DID YOU KNOW?
Material handling equipment is used in warehouses for managing the storage and transportation of goods and products. It ensures improved productivity by enhancing logistics at warehouses and manufacturing plants. These products offer cost-effective, process efficiency, and an accurate method for the swift transition of goods across the manufacturing plants and warehouses, resulting in increased demand.
Material handling is a crucial intermediary in the manufacturing sector. Although it does not directly contribute to the production of goods, it leads to efficiency in handling, managing, storing, and transporting goods. This equipment complements the production activity by ensuring a swift, smooth, and efficient circulation of goods thereby, resulting in the increased demand for the equipment over the forecast period.
Rise in industrial and infrastructural activities to fulfill the demand from the ever-growing population, is anticipated to bode well for market growth. Manufacturing and other industries incessantly attract huge amounts of foreign capital, thus augmenting the production activities. Governments across the world are increasing their infrastructural development to build new airports, rail networks, seaports, and power plants, and upgrade the prevailing ones. All these activities are simplified by using material handling equipment such as forklifts, conveyors, and Automated Guided Vehicles (AGVs).
Rising employer inclination towards employee or worker safety is also expected to fuel the growth of the material handling market. Thus, owing to the rise in industrial activities, industrialists have become more responsible for worker and workplace safety to maintain their goodwill in the market. As more companies are inclining toward automation to sustain the competition, encourage efficiency in the warehouse, and cut down costs, they are striving to build a safer working environment for employees. Thus, improving working and safety conditions is an integral part of their industrial activities, which is expected to remain a major growth avenue for this market.
In 2018, the industrial trucks market accounted for over 15% of the global material handling equipment market share and will witness high growth owing to the rising adoption of Automated Guided Vehicles (AGVs). These vehicles use carts, pallets or trays and are programmed to move between different manufacturing and warehouse stations without a driver. The logistics market benefits from optimized workflow procedures, high productivity levels, and reduction of labor & operating costs. The emergence of technologically advanced vehicles has enabled independent usage without the need to support the movement of material handling equipment. They are also being used in warehouses and typically follow pre-planned routes. In addition, the incorporation of tracking software and cost-effective sensors has positively affected the functioning of the equipment, leading to the rise in the adoption of AGVs in several industrial sectors such as e-commerce and general merchandise.
The robotics segment in the material handling equipment market is expected to witness significant CAGR of over 8% to reach over USD 20 billion by 2024 owing to the demand for high-performance robotic systems across various industry verticals. Robots facilitate easy and fast pick & place of material thereby ensuring accuracy and eliminating human involvement.
The rising awareness about the advantages of automated systems globally will fuel the demand for robots across industries.
Extensive R&D undertaken in the field of robotics & AI is expected to fuel the material handling equipment market over the forecast period. The incorporation of machine learning capabilities in the robots to increase productivity with predictive maintenance further contributes to the industry demand.
The expanding 3PL sector globally is expected to witness a CAGR of over 6% in the material handling equipment market. The increasing complexity of supply chains is compelling businesses to turn towards 3PL service providers to ensure smooth and efficient operations.
3PL service providers are focusing on real-time systems for enhanced visibility. Furthermore, the flourishing durable manufacturing sector in countries including India and China is providing impetus to the market. The growing durable manufacturing industry adopting the latest technologies for production will surge the demand for the equipment.
The developments in the manufacturing sector are expected to propel the material handling equipment market growth. These systems are increasingly being adopted in warehouses and production facilities for automating all processes.
The growing transportation & logistics industry in the U.S. is providing growth opportunities to the industry value at over USD 25 billion in 2017. The early technology adoption in the region and the ongoing R&D in the U.S. will fuel the material handling equipment market demand. Stringent government regulations related to operator safety in Europe are compelling manufacturers to use high-quality machines that comply with the existing standards.