#automated material handling (AMH) market

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Robust Growth Expected in AMH Market as Industry 4.0 Accelerates

The global automated material handling (AMH) market is poised for substantial growth over the coming decade, projected to reach a valuation of US$ 85.1 Bn by 2031, up from US$ 40.9 Bn in 2021, expanding at a CAGR of 8.3% from 2022 to 2031. The market is witnessing an uptick in demand across numerous sectors, notably e-commerce, 3PL, food and beverage, pharmaceuticals, and automotive, as companies seek to boost efficiency, reduce operational costs, and improve safety.

Market Overview

Automated material handling systems refer to equipment and software that aid in the movement, protection, storage, and control of materials and products in manufacturing, warehousing, and distribution. These systems are increasingly being adopted due to their ability to improve efficiency, reduce waste, and lower overall costs.

Analysts emphasize that industries are shifting toward automation to meet growing consumer demand, enhance accuracy, and streamline inventory and logistics. Integration of robotics, artificial intelligence (AI), and cloud-based software is transforming traditional storage operations into smart, responsive environments.

Market Drivers & Trends

E-commerce Expansion: With online shopping becoming the norm, warehouses are under pressure to fulfill orders quickly and accurately. Automated systems enable faster picking, sorting, and delivery.

3PL Adoption: Third-party logistics providers are heavily investing in automation to manage inventory, optimize warehousing, and ensure timely delivery.

Cloud-based WMS & TMS: Cloud platforms are replacing on-premise warehouse and transport management systems, offering scalability, data accessibility, and cost-effectiveness.

Cold Chain Automation: The rise in demand for frozen food, pharmaceuticals, and temperature-sensitive products has led to the increased use of AMH systems in cold storage facilities.

Labor Shortage: Automation helps address workforce challenges by reducing reliance on manual labor and minimizing human error.

Key Players and Industry Leaders

Leading market participants include:

Daifuku Co., Ltd.

Honeywell International Inc. (Honeywell Intelligrated)

KUKA AG

BEUMER GROUP

Murata Machinery, Ltd.

Jungheinrich AG

Blue Yonder Group, Inc.

Dematic

KNAPP AG

GreyOrange

Geekplus Technology Co., Ltd.

These players are focusing on strategic partnerships, product innovation, and mergers and acquisitions to expand their global footprint and cater to dynamic industry needs.

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Recent Developments

March 2022: RightHand Robotics launched a Partner Integrator Program to streamline robotic piece picking integration in warehouse operations.

February 2022: Murata Machinery expanded its AGV offerings by adding seven new standard models to cater to diverse industrial needs.

September 2021: Honeywell unveiled a robotic solution for automating pallet loading/unloading, helping reduce manual labor.

May 2018: Coca-Cola Amatil implemented KUKA AG’s robot-based ACPaQ solution in New Zealand to improve delivery quality and meet increasing demand.

Latest Market Trends

High Adoption of ASRS: Automated Storage and Retrieval Systems accounted for 26.5% market share in 2021 and are anticipated to grow at 10.5% CAGR. They improve space utilization and boost picking accuracy up to 99.9%.

Surge in AMRs and AGVs: Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) are increasingly used for material transport within warehouses.

Integration of AI and IoT: Advanced analytics, machine learning, and IoT-enabled systems provide real-time visibility and enhance predictive maintenance.

Market Opportunities

Emerging Markets in Asia Pacific: Countries like India, China, and Southeast Asian nations offer untapped potential due to rapid industrialization and government support for smart manufacturing.

Eastern and Central Europe: Nations such as Poland and Hungary present growing demand for automation in logistics and manufacturing, offering lucrative entry points for market players.

SME Adoption: Small and medium enterprises (SMEs) are increasingly embracing semi-automated systems to remain competitive and meet rising customer expectations.

Future Outlook

The automated material handling market is expected to witness robust growth through 2031, underpinned by digital transformation across supply chains. Increased investment in Industry 4.0 technologies, warehouse robotics, and cloud-based management platforms will redefine how goods are stored and moved globally. Stakeholders must focus on modular, scalable, and interoperable solutions to address evolving operational challenges.

Market Segmentation

By Offering

Hardware: ASRS, AGVs, AMRs, Palletizing Robots, RFID Scanners, Conveyors

Software: Warehouse Management System (WMS), Warehouse Execution System (WES), Transportation Management System (TMS)

Services

By Package Type

Pallet, Containers, Totes, Bulk Containers, Cartons, Others

By Industry Vertical

Food & Beverage

Cold Chain

Personal Care

Pharmaceuticals

Automotive

Retail & E-Commerce

3PL

Others (Healthcare, Airport Services)

Regional Insights

North America (33.5% market share in 2021): The U.S. leads in warehouse automation adoption, with major investments in smart logistics and AI-driven inventory management.

