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The global material handling equipment market size stood USD 194.73 Billion in 2018 is projected to reach USD 354.03 Billion by 2026, exhibiting a CAGR of 7.8% during the forecast period.
Today, material handling plays a pivotal role in production systems as manufacturers and retailers are looking to reduce supply chain waste in manufacturing process that affects the product cost and increases the expense ratio of the company.
The demand of material handling machinery is catching up owing to flourishing construction, automotive and consumer electronics industry. Besides this, increasing manufacturing facilities, rising packaging industry, and increasing disposable income would supplement the demand for material handling machinery. Moreover, the demand for food & beverages consumption is captivating manufacturers to increase the production through efficient material flow from the inception to finished product stage thereby reducing process time. Given the scenario, demand for material handling machinery is rising across the end-use industries.
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Furthermore, integration of technologies such as Internet of Things, cloud data storage, big data, and artificial intelligence in equipment helps to gauge the machines throughput, alert if any misalignment in machine parts, data collection, and efficiency of the machine further contributing to the market growth. Similarly, manufacturers are investing rigorously in the research and development activities and launching new advanced solutions to strengthen their geographical reach and maintain their position in the competitive environment further propelling the material handling machinery market potential. For instance, In March 2015, Daifuku Co. Ltd invested around USD 75 million in research and development to accelerate material handling system advancements.
“Adoption of automated material handling equipment in manufacturing facilities”
The development in the manufacturing facilities is closely linked with growth of the material handling equipment. Increasing government initiatives to encourage manufacturers to expand their manufacturing facilities, government regulations, and norms related to labor safety standards, rising foreign direct investments are a few factors favoring the market. Furthermore, introduction of smart factories, industry 4.0 is encouraging manufacturers to install robotics for performing critical operations and dealing with hazardous products further bolstering the automated handling equipment market. Moreover, manufacturers are concentrating on expanding their production facilities across the globe in order to eliminate dependency on other regions for procuring raw materials or importing machine parts.
“Availability of material handling equipment on a rental basis”
Increasing number of small and medium enterprises, increasing local contractors, rising construction and mining activities, retrofitting and renovation of manual material handling equipment. There is a high emergence of small and medium enterprises across the globe owing to government initiatives for funding SME’s, rising foreign direct investments, availability of bank loans at affordable interest rates, etc. Given the scenario, SME’s are demanding for equipment on rental basis as to avoid higher capital investment at the initial phase and lower project costs which is further driving the material handling equipment market size. Moreover, construction activities are increasing with the increase in urbanization. There are few construction projects which are conducted on small scale wherein to avoid the high construction costs, and local contractors are appointed to overlook the overall construction project. Such contractors prefer to avail the equipment on rent to reduce the project costs and avail the machines as per the job work.
“The Cranes & Lifting equipment segment to generate the highest revenue during the forecast period.”
The equipment segment in the scope of this study includes cranes & lifting equipment, industrial trucks, continuous handling equipment, and racking & storage equipment.
The equipment considered under cranes & lifting Equipment are tower cranes, overhead cranes, mobile cranes etc. The demand for cranes & lifting equipment is surging, and it is expected to be dominant during the forecast period owing to increasing number of commercial and residential projects which require equipment for lifting up heavy metals and other construction materials, rise in mining activities for metals such as gold, iron ore and other metals. Industrial trucks are gaining impetus and it is expected to have considerable growth during the forecast period owing to transporting various loose materials. For instance, Industrial Trucks considered in the scope includes forklift trucks, telescopic handler forklift and others
Continuous material handling equipment segment is expected to have considerable growth during the forecast period. For instance, continuous handling equipment considered in the scope includes conveyor systems, put systems and others. The major application of this segment has widely been adopted across various end-use industry namely food & beverages, pharmaceutical, automotive, packaging wherein continuous processing is conducted to handle raw material and finished goods.
Racking and storage equipment segment is expected to exhibit moderate growth over the forecast period owing to demand from automobile industry to spare parts and other industrial products. For instance, racking & Storage Equipment considered in the scope includes automated storage and retrieval system, storage racks, etc.
“Transportation segment is anticipated to exhibit a significant CAGR during the forecast period.”
The operations segment covered in this scope includes assembly, distribution, transportation and others. Transportation segment holds the highest market share, and it is anticipated to drive the over the forecast period owing to increasing demand for transportation & logistics sector, increase in demand for online shopping and rising infrastructure development.
