Material Handling Equipment Market Size, Share & Trends Analysis Report By Product (Storage & Handling Equipment, Automated Storage & Retrieval System, Industrial Trucks), By End Use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global material handling equipment market size was valued at USD 26.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2021 to 2028. Over 50.0% of factory owners estimate that new projects will either be delayed or put on hold because of the coronavirus pandemic. In comparison, close to 30.0% of owners expect to adjust the sales revenue with the ongoing projects. The mentioned statistics do not bode well for the growth of the market unless OEMs aim to transform digitally. Investments in power and battery technology are expected to create avenues for market growth.

Apart from the uncertainties created by the coronavirus pandemic, favorable government initiatives support new infrastructure development worldwide, creating growth opportunities in the market for material handling equipment over the forecast period. Economies such as India, China, and Southeast Asia are attracting foreign investments promoting infrastructure and industrial development, subsequently creating avenues for growth. The development of public infrastructure includes airports, rail networks, seaports and power plants, and others. All these activities may favor the adoption of material handling equipment over the forecast period. Although the demand in industrial applications witnessed a minor setback in 2020, unprecedented growth in the e-commerce sector helped upkeep market growth through the pandemic. Healthy demand for delivery and distribution of grocery items amidst the lockdown came as a respite for market growth. In addition to the OEMs, the pandemic has driven several supply chain firms to explore tools that aid in making informed decisions with AI implementation to analyze large amounts of data they generate periodically. A combination of data-driven insights and hindsight will help build a resilient supply chain supported by advances in equipment technology.

The development of the One Belt One Route (OBOR) initiative by China, also known as the Belt and Road Initiative (BRI), is also expected to be lucrative for the materials handling equipment industry. The initiative to connect a network of rail and road routes from China to Europe via the Middle East will provide growth opportunities. Similar other initiatives will bode well for the material handling equipment industry over the next few years.

The 2021 Automation Solutions Survey Study stated that the COVID-19 pandemic triggered the demand for a fully automated solution in the manufacturing sector, with companies increasing investments in automated solutions over the next few years. Further, companies project to upgrade their conveyor and sortation system in the next two years. However, due to the pandemic, several medium-sized businesses have altered plans to purchase or modernize new equipment.

Product Insights

The industrial trucks segment dominated the market and accounted for the largest revenue share of over 30.0% in 2020 and is estimated to witness steady growth over the forecast period. These trucks are a preferred choice due to their wide area of application in an industrial setting. Transport of heavy containers or crates in several end use markets is undertaken using industrial trucks, thereby contributing towards a larger market share. As logistic companies move towards adopting sustainable products, the demand for battery-operated trucks will gain traction over the forecast period. Although the COVID-19 pandemic hindered the sales in 2020, the market may reach pre-COVID levels by 2022, registering a CAGR exceeding 7.0% over the next seven years.

The automated storage and retrieval system segment accounted for a significant revenue share of 28.2% in 2020. This growth is attributed to warehouses enforcing social distancing amid the COVID-19 pandemic. These systems were preferred during the period as they promoted efficiency and aligned with the social distancing norms. Over the forecast period, investments in automated equipment will increase, creating lucrative opportunities in the market for material handling equipment. The automated storage-retrieval systems segment is estimated to register a CAGR exceeding 8.0% from 2021 to 2028, slightly higher than the global average.

End use Insights

The e-commerce sector dominated the market for material handling equipment and accounted for the largest revenue share of 23.2% in 2020. A sudden demand for distribution as well as delivery of essential goods including grocery items amidst the lockdown restrictions favored market growth. The impact of coronavirus will not be a short-term boost and will have a long-term impact on the industry demand creating opportunities for vendors operating in the market for material handling equipment. The demand for material handling equipment in the e-commerce sector is estimated to cross USD 10.0 billion by 2028. 

In addition to the pandemic, the retail industry has always shown opportunities for massive gains, a trend that will continue over the long run, ease of online shopping has encouraged retailers to build micro-fulfillment centers that facilitate speedy product deliveries contributing to the demand for material handling equipment.

Followed by the e-commerce sector, the automotive segment accounted for a significant revenue share in the market for material handling equipment in 2020. The segment is anticipated to account for more than USD 5.0 billion by 2028. AGVs or automated guided vehicles are a preferred choice among auto vendors ascribed to the autonomy they offer while handling daily operations.

Regional Insights

Europe dominated the market for material handling equipment and accounted for the largest revenue share of 34.1% in 2020. Adoption of advanced products to support large-scale industrial presence in the region will favor market growth. Europe has many industries ranging from food and beverage to electronics manufacturing, providing sales opportunities. In addition to industrial markets, the e-commerce sector driven by same-day delivery models has also contributed to the regional demand in 2020, a trend expected to continue over the next few years.

In Asia Pacific, the material handling equipment market is estimated to witness a CAGR of 9.7% during the forecast period. Economies including China and India are anticipated to offer ample opportunities, subsequently helping OEMs reach broader end user markets. The regional growth was driven mainly by the rapid uptake of e-commerce services amid the pandemic, favoring equipment sales.

Key Companies & Market Share Insights

The market for material handling equipment is highly consolidated and characterized by intense competition. As a part of a key growth strategy, vendors aim at adopting organic and inorganic approaches to sustain competition. For instance, in April 2021, Toyota Material Handling, one of the subsidiaries of Toyota Industries Corporation, launched Mole and Mouse Automated Guided Carts (AGCs). The product is expected to allow customers to automate repetitive operational tasks suitable for assembly lines, distribution centers, warehouses, and manufacturing plants. Similarly in July 2020, Vanderlande Industries B.V, one of the logistics process automation providers, introduced HOMEPICK, a goods-to-person (GtP) picking solution. The product complements its automated storage and retrieval system (AS/RS) and facilitates online grocery orders.

To further strengthen their market presence, key vendors also focus on mergers and acquisitions to help increase geographical reach. For instance, in April 2019, Daifuku Co., Ltd, one of the material handling equipment manufacturers acquired Vega Conveyors and Automation Private Limited. The acquisition is expected to allow the former to expand its market presence in India along with other APAC countries. Similarly in February 2019, Toyota Industries Corporation acquired Hoist Liftruck Mfg., LLC. The acquisition is expected to help Toyotaexp and its portfolio while increasing its customer base in North America. Some of the prominent players in the material handling equipment market include:

• BEUMER Group

• Daifuku Co., Ltd.

• Honeywell International Inc.

• Kion Group AG

• Mecalux, S.A

• Murata Machinery Ltd.

• SSI Schaefer AG

• Swisslog Holding AG

• Toyota Material Handling Group

• Vanderlande Industries B.V

Material Handling Equipment Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global material handling equipment market report based on product, end use, and region:

• Product Outlook (Revenue, USD Billion, 2017 - 2028)

  • Storage and Handling Equipment

  • Automated Storage and Retrieval System

  • Industrial Trucks

  • Bulk Material Handling Equipment

  • Others

• End use Outlook (Revenue, USD Billion, 2017 - 2028)

  • Automotive

  • Food & Beverages

  • Chemical

  • Semiconductor & Electronics

  • E-commerce

  • Aviation

  • Pharmaceutical

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa