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The global handling and lifting equipment market size is estimated to grow by USD 18.2 billion. The size of the market is forecast to increase at a CAGR of 4.08% between 2022 and 2027. The growth of the market depends on several factors, including the growth of the construction sector, the growing adoption of automation in the manufacturing process, and the rapid growth in e-commerce retail.
This report extensively covers market segmentation by application (e-commerce, automotive and railway, food and beverages, aviation, and others), product (cranes, forklifts, conveyor systems, and hoists), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth of the construction sector is notably driving the material handling equipment market growth, although factors such as the fluctuating prices of raw materials may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Handling and Lifting Equipment Market Driver
The growth of the construction sector is notably driving the material handling equipment market growth. The global construction industry is growing at a rapid pace due to the increasing demand for residences and commercial buildings such as office and retail complexes. Besides, governments across the world are investing in social infrastructures such as healthcare, education, power, transport, and communication. This is evident in countries such as India, Saudi Arabia, and Qatar, where governments are investing heavily in the development of smart cities.
In October 2018, Saudi Arabia announced the project NEOM for building a multi-billion-dollar megacity. The first phase is expected to be completed by 2025. The Government of Qatar is likely to spend billions of dollars on infrastructure development for the upcoming 2022 FIFA World Cup. The development of infrastructure worldwide necessitates the need for industrial and construction machinery, including handling and lifting equipment. Thus, the growth in the global construction industry will fuel the growth of the material handling equipment market during the forecast period.
Key Handling and Lifting Equipment Market Trend
The growth of the equipment rental business is the primary trend driving the handling and lifting equipment market growth. handling and lifting equipment are associated with high initial investment and maintenance costs. Hence, many SMEs are increasingly opting for equipment on a rental basis and are gradually investing less in the purchase of handling and lifting equipment. Renting handling and lifting equipment is considered a low-risk option as it provides customers access to the latest, technologically upgraded equipment that is incorporated with the latest hardware.
The increasing demand for rental equipment is encouraging market players to provide a broad range of handling and lifting equipment in the rental construction area for customers, such as construction companies, industrial companies, municipalities, government agencies, and independent contractors. This trend is expected to have a positive impact on the growth of the global handling and lifting equipment market during the forecast period.
Key Handling and Lifting Equipment Market Challenge
Fluctuating prices of raw materials are the major challenges impeding the handling and lifting equipment market growth. The major raw materials used for building handling and lifting equipment are steel, hardened steel, and aluminum. The prices of these raw materials keep continuously fluctuating due to various macroeconomic factors, such as inflation, labor cost, and regulatory policy changes. In addition, various other factors cause fluctuations in the raw material prices, such as iron ore, steel, and aluminum.
Fluctuations in the prices of raw materials are directly correlated to the production of handling and lifting equipment. When the prices of raw materials reach a threshold limit, raw material suppliers are compelled to pass on the increased price to their downstream industries. This directly affects the growth of various industries as well as handling and lifting manufacturers. All these factors are negatively influencing the global material handling equipment market growth.
Key Handling and Lifting Equipment Market Customer Landscape
The report includes the adoption lifecycle of the material handling equipment market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Handling and Lifting Equipment Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the material handling equipment market.
Cargotec - The company offers products and equipment for loading, unloading, and lifting things securely, safely, and cost-efficiently. The company offers HIAB, EFFER, and ARGOS loader cranes, LOGLIFT and JONSERED forestry and recycling cranes, MOFFETT and PRINCETON truck mounted forklifts, MULTILIFT skip loaders and hooklifts, and tail lifts under the ZEPRO, DEL, and WALTCO brands.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Technavio has segmented the handling and lifting equipment market based on application as e-commerce, automotive and railway, food and beverages, aviation, and others. The market share growth by the e-commerce segment will be significant during the forecast period. E-commerce companies are increasingly focusing on achieving large order fulfilment rates with reduced errors and maximum efficiency using automated processes in their business operations. This is increasing the adoption of handling and lifting equipment in the industry.
