MATERIAL HANDLING EQUIPMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)
Material handling equipment market is estimated to be valued at USD 228.33 Bn in 2024 and is expected to reach USD 344.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6% from 2024 to 2031.
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Warehousing and distribution centers vertical contribute the largest share in this market due to increasing demand for equipment across food & beverages, automotive, healthcare and e-commerce industry. The market can witness significant growth over the forecast period due to increasing automation and technology integration across industries for warehouse automation. Adoption of autonomous vehicles, robotics and IoT enabled solutions can also drive the market growth. Growing e-commerce sector and focus toward warehouse automation can boost demand for advanced material handling equipment globally.
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Insights, By Product- Cranes & lifting equipment segment dominates due to high demand for material handling products in various sectors
In terms of product, cranes & lifting equipment segment is estimated to contribute the highest market share of 33.5% in 2024, owing to its high demand from end-use industries. Cranes and lifting equipment form the backbone of material handling across various industries due to their ability to efficiently transfer heavy payloads from one location to another. These machines efficiently aid manufacturing, construction, infrastructure.
Insights, By Application- Automotive segment dominates due to expansion of materials use in the automotive and battery industries
In terms of application, automotive segment is estimated to contribute the highest market share of 23.3% in 2024, due to robust manufacturing activities. Automotive industry is key consumer of material handling equipment, with strong demand for intralogistics solutions across diverse automotive manufacturing and assembly facilities. Robust automobile production worldwide can stimulate the implementation of modernized material handling infrastructure within automobile plants.
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Dominating Region- Asia Pacific
Asia Pacific is expected to dominate the material handling equipment market in 2024, with an estimated market share of 41.2%. The market growth can be attributed to well-established manufacturing and logistics industries. With robust economic growth, rising demand for efficient warehouse operations, material handling equipment vendors in the region have significantly invested in technologies to optimize supply chain management.
Fastest-Growing Region- Latin America
Latin America exhibits the fastest growth in material handling equipment market. Countries like Brazil and other Latin nations are witnessing expanding manufacturing capacity and rapid industrialization. Coupled with supportive government policies and tax incentives for warehouse automation, material handling equipment companies are actively capturing opportunities in growing e-commerce and automotive sectors.
Material Handling Equipment Market Outlook for Key Countries
Market Growth Fueled by Logistics Expansion and Automation in China
China's market remains robust with continued foreign investment and rising need for sophisticated distribution center logistics amid the 'Belt and Road' initiative. China is the world’s largest manufacturer and consumer of material handling equipment, with huge demand driven by its manufacturing industry, logistics sector, and rapid urbanization. The push for automation in warehouses and distribution centers, especially in e-commerce, drives the market growth.
Japan’s Leadership in Material Handling- Robotics and AI-Driven Automation
Japan continues to lead material handling equipment with collaborative robot solutions and automation integrated with artificial intelligence for smart factories and warehouses. Japan is a leader in automation and robotics, which directly impacts the material handling sector. The country’s advanced manufacturing base and focus on technological innovation, especially in robotics, logistics, and warehouse automation, drives the country market growth.
Market Growth Driven by Industrialization and Automation in India
India’s growing industrialization, expanding manufacturing sector, and rising focus on logistics infrastructure boosts demand for material handling equipment. The country’s rapid urbanization and government initiatives, like the "Make in India" program, are also pushing for more automated systems. Key sectors include manufacturing, automotive, e-commerce, retail, and logistics.
Market Growth Driven by Key Industries in Morocco
Morocco’s strategic position as a hub for manufacturing and distribution in North Africa has led to growing demand for material handling equipment, particularly in sectors such as automotive, mining, and agriculture. Automotive manufacturing, logistics, mining, and agriculture are the main sectors utilizing MHE in Morocco.
Market Growth Fueled by Industrial Modernization and Automation
Brazil's large industrial base, combined with increasing focus on improving supply chain efficiency and automation in sectors such as agriculture, mining, and e-commerce, supports the growing demand for material handling equipment. Brazil’s market can witness growth steadily as industries continue to modernize. Although faced with some economic challenges, the need for improved logistics and material handling solutions in the mining and agriculture sectors will sustain demand.
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Dominating Region- Asia Pacific
Asia Pacific is expected to dominate the material handling equipment market in 2024, with an estimated market share of 41.2%. The market growth can be attributed to well-established manufacturing and logistics industries. With robust economic growth, rising demand for efficient warehouse operations, material handling equipment vendors in the region have significantly invested in technologies to optimize supply chain management.
Fastest-Growing Region- Latin America
Latin America exhibits the fastest growth in material handling equipment market. Countries like Brazil and other Latin nations are witnessing expanding manufacturing capacity and rapid industrialization. Coupled with supportive government policies and tax incentives for warehouse automation, material handling equipment companies are actively capturing opportunities in growing e-commerce and automotive sectors.
Material Handling Equipment Market Outlook for Key Countries
Market Growth Fueled by Logistics Expansion and Automation in China
China's market remains robust with continued foreign investment and rising need for sophisticated distribution center logistics amid the 'Belt and Road' initiative. China is the world’s largest manufacturer and consumer of material handling equipment, with huge demand driven by its manufacturing industry, logistics sector, and rapid urbanization. The push for automation in warehouses and distribution centers, especially in e-commerce, drives the market growth.
Japan’s Leadership in Material Handling- Robotics and AI-Driven Automation
Japan continues to lead material handling equipment with collaborative robot solutions and automation integrated with artificial intelligence for smart factories and warehouses. Japan is a leader in automation and robotics, which directly impacts the material handling sector. The country’s advanced manufacturing base and focus on technological innovation, especially in robotics, logistics, and warehouse automation, drives the country market growth.
Market Growth Driven by Industrialization and Automation in India
India’s growing industrialization, expanding manufacturing sector, and rising focus on logistics infrastructure boosts demand for material handling equipment. The country’s rapid urbanization and government initiatives, like the "Make in India" program, are also pushing for more automated systems. Key sectors include manufacturing, automotive, e-commerce, retail, and logistics.
Market Growth Driven by Key Industries in Morocco
Morocco’s strategic position as a hub for manufacturing and distribution in North Africa has led to growing demand for material handling equipment, particularly in sectors such as automotive, mining, and agriculture. Automotive manufacturing, logistics, mining, and agriculture are the main sectors utilizing MHE in Morocco.
Market Growth Fueled by Industrial Modernization and Automation
Brazil's large industrial base, combined with increasing focus on improving supply chain efficiency and automation in sectors such as agriculture, mining, and e-commerce, supports the growing demand for material handling equipment. Brazil’s market can witness growth steadily as industries continue to modernize. Although faced with some economic challenges, the need for improved logistics and material handling solutions in the mining and agriculture sectors will sustain demand.
Key Takeaways from Analyst
The market can witness growth in the near future. Booming e-commerce industry can boost demand for material handling solutions across warehouses and distribution centers globally. Growing industries such as automotive, food and beverage, construction will maintain demand for lifting equipment like cranes and hoists. However, high initial investments and maintenance costs involved with equipment like conveyors and automated guided vehicles can hamper the market growth. The market is also witnessing rising adoption of industrial robots and autonomous vehicles that improve warehouse efficiency.
Asia Pacific will continue dominating the material handling equipment market due to strong demand from the China, India, Japan. Meanwhile, Latin America is set to emerge as the fastest growing regional market. Countries like Brazil, are investing heavily in automation to enhance productivity across manufacturing plants. European market is also gaining traction due to growing prominence of third-party logistics providers.
Rising demand for smart material handling solutions equipped with IoT and analytics capabilities opens new opportunities for market participants. Many players are offering rental services for equipment to reduce customer costs and attract price-sensitive buyers.
Material Handling Equipment Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 228.33 Bn |
| Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
| Forecast Period 2024 to 2031 CAGR: | 6% | 2031 Value Projection: | US$ 344.23 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
BEUMER GROUP, Daifuku Co., Ltd., Honeywell International, Inc., KION GROUP AG, Mecalux, S.A., Murata Manufacturing Co., Ltd., SSI SCHAEFER, Swisslog Holding AG, TOYOTA INDUSTRIES CORPORATION, Vanderlande Industries B.V. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Driver- Increasing automation in warehousing and manufacturing
With rising need for increased efficiency and productivity in warehousing and manufacturing operations, automation has become integral part of the material handling process. Labor costs have been rising steadily over the years, thus, compelling companies to invest in automated machinery and equipment that can perform repetitive and hazardous tasks with better precision and speed. Advancements in robotics, artificial intelligence, Internet of Things (IoT), and other technologies are enabling higher level of automation in areas such as order picking, packaging, palletizing, transportation within facilities.
Market Challenge- High initial costs of automated material handling equipment
Major challenges faced by the market include high initial costs associated with automated material handling equipment. The high capital expenditure required for equipment such as automated guided vehicles, conveyor systems, and automated storage and retrieval systems poses a significant barrier for companies, especially small and medium-sized enterprises. While automated solutions provide benefits such as increased productivity and efficiency over the long run due to reduced reliance on manual labor, the upfront capital investment deters many companies.
Market Opportunity- Emergence of green and sustainable material handling solutions
Major opportunities for this market include growing demand for green and sustainable solutions. With increasing focus on reducing carbon footprint and environmental impact of operations, companies across industries are exploring greener options for material and component movement within their facilities. This presents a major opportunity for material handling equipment manufacturers to develop and offer eco-friendly solutions powered by renewable energy sources and incorporating recycled/recyclable components.
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About Author
Yash Doshi is a Senior Management Consultant. He has 12+ years of experience in conducting research and handling consulting projects across verticals in APAC, EMEA, and the Americas.
He brings strong acumen in helping chemical companies navigate complex challenges and identify growth opportunities. He has deep expertise across the chemicals value chain, including commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals. Yash is a sought-after speaker at industry conferences and contributes to various publications on topics related commodity, specialty and fine chemicals, plastics and polymers, and petrochemicals.
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