Europe (29.4% market share in 2021): Germany, France, and Austria dominate, but Poland and Nordic countries show growing interest due to expanding e-commerce and industrial automation.

Asia Pacific: Fastest-growing region with high demand in manufacturing and retail sectors. China, India, and Japan are driving the surge due to robust industrial activity and government incentives.

Middle East & Africa and South America: Emerging demand for automated solutions in logistics and food distribution.

Frequently Asked Questions

1. What is the size of the global automated material handling market? The market was valued at US$ 40.9 Bn in 2021 and is projected to reach US$ 85.1 Bn by 2031, growing at a CAGR of 8.3%.

2. What factors are driving the growth of this market? Key drivers include the rise in e-commerce, 3PL automation, cloud-based WMS/TMS adoption, and the need for labor efficiency and accuracy in logistics.

3. Which region is expected to offer the most growth potential? Asia Pacific is expected to grow the fastest due to industrial expansion and adoption of warehouse automation across major economies.

4. What is the role of ASRS in market growth? ASRS enhances warehouse efficiency, reduces storage costs, and increases accuracy and space utilization, making it a vital component of the market.

5. Who are the top players in the automated material handling market? Daifuku, Honeywell, KUKA, Dematic, Murata Machinery, and Geekplus are among the leading players.

6. What industries are the major adopters of AMH systems? Industries such as retail, e-commerce, pharmaceuticals, food & beverage, and automotive are major users of automated material handling solutions.

[globalresearchinsights]

Automated Material Handling Systems Market Expected to Double by 2034 with Smart Warehouse Integration

Market Overview

The Automated Material Handling Systems (AMHS) Market is undergoing a transformative shift, driven by the increasing demand for streamlined operations, improved accuracy, and enhanced productivity across multiple industries. As businesses focus on reducing manual labor, cutting operational costs, and accelerating throughput, AMHS solutions are becoming integral to supply chain and production environments. From warehouses and distribution centers to automotive and pharmaceutical manufacturing units, the need for smarter and faster material handling processes is paving the way for the adoption of advanced systems such as automated guided vehicles (AGVs), robotic systems, and automated storage and retrieval systems (AS/RS).

According to projections, the AMHS market is poised for steady growth through 2034, with a rising demand across sectors like e-commerce, retail, food and beverages, and logistics. The market is categorized by types such as unit load and bulk load systems and spans various technologies, including RFID, barcode scanning, voice picking, and vision systems.

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Market Dynamics

Several key factors are propelling the growth of the automated material handling systems market. First, the rapid expansion of the e-commerce sector has generated a strong need for efficient warehousing and distribution solutions, compelling companies to invest in automation for order picking, sorting, and packaging. Secondly, labor shortages and rising wages in industrial sectors are prompting manufacturers to turn to automated systems as a long-term cost-saving measure.

Technological advancements, particularly in AI, IoT, and machine learning, are also playing a significant role in enhancing the functionality and intelligence of AMHS. These technologies enable systems to self-diagnose issues, predict maintenance needs, and adapt to fluctuating production requirements in real time.

However, high initial investment costs and the complexity of system integration continue to pose challenges for small and medium enterprises. There is also a need for skilled personnel to manage and maintain these advanced systems, which can be a constraint in certain regions.

Key Players Analysis

The competitive landscape of the AMHS market is characterized by the presence of several global and regional players offering a wide range of solutions. Major companies such as Daifuku Co., Ltd., Honeywell Intelligrated, SSI Schaefer, Murata Machinery, and KUKA AG are actively innovating and expanding their product lines to address diverse industry needs.

These players are focusing on strategic collaborations, acquisitions, and investments in research and development to enhance their market presence. For example, Honeywell’s integration of AI into its warehouse execution systems and KUKA’s advanced robotic solutions are redefining the capabilities of automated material handling.

Regional Analysis

Regionally, North America and Europe are leading the adoption of AMHS, fueled by the presence of technologically advanced industries and strong logistics infrastructure. The United States, in particular, remains a frontrunner due to its booming e-commerce market and significant investment in smart warehousing solutions.

Asia-Pacific, however, is emerging as the fastest-growing market. Countries like China, Japan, and India are witnessing a surge in industrial automation, driven by expanding manufacturing sectors and government initiatives promoting Industry 4.0. The increasing demand for consumer goods and the rapid growth of online retail platforms are also contributing to the region’s rising market share.

Recent News & Developments

In recent developments, several key market players have launched innovative solutions tailored to address evolving market needs. For instance, Swisslog introduced a new generation of robot-based picking systems for e-commerce, while Dematic unveiled its latest modular conveyor systems aimed at reducing downtime and improving flexibility.

Additionally, many companies are investing in retrofitting existing installations to make them compatible with newer technologies such as vision systems and AI-powered analytics. There is also a growing emphasis on sustainability, with players designing energy-efficient systems and using recyclable components.

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Scope of the Report

The scope of the automated material handling systems market report is broad and covers detailed segmentation across product types, services, technologies, and end-user applications. The market is segmented into hardware, software, and services, offering solutions such as consulting, system integration, maintenance, and training.

Products covered include conveyors and sortation systems, robotic systems, AGVs, AS/RS, palletizers, sorters, and shuttles. Applications span from warehouse and distribution to assembly, packaging, and transportation functions, making AMHS a central pillar of modern industrial infrastructure.

The report further explores key growth opportunities in new installations and retrofit projects, offering insights into future trends, investment strategies, and the evolving needs of end users across retail, automotive, manufacturing, and pharmaceutical sectors.

In conclusion, the Automated Material Handling Systems market is evolving rapidly, driven by innovation, industrial growth, and the unrelenting need for efficiency. With a promising future ahead, businesses that invest in these technologies stand to gain a competitive edge in the years to come.

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[fuzzycrownking]

The automated material handling equipment market has been rapidly growing, driven by a host of factors that have revolutionized the logistics and manufacturing industries. From e-commerce expansion to labor shortage solutions, automated material handling (AMH) systems are transforming the way materials are stored, retrieved, and transported across industries.

Technological Advancements Powering Growth One of the main drivers of the AMH market is the continuous innovation in technology. The integration of robotics, artificial intelligence (AI), and Internet of Things (IoT) into automated material handling systems has elevated operational efficiency to new heights. Smart sensors and real-time data analytics enable precise tracking and reduce operational errors, leading to increased productivity and reduced downtime. These technological enhancements are propelling the adoption of AMH equipment in warehouses and distribution centers worldwide.

E-Commerce Boom Fueling Demand The exponential growth of the e-commerce sector has significantly boosted the demand for automated material handling solutions. Consumers expect faster delivery times and seamless order fulfillment, prompting e-commerce giants and retailers to invest in advanced AMH systems. Automated storage and retrieval systems (AS/RS), conveyor systems, and autonomous guided vehicles (AGVs) are becoming critical components in ensuring speedy and efficient logistics operations. As e-commerce continues to thrive, the AMH market is poised to witness sustained growth in the coming years.

Labor Shortages and Cost Reduction as Key Drivers Labor shortages in various industries, especially post-pandemic, have further accelerated the adoption of AMH equipment. With a limited workforce and rising labor costs, businesses are turning to automation to maintain their operational efficiency. Automated material handling systems reduce reliance on human labor, lower the risk of workplace injuries, and minimize labor-related expenses. This shift not only ensures business continuity but also contributes to significant cost savings in the long run.

Enhancing Workplace Safety and Efficiency Safety concerns in material handling environments have also emerged as strong drivers for the AMH market. Automated systems are designed to handle hazardous tasks, reduce human error, and minimize accidents in warehouses and production facilities. By replacing manual handling with automated solutions, companies can create safer workplaces, comply with stringent safety regulations, and boost overall operational efficiency.

Sustainability and Green Initiatives Pushing Adoption Growing awareness around sustainability and eco-friendly practices is pushing companies to embrace automated material handling systems. These systems optimize energy consumption, reduce carbon footprints, and support green logistics initiatives. Automated equipment ensures precise control of inventory, minimizing waste and maximizing resource utilization. As environmental concerns become a priority for businesses, the demand for energy-efficient AMH solutions is expected to grow steadily.

Expanding Applications Across Diverse Industries The versatility of automated material handling equipment is a key driver behind its growing popularity. While traditionally used in warehouses and logistics centers, AMH solutions are now being deployed in a wide range of industries, including automotive, food and beverage, pharmaceuticals, and electronics. This diversification of applications highlights the adaptability of AMH systems in meeting the unique needs of different sectors, further driving market growth.