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The e-commerce segment showed a gradual increase in the market share of USD 22.91 billion in 2017 and continued to grow by 2021. The global e-commerce industry is growing significantly due to an increasing preference for online shopping. The growth rate of the e-commerce industry is expected to be higher than the growth rate of the conventional retail sector during the forecast period. As a result of these factors, the material handling equipment market will observe significant growth in the e-commerce segment during the forecast period.
Cranes, forklifts, conveyor systems, and hoists come under the type segment.
Cranes- Cranes are increasingly being used in the construction of chemical, energy, power distribution, utilities, and other industrial plants. PAC and the Nordic countries such as Sweden and Finland are expected to be significant contributors to the growth of the market in the construction sector. Governments of developing countries are expanding infrastructures such as roads, bridges, and dams, which need construction equipment and machinery Hence, these countries provide abundant opportunities to manufacturers of cranes.
Forklift- The growth of the forklift segment is characterized by the shift of end-users toward battery-powered forklift trucks due to stringent emission regulations. Warehouses are increasingly opting for class I, class II, and class III type forklift trucks that have small load capacities. The rapid growth of key end-user industries, such as construction and e-commerce, in emerging economies, such as China and India, is the primary reason behind the high demand for forklifts in APAC.
Conveyor systems- Conveyor systems are available in different types, such as belts, rollers, overhead, floor, pallets, crescent, cables, and buckets. Conveyor systems play a crucial role in moving materials from one place to another. Hydraulic, mechanical, and fully automated systems are used to run conveyor systems. Most warehouses use conveyor systems for unloading incoming trucks, carrying products from one point in the production line to the next, carrying finished products to packaging, and loading the packaged goods in trucks or storing them in distribution facilities. These demands will drive the conveyor system's growth in the market.
Hoist- The demand for hoists will increase in emerging economies, where small-scale mining is gaining significant traction. This will drive the growth of the hoists segment in the global handling and lifting equipment market during the handling and lifting equipment market growth during the forecast period.
APAC is projected to contribute 53% of the market growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The growing demand for handling and lifting equipment from construction, e-commerce, mining, and other end-user industries, coupled with increasing disposable income, is driving the growth of the handling and lifting equipment market in APAC. In addition, increasing investments in the steel, chemical, and petrochemical industries in this region is creating significant demand for handling and lifting equipment. This has prompted prominent vendors from the US and Europe to launch new products and forge partnerships with end-users in emerging countries such as India and Indonesia. All these factors are fostering the growth of the handling and lifting equipment market in APAC.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The lift of the lockdown restrictions in the second half of 2020 resulted in the resumption of the production of handling and lifting equipment in the manufacturing facilities. Also, the operations in the end-user industries of handling and lifting equipment, such as construction, food and beverages, aviation, and others, have resumed since the first half of 2021. These factors have increased the demand for handling and lifting equipment, thereby further driving the growth of the regional market.
The reports categorize the global handling and lifting equipment market as a part of the global industrial machinery market. The global industrial machinery market covers companies engaged in the manufacturing of industrial machinery and components covering presses, machine tools, compressors, pollution control equipment, handling equipment, lifting equipment, elevators, escalators, insulators, pumps, bearings, and other metal fabrications. Technavio calculates the global industrial machinery market size based on combined revenue generated by manufacturers of machinery and components used in the industrial environment. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by application, product, and region.
Handling and Lifting Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.08% |
Market growth 2023-2027 |
USD 18.2 billion |
Market structure |
Fragmented |
YoY growth (%) |
2.71 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Crane and Equipment Corp., Cargotec Corp., Columbus McKinnon Corp., Daifuku Co. Ltd., Escorts Ltd., Haulotte Group, Hyster Yale Materials Handling Inc., KITO Corp., Komatsu Ltd., Konecranes, Liebherr International Deutschland GmbH, Manitex International Inc., SANY Group, Shandong Dahan Construction Machinery Co. Ltd., Sumitomo Heavy Industries Ltd., Terex Corp., The Manitowoc Co. Inc., XCMG Group, and Zoomlion Heavy Industry Science and Technology Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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