ID: MRFR/SEM/0523-HCR | February 2021 | Region: Global | 110 pages
A product life cycle has various steps, from product production to product delivery to end consumers or customers, where the requirement of material handling and automation is a must on every step. Material handling is a network that dispenses with the product movement from one region to other various areas. This material handling system reduces the time limit in the transit process by involving advanced machinery and technologies.
In the present scenario, the global market has estimated USD 43.6 Billion to grow its market size in 2021. The automation material handling market has expected to reach 12.0% CAGR and meet the growth of USD 76.8 Billion in the forecast period of 2021 to 2027.
Global Material Handling Market has increased its popularity and market growth due to several major factors such as increasing labor cost and safety concerns, rising technological advancements, increasing efficiency and productivity of manufacturing and warehouse operating companies, significant recovery in global manufacturing, growing need for automation in industries, increasing demand for robots in manufacturing units and warehousing facilities, and rising emerging markets. Furthermore, the rising digitization of supply chain processes and increasing level of order customization and personalization with automation material handling equipment will generate more opportunities for the global market during the forecast period.
The report has focused on the detailed analysis of the global market network and the various segments and sub-segments concerning geographical locations. It has explained the factors affecting the market growth by analyzing the production cost and supply chain of the global market. Moreover, the report has highlighted a market analysis of the country concerning the current market size and future prospective of the global market. Further, the report has comprehensively analyzed the key player's core competencies and illustrating a competitive landscape for the global market.
The ongoing pandemic has affected almost all sectors, and the automated handling system was not deprived of it. The automated handling as a system market also experienced a halt in this situation. As a result, the declined shipments of the material handling equipment and the market revenues created from them have been affected badly. During the first half of 2020, the market growth had faced problems, and a sudden drop in market size has been witnessed. However, in the latter half of 2020, the global market demand has increased due to the increasing concern for material handling equipment.
The report explains that the COVID-19 outbreak has gradually impacted the material handling equipment market's value chain. The industries like aviation, metal and heavy, automotive, and machinery have faced decreasing demands over their products because of the global slowdown and declining purchasing power of the customers for a short period.
With the COVID-19 adversities facing a reduction, the key players are the key market drives as the businesses are currently adapting to the increased need for advanced technologies to grow the material handling market's potential. The post-COVID-19 outbreak blooms the e-commerce industry as unprecedented growth has been witnessed in the level of online shoppers. Many consumers preferred to do online shopping due to the enforcement of lockdowns and social distancing norms of the COVID-19 pandemic. As a result, the business-to-business (B2B) e-commerce and business-to-consumer (B2C) sales have taken over the global market. The online sales of household goods, pharmaceuticals, food, etc., have increased B2C sales.
However, the immense growth in the e-commerce industry has pressurized the whole delivery system as a massive number of goods need to deliver within a limited time. Therefore, automation in material handling facilities has been adopted by e-commerce companies. This system has helped the e-commerce companies effectively to fulfill the increasing demand of the consumers efficiently.
With the high preference for personalized and customized product orders, the system as an online service market growth is expected to boost on a larger scale. It became complicated for the e-commerce companies to process complex orders through manual processes to meet the customers' demand over the low prices with the fast delivery. The growing popularity of customized orders has driven the warehouse operators and manufacturers to increase the overall processes' speed and efficiency to achieve their goal.
The high adaptations of the online services that need system service to function provide some noticeable growth potential to the overall global market. The Automated Material Handling (AMH) system has features like AGV, automated sorters, conveyor systems, robotic pickers, and ASRS that can help handle the customized orders at a faster rate with delimiting the error rate.
The small and medium-sized enterprises (SMEs) offer the necessary raw materials to big enterprises and contribute a larger market share to the country’s economic development. Thus, the material handling operations work as an essential part of the supply chain of SMEs. Still, the high upfront cost for installation of the material handling equipment might be restraints for the automation market's global growth. Many small enterprises prefer traditional or manual material handling process as they cannot afford automated systems. Moreover, some large enterprises have adopted renting industrial trucks, buying second-hand equipment, or purchasing equipment on lease to upfront costs.
The report explains that the key players are handling the manufacturing and promoting aