Increasing modernization of industrial facilities in order to improve their production capacity and operational efficiency has majorly driven the growth of the material handling equipment market.
In fact, by 2020, the global automated material handling market will reach $55.48 according to a new report from Cognitive Market Research.
The market was valued at $27.20 billion in 2022, which means the market is growing at a 9.3% CAGR rate.
Market players have recognized the benefits of automation in material handling, resulting in the rapid acquisition of robotic companies. For instance, in November 2022, a leading global provider of material handling automation, MHS global and FORTNA, a leading software and solution provider, merged to serve the end-to-end needs of logistics operations.
Major Findings During the Study of the Automated Material Handling Market:
Increasing the need for automation in several verticals, such as automotive, e-commerce, and others, to increase operational efficiency, monitor supply chain processes, and reduce labor costs are significant factors driving the automated material handling market growth.
High initial cost associated with the integration of automated material handling is expected to restrain the market growth to some extent.
By type, the WMS segment is witnessed to grow with the fastest CAGR during the forecast period. This growth is attributed due to the rapid rise in supply chain networks.
By system type, the unit load material handling segment is gaining traction due to increasing usage in several industries, such as e-commerce, food & beverage, and automotive.
By region, the Asia Pacific automated material handling market is projected to grow with the fastest CAGR during the forecast period due to the increasing adoption of new technologies by manufacturing industries for reducing labor costs as well as errors coupled with monitoring data of orders in real-time.
Latin America and the Middle East & Africa regions are projected to witness significant growth during the anticipated period due to the vast expansion of e-commerce and retail industries.
Adoption of organic and in-organic business strategies such as product development, product launch, collaboration, and partnerships by key market players are expected to open new avenues for market growth.