Material Handling Equipment Market Size, Share & COVID-19 Impact Analysis, By Equipment Type (Cranes & Lifting Equipment, Industrial Trucks, Continuous Handling Equipment, Racking & Storage Equipment), By Operations (Assembly, Distribution, Transportation, Others), By Industry (Consumer Goods & Electronics, Automotive, Food & Beverages, Pharmaceutical, Construction, Mining, Semiconductors, Others), and Regional Forecast, 2021-2028

The global material handling equipment market size was USD 197.48 billion in 2020. The market is projected to grow from USD 206.50 billion in 2021 to USD 300.21 billion in 2028 at a CAGR of 5.5% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with material handling equipment witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The material handling equipment are the type of mechanical equipment that are utilized in storing, moving, protecting and monitoring the materials and products throughout the manufacturing, distributing, transporting cycle processes.

The global material handling machinery market is witnessing growth attributed to the factors such as, growing demand for efficient flow of materials across facilities, ever-growing infrastructural activities and company’s inclination towards upgrading the existing range of these machineries. Additionally, the increased demand for industrial trucks, crane & lifting equipment, conveyor and storage & racking system from construction, mining, automotive, food & beverage and other industries is contributing in the significant progress of the market.

Moreover, the advent of superior technologies including, hands-free communication systems, Internet of Things (IoT), Artificial Intelligence (AI) and introduction of high-level software such as, warehouse management system (WMS) facilitates the smoother flow of goods and reduces error in operations. Thereby, leading to increased overall productivity.

Major Supply Chain Disruptions in Manufacturing Sector to Hamper Growth

The widespread effects of COVID-19 are still leading to uncertain growth projections, fast evolving economic implications, and high unemployment rates globally. The restrictions on the movement of the people and goods have disrupted the entire supply chain systems. In addition to this, the reduced foreign direct investments had negatively impacted the manufacturing, 3PL logistics, automotive, food & beverages and others sectors globally. For instance, according to The United Nations Conference on Trade and Development (UNCTAD), it is estimated that the global foreign direct investments are expected to shrink by 5 to 15% owing to the downfall in the manufacturing sector, coupled with complete stoppage of production at industrial facilities.

Besides, the pandemic has enforced the food & beverages manufacturing industry to halt its operations owing to supply chain derailment and lack of availability of manpower. As per the study by France-based ‘The Association Nationale des Industries Alimentaires (ANIA)’, food & beverage companies are suffering around 22% loss in annual turnover owing to, the global pandemic across the globe.

However, after the 2nd quarter of 2020, the growth in E-commerce industry and improvements in automation capabilities is boosting the global material handling equipment market growth. Several countries including, China and European countries quickly got to a full production that in turn, has boosted the demand across the globe.

LATEST TRENDS

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Introduction of Automation in Material Handling Machinery to Boost Market Growth

In the current scenario, automation is playing a critical role in transforming the business practices to cater the consumer demand, while keeping the logistics and production costs down. This has led to the adoption of versatile automated system capable of working in multiple environments. For instance, in March 2020, Atherton Material Handling (AMH) completed three projects for DHL International GmbH, wherein, Selfridges & Co., approached DHL to map up their increasing needs of e-commerce throughput. AMH installed two additional conveyor feeds and developed a new three-floor automation system making room for additional workbenches and store products efficiently.

The connectivity in equipment has enabled manufacturers to pursue greater visibility, information sharing, and performance throughout the supply chain. Retail and pharmaceutical industries emphasize on the deployment of automation. Wherein, the uptime and responsiveness are critical on the shop floor and warehouses. Also, it enables to gauge real-time status of materials at the factory floor and facilitates smart decision making.

As a result, material handling machinery market is projected to grow significantly in the forecast period.              

DRIVING FACTORS

Rising E-commerce Sector to Propel Market Growth

The material handling industry is highly driven by rising E-commerce sector across the globe. According to the Digital Commerce360 projections, consumers worldwide spent nearly USD 3.46 trillion online in 2019, which was around USD 2.93 trillion in 2018 with an expected year-over-year growth rate of 17.9%. Similarly, total retail sales through all channels stood at USD 20.31 trillion in 2018. Owing to the rising online shopping, the material handling industry is focusing on developing customized equipment and systems aligning with warehouses and supply chain ecosystems. This includes manufacturing engineered systems, remotely traceable transport vehicles, and smart warehousing systems to gauge real-time visibility and better consumer services.

