Material Handling Equipment Market Size, Share & Growth 2031

Report Description

Material Handling Equipment Market Outlook 2031

The material handling equipment market size was around USD 225.78 Billion in 2022 and is projected to reach USD 381.45 Billion by 2031, expanding at a CAGR of 6% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising demand for automation in material handling equipment and rapid industrialization.

Material handling equipment includes several tools, equipment, warehouses, vehicles, and accessories tangled in counting, calculation, control, storage, and transport of products at every stage of manufacture, disposal, or distribution.

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These devices enable the rapid transfer of bulky items and heavy materials. By automating a number of operations, material handling technology decreases the need for human intervention in industrial facilities.

The expansion of private investment in manufacturing and retailing goods & services indicates a robust U.S. economy, which is anticipated to boost activity in the country's main downstream markets.

As a result, a rise in investment in industrial machinery and equipment is estimated to be correlated with an increase in the demand for goods used in the sector, including material handling equipment. Rising e-commerce and logistics industries are projected to fuel market growth in the coming years.

Growth of the market is attributed to increasing industry 4.0 with high Internet of Things use, growing requirements for handling bulk materials efficiently, and increased worker safety awareness.

The demand for less downtime and the emphasis on increasing supply chain efficiency is anticipated to propel the market. Increasing modernization of industrial infrastructures and facilities is expected to fuel market growth.

The increasing use of online shopping platforms, the presence of large online retailers, and expanding logistics infrastructure are projected to contribute to the e-commerce application growth during the projected period.

In order to effectively manage the supply chain ecosystem, this trend is forcing warehouse owners to include effective material handling equipment in their facilities.

COVID-19 Impact on Material Handling Equipment Market

The COVID-19 pandemic situation affected the global material handling equipment market negatively. The lockdown, social distancing policies, travel restrictions, and other stringent government regulations regarding the pandemic decreased the demand for handling equipment affecting the material handling equipment industry negatively.

Key manufacturers such as Daifuku Co., Ltd., BEUMER GROUP, and Mecalux, S.A. announced the suspension of the production of material handling equipment, as the demand for the equipment decreased and the supply chain was broken.

These key manufacturers halted production for employee safety in light of the pandemic situation. Manufacturers were compelled to cut down on investments in research and development as a result of the decline in capital liquidity, which hampered the introduction of new products incorporating novel technology and reduced the variety of products available.

The global material handling equipment market is expected to recover in the coming years, as the stringent restrictions and regulations regarding the pandemic situation are getting slacked.

Material Handling Equipment Market Dynamics

The market research report on the global material handling equipment market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2023 to 2031.

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Major Drivers

Rapid growth of the e-commerce sector to drive the market

The rapid growth of the global e-commerce sector, where consumers are buying more daily goods than ever before, is driving the material handling equipment market. For instance, the global online retail market generated USD 3.46 trillion in sales in 2019. The material handling equipment market is expected to be primarily driven by the growing popularity of online shopping.

The industrial sectors and manufacturers are becoming more visible due to the customization of the machinery and the technologies that are integrated with the warehouse and supply chain ecologies. Moreover, the rising cost of labor in developed nations is boosting the material handling equipment market.

Existing Restraints

High cost of installment to hinder the market growth
Rising initial investments and overall ownership costs are anticipated to hinder market growth. The costs associated with purchasing, integrating, programming, and installing material handling equipment are very high.

Additionally, some of the factors limiting the growth of the material handling equipment market are the slow rate of return on investments and high maintenance costs. The high cost of replacement and customization of the software is one of the major factors impeding the market growth.

Key Opportunities

Advancements and innovations in material handling equipment to create immense growth opportunities
A number of advancements and innovations in the material handling equipment sector are brought about by the increased investment by established market players in the material handling equipment market.

Such aspects are motivating potential end users to utilize material handling equipment more frequently for their business growth. Several government programs are offering lucrative opportunities for the development of the material handling equipment market.

Scope of Material Handling Equipment Market Report

The report on the global material handling equipment market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Material Handling Equipment Market Segment Insights

The cranes & lifting equipment segment accounted for a key market share in 2021

Based on product, the market is segregated into racking & storage equipment, continuous handling equipment, industrial trucks, bulk material handling equipment, and cranes & lifting equipment. The cranes & lifting equipment segment accounted for a market share of around 36% in 2021.

Growth of the segment is attributed to its widespread application in several end-use industries such as lifting accessories, motor vehicle lifts, manufacturing, and construction.

Traditional handling equipment is highly susceptible to picking errors, whereas continuous handling technology ensures error-free picking, sorting, and packaging. Another major factor driving the segment is the optimized operation of the equipment, which helps producers cut costs and accelerate delivery time.

The racking & storage equipment segment is anticipated to expand at a high CAGR during the forecast period owing to its increased storage capacity. Additional benefits include decreased workload, increased throughput, and cost savings from not needing to rent additional storage space.

Industrial trucks are preferred by manufacturers because they include features such as flat prongs or surfaces that can be injected under pallets or other types of storage platforms that are useful.

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The e-commerce segment held around 21% of the total market share in 2021

On the basis of applications, the market is fragmented into pharmaceutical, aviation, e-commerce, semiconductor & electronics, chemical, food & beverages, automotive, and others. The e-commerce segment held around 21% of the total market share in 2021.

Factors such as expanding logistics infrastructure, the presence of significant online merchants, and expanded platform penetration are expected to boost the segment. Several grocery stores have transformed into convenience stores that offer services resembling fast food, including fresh items, ready-to-eat meals, and frozen food.

The pharmaceutical segment is projected to grow at a rapid pace during the forecast period. With the rise in the prevalence of different ailments, pharmaceutical storage and material handling equipment provides a means to fulfill the expanding need for medicines. These systems are set up to maximize safety, optimize product quality, and increase productivity, labor, waste, and overall expenditure.

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Asia Pacific dominated the market in 2021

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held around 40% of the total market share in 2021.

The substantial adoption is ascribed to the expanding food retail industry in Asia-Pacific, which presents offers a number of opportunities due to its capacity to boost the effectiveness and speed of the picking and sorting procedures.

The growth of the market in Europe is attributed to the adoption of integrated solutions built on the implementation of new legal reforms in the areas of quality and safety. The demand for material handling equipment from warehousing, ports, and manufacturing is mostly driven by automated and industrial truck categories.

The rising usage of e-commerce technology boosted the demand for contemporary goods in warehouses, which prompted companies to provide high-quality goods. The emerging economies such as India and China attract foreign investments promoting infrastructure and industrial development this is projected to boost the market.

Additionally, the industry is expanding rapidly in China. The country is a manufacturing powerhouse in the equipment sector. China is projected to account for a key market share due to the immense opportunities for handling equipment manufacturers in the automobile production sector and the development of several industrial clusters in the country, which is driving the construction sector.

The market in North America is anticipated to expand at a rapid pace during the forecast period. Due to the COVID-19 pandemic the growth of the market initially slowed down, but it eventually picked up speed and developed steadily. The presence of key market players in the region is one of the major factors driving the market in the region.

Indirect efforts of key organizations in terms of technological advancements, joint ventures, collaborations, acquisitions, and strategic alliances are further boosting the material handling equipment market. The market in Europe is estimated to expand at a substantial rate. The primary factor for rising demand is an effective, streamlined, and adaptable supply chain structure for better operations.

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