Asia Pacific Material Handling Equipment Market Size and Trends

The Asia Pacific material handling equipment market is estimated to be valued at US$ 112.45 Bn in 2024 and is expected to reach US$ 174.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.

Asia Pacific Material Handling Equipment Market Key Factors

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Rapid industrialization and growth of the e-commerce industry have been major factors driving increased demand for material handling equipment in the Asia Pacific. The Asia Pacific Material Handling Equipment Market has been witnessing considerable growth over the years owing to expansion of warehousing facilities by major third-party logistics companies and growth in investments towards automation by key industries such as the automotive, food & beverage, and semiconductor industries. Increasing focus on operational efficiency and productivity improvements have propelled the adoption of modern material handling solutions across Asia Pacific. Four types of material handling equipment used in the industry are storage and handling equipment, industrial trucks, engineered systems, and bulk material handling equipment.

Market Driver - Rapid growth in e-commerce and online retail

The Asia Pacific region has seen tremendous growth in the e-commerce sector over the past decade. Expanding internet penetration coupled with rise of smartphone usage has enabled more consumers to shop online for various goods ranging from apparel to electronics. Countries like China, India, and Indonesia especially have emerged as lucrative markets for e-commerce companies. The COVID-19 pandemic has further accelerated this shift to online shopping as more people turned to websites and apps for procuring items while avoiding crowded public areas.

This boom in e-commerce has significantly increased the need for material handling equipment across warehouse and fulfillment centers of various retailers and logistics companies. Sophisticated automation systems are required to efficiently receive, process and dispatch a huge volume of smaller orders on daily basis. E-commerce giants such as Alibaba, Shopee, Lazada, Rakuten, Tokopedia, AliExpress, BliBli, etc. make substantial investments to upgrade their inventory management and order picking capabilities through adoption of latest generation conveyor belts, automated storage and retrieval systems, sortation systems, and robotic arms. Cross-docking facilities also integrate automated sorting lines and carousels to quick transfer shipments between trucks and trailers for last mile delivery.

Rise of demand from tier 2 and tier 3 cities in developing countries also propels the need for scaling up logistics infrastructure. Third-party logistics firms open many new distribution centers to cater orders from rural areas, requiring installation of various material handling machinery. Rapid inventory turnover demands optimal utilization of warehouse floor space through mechanical handling of products as opposed to manual labor intensive processes. Furthermore, consumer expectation of fast delivery within few days encourages supply chain players to invest in mechanization for boosting operational efficiency.

Increasing demand for efficient supply chain management

In the current competitive business environment, companies are under constant pressure to deliver orders to customers in the shortest possible timelines. This emphasizes the need to streamline internal supply chain operations and curb operational expenses. Material handling equipment plays a pivotal role in automating key supply chain functions and facilitating just-in-time manufacturing and distribution processes.

Omnichannel retailing strategies followed by many retailers and brands also necessitate advanced integration between physical and online order fulfillment channels. Seamless flow of inventory across different warehouse locations and distribution of multi-channel orders require sophisticated material handling automation controlled through warehouse management systems. Moreover, unpredictable demand patterns amplified during pandemic highlights the importance of flexible, scalable warehousing facilitated by automated equipment like automatic guided vehicles and shuttles.

On the manufacturing front, industries strive to achieve lean production goals through adoption of Industry 4.0 technologies. Material movement within factories is predominantly automated using overhead conveyors, robotic arms, automated rack systems to support one-piece flow production of high-mix low or medium volume customized product lines. Automated intra-logistics ensure timely availability of components at each work station while eliminating manual material transport delays. This significantly enhances productivity, quality and flexibility of manufacturing operations.

Lean inventory philosophy pursued by supply chain players to avoid stock-outs without overstocking also warrants optimum space utilization. Automatic storage and retrieval systems enable high-density warehousing of components and finished goods. Overall, efficient material flow management from source to delivery remains indispensable for companies to achieve competitive supply chain capabilities and customer fulfillment objectives in the long run.