Material Handling Equipment Market Report By Product (Cranes & Lifting Equipment, Industrial Trucks, Continuous Handling Equipment, Racking & Storage Equipment, Others), By Application (E-commerce, Automotive, Food & Beverages, Chemical, Others)By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: March 2024
- Report ID: 38663
- Number of Pages: 274
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Report Overview
The Global Material Handling Equipment Market size is expected to be worth around USD 407.8 Billion by 2033, from USD 229.9 Billion in 2023, growing at a CAGR of 5.90% during the forecast period from 2024 to 2033.
The Material Handling Equipment Market encompasses a wide range of tools, vehicles, appliances, and accessories involved in transporting, storing, controlling, and protecting goods, materials, and products throughout the process of manufacturing, distribution, consumption, and disposal.
This market is critical for industries aiming to enhance operational efficiency, worker safety, and workflow optimization.
The Material Handling Equipment Market is undergoing a significant transformation, fueled by key trends such as urbanization, industrialization, and the e-commerce boom.
Rapid global urbanization and industrial activities are necessitating enhanced warehousing and logistics capabilities, thus propelling the demand for equipment like forklifts and conveyors. The forklifts market, for instance, is projected to witness over 12.8% annual growth through 2025, a clear indicator of the sector’s response to expanding urban populations and industrialization.
Parallelly, the unprecedented rise of the e-commerce sector has revolutionized demand dynamics within the material handling equipment landscape. Automated systems, including conveyor belts, sorters, and warehouse robotics, are increasingly sought after to streamline order fulfillment processes in warehouses and distribution centers. This trend underscores the critical role of material handling solutions in supporting the fast-paced, efficiency-driven e-commerce industry.
Moreover, warehousing trends are evolving, with a notable shift towards larger, more automated facilities to better serve e-commerce fulfillment needs. This evolution is driving significant investments in warehouse automation and upgrades, further boosting demand for sophisticated equipment such as automated conveyors, Automated Storage and Retrieval Systems (AS/RS), and palletizers.
A testament to this trend is the recent formation of Rocrich AGV Solutions, a joint venture between Mitsubishi Logisnext Americas and Jungheinrich, aimed at offering mobile automation solutions for warehouses and production facilities. This strategic move, highlights the sector’s growth prospects and the evolving demands of modern commerce and industry.
Key Takeaways
- Market Value: The Global Material Handling Equipment Market is anticipated to reach approximately USD 407.8 Billion by 2033, reflecting significant growth from USD 229.9 Billion in 2023, at a robust CAGR of 5.90% during the forecast period from 2024 to 2033.
- By Product: Cranes & Lifting Equipment emerge as the frontrunners in the Material Handling Market, commanding a substantial 34.5% dominance. This dominance is propelled by ongoing innovations in automation and safety measures.
- By Application: E-commerce activities play a pivotal role, capturing a notable 22.6% market share in Material Handling. This underscores the burgeoning demand for streamlined warehousing solutions to support the rapid growth of online retail.
- Regional Dynamics: Asia Pacific leads the global market, claiming 39.6% market share. Meanwhile, North America follows closely as a significant player, emphasizing automation and technological integration in logistics and warehousing operations to enhance market share.
- Analyst Viewpoint: Analysts project a positive trajectory for the Material Handling Equipment Market, underpinned by factors like automation, technological advancements, and the growing influence of e-commerce. Additionally, the emphasis on safety measures and efficiency in warehouse management is expected to further bolster market growth.
- Growth Opportunities: Opportunities for market growth lie in continued innovation, particularly in automation and safety features, to meet evolving industry demands. Additionally, catering to the specific needs of the e-commerce sector and expanding into emerging markets present avenues for expansion for players in the Material Handling Equipment Market.
Driving Factors
Urbanization and Industrialization Drive Market Growth
The relentless pace of urbanization and industrialization serves as a cornerstone for the expansion of the Material Handling Equipment Market. As urban centers grow and industrial activities increase, the demand for efficient warehousing and logistics escalates.
This surge necessitates advanced material handling solutions, such as forklifts and conveyors, to facilitate the smooth movement and storage of goods. This growth is a direct response to the expanding needs of urban and industrial developments, showcasing how these macroeconomic factors symbiotically fuel the demand for material handling equipment.
E-commerce Boom Catalyzes Market Expansion
The e-commerce sector’s explosive growth has reshaped the demand landscape for material handling equipment. With online sales volumes soaring, the need for automated systems to efficiently manage order fulfillment has become paramount.
This demand spans a wide array of equipment, from conveyor belts and sorters to robotic arms, all aimed at enhancing operational efficiency within warehouses and distribution centers. The shift towards online retail not only underscores the sector’s direct impact on the market but also highlights the evolving consumer behaviors that necessitate rapid adaptation and technological integration within material handling operations.
Warehousing Trends Propel Market Advancements
The evolving requirements of e-commerce fulfillment have set new benchmarks for warehousing, pushing towards larger and more automated facilities. This shift is driving substantial growth in the demand for automated material handling solutions, including conveyors, Automated Storage and Retrieval Systems (AS/RS), and palletizers.
Such developments not only cater to the immediate needs of modern warehousing but also reflect the broader trend of technological adoption and upgrade within the sector, further stimulating market growth.
Restraining Factors
High Upfront Costs Restrain Market Growth
The requirement for substantial initial investment in material handling equipment, such as automated guided vehicles (AGVs), cranes, and conveyor systems, presents a significant barrier to market growth. For small and medium-sized enterprises (SMEs), or businesses in developing markets, the high upfront costs can be particularly daunting.
An SME, for instance, might find the $100,000 price tag for an AGV system to be prohibitively expensive. This financial hurdle limits the adoption of advanced material handling solutions, especially among organizations with limited capital, thereby restraining the market’s expansion and technological penetration.
Lack of Skilled Labor Hinders Market Expansion
The deployment of sophisticated material handling equipment necessitates a workforce with specialized technical skills for operation and maintenance. However, there’s a notable scarcity of skilled labor, particularly in developing regions, which acts as a deterrent to market growth. Companies may be reluctant to invest in high-tech equipment if they lack the personnel capable of managing these systems effectively.
This challenge is compounded in sectors with rapid technological advancements, as the gap between equipment capabilities and available technical skills widens. Consequently, the shortage of trained technicians restricts the widespread adoption and utilization of advanced material handling solutions, curbing the market’s potential for growth.
Product Analysis
Cranes & Lifting Equipment Lead Material Handling Market with 34.5% Dominance, Fueled by Automation and Safety Innovations
In the diverse landscape of the Material Handling Equipment Market, the product segment is broad, comprising Cranes & Lifting Equipment, Industrial Trucks, Continuous Handling Equipment, Racking & Storage Equipment, among others. Cranes & Lifting Equipment emerge as the dominant sub-segment, holding a substantial market share of 34.5%.
This dominance is attributed to their critical role in a wide range of industries for lifting and transporting heavy materials, which enhances operational efficiency and safety. The increasing automation and technological advancements within this sub-segment further fuel its growth, as industries seek more efficient and safer solutions for material handling.
Industrial Trucks, another vital sub-segment, play an essential role in material transport within warehouses and manufacturing facilities, driven by the e-commerce sector’s growth. Continuous Handling Equipment, including conveyors and sortation systems, is indispensable for operations requiring the movement of materials over short distances without interruption, crucial in manufacturing and distribution centers.
Racking & Storage Equipment is fundamental for optimizing storage solutions and improving warehouse operations, reflecting the growing need for efficient space utilization in warehousing and logistics. The ‘Others’ category encapsulates a variety of equipment tailored to specific industry needs, underscoring the market’s diversity and adaptability to emerging trends and requirements.
Application Analysis
E-commerce Drives 22.6% Market Share in Material Handling, Highlighting Demand for Streamlined Warehousing Solutions
Within the application segment, the market is segmented into E-commerce, Automotive, Food & Beverages, Chemical, Semiconductor & Electronics, Pharmaceutical, among others. E-commerce, with a market share of 22.6%, is the dominant sub-segment, driven by the sector’s exponential growth.
This growth necessitates advanced material handling solutions to streamline warehousing and distribution operations, highlighting the direct correlation between the e-commerce boom and the demand for material handling equipment. The efficiency and speed of order fulfillment are paramount in e-commerce, making automation and sophisticated material handling systems critical for maintaining competitive advantage.
Other segments, such as Automotive, Food & Beverages, and Chemical, require specialized material handling solutions tailored to their unique operational challenges and safety standards, contributing to the market’s overall growth.
The Semiconductor & Electronics and Pharmaceutical sectors underscore the demand for precision and contamination-free handling, necessitating advanced and specialized equipment. The ‘Others’ category represents a broad array of industries with specific material handling requirements, from construction to retail, indicating the market’s versatility and responsiveness to various sectoral needs.
Key Market Segments
By Product
- Cranes & Lifting Equipment
- Industrial Trucks
- Continuous Handling Equipment
- Racking & Storage Equipment
- Others
By Application
- E-commerce
- Automotive
- Food & Beverages
- Chemical
- Semiconductor & Electronics
- Pharmaceutical
- Others
Growth Opportunities
Warehouse Automation Offers Growth Opportunity
Warehouse automation stands as a significant growth opportunity within the Material Handling Equipment Market. The drive towards automating warehouse operations is fueled by challenges such as labor shortages and the high risk of injuries in manual tasks. Automated solutions like conveyors, robots, and Automated Guided Vehicles (AGVs) are increasingly in demand for their ability to enhance productivity and workplace safety.
A notable example is Amazon, which deployed over 200,000 warehouse robots in 2020, showcasing the massive potential for automation technologies to revolutionize warehousing operations. These advancements not only address immediate operational challenges but also set the stage for future growth by improving efficiency and scalability in material handling processes.
Emerging Markets Offer Growth Opportunity
Emerging markets, particularly in regions like India, Southeast Asia, and Latin America, present substantial growth opportunities for the Material Handling Equipment Market. The rapid pace of urbanization in these areas is generating a burgeoning demand for logistics infrastructure and advanced material handling solutions.
The Asia Pacific region, for example, is anticipated to contribute over 40% of new forklift sales through 2025. This surge reflects the expanding industrial and commercial activities in developing nations, underscoring the critical role of efficient material handling systems in supporting economic growth. The emergence of these markets as major consumers in the material handling equipment sector highlights their potential to drive significant expansion in the industry.
Trending Factors
Integration of IoT Are Trending Factors
The integration of the Internet of Things (IoT) into material handling equipment is a significant trend transforming the market. Manufacturers are embedding IoT and data analytics capabilities into their products, facilitating features like predictive maintenance and asset tracking. This technological evolution enables smarter warehouse operations, enhancing efficiency and reducing downtime.
The adoption of IoT technologies creates value-added products that appeal to businesses looking to optimize their supply chain and logistics operations. By offering advanced insights and operational intelligence, IoT-equipped material handling equipment is setting a new standard in the industry, driving growth and innovation.
Sustainability Are Trending Factors
Sustainability has become a pivotal trend in the Material Handling Equipment Market, driven by increasing demand from customers for energy-efficient and low-emission solutions. This trend is steering the market towards electric and hydrogen fuel cell powered material handling products. In Europe, for example, electric models now represent over 30% of new forklift sales, highlighting a significant shift towards greener alternatives.
This move towards sustainable material handling options is not only a response to environmental concerns but also aligns with regulatory pressures and the global push for cleaner, more sustainable industrial practices. Consequently, sustainability is not just a trend but a fundamental change in market preferences, influencing the development and adoption of new, eco-friendly material handling solutions.
Regional Analysis
Asia Pacific Dominates with 39.6% Market Share
The Asia Pacific region stands as a dominant force in the Material Handling Equipment Market, holding a substantial 39.6% market share. This dominance is primarily driven by rapid industrialization, significant investments in infrastructure development, and the escalating growth of the e-commerce sector, particularly in economies such as China, India, and Southeast Asia.
The region’s commitment to adopting advanced technologies for improving logistics and warehousing operations further contributes to its leading position. The vast manufacturing base, coupled with increasing automation in material handling processes, plays a crucial role in this dynamic market landscape.
Asia Pacific’s dominance is fueled by its robust manufacturing sector, significant technological advancements, and the rapid expansion of the e-commerce industry. The region’s aggressive push towards industrial automation, coupled with government initiatives supporting digital infrastructure and smart factories, significantly boosts demand for advanced material handling equipment. Additionally, the burgeoning middle class, with increasing purchasing power, drives retail and e-commerce growth, necessitating efficient logistics and supply chain solutions.
Regional Market Shares
- North America: North America follows as a significant player in the market, with a focus on automation and technological integration in logistics and warehousing operations contributing to its market share.
- Europe: Europe holds a considerable market share, driven by stringent regulations on emissions and safety, leading to a rapid adoption of eco-friendly and automated material handling solutions.
- Middle East & Africa: This region, although smaller in market share, is witnessing growth due to increasing infrastructure projects and industrialization efforts.
- Latin America: Latin America’s market is growing, with investments in manufacturing and warehousing operations driving the demand for material handling equipment.
Key Regions and Countries
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
In the Material Handling Equipment Market, key players such as Daifuku Co., Ltd., Toyota Industries Corporation, Kion Group AG, and Jungheinrich AG stand out for their significant impact, strategic positioning, and market influence. These companies have been instrumental in driving innovation, offering a broad range of solutions from automated systems to traditional forklifts and cranes.
Their strategic focus on research and development has led to advancements in automation, robotics, and sustainability, aligning with industry trends towards efficiency and green operations. The global footprint of these corporations, along with their comprehensive service and product portfolios, positions them as leaders in addressing the diverse needs of industries worldwide.
Collaborations, acquisitions, and expansions into emerging markets are strategies these companies employ to strengthen their market presence and respond to the dynamic demands of the sector. The cumulative efforts of these key players not only shape the competitive landscape but also set the direction for future growth and technological evolution within the market.
Market Key Players
- Daifuku Co., Ltd.
- Liebherr Group
- Schaefer System International Ltd.
- Toyota Industries Corporation
- Beumer Group
- Jungheinrich AG
- Godrej Group
- Kion Group AG
- Action Construction Equipment Ltd.
- Hyster-Yale Materials Handling, Inc.
- Swisslog Holding AG
- Crown Equipment Corporation
- Mitsubishi Logisnext Co., Ltd.
- KUKA AG
Recent Developments
- On December 2023, Packsize X5® has been honored with the Material Handling Product News 2023 Readers’ Choice Product of the Year award for its innovative X5® solution. This recognition highlights Packsize’s commitment to sustainability and innovation in the packaging industry.
- On Oct 2023, Hyundai Construction Equipment India recently unveiled a range of new products to cater to various industries, including infrastructure, mining, and material handling. The launch included four excavator models, a couple of forklift models, and wheel loaders.
- On August 2023, Cannon Equipment recently introduced a new product called CartPilot™, which adds power to nearly any material handling cart. This innovative drive system allows users to easily move large loads around warehouses or other industrial settings without needing additional equipment.
Report Scope
Report Features Description Market Value (2023) USD 229.9 Billion Forecast Revenue (2033) USD 407.8 Billion CAGR (2024-2033) 5.90% Base Year for Estimation 2023 Historic Period 2018-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Product (Cranes & Lifting Equipment, Industrial Trucks, Continuous Handling Equipment, Racking & Storage Equipment, Others), By Application (E-commerce, Automotive, Food & Beverages, Chemical, Semiconductor & Electronics, Pharmaceutical, Others) Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Daifuku Co., Ltd., Liebherr Group, Schaefer System International Ltd., Toyota Industries Corporation, Beumer Group, Jungheinrich AG, Godrej Group, Kion Group AG, Action Construction Equipment Ltd., Hyster-Yale Materials Handling, Inc., Swisslog Holding AG, Crown Equipment Corporation, Mitsubishi Logisnext Co., Ltd., KUKA AG Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the expected market value of the Global Material Handling Equipment Market?The market is anticipated to reach approximately USD 407.8 Billion by 2033, growing at a 5.9% CAGR
What are the key components included in the Material Handling Equipment Market?It includes tools, vehicles, appliances, and accessories involved in transporting, storing, controlling, and protecting goods throughout manufacturing, distribution, consumption, and disposal processes.
What are the driving factors influencing the Material Handling Equipment Market?Urbanization, industrialization, and the e-commerce boom are key driving factors.
What trends are observed in warehousing, and how do they impact material handling equipment demand?There's a shift towards larger, more automated facilities, driving investments in warehouse automation and upgrades.
Material Handling Equipment MarketPublished date: March 2024add_shopping_cartBuy Now get_appDownload Sample - BEUMER Group
- Honeywell International Inc.
- Swisslog Holding AG
- Daifuku Co., Ltd.
- Mecalux, S.A
- Kion Group AG
- SSI Schaefer AG
- Murata Machinery Ltd.
- Other Key Players
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