Conclusion In conclusion, the automated material handling equipment market is experiencing robust growth due to a combination of factors that act as key drivers. Technological innovation, the e-commerce boom, labor shortages, safety enhancements, sustainability initiatives, and industry diversification are all playing vital roles in shaping the market's future. As companies continue to prioritize efficiency, safety, and environmental responsibility, the demand for automated material handling equipment is expected to reach new heights in the years ahead.

[ujwala-hole11]

Automated Material Handling Equipment Market Insights The Rise of Robotics in Supply Chain Operations

The Automated Material Handling Equipment (AMHE) market has gained remarkable traction in recent years, driven by the increasing need for efficiency, productivity, and safety across various industries. AMHE includes systems like conveyors, automated guided vehicles (AGVs), robotics, and sorting systems, all designed to optimize the handling and transportation of materials in warehouses, distribution centers, and manufacturing plants. The market is poised for further growth as companies invest in advanced technologies to streamline operations and reduce labor costs.

Growth Factors in the AMHE Market

Several key factors are driving the growth of the Automated Material Handling Equipment market. One of the main contributors is the increasing demand for faster, more efficient operations, particularly in industries such as e-commerce, logistics, automotive, and manufacturing. Automation helps companies meet these demands by reducing human error, minimizing downtime, and improving overall productivity. Additionally, advancements in robotics, artificial intelligence (AI), and the Internet of Things (IoT) are enhancing the functionality of AMHE systems, making them more intelligent and adaptable.

Automation in Warehousing and Distribution Centers

Warehouses and distribution centers are among the biggest adopters of automated material handling systems. The rising demand for quick delivery times in the e-commerce sector has forced companies to implement automated solutions to keep up with order volumes. Automated systems such as sorting, packaging, and AGVs help reduce operational bottlenecks and improve throughput. These systems can move goods more efficiently, leading to faster order fulfillment and improved customer satisfaction.

Technological Advancements Shaping the AMHE Market

Technological advancements play a significant role in shaping the AMHE market. Automation technologies such as AI, robotics, and machine learning are being integrated into material handling systems to improve efficiency and reduce human involvement. AI-powered robots can sort, transport, and pick items with greater precision, while machine learning allows systems to adapt and optimize processes based on real-time data. These advancements are not only making AMHE systems more efficient but also enabling greater flexibility in adapting to different types of products and warehouse layouts.

Adoption of Robotics and Smart Systems

Robotics is a central element of the AMHE market, with robots being increasingly deployed to handle materials in warehouses and production lines. Robotic arms, autonomous mobile robots (AMRs), and drones are improving the speed, accuracy, and safety of material handling operations. These robots are capable of performing repetitive tasks such as lifting, sorting, and packaging, freeing up human workers for more complex tasks. The adoption of robotics is expected to increase as companies strive to reduce labor costs and improve operational efficiency.

The Role of AI and IoT in Automation

Artificial intelligence (AI) and the Internet of Things (IoT) are transforming the AMHE market by enabling smarter systems. AI allows for predictive maintenance, optimizing workflows, and enhancing decision-making, while IoT enables real-time monitoring of operations. The integration of these technologies helps businesses track materials and equipment performance, anticipate problems, and streamline supply chain processes. As these technologies become more advanced, the level of automation in material handling systems will continue to rise, offering greater flexibility and efficiency.

Benefits of AMHE: Improving Efficiency and Reducing Costs

The primary benefits of automated material handling systems are improved efficiency and reduced operational costs. These systems enable faster processing of goods, minimize human error, and reduce labor costs. In addition, automated systems can operate around the clock, which leads to better utilization of resources and maximized productivity. The long-term cost savings from adopting AMHE solutions are driving companies to invest in these technologies, despite the high initial installation costs.

Impact of E-Commerce Growth on AMHE Demand

E-commerce has had a significant impact on the demand for automated material handling systems. As online shopping continues to grow, logistics companies are increasingly relying on automation to meet the rising demand for faster and more efficient order fulfillment. Automated systems can handle large volumes of orders, process returns, and manage inventory more effectively. As e-commerce companies expand their operations, they are expected to continue investing in AMHE systems to stay competitive in a rapidly evolving market.

Regional Insights: Global Adoption of AMHE

The AMHE market is experiencing rapid growth in various regions around the world. North America and Europe are leading the market due to the presence of key players, advanced technological infrastructure, and a strong focus on automation across industries. The Asia-Pacific region, particularly China and Japan, is also witnessing significant growth, driven by the rapid industrialization and the rise of e-commerce in these countries. Emerging economies in Latin America and the Middle East are also expected to contribute to the market's expansion as they increasingly adopt automation to enhance productivity and efficiency.