Therefore, the surging online shopping trend and continuous development in material handling systems is expected to contribute to the growth of the global market during the forecast period.

RESTRAINING FACTORS

Hefty Initial Investments Coupled with High Maintenance Cost to Hinder Market Growth

The large initial investments required for integration, procurement, installation, accessories, programming and others is limiting the growth of the global market. This creates a limitation for companies, especially the Small and Medium Enterprises (SMEs). As a result, it becomes tough for these companies to capitalize large funds owing to, slow Return on Investments (ROI) and low-volume production. Additionally, high maintenance cost is another factor that is restraining the market growth.

The cost of software up gradation, replacement of various parts and other devices, and the increasing ownership cost further leads to slowing down of the market.

SEGMENTATION

By Equipment Type Analysis

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Increasing Bulk Loading Consignments and Expanding E-commerce Industry to Boost Industrial Trucks Segment Growth

Based on the equipment type, the market is segmented into cranes & lifting equipment, industrial trucks, continuous handling equipment, and racking & storage equipment.

The industrial trucks considered in the study includes, forklift trucks, telescopic handler forklifts and others. The segment is anticipated to showcase a significant growth in the forthcoming years owing to ageing workforce, changing demographics, rising unit and bulk loading consignments, and a growing e-commerce industry.

The equipment considered under cranes & lifting equipment are tower cranes, overhead cranes, mobile cranes and others. The cranes & lifting equipment segment is expected to experience a moderate growth during the forecast period owing to, the increasing number of commercial and residential projects that require equipment for lifting heavy metals and other construction materials, and the rising mining activities for metals such as gold, iron ore and other metals.

The equipment considered in the continuous handling equipment scope includes, conveyor systems, put systems and others. This segment is expected to experience a moderate growth in future with the rising food & beverages, pharmaceutical, automotive, packaging industry, wherein, continuous processing is conducted to handle raw material and finished goods.

Racking and storage equipment segment consists of automated storage and retrieval system, storage racks and others. This segment is anticipated to showcase a steady growth owing to the rising automation in handling and storing bulky materials, and the rising e-commerce industry, among others.

By Operations Analysis

Growing Infrastructure Activities to Depict Highest CAGR for Transportation Segment

The operations segment covered in this scope includes assembly, distribution, transportation, and others.

Transportation segment holds the highest market share and is projected to grow significantly owing to, the increasing demand for transportation & logistics sector, online shopping, and the rising infrastructure development.

Assembly segment is anticipated to grow moderately in the forecast period. It is attributed to the growing demand from the automobile industry to assemble various car spares and parts, and semiconductors industry to incline various transistors and circuits.

Distribution segment is expected to register a steady growth owing to the rising distribution and warehouses facilities across developed and developing economies. Additionally, the growing e-commerce and online shopping trends are enabling the distribution center owners to automate its facilities to ensure smooth flow of materials and goods.

By Industry Analysis

Infrastructural Development to Drive Demand across Construction Sector

Based on industry, the market is categorized into consumer goods & electronics, automotive, food & beverages, pharmaceutical, construction, mining, semiconductors, and others.

The construction industry is experiencing high growth owing to, the rising construction and restructuring projects across developed and developing economies. Additionally, governmental initiatives towards infrastructure development and massive investment in uplifting the real estate sector are contributing to the growth of the market.

The growth in the automotive industry is contributing to the surging demand for material handling equipment. Manufacturers are focusing on improving the assembling process to reduce the turnaround time, and adopting lean management to manufacture the vehicle and deliver on time. In such scenarios, flow of spares and other parts is vital for smooth functioning of the process that further propels the potential of material handling equipment.

Consumer electronics, pharmaceutical, semi-conductor, and mining industries are projected to witness moderate growth rate owing to the growing population, demand for precious metals, governmental norms to handle hazardous chemicals and composition, and the rising automation industry.

REGIONAL INSIGHTS

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Asia Pacific to Witness Stellar Growth Backed by Flourishing Manufacturing Sector  

Geographically, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

Asia Pacific is anticipated to dominate the global market in the forecast period. It is attributed to the surging demand for automotive and manufacturing processes. In addition, countries including, South Korea, India, China, and Taiwan are inclining towards the adoption of modern material handling methods for proper utilization of production capabilities.

India to Witness Highest CAGR Attributed to Rising Infrastructural Development

The market in India is witnessing momentous growth with growing industrialization and infrastructural activities and need of safe working practices across manufacturing areas. Additionally, the growth is number of warehouses across the country has boosted the demand for forklift trucks, conveyor systems, storage systems and other equipment. As a result, leading companies are establishing their facilities in India thus, propelling the market growth. For instance, in November 2019, KION GROUP AG launched India’s largest material handling equipment facility in Pune. This plant is equipped with three assembly lines including, parts warehouse, a paint shop and R&D center.

North America is anticipated to showcase a substantial growth owing to the increasing sales in the region through e-commerce industry. Additionally, the growing demand for durable and non-durable goods is propelling the manufacturing companies to adopt extensive assembly lines and equipment. Furthermore, the demand for automated warehouse practices in the region is expected to bode well for the market growth.

Europe is expected to experience a moderate growth during the forecasted period. This is ascribable to factors such as the growing e-commerce industry, along with the adoption of robotic automation in manufacturing facilities in automotive and other industries.

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The Middle East and Africa are expected to show steady growth owing to massive investments in infrastructure development and the rising disposal income in the region. Whereas, Latin America is anticipated to grow at a slow rate owing to, rising construction of automated warehouses, focus of key players to expand their manufacturing facilities across emerging countries, and others.

KEY INDUSTRY PLAYERS

Major Players Focusing on Expansion Strategies to Strengthen Their Market Positions

Manufacturers are focusing on adopting various marketing strategies such as collaboration, and merger and acquisition with other logistics solution businesses to attain a considerable position in terms of comprehensive strength. For instance, in April 2019, Daifuku Co., Ltd. acquired Vega Conveyors & Automation Private Limited (Headquartered in India) in order to expand its manufacturing and distribution business segments within Asia.

Liebherr Group is Expanding its Product Offerings to Profoundly Penetrate into Market

Liebherr group is consistently providing its variety of specialized machines such as, cranes, industrial trucks and others and material handling technologies to its end-users across the countries to deeply penetrate in to the market. The continuous development is enabling them to cater end-user’s requirements. For instance, in August 2021, Liebherr Group delivered ‘34 K fast-erecting crane’ to Switzerland-based construction and transport company ‘Mathis Bau AG’. In the same month, the company has supplied new ‘Liebherr T 264’ to Thiess. With this, Thiess has expanded its 240-tonnes fleet variety with 5 electric-drive mining trucks to cement its growth in the Chile and subsequently in the South America region.

LIST OF KEY COMPANIES PROFILED:

• Liebherr Group (Bulle, Switzerland)


•  The Manitowoc Company, Inc. (Wisconsin, U.S.)


• BEUMER GROUP (Beckum, Germany)


• Columbus McKinnon Corporation (New York, U.S.)


• KION GROUP AG (Frankfurt, Germany)


• TOYOTA INDUSTRIES CORPORATION. (Aichi, Japan)


• Eisenmann SE (Böblingen, Germany)


• Crown Equipment Corporation (Ohio, U.S.)


• Daifuku Co., Ltd. (Osaka, Japan)


• Hyster-Yale Materials Handling, Inc. (Ohio, U.S.)


• SSI Schaefer (Neunkirchen, Germany)


• Hytrol Conveyor Company, Inc. (Jonesboro, U.S.)


• Bastian Solutions, LLC (Indianapolis, U.S.)


• Clark (Lexington, U.S.)


• Columbus McKinnon Corporation (Getzville, U.S.)


• Dematic (Atlanta, U.S.)


• JBT (Chicago, U.S.)


• Vanderlande Industries B.V. (Veghel, The Netherlands)


• Viastore (Stuttgart, Germany)


• Godrej Group (Mumbai, India)

KEY INDUSTRY DEVELOPMENTS:

• July 2021 - KION GROUP AG opened industry-leading industrial truck plant in Kołbaskowo, Poland. Within the KION Industrial Trucks & Services segment, the plant produces counterbalance trucks of all brand companies. With this, the company is focused on extending its European-wide production sites and catering customers across the EMEA region.


• April 2021 - Godrej Material Handling, a business unit of Godrej Group launched ‘Uno Electric Forklift Truck’ with modern ergonomics, improved visibility, augmented safety and long-runtime on every charging.

REPORT COVERAGE

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The market report provides detailed information regarding various insights of the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the material handling equipment market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2021 to 2028 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.

Report Scope and Segmentation