Automated Material Handling (AMH) Equipment Market Size, Share & Trends Analysis Report By Product (Robots, AGV, WMS), By Vertical (Aviation, E-commerce), By System Type (Unit Load, Bulk Load), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global automated material handling (AMH) equipment market size was valued at USD 57.15 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. The growing need for automation in various industries drives the AMH equipment market. Companies want to automate manufacturing processes to improve efficiency, reduce labor costs, and improve product quality. Material handling is a critical aspect of modern production systems, where the movement, storage, and protection of materials and products are essential for an efficient flow of operations.

This process is integral to the manufacturing, distribution, consumption, and disposal of goods and impacts the system's overall performance. A well-designed material handling system can reduce labor costs, minimize equipment expenses, and improve product quality. By selecting correct type of equipment, manufacturers can ensure a smooth flow of materials and products throughout the production process, increasing speed of production, reducing risk of damage to materials & products, and improving safety of workers. Therefore, material handling equipment is an essential investment for any manufacturing or production business seeking to streamline operations and optimize efficiency.

Automated material handling industry is expected to benefit from the increasing trend toward smart factories. With advancements in motion control, robots have become more agile and precise, allowing them to creatively manipulate workpieces or products and perform a wide range of tasks. Monitoring manufacturing processes, including picking, sorting, and conveying systems, is necessary to improve efficiency and reduce waste. Smart factories integrated with automated systems enable real-time monitoring of every process. In addition, the industry is driven by intuitive technologies, such as cloud-based software, IoT, and machine learning, which enable real-time data monitoring and analysis, identifying inefficiencies and optimizing operations.

Cloud-based software can monitor equipment performance and detect issues, while IoT sensors can track the movement of materials and products throughout the supply chain. As a result, the material handling industry is expected to continue growing as manufacturers seek to improve efficiency and reduce waste by adopting smart technologies. Machine Learning (ML) algorithms can also be used to optimize material flow, reduce bottlenecks, and enhance system's productivity.

Market Dynamics

AMH equipment is anticipated to become more accessible, sophisticated, and prevalent in labor market in the next ten years as it increases productivity and reduces costs. Manufacturing companies are required to act quickly to increase their output per worker to remain competitive owing to the growing global labor prices. Businesses realize that developments in robots and other production technologies provide ideal choices for improving efficiency. About 10% of routine production tasks, such as assembly, packaging, and material handling, are currently carried out by AMH equipment in an industrial setup. Nearly 80% of AMH equipment purchases worldwide are made in nations such as South Korea, China, Japan, Germany, and the U.S. Operating and maintenance costs of AMH equipment are less expensive compared to labor wages in long run, and hence, the equipment is beneficial in high-wage nations. Employing labor avoids, one-time costs associated with AMH technology. These costs would be incurred by businesses when buying new equipment. In the next ten years, labor wages are expected to continue to be low in Mexico and India. Therefore, the competitive edge of businesses in global market is unlikely to be significantly harmed if they choose not to invest in expensive automation technology. For instance, in January 2020, Tetrahedron, an automation and consulting service provider, and Institute Computer Centre, IIT Roorkee, which offers technical education, signed a MoU to design and produce affordable AMH equipment with a reasonably priced profit margin. These AVGs would lower the cost per vehicle, much below INR 100,000, and labor charges, enabling small and medium-sized businesses to advance toward automation.

Product Insights

Robots segment led the market in 2022 and accounted for a revenue share of 24%. Integrating Artificial Intelligence (AI) and ML technologies in robotic systems is driving growth of the robots segment in the AMH equipment market. For instance, Third Wave Autonomation Reach forklifts use its Collaborative Autonomy Platform, which offers fleet management software with intelligent features and remote assistance capabilities. The platform incorporates ML and AI to help businesses enhance their forklift operations. Furthermore, warehouse management system segment is expected to showcase lucrative growth over the forecast period.

Warehouse Management System (WMS) software provides a range of features and functionalities, such as inventory management, order processing, and shipping & receiving. With an effective WMS, paper use in warehousing can be significantly reduced by automating processes like counting, receiving, monitoring, and dispatching. For instance, as of March 2023, Maersk has improved its warehouse fulfillment process speed by introducing new software and scanning technology in WMS. According to Steve Belardi, who serves as Vice President of Operations at Performance Team in the U.S., this has enabled them to meet the increasing demand for faster order fulfillment for mobile and store orders while improving accuracy.

Vertical Insights

E-commerce segment led the market in 2022 accounting for over 18% share of the global revenue. E-commerce industry is one of the fastest-growing sectors relying on AMH equipment to streamline warehousing and fulfillment operations. In addition, e-commerce has led to a significant increase in demand for automated material-handling equipment. These systems can handle large volumes of orders efficiently, reducing the need for manual labor. There is also a growing emphasis on workplace safety, and automated material handling equipment can significantly improve safety by reducing risk of accidents and injuries. In March 2022, Swisslog Holding AG partnered with Berkshire Grey. The partnership aimed at delivering robotic solutions to e-commerce and retail customers and assisting them in meeting the demands of consumers while addressing severe labor shortages.

3PL segment is predicted to foresee significant growth in the forecast years. To ensure efficient and accurate handling of goods, 3PL companies utilize a variety of AMH equipment. By integrating these systems, 3PL providers can achieve end-to-end visibility and control over the entire supply chain, from product storage to final delivery. It can lead to better coordination, faster response times, and improved customer service. There is a trend of using collaborative robots in 3PL warehouses. Unlike traditional industrial robots, cobots are designed to work alongside human workers, assisting them with tasks, such as picking, packing, and sorting, thus helping to improve worker safety, reduce labor costs, and increase productivity.

System Type Insights

Unit load material handling segment led the market in 2022 and accounted for a revenue share of over 60%. Unit load material handling equipment activity involves moving and storing a single entity, including pallets and containers. It carries a single load despite the individual items that make it up. Unit load equipment carriers are economical and quicker to transfer many items simultaneously compared to moving each item individually.

Bulk load material handling segment is estimated to grow significantly over the forecast period. Bulk load material handling priorities are increasing efficiency, reducing costs, and enhancing safety. Bulk load equipment carriers reduce manual labor and cost by eliminating the number of human laborers for executing assigned tasks. Inventory management is achieved with greater accuracy and control by ensuring no issues related to damage, misplaced items, and other problems.

Regional Insights

Asia Pacific dominated the market in 2022 accounting for over 39% share of the global revenue. The market has been experiencing significant growth in recent years, attributed to several factors, including increasing demand for automated material handling systems across various industries, such as e-commerce, automotive, and food & beverage. Key players, such as Daifuku, Toyota Industries, and SSI Schaefer are also driving the market's growth in the Asia Pacific region. For instance, in July 2022, China-based JAKA Robotics successfully raised USD 150 million through a Series D funding round, which it plans to utilize to expand its global presence and conduct research and development activities to develop next-generation collaborative robots.

North America is anticipated to register the highest CAGR from 2023 to 2030. North America is a hub of technological innovation, driving development of new and more advanced AMH equipment. Companies in the region are investing heavily in research and development to create more efficient, flexible, and intelligent systems. For instance, in March 2023, ABB announced the expansion of a manufacturing facility in Auburn Hills, Michigan, subsequently expanding the installation of AMH equipment. The expansion of the Auburn Hills facility is expected to create new job opportunities in the region, further strengthening ABB’s contribution to the local economy.

Key Companies & Market Share Insights

Several notable companies focus on marketing strategies, such as expansions, mergers, acquisitions, contracts, partnerships, collaborations, agreements, and spur inventions. Companies are acquiring early automated material handling equipment suppliers with more extensive product lines. For instance, in March 2022, Toyota Industries Corporation announced the acquisition of Viastore, a material handling systems provider, to strengthen its logistics solutions. With this initiative, Toyota Industries Corporation expanded its automation solutions for small and medium enterprise distribution centers.

Market players are also diversifying their product portfolios with new product launches and developments. For instance, in March 2023, THiRARobotics Co., Ltd. announced the launch of its latest generation of autonomous mobile robots. These cutting-edge robots are designed to revolutionize logistics, warehousing, manufacturing, and healthcare operations. THiRARobotics’ new generation of autonomous mobile robots is equipped with advanced AI-powered navigation and perception capabilities, allowing them to navigate complex environments safely and efficiently without needing external infrastructure. Some of the prominent players in the global automated material handling equipment market include:

• Daifuku

• Kion

• SSI Schaefer

• Honeywell International

• Toyota Material Handling

• Hyster-Yale Material Handling

• Jungheinrich

• Hanwha

• JBT

• KUKA

Automated Material Handling Equipment Market Report Scope

Global Automated Material Handling Equipment Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this report, Grand View Research has segmented the global automated material handling equipment market report based on product, system type, vertical, and region:

• Product Outlook (Volume, Thousand Units, 2017 - 2030)

  • Robots

  • Automated Storage and Retrieval System (AS/RS)

  • Conveyors Systems

  • Sortation Systems

  • Cranes

  • Collaborative Robots

  • Autonomous Mobile Robots (AMR)

  • Automated Guided Vehicle (AGV)

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Robots

  • Automated Storage and Retrieval System (AS/RS)

    • Unit Load

    • Mid & Mini Load

    • Vertical Lift Module (VLM)

    • Carousel

    • Shuttle

  • Conveyors Systems

  • Sortation Systems

  • Cranes

  • Warehouse Management System

  • Collaborative Robots

  • Autonomous Mobile Robots (AMR)

    • Goods-to-person picking robots

    • Self-driving Forklifts

    • Autonomous Inventory Robots

    • Unmanned Aerial Vehicles

  • Automated Guided Vehicle (AGV)

  • Tow Vehicle

  • Unit Load Carrier

  • Pallet Truck

  • Forklift Truck

  • Hybrid Vehicles

  • Others

• System Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Unit Load Material Handling

  • Bulk Load Material Handling

• Vertical Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2030)

  • Automotive

  • Semiconductor & Electronics

  • E-Commerce

  • 3PL

  • Metals & Heavy Machinery

  • Food & Beverages

  • Chemicals

  • Healthcare

  • Aviation

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • East Asia

      • China

      • Japan

      • South Korea

      • Hong Kong

      • Taiwan

    • India

    • Thailand

    • Indonesia

    • Vietnam

    • Singapore

    • Malaysia

    • Australia

  • Latin America

    • Mexico

    • Columbia

    • Chile

    • Argentina

    • Caribbean Region

  • Middle East and Africa (MEA)