Challenges Facing the AMHE Market

Despite its growth, the Automated Material Handling Equipment market faces several challenges. The high upfront costs associated with the installation of automated systems can be a barrier for small and medium-sized enterprises (SMEs). Moreover, the complexity of integrating automation with existing infrastructure and the need for skilled labor to operate and maintain these systems can pose difficulties. However, as the technology matures and becomes more affordable, these challenges are expected to diminish, making AMHE solutions more accessible to a wider range of businesses.

Conclusion

The Automated Material Handling Equipment market is set for significant growth, driven by technological innovations, the rise of e-commerce, and the need for greater efficiency in industrial operations. Robotics, AI, and IoT are transforming material handling systems, making them smarter, faster, and more adaptable. As industries continue to embrace automation, the AMHE market will play a crucial role in reshaping supply chain management and operational processes in the years to come.

[metastatblog]

Warehouse Execution System market Analysis, Size, Share, Growth, Trends, and Forecasts by 2031

Warehouse Execution Systems assume a pivotal role in the contemporary realm of supply chain governance, ensuring the efficient storage, retrieval, and dispatch of goods to align with the exigencies of discerning clientele. They coalesce seamlessly with other warehousing technologies, such as Warehouse Management Systems (WMS), Automated Material Handling Systems (AMHS), and an array of sensors and contrivances, orchestrating and mechanizing tasks within the confines of a repository. Global Warehouse Execution System (WES) market is estimated to reach $1,828.8 million in 2023 with a CAGR of 15.1% from 2023 to 2030.

𝐆𝐞𝐭 𝐚 𝐅𝐫𝐞𝐞 𝐒𝐚𝐦𝐩𝐥𝐞 𝐑𝐞𝐩𝐨𝐫𝐭:https://www.metastatinsight.com/request-sample/2411

Top Companies

Bastian Solutions, LLC

Dematic

Extensiv

Fortna Inc.

Generix Group

Honeywell International Inc.

Hy-Tek Intralogistics

Interlink Technologies

Invata Intralogistics

Inyxa

Lucas Systems, Inc.

Matthews International Corporation

Softeon

VARGO

Westfalia Technologies, Inc.

Global Warehouse Execution System (WES) market is estimated to reach $1,828.8 million in 2023 with a CAGR of 15.1% from 2023 to 2030.

𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐭𝐡𝐞 𝐅𝐮𝐥𝐥 𝐑𝐞𝐩𝐨𝐫𝐭:

@https://www.metastatinsight.com/report/warehouse-execution-system-wes-market

The Global WES domain encompasses the universal appetite for these mechanisms. It entails the commerce and trade of WES remedies, encompassing both the ethereal realm of software and the corporeal domain of hardware, along with their attendant services. Enterprises of every magnitude and purview partake in this transaction, transcending boundaries of industry and scale. The magnitude and trajectory of this marketplace are swayed by a multitude of factors, including the burgeoning bastion of e-commerce, the surging expectations of consumers clamoring for expeditious deliveries, the imperativeness of precision in inventory stewardship, and the embracement of automation and robotics within the precincts of storehouses.

Entities proffering Warehouse Execution Systems embark upon the development and dissemination of their offerings, meticulously tailored to cater to the myriad exigencies that afflict repositories and distribution centers. These bespoke solutions are artfully architected to grapple with specific conundrums that vex businesses, encompassing the imperative task of curbing operational overheads, the enhancement of order fidelity, and the elevation of the omnibus efficiency of the repository.

In recent times, the Global WES market has borne witness to the expansion, an effulgence that can be attributed to the incremental appreciation of the manifold advantages proffered by these systems in the optimization of warehousing operations. As enterprises labor assiduously to align themselves with the ever-evolving cravings of their patronage and endeavor to retain their competitive edge within the matrix of the global market, the vogue for Warehouse Execution Systems is poised to burgeon unabatedly.

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[imrmarket]

Automated Material Handling Equipment Market to Reach USD 96.79 Bn by 2032

The Global Automated Material Handling Equipment Market was estimated at USD 51.77 billion in 2023 and is projected to reach USD 96.79 billion by 2032, growing at a CAGR of 7.2%, during the forecast period (2024-2032).

