optimized warehouse space, and heightened employee safety.

As global industries such as food and beverage, fast-moving consumer goods (FMCG), third-party logistics (3PL), retail, and courier, express, and parcel (CEP) services experience increased order fulfillment demands especially propelled by the rise of e-commerce the adoption of automated material handling solutions is becoming an essential strategy for boosting operational efficiency and maintaining competitive advantage.

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Key Players and Industry Leaders

The competitive landscape of the automated material handling market is highly fragmented, with several key players setting industry standards through continuous innovation, strategic acquisitions, and comprehensive research and development initiatives. Prominent industry leaders include:

Daifuku Co., Ltd.
BEUMER GROUP
Dematic
Honeywell International Inc. (Honeywell Intelligrated)
Jungheinrich AG
KNAPP AG
KUKA AG
Murata Machinery, Ltd.
GreyOrange
RightHand Robotics, Inc.

These companies have focused on expanding their product portfolios to include state-of-the-art automated storage and retrieval systems (ASRS), autonomous guided vehicles (AGVs), and other intelligent robotic systems. Strategic collaborations with integrators and investments in emerging technologies have further strengthened their market positions, ensuring that they remain at the forefront of innovation in the industry.

Recent Developments

Several key developments have underscored the rapid evolution of the automated material handling market:

RightHand Robotics, Inc. launched its 'Partner Integrator Program' in March 2022, creating an ecosystem designed to boost robotic piece-picking and place-and-pack operations to cater to the surging demands of the e-commerce sector.
Murata Machinery, Ltd. expanded its A-series of automated guided vehicles (AGVs) in February 2022 by introducing seven new models, offering customized solutions tailored to various load capacities and operational environments.

Honeywell, Inc. made headlines in September 2021 with the launch of an innovative robotic technology aimed at automating pallet loading and unloading processes, thereby addressing labor shortages and reducing risks associated with manual operations.

In May 2018, Coca-Cola Amatil enhanced its distribution capabilities by integrating a robot-based ACPaQ solution provided by KUKA AG's Swisslog, successfully meeting increased customer demands and ensuring the quality of deliveries.

These initiatives not only highlight the rapid pace of technological advancement in automated material handling but also underscore the industry's commitment to addressing evolving market needs.

Market Drivers & Trends

Several key factors are propelling the growth of the automated material handling market:

E-Commerce Expansion: The unprecedented growth in online shopping has significantly increased demand for efficient order fulfillment, driving companies to adopt automated solutions that can manage high volumes of orders.

Technological Advancements: Integration of AI, machine learning, and IoT technologies in warehouse systems is enhancing operational efficiencies and reducing downtime.

Labor Shortages: Rising labor costs and challenges in recruiting skilled labor have led companies to invest in automation to ensure uninterrupted operations.
Cloud-Based WMS & TMS: The shift from on-premise solutions to cloud-based platforms is addressing scalability issues and cybersecurity concerns, offering robust, flexible, and cost-effective warehouse management.

Industry-Specific Needs: Diverse sectors such as frozen food, cold storage, and pharmaceuticals are increasingly deploying semi-automated and fully automated systems to ensure product integrity and safety.

These trends are complemented by the rapid adoption of advanced storage solutions such as ASRS, which has become critical in ensuring optimal space utilization and increased productivity.

Market Restraints & Challenges

Despite the promising growth outlook, the automated material handling market faces several challenges:

High Initial Investment: The upfront capital required for advanced automation systems can be substantial, posing a barrier for small and medium-sized enterprises (SMEs).
Technical Integration: Integrating new automated systems with legacy infrastructure remains a significant technical challenge for many organizations.
Cybersecurity Concerns: As systems become more interconnected and reliant on cloud-based platforms, the risks associated with cybersecurity threats and data breaches have increased.
Regulatory Compliance: Adherence to stringent regulatory standards across different regions requires continuous updates and adaptations of automated systems.
Addressing these challenges will be crucial for stakeholders aiming to leverage the full potential of automated material handling solutions.

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Market Segmentation

The market is broadly segmented based on offerings, package type, industry vertical, and region:

Offering: Divided into hardware (e.g., automated conveyors, ASRS, AGVs, AMRs) and software (e.g., WMS, TMS, AIDC) alongside essential services.
Package Type: Encompasses various container formats such as pallets, bins, totes, and cartons.
Industry Vertical: Serves diverse sectors including food & beverage, pharmaceuticals, automotive, retail, and 3PL.
Regions Covered: Includes North America, Europe, Asia Pacific, Middle East & Africa, and South America.
This comprehensive segmentation enables a detailed analysis of market dynamics and facilitates targeted strategies to address specific customer needs.

Regional Insights

North America currently dominates the automated material handling market, capturing 33.5% of the global share in 2021. The U.S. leads this growth with early adoption of automation and robust infrastructure investments. Europe follows closely with a 29.4% market share, driven by well-established manufacturing sectors and high technological adoption.

Asia Pacific, however, is poised for rapid growth due to significant investments from local market players, expansive consumer bases, and proactive government policies supporting industrial automation. Eastern European and Nordic regions also present lucrative opportunities as market maturity increases and industrial automation becomes more prevalent.

Market Growth Factors

Key factors contributing to the growth of the automated material handling market include:

Enhanced Efficiency: Automation significantly improves picking accuracy, reduces cycle times, and optimizes space utilization, leading to overall operational excellence.
Reduction in Operational Costs: Automation helps reduce reliance on manual labor and minimizes errors, thereby cutting operational costs over time.
Scalability: Cloud-based systems and advanced WMS/TMS solutions offer scalable options for businesses of all sizes, ensuring future-proof operations.
Innovative Technologies: The integration of AI and machine learning with automated systems not only streamlines operations but also provides predictive insights that enhance decision-making processes.

Why Buy This Report?

Investing in the automated material handling market report provides stakeholders with in-depth insights into the dynamics driving the industry's growth. The report offers:

Comprehensive Market Analysis: Detailed evaluation of market trends, key players, and regional insights.
Strategic Recommendations: Actionable strategies to overcome challenges and leverage emerging opportunities.
Future Projections: Expert forecasts on market growth and key trends through 2031.
Competitive Landscape: In-depth profiles of leading market players, highlighting their strategic initiatives and technological advancements.
Operational Insights: Analysis of market segmentation and its impact on supply chain efficiency and cost reduction.
For industry professionals, investors, and decision-makers, this report is an invaluable resource that delivers actionable intelligence to navigate the rapidly evolving landscape of automated material handling.

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