Assembly segment holds a considerable share and it is forecasted to hold a considerable share over the forecasted period owing to growing demand from the automobile industry to assembly various car spares and parts, semi-conductors industry to incline various transistors and circuits, etc.
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Distribution segment is expected to register moderate growth during the forecast period owing to pharmaceutical and food & beverages sectors.
“The Construction segment to generate the highest revenue during the forecast period.”
The end-use application segment considered in the scope includes consumer goods & electronics, automotive, food & beverages, pharmaceutical, construction, mining, semi-conductors, others. The use of Cranes & Lifting equipment is increasing owing to the growth of the commercial & residential projects, expansion of manufacturing facilities, warehouses, thereby further boosting the revenue generation of construction industry.
The growth in automotive industry is further contributing to material handling equipment market. Manufacturers are focusing on improving the assembling process to reduce the turnaround time, adopting lean management to manufacture the vehicle and deliver on time. In such scenario, flow of spares and other parts is vital for smooth functioning of the process further propelling the potential of material handling equipment.
The growth of material handling equipment is expected to be moderate across consumer electronics, pharmaceutical, semi-conductor, and mining industries owing to rising population, demand for precious metals, government norms to handle hazardous chemicals and composition, rising automation industry.
"The material handling equipment market value and volume is contributed by the revenue and the forklift truck units sold across North America, Asia Pacific, Middle-East Africa and Latin America."
Asia Pacific generated a revenue of USD 79.30 billion in 2018 and is anticipated to emerge dominant in the global market during the forecast period owing to the parameters such as growth in demand of automotive and manufacturing process units. In countries such as South Korea, China, Taiwan, expansion in manufacturing capacities and adoption of modern material handling methods for proper utilization of production capabilities is propelling the market. For instance, Coca-Cola company opened warehouses in Singapore valued around USD 57 million to have automated storage and retrieval systems.
North America is anticipated to witness a substantial growth during the forecast period, owing to the increase in sales in this region through e-commerce industry, increase in demand for durable and non-durable goods eventually compel manufacturing companies to adopt extensive assembly lines and equipment. Furthermore, the demand for automated warehouse practices in this region is accelerating the market growth.
Asia Pacific Material Handling Equipment Market Size, 2018
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The growth of material handling equipment in Europe is expected to witness a moderate growth during the forecasted period owing to rise in e-commerce industry, adoption of robotic automation in manufacturing facilities mainly in automotive industry, etc.
“Key Players, namely, Liebherr Group, KION GROUP AG, Inc., and Daifuku Co., TOYOTA INDUSTRIES CORPORATION. Ltd would strengthen their position by providing material handling equipment across the globe.”
Manufacturers are focusing on adopting various marketing strategies, such as collaborations, mergers and acquisitions with logistics solutions business to attain a considerable position in terms of comprehensive strengths. For instance, Toyota Industries Corporation acquired Vanderlande Industries Holding B.V. which deals with logistic process automation. This acquisition strengthens Toyota Industries’ materials handling solution business. Furthermore, manufacturers are focusing on upgrading their existing product offerings and introducing new products to cater to the growing demand.
This report provides an elaborative analysis of the global material handling equipment market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.
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Value (USD Billion)
By Equipment Type
In 2018, the global material handling equipment market was valued at USD 194.73 Billion.
In 2026, the global material handling equipment market is expected reach USD 354.03 Billion.
The material handling equipment market is projected to grow at a CAGR of 7.8% during the forecast period (2019-2026).
Cranes & lifting equipment segment is expected to lead the material handling equipment market during the forecast period.
Adoption of automated material handling equipment in manufacturing facilities, availability of material handling equipment on rental basis, introduction of robotic automation and smart factories like industry 4.0 will drive the growth of the material handling equipment market.
Liebherr Group, Toyota Industries Corporation., Kion group are the top players in Material Handling Equipment Market. These players are focusing on adopting various marketing strategies, such as collaborations, mergers, and acquisitions with logistics solutions business to attain a considerable position in terms of comprehensive strengths.
Asia Pacific is expected to hold the highest material handling equipment market share owing to increase in manufacturing facilities, rise in construction, automotive industries.
Construction, automotive, and consumer goods & electronics are the major end use industries who purchase Material Handling Equipment.
Automated material handling equipment, robotic material handling equipment are few of the market trends of material handling equipment market.