Automated material handling equipment contains any automation that helps in reducing or eliminating the need for human intervention throughout the product manufacturing process, further offering enhanced efficiency during the production procedure; industrialization and modernization is the primary driver of the market.

According to the recent report printed by introverted research, the world   Automated Material Handling Equipment Market report provides property growth opportunities, challenges, scope, Driver restraints, and also the latest trends throughout the forecast amount from 2024-2032. This latest business analysis study analyses the Automated Material Handling Equipment market by numerous product segments, applications, regions, and countries whereas accessing the regional performances of various leading market participants. During this report, there square measure numerous approaches and procedures approved by key market players that change economical business choices.

This report has a complete table of contents, figures, tables, and charts, as well as insightful analysis. The Automated Material Handling (AMH) Equipment market has been growing significantly in recent years, driven by a number of key factors, such as increasing demand for its products, expanding customer base, and technological advancements. This report provides a comprehensive analysis of the Automated Material Handling (AMH) Equipment market, including market size, trends, drivers and constraints, competitive aspects, and prospects for future growth.

Key Player Mentioned in This Automated Material Handling Equipment Market Report:

Daifuku Co. Ltd. (Japan),Siemens AG (Germany),Bosch Rexroth (Germany),Murata Machinery Ltd. (Japan),Swisslog Holding AG (Switzerland),SSI Schaefer AG (US),Dematic Group S.A.R.L (US),Toyota Industries Corporation (Japan),JBT Corporation (US),Bastian Solutions Inc (US),Jungheinrich AG (UK),KUKA AG(Germany),KION Group AG(Germany),Xuzhou Heavy Machinery Co. Ltd. (China),Manitowoc Company Inc (US) and other major players.

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Scope of the Automated Material Handling Equipment Market

Global Automated Material Handling Equipment Market research report contains the extensive use of secondary and primary data sources. Research process focuses on multiple factors impacting the industry such as aggressive landscape, government coverage, historical data, market present position, market trends, upcoming technologies and innovations in addition to risks, rewards, challenges and opportunities. To be able to validate market volume market, manufacturers, regional analysis, product sections and end users/applications study use Top-down and bottom-up approach.

Segmentation of Automated Material Handling Equipment Market:

In Market Segmentation By Type, Automated Material Handling Equipment Market Report Covers:

In Market Segmentation By Application Industry, Automated Material Handling Equipment Market Report Covers:

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By Region

(U.S., Canada, Mexico)

(Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

(Germany, U.K., France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

(China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New Zealand, Rest of APAC)

(Turkey, Saudi Arabia, Bahrain, Kuwait, Qatar, UAE, Israel, South Africa)

(Brazil, Argentina, Rest of SA)

The Report Covers Exhaustive Analysis On:

The market size and industry growth rate of the global and regional market across various segments

Based on extensive primary and secondary research this report provides comprehensive and granular data

Key technological advancements and market trends that shape the market

Brand dynamics and distribution trends in order to effectively plan strategies in the forecast period 2024-2032

Key companies operating in the global Automated Material Handling Equipment market and their market share

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[market-insider]

Automated Material Handling Equipment Market Overview: Evaluating Size, Share, Trends, and Future Growth

The global automated material handling equipment market size is anticipated to reach USD 114.45 billion by 2030, projected to grow at a CAGR of 9.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. The increasing labor costs in many countries are driving the demand for AMH equipment, which is replacing manual labor. It helps companies save costs by reducing the need for manual labor and increasing productivity. Further, e-commerce has created a need for faster and more efficient material handling systems. Automated Material Handling (AMH) equipment is used in e-commerce warehouses to handle large volumes of orders to ensure products are delivered to customers quickly and accurately. Technological advances have also made it possible to develop more sophisticated AMH equipment that is fast, accurate, and reliable. These systems use sensors, artificial intelligence, and machine learning to automate material handling tasks.

Automated Material Handling Equipment Market Report Highlights

The robots segment led the market in 2023, accounting for over 24% share of the global revenue owing to the integration of artificial intelligence and machine learning technologies in robotic systems.

The unit load material handling segment held the largest revenue share in 2023 due to its ability to streamline supply chain operations and move materials more efficiently across long distances.

The e-commerce segment led the market in 2023. The adoption of AMH equipment in the e-commerce industry is expected to increase significantly in the coming years as companies such as Amazon, eBay, and Alibaba strive to remain competitive and meet customer expectations.

The Asia Pacific region held the largest revenue share, over 39%, in 2023. The region's flourishing manufacturing and automobile sectors are expected to spur the demand for automated material-handling equipment.

