In 2015, the material handling equipment market was valued at an estimated $110 billion US dollars. Between 2016 and 2024, the industry is expected to experience an estimated 5 percent compound annual growth rate.
The global material handling equipment market is expected to see a significant growth between 2016 and 2024. The anticipated growth is due to the increased adoption in both the manufacturing and warehousing industries. Additionally, advancements in technology that allow for both time and costs savings – the development of robotic order-picking systems, for example – are thought to lead to new opportunities for growth in the industry during the course of the forecasted period.
Factors Contributing to Growth in the Global Handling Equipment Market
There are a number of factors that are expected to contribute to the growth of the global handling equipment market. The surging demand for automated retrieval and storage systems in the pharmaceutical, automotive, food and beverage and chemical industries is believed to be the leading driver of growth in this industry over the course of the next few years.
The increased pressure for automated storage and retrieval systems, as well as the need for industrial trucks, is expected to increase over the period of the next few years, as well. The rising investments made by manufacturers in regard to installing this equipment at their warehouses and distribution centers illustrate the projected increase in this market.
The Benefits of Material Handling Equipment
The increased capabilities of automation in the manufacturing sector will undoubtedly offer a boost in the market size of the material handling equipment market. Automation assists in reducing costs and delivering high quality products. It also reduces the need for humans to power check-ins, sort through goods, or to move containers that hold materials. Moreover, this technology will reduce errors, enhance pick rates, boost throughput and decrease the cost of labor.
For example, Automated Guided Vehicles offer an automated solution for moving parts to and from manufacturing spaces or moving pallets for being put away in distribution centers. In short, this technology will aid in smoother execution in both logistics and warehouse operations and ensure that customer needs are being met.
Global Material Handling Equipment Market by Product
There are several products within the global material handling equipment market, and several of these products are expected to see growth over the forecasted period.
The automated storage and retrieval systems are expected to see substantial growth in the next few years. These systems work by integrating both automated software and hardware for exact replenishment and picking. Additionally, they often position and deliver the necessary inventory to a conveyor structure, a manual outfeed, or an ergonomic operator station. As such, this equipment allows for a reduction in floor space and labor, as well as inventory levels. As a result, there is a rise in productivity when compared to manual approaches to storage, which involves order picking, tooling, consolidation and buffering in harsh environments.
Robotics will also see a dramatic adoption rate. This sector helps to enhance the productivity of manufacturing facilities and improves consumer satisfaction by providing high quality products in a proper manner. The execute multi-tasks, which allows the entire process to be streamlined.
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Global Material Handling Equipment Market by Application
Over the forecasted period, e-commerce applications are expected to see tremendous opportunities for growth. This is thanks to the increased need for more efficient, responsive and reliable material handling equipment, as consumers expect to receive their orders accurately, without damage, and in the quickest manner possible.
The material handling market allows for superior performance and high uptime for productivity in the peak season. It helps in increasing the numbers of pallets that can be moved during a single shift. It also reduces damage to products by increase the care of handling, thanks to lift truck and equipment rentals. Moreover, the advent of modern omni-channel distribution facilities is intended to handle fulfillment, the processing of returns, specialty labeling, on-site pickup, ship to customer, ship to store and the customization of products; all of which will drive the size of the material handling equipment market on a global scale.
The 3PL sector has also seen an increased demand from service providers in regard to improving performance, increasing efficiency, and ensuring their end users are kept happy with on-time deliverables of a varying range of products and packaging.
Global Material Handling Equipment Market by Region
Between 2016 and 2024, India is expected to see a huge surge in growth. This is largely due to the emerging landscape of the economy, as well as a significant demand for the movement of goods. The increase in manufacturing activities in India will also help to augment sales.
Development in various areas, including wireless technologies, robotics, and flexible electronics, will drive the material handling equipment size as per the Ministry of External Affairs. Moreover, the growth of several international firms in the area will also boost the demand.
However, it should be noted that the high costs linked to the installation and maintenance of this market will prevent the industry from growing to its full potential over the forecasted time period. Additionally, any type of failure in any capacity of machinery will lead to even more interruption of the production system.
Assessment of Competitive Market Share in the Material Handling Equipment Market
There are several companies that are playing a key role in the growth of the global material handling equipment market. The most notable names contributing to the increase of this market include Bastian Solutions, LLC, Dematic GmbH, Kion Group AG, and Daifuku Co, Ltd.
These companies are concentrating on offering their services in order to usher their prominence in the market. For example, Toyota Industries Corporation stated that they acquired Bastian Solutions LLC in February of 2017. This acquisition solidifies the company’s indisputable entry into the US material handling equipment market.
An increase in initiatives for automated safety and security, the development of manufacturing facilities, and growth in the expansion of warehouses is fueling the growth of the material handling market on a global scale.