Press release
Material Handling Equipment Market to Reach USD 131.8 Billion by 2035, Driven by Warehouse Automation, AI-Driven Fleet Optimization, and Electrification
Material Handling Equipment Market to Reach USD 131.8 Billion by 2035, Driven by Warehouse Automation, AI-Driven Fleet Optimizatio
This expansion is being driven by accelerated warehouse automation for e-commerce fulfilment, the deployment of autonomous guided vehicles (AGVs) and AMRs, and rising adoption of AI and IoT for predictive maintenance and fleet optimization.
MarketGenics positions MHE as a central pillar of modern logistics - converting warehouses and fulfilment centres from manual throughput bottlenecks into intelligent, data-driven distribution hubs that deliver speed, accuracy, and sustainability.
Get the Detailed Industry Analysis (including the Table of Contents, List of Figures, and List of Tables) - from the Material Handling Equipment Market Research Report: https://marketgenics.co/press-releases/material-handling-equipment-market-28110
Recent Developments Shaping the Market
Daifuku Expands Hyderabad Manufacturing Capacity
In April 2025, Daifuku began full operations at its expanded Hyderabad facility to scale production of automated storage & retrieval systems (AS/RS), sorters, and conveyors - enabling faster delivery and local customization for India's booming logistics market.
Gather AI Launches MHE Vision for Real-Time Visibility
In March 2025, Gather AI introduced MHE Vision, an AI-driven camera system that digitizes pallet movement across forklifts, auto-pickers and pallet trucks - providing real-time throughput metrics, safety monitoring and inventory traceability.
Jungheinrich and Large-Scale AGV Deployments
Large AGV rollouts (e.g., Jungheinrich deployments for major fulfilment customers in 2025) illustrate the shift from manual fleets to autonomous hardware that reduces labour dependence and increases throughput density.
KUKA and Collaborative Robots for Material Handling
KUKA launched next-generation collaborative robots in 2025 designed to operate alongside humans in mixed environments, improving both flexibility and safety in handling tasks.
Material Handling Equipment Market Forecast 2035
The market is set to create an incremental opportunity of USD 67.7 billion between 2025 and 2035.
Asia Pacific will remain the largest and most attractive market, driven by extensive warehouse modernization, e-commerce expansion, and local manufacturing investments (Asia Pacific accounts for 54.2% of market revenues in 2025, or USD 34.7 billion).
Autonomous Guided Vehicles (AGVs) will continue to capture the largest share of hardware demand (~34% in 2025) due to their ability to reduce operational costs and address labour shortages.
North America and Europe will expand steadily as incumbents upgrade to electrified fleets and AI orchestration to meet increasing throughput and sustainability targets.
By 2035, material handling systems will be highly instrumented and software-centric - where hardware sales are increasingly bundled with lifecycle services, telematics and subscription analytics.
To know more about the Material Handling Equipment Market - Download our Sample Report: https://marketgenics.co/download-report-sample/material-handling-equipment-market-28110
Key Drivers, Challenges, and Opportunities
Driver - E-commerce Warehouse Automation and Integrated Fleets
Surging e-commerce fulfilment and omni-channel distribution are pushing operators to replace manual workflows with conveyors, AS/RS, AGVs and AMRs. Integrating hardware, WMS/WCS software and lifecycle services creates predictable operations and recurring revenue for suppliers.
Restraint - Component Shortages and Supply-Chain Volatility
Global shortages of semiconductors, power electronics, sensors, and custom gearboxes lengthen lead times and raise CAPEX - hitting smaller OEMs and regional integrators hardest and slowing near-term project rollouts.
Opportunity - Electrification and Battery Service Models
Fleet electrification (lithium-ion forklifts and battery-as-a-service) offers a route to lower total cost of ownership, quieter urban operations, and new recurring revenue streams (fast-charging networks, battery leasing, energy management software). Manufacturers expanding battery production capacity are positioning to capture this shift.
Key Trend - AI-Driven Predictive Maintenance and Fleet Optimization
AI, telematics, digital twins and edge analytics are transitioning service models from reactive to predictive. Solutions that simulate operations, predict failures and dynamically route assets (demonstrated by Dematic/KION Group and others in 2025) increase uptime, utilization and customer ROI - turning suppliers into platform providers with higher switching costs.
Segmental Insights
Hardware - AGVs Lead the Market
AGVs represent the largest hardware sub-segment (~34% share) as operators prioritise automated flow, labour mitigation and scalable throughput. AGVs, tightly integrated with WMS and WCS, form the backbone of modern automation stacks.
Software & Services - From Integration to Subscription
Software (WMS, fleet orchestration, AI control towers) plus lifecycle services are becoming differentiators - buyers increasingly prefer vendors who deliver hardware plus analytics, spare-parts and managed-services contracts.
Regional Highlights
Asia Pacific: Largest market in 2025 (54.2%, USD 34.7B) - driven by China, India and Japan where e-commerce and manufacturing modernization are intensive.
North America: Strong demand for electrified fleets, robotics and high-density automation in fulfilment centres.
Europe: Adoption focused on sustainability (fleet electrification), safety standards, and retrofit modernization in industrial logistics.
Buy Now: https://marketgenics.co/buy/material-handling-equipment-market-28110
Competitive Landscape
The MHE market is slightly to moderately consolidated, with the top five players accounting for over 40% of market share in 2025.
Tier-1 incumbents such as Daifuku, Jungheinrich, KUKA, Honeywell Intelligrated and KION Group remain dominant for large contracts and global deployments.
Fast-growing robotics specialists and software orchestration firms - Geekplus, GreyOrange, Addverb and Gather AI - drive innovation in AMRs, vision systems and AI controls, creating a two-tier competitive dynamic of scale vs. niche innovation.
Future Outlook
By 2035, material handling will be defined by:
Autonomous, electrified fleets tightly coupled with AI orchestration for maximum utilization.
Platformized supply (hardware + software + managed services) delivering predictable revenues and stronger customer lock-in.
Green intralogistics with lithium-ion fleets, energy management and quieter equipment for urban micro-fulfilment.
Digital twin and simulation enabling rapid design, ROI validation and safer multi-site rollouts.
These shifts will convert warehouses into resilient, self-optimizing nodes of the supply chain - where speed, sustainability and uptime are the key performance currencies.
Prominent Companies Operating in the Global Material Handling Equipment Market:
Daifuku Co., Ltd.; Jungheinrich AG; KUKA AG; KION Group; Honeywell Intelligrated; Toyota Material Handling; Mitsubishi Logisnext; Geekplus; Addverb; GreyOrange; Gather AI.
Get a preview of our Material Handling Equipment Market Playbook - your guide to GTM strategy, competitive intelligence, supplier dynamics, and Consumer Behavior Analysis: https://marketgenics.co/playbook/material-handling-equipment-market-28110
About Us
MarketGenics is a global market research and management consulting company empowering decision makers across healthcare, technology, and policy domains. Our mission is to deliver granular market intelligence combined with strategic foresight to accelerate sustainable growth.
We support clients across strategy development, product innovation, healthcare infrastructure, and digital transformation.
Contact:
Mr. Debashish Roy
MarketGenics India Pvt. Ltd.
800 N King Street, Suite 304 #4208, Wilmington, DE 19801, United States
USA: +1 (302) 303-2617
Email: sales@marketgenics.co
Website: https://marketgenics.co
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