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Automated storage and retrieval systems can significantly reduce variable costs by eliminating the need for manual labor for tasks such as assembly, picking, storing, and inventory replenishment. Warehouses and distribution centers require the regular replenishment of raw materials, work-in-progress, and finished goods inventories to maintain uninterrupted processes, making shelf arrangement and grouping critical. Efficient space utilization is vital for the bottom line of warehouses and distribution centers. For instance, in September 2022, Aurora Organic Dairy, a producer of organic milk and butter for U.S. retailers, sought the help of Westfalia Technologies Inc. to design an AS/RS solution for a significant warehouse addition. The AS/RS enabled the company to build a highly automated warehouse adjacent to the milk plant to accommodate growth in a limited square footage area while recasting the whole warehousing process from production to shipping to staging.

Labor shortages are compelling organizations to seek robots to ensure their stability. Industries such as janitorial services, commercial and home delivery, food and beverage, healthcare, and manufacturing are expected to benefit from autonomous mobile and collaborative robots. Technologically advanced countries such as South Korea and Japan are at the forefront of manufacturing next-generation AMH equipment. For instance, in March 2023, THIRA Robotics launched a new generation of autonomous mobile robots (AMRs) designed to operate in harsh facility conditions, previously unsuitable for automation. This development is likely a significant advancement in the automation industry. The company aimed to present five models and demonstrations of AMR operating on sloped and uneven flooring at Promat.

[sjsuraj]

The global market for automated material handling systems is anticipated to grow at a CAGR of 9.2% over the course of the forecast period, according to the most recent study by FMI. The market is anticipated to be worth US$ 34 billion in 2023. The value is expected to hit US$ 81.8 billion by 2033.

the growing trend toward smart factories. In order to evaluate operating efficiency and decrease waste, the entire manufacturing floor now requires monitoring at every step of the process. In such cases, smart factories with handling equipment provide continuous monitoring of all processes. Furthermore, many intuitive technologies included in material handling systems, such as cloud connectivity and data analytics, improve asset performance and give real-time actionable data.

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Wireless remote-control systems that help give better diagnostics and save commissioning time are also provided by the incorporation of such automated material systems placed in facilities. The rise of Industry 4.0 and smart factory development is creating a potential market for automated material handling systems as a result of the aforementioned considerations.

The failure or breakdown of AMH equipment can have a significant impact on a company’s overall earnings. Breakdowns cause the entire production process to be delayed, resulting in output losses and plant performance degradation. As a result, such automated material handling systems businesses must invest extensively in preventive maintenance of their AMH equipment in order to avoid downtime and assure proper operation.

The automated material handling systems market growth is predicted to rise as the e-commerce industry continues to develop. Today’s e-commerce industry is booming all over the world, creating a great need for process automation. Amazon, Walmart, and other major retailers are progressively incorporating automated technologies to carry out operations in a more efficient, precise, cost-effective, and secure manner. Aside from that, the growth of the manufacturing industry is a big contributor to the material handling systems market expansion.

Owners of facilities are concentrating on producing and delivering products to their clients at a faster, cheaper, and higher quality rate. As a result, integrating handling equipment allows for more efficient production cycles, which minimizes operational costs and waste.

SMEs are unable to fully automate their supply chains due to the high upfront expenses of implementing AMH technology. Because small businesses cannot afford automated material handling systems, they must rely on traditional/manual material handling methods. Some major businesses reduce their upfront costs by renting industrial trucks, leasing equipment, or purchasing used equipment. This is expected to hinder the sales for new equipment.

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Automated Material Handling Equipment Market: Innovations and Technological Advancements Reshaping Industries Worldwide

The Automated Material Handling Equipment (AMHE) market is experiencing significant growth, driven by advancements in technology and an increasing demand for efficient and cost-effective solutions in various industries. These systems are designed to automate processes such as the transportation, storage, and retrieval of materials in warehouses, manufacturing plants, distribution centers, and other industrial settings. AMHE includes a broad range of equipment, such as conveyors, automated guided vehicles (AGVs), cranes, robots, and sortation systems, all of which work together to streamline material flow and improve operational efficiency.

Market Drivers

Several key factors are contributing to the rapid expansion of the Automated Material Handling Equipment market. One of the main drivers is the increasing demand for automation in industries such as manufacturing, logistics, e-commerce, and retail. The need for faster and more accurate material handling solutions, as well as the growing pressure to meet customer demands for quick deliveries, is pushing companies to adopt automation technologies.

The rising labor costs and the shortage of skilled labor are also influencing the market. Many businesses are turning to automated systems to reduce reliance on human labor, thereby lowering operational costs and improving productivity. Additionally, automated systems can work around the clock, ensuring higher efficiency and reducing the chances of human error. This results in enhanced throughput, better utilization of resources, and improved safety.

Technological advancements in robotics, artificial intelligence (AI), and the Internet of Things (IoT) are also playing a crucial role in the growth of the market. AMHE systems are becoming increasingly intelligent and capable of performing complex tasks, such as inventory management, predictive maintenance, and real-time data analysis. These innovations make automation systems more versatile and adaptable to a variety of industries, thus broadening their applications.

Market Segmentation

The Automated Material Handling Equipment market can be segmented based on the type of equipment, end-user industry, and region.

By Type of Equipment:

Conveyors: These are commonly used in manufacturing and distribution centers for transporting goods and materials. Conveyors offer an efficient means of material handling by reducing the need for manual labor and enhancing operational efficiency.

Automated Guided Vehicles (AGVs): AGVs are mobile robots used to transport materials within a facility. They follow pre-programmed paths and are equipped with sensors to avoid obstacles, improving the flow of materials while ensuring safety.

Robotic Systems: Robotic systems, such as robotic arms, are widely used in material handling for tasks such as sorting, picking, and packaging. They are often used in combination with other automated equipment to optimize processes.

Cranes and Hoists: These systems are used for lifting and transporting heavy materials in industrial settings. Cranes and hoists are vital in sectors such as construction and manufacturing.

Sortation Systems: These systems are designed to sort products based on predefined criteria such as size, color, or destination. They are typically used in warehouses and distribution centers for efficient order fulfillment.

By End-User Industry:

E-commerce and Retail: The e-commerce industry is one of the largest adopters of automated material handling systems. With the increase in online shopping, there is a growing need for efficient fulfillment centers that can handle large volumes of orders quickly and accurately.

Manufacturing: In manufacturing, AMHE systems are used to streamline processes such as assembly, packaging, and delivery. The automotive and electronics industries, in particular, rely heavily on automated material handling to improve production efficiency.

Logistics and Warehousing: The logistics industry is also a major consumer of AMHE, as it allows companies to optimize their supply chains, reduce transit times, and improve inventory management.

Food and Beverage: In the food and beverage sector, automated systems are used for tasks such as sorting, packaging, and palletizing. These systems ensure that products are handled hygienically and meet safety standards.

Pharmaceuticals: Automated systems in the pharmaceutical industry are crucial for ensuring the accuracy and safety of products. They help with tasks such as inventory management, sorting, and packaging of sensitive pharmaceutical products.

Regional Insights

The Automated Material Handling Equipment market is experiencing significant growth across various regions, with North America, Europe, and Asia Pacific being key players.

North America: North America, especially the United States, is one of the largest markets for AMHE, driven by the high adoption rate of advanced technologies in industries such as e-commerce, manufacturing, and logistics. The region's strong focus on research and development, along with the presence of several key market players, is also contributing to market growth.

Europe: Europe is another prominent region in the AMHE market, with countries like Germany, the UK, and France leading the way. The European market is characterized by a high demand for automation in manufacturing, logistics, and e-commerce, particularly in countries with strong industrial sectors.

Asia Pacific: The Asia Pacific region is expected to see the highest growth in the Automated Material Handling Equipment market. This can be attributed to the rapid industrialization in countries like China, Japan, and India. The increasing demand for automation in manufacturing and logistics, coupled with the region’s large population and growing e-commerce sector, is driving market expansion.

Challenges

Despite the significant growth potential, the AMHE market faces several challenges. One of the main obstacles is the high initial cost of implementing automated systems, which can be a barrier for small and medium-sized enterprises (SMEs). Additionally, the complexity of integrating new automated systems with existing infrastructure can lead to disruptions in operations.

Moreover, the rapid pace of technological advancements in automation means that businesses must constantly invest in upgrading their systems to remain competitive. This presents a challenge for companies in terms of budget allocation and resource management.

Conclusion

The Automated Material Handling Equipment market is poised for substantial growth, driven by the need for efficiency, cost reduction, and technological advancements. As industries continue to embrace automation to meet the demands of modern supply chains, the market for AMHE is expected to expand significantly in the coming years. However, businesses must carefully consider factors such as initial costs and system integration to ensure successful adoption.