Automated Material Handling (AMH) Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Germany, Japan, France - Size and Forecast 2024-2028

Automated Material Handling Market Size 2024-2028

The automated material handling (AMH) market size is forecast to increase by USD 46.5 billion at a CAGR of 13.61% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. With the rapid expansion of the e-commerce industry, there's a growing need for efficient material handling solutions to meet the increasing demand for fast and accurate order fulfillment. Additionally, industries across various sectors are seeking ways to improve operational efficiency, driving the adoption of automated systems. Advanced automation in processing plants further fuels the market growth, as companies aim to streamline their manufacturing processes and enhance productivity. This market evolution reflects a growing reliance on automated solutions to meet the demands of modern industries. Our report examines historic data from 2018 to 2022 besides analyzing the current market scenario. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. 

Market Forecasting and Overview

Market Forecast 2024-2028

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Market Segmentation

This automated material handling market report extensively covers market segmentation by component (hardware, software, and services), end-user (automotive, e-commerce and 3PL, food and beverage, and semiconductor and electronics and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). The market encompasses warehouse service providers, e-commerce, and 3PL industries. AMH equipment, including conveyor systems, AS/RS, and others, plays a pivotal role in manufacturing and warehousing facilities. E-commerce and industrial growth in emerging economies fuel market expansion. Cloud-based platforms enable real-time inventory control and flexibility in operations. AMH equipment integration and software solutions enhance efficiency, labor utilization, and productivity. Costs and safety concerns are significant challenges. The personal care industry benefits from AMH equipment due to height limits and storage capacity requirements. Control technologies, energy efficiency, and maintenance are crucial factors. Flexible and scalable AMH solutions offer growth opportunities. Global market scenarios are influenced by industry reluctance and switching costs. Key players include electronics, logistics, and manufacturing industries. Benefits include improved space utilization, product handling, and real-time inventory control. Layout optimization, integration with other systems, and control technologies are essential for efficient material handling ecosystems. The largest share of the market is held by ASRS due to their ability to handle high volumes and reduce labor costs.

By Component Segmentation

The hardware segment will account for a major share of the market's growth during the forecast period. Hardware components include conveyor systems, robots, automated storage and retrieval systems (AS/RS), and others. Conveyor systems play an important role in moving materials from one location to another. Hydraulic, mechanical, and fully automatic systems are used to operate the conveying system. These systems also connect different points in the whole process.

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The hardware segment was valued at USD 23.70 billion in 2018.?Robots are in demand at distribution centers and warehouses due to the range of material handling processes they can perform. These systems are mainly used for material transfer and machine loading/unloading. Various applications of robotic systems include transporting items from one point to another, loading and unloading pallets, and loading and unloading machinery during production. The adoption of such hardware components is expected to fuel the growth of this segment in the automated material handling market during the forecast period. 

By End-User Segmentation

Based on end-user, the market has been segmented into automotive, e-commerce and 3PL, food and beverage, and semiconductor and electronics and others. The automotive?segment will account for the largest share of this segment.? As automobile production and sales increase, the need for automated material handling to store these vehicles and transport them from manufacturer to dealer will increase. This will lead to the growth of the automated material handling market in the future. Furthermore, material handling automation through agile manufacturing innovations, transparent digital process chains, and big data for smart factories promote transparency and efficiency in manufacturing and logistics, which solves the challenges encountered when using traditional processing equipment. Such factors will fuel the growth of the segment in the market during the forecast period. 

Regional Analysis

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APAC is estimated to contribute 32% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The automated material handling market in APAC is experiencing significant growth due to the increasing demand for error-free fulfillment and rapid storage and retrieval in warehouses. The economic development in China and India, with improving financial conditions, is fueling the expansion of the e-commerce sector, leading to increased demand for automated equipment. Government initiatives promoting infrastructure development in the region are boosting the construction industry, thereby increasing production capacity and order accuracy. The consolidation of warehouses and the growing need for efficient warehouse operations are further driving the demand for automated material handling equipment in APAC. Another region that sees steady growth is the AMH equipment market in the United States which also has an effect on the global market. 

Market Dynamics

The automated material handling market in the warehouse service sector, particularly for e-commerce and the 3PL (Third-Party Logistics) industry, is experiencing significant growth. This expansion is driven by the adoption of cloud-based platform and the personal care industry's increasing focus on efficiency and safety. WMS (Warehouse Management System) in emerging economies are undergoing industrial growth and infrastructural development, creating numerous opportunities for AMH equipment suppliers. Manufacturers are investing in flexible and scalable AMH systems to streamline operations and reduce costs. Layout design and software integration are crucial considerations when switching to automated solutions. AMH equipment, such as conveyor belts and sortation systems, are essential for optimizing warehouse operations in the e-commerce sector. Safety concerns and the need for efficient manufacturing processes are also driving the demand for AMH systems. The integration of advanced technologies, like AMH software and AMR (Autonomous Mobile Robots), is expected to further boost market growth. Despite the challenges, the benefits of AMH systems, including increased productivity and reduced labor costs, make them an attractive investment for businesses in various industries.

Key Market Driver - Growing e-commerce industry

The e-commerce sector's expansion has led to an escalating demand for automated material handling (AMH) equipment in warehousing and distribution facilities. Warehouse service providers, including 3PLs, are integrating cloud-based platforms and AMH equipment to enhance efficiency and reduce costs in their operations. The personal care industry and manufacturing sectors are significant consumers of AMH equipment due to the need for high storage capacity and flexibility. Emerging economies, such as China and India, are witnessing industrial growth and infrastructural development, creating opportunities for AMH equipment adoption. However, switching costs and industry reluctance pose challenges.

AMH equipment, including ASRS, offers benefits such as real-time inventory control, height limits, control technologies, energy efficiency, and maintenance. The global market for AMH equipment is characterized by growth opportunities, scalability, and flexibility. Manufacturers are focusing on designing AMH equipment that is space-efficient, labor-utilizing, and productive. The material handling ecosystem encompasses software, layout, integration, and energy efficiency. The largest share of the market is held by the electronics and storage industries. AMH equipment's benefits include improved safety, productivity, and space utilization.

Significant Market Trends - Increasing technological advances in industrial operation

The market is experiencing significant growth due to the increasing adoption of advanced technologies in various industries, including manufacturing and the e-commerce sector. Warehouse service providers and 3PL (Third-Party Logistics) companies are integrating cloud-based platforms, ML, and big data analytics to enhance efficiency, reduce costs, and ensure safety in their operations. The personal care industry and other labor-intensive processes are benefiting from the use of AMH equipment, such as software-controlled systems and ASRS, to optimize layout and improve real-time inventory control.

Emerging economies and industrial growth in developing countries are driving the demand for AMH equipment in warehousing facilities. However, switching costs and industry reluctance to adopt new technologies pose challenges. Flexible and scalable AMH solutions offer benefits such as energy efficiency, labor utilization, and productivity. The global market for AMH equipment is expected to grow, with electronics and storage capacity being key areas of focus. Height limits and control technologies are important considerations in the material handling ecosystem. Maintenance and ongoing costs are also critical factors in the decision-making process.

Major Market Challenge - High CAPEX for acquiring automated material handling equipment

The global market for Automated Material Handling (AMH) equipment experiences growth challenges due to the significant capital expenditure required by warehouse service providers, including small-sized and medium-sized enterprises (SMEs). E-commerce and 3PL sectors, particularly in industries like personal care, are major consumers of AMH equipment due to efficiency and safety benefits. However, costs and long installation times hinder wider adoption. Emerging economies and industrial growth present opportunities for AMH equipment market expansion. Cloud-based platforms, software integration, and flexible, scalable equipment offer solutions to switching costs and industry reluctance.

Manufacturing and warehousing facilities with high storage capacity and height limits can benefit from AMH equipment's control technologies, energy efficiency, and real-time inventory control. AMH equipment, including Automated Storage and Retrieval Systems (ASRS), offers benefits such as labor utilization, productivity, and space optimization. The market is driven by electronics, infrastructure development, and the material handling ecosystem's continuous evolution. Despite challenges, the largest share of the market lies in operations and processes improvement. 

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Wipro Ltd: The company offers automated material handling solutions under the brand Wipro PARI.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Addverb Technologies Pvt. Ltd., Beumer Group GmbH and Co. KG, DaifUKu Co. Ltd., FIVES SAS, FlexLink Holding AB, Hanwha Corp., Honeywell International Inc., John Bean Technologies Corp., Jungheinrich Group, Kardex Holding AG, KION GROUP AG, KUKA AG, Mecalux SA, Murata Machinery Ltd., Robert Bosch GmbH, Siemens AG, SSI Schafer IT Solutions GmbH, TGW LOGISTICS GROUP GmbH, and Toyota Industries Corp.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis. 

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Component Outlook 
  • Hardware
  • Software
  • Services

• End-user Outlook 
  • Automotive
  • E-commerce and 3PL
  • Food and beverage
  • Semiconductor and electronics and others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The automated material handling market report predicts that the market plays a crucial role in enhancing industrial productivity and efficiency. This market encompasses various technologies and equipment used for moving, lifting, and storing materials in manufacturing industries, warehouses, and logistics operations. Key components of this market include conveyor systems, cranes, automated guided vehicles (AGVs), and robotic arms. The market for Automated Material Handling is driven by several factors, including the increasing demand for automation in manufacturing and logistics industries, the need for reducing labor costs, and the growing trend toward implementing smart factories and warehouses. The market is advancing through strategic partnerships and collaborations, incorporating TMS (Transportation Management Software) to optimize operations, and adopting scalable AMH equipment for efficient logistics solutions.

Additionally, the adoption of Industry 4.0 and the Internet of Things (IoT) is expected to further fuel the growth of this market. Moreover, the market is witnessing the emergence of advanced technologies such as artificial intelligence (AI) and machine learning (ML) in material handling systems. These technologies enable real-time monitoring, predictive maintenance, and optimized material flow, thereby enhancing overall operational efficiency. In conclusion, the market is poised for significant growth in the coming years, driven by the increasing demand for automation, the need for reducing labor costs, and the adoption of advanced technologies such as AI and ML.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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