Executive Briefings

Market for Automated Material Handling Equipment Predicted to Approach $45Bn by 2022

The automated material handling equipment market is expected to reach $44.68bn by 2022, at a CAGR of 7.9 percent between 2016 and 2022, according to analysis firm Research and Markets. Market growth is propelled by increasing demand for automated solutions, advancements in technology; the need to ensure a safe working environment; and reduction in labor cost through advanced robotics.

Unit load material handling system is estimated to hold a large share and grow at a high CAGR in the automated material handling equipment market during the forecast period. Unit load material handling systems are widely used in various industries as they are cost effective and have many advantages such as the ability to handle several items simultaneously, thereby reducing the number of trips, time required for loading and unloading, and the cost of handling.

The e-commerce and aviation applications are expected to witness a high growth rate between 2016 and 2022. E-commerce companies are increasingly adopting automated material handling equipment to shorten the delivery time of products to the customers and for storing goods in warehouses to ensure the quick delivery of the products. Moreover, automated material handling is gaining popularity in the aviation industry as it offers ease for manufacturing and assembling the aircraft. AMH systems are used for storing parts of aircraft, picking and handling of components during assembly of aircraft, and organizing aircraft parts efficiently.

Material Handling Equipment Market
APAC is expected to be the leading and fastest-growing market for automated material handling equipment during the forecast period. The increase in production facilities and the expansion of plants is driving the market for automated material handling across the APAC countries. Further, in the APAC region, governments are increasingly emphasizing on safety and security on the production floor which can be best achieved by the implementation of AMH equipment. In countries such as China and Japan, the AMH equipment market is expected to witness a high growth rate owing to the increasing investments by manufacturers and suppliers for installing AMH equipment at warehouses and distribution centers.

One of the key restraining factors for the automated material handling equipment market is the requirement of high capital expenditure. The cost of average material handling equipment is quite high, which discourages manufacturing companies from choosing high-end automated material handling systems. Furthermore, as AMH equipment is available on lease in the market at a lower price than new equipment, AMH end users generally prefer to implement used equipment instead of new AMH equipment, which is expected to hinder the growth of the market.

Source: Research and Markets

Unit load material handling system is estimated to hold a large share and grow at a high CAGR in the automated material handling equipment market during the forecast period. Unit load material handling systems are widely used in various industries as they are cost effective and have many advantages such as the ability to handle several items simultaneously, thereby reducing the number of trips, time required for loading and unloading, and the cost of handling.

The e-commerce and aviation applications are expected to witness a high growth rate between 2016 and 2022. E-commerce companies are increasingly adopting automated material handling equipment to shorten the delivery time of products to the customers and for storing goods in warehouses to ensure the quick delivery of the products. Moreover, automated material handling is gaining popularity in the aviation industry as it offers ease for manufacturing and assembling the aircraft. AMH systems are used for storing parts of aircraft, picking and handling of components during assembly of aircraft, and organizing aircraft parts efficiently.

Material Handling Equipment Market
APAC is expected to be the leading and fastest-growing market for automated material handling equipment during the forecast period. The increase in production facilities and the expansion of plants is driving the market for automated material handling across the APAC countries. Further, in the APAC region, governments are increasingly emphasizing on safety and security on the production floor which can be best achieved by the implementation of AMH equipment. In countries such as China and Japan, the AMH equipment market is expected to witness a high growth rate owing to the increasing investments by manufacturers and suppliers for installing AMH equipment at warehouses and distribution centers.

One of the key restraining factors for the automated material handling equipment market is the requirement of high capital expenditure. The cost of average material handling equipment is quite high, which discourages manufacturing companies from choosing high-end automated material handling systems. Furthermore, as AMH equipment is available on lease in the market at a lower price than new equipment, AMH end users generally prefer to implement used equipment instead of new AMH equipment, which is expected to hinder the growth of the market.

Source: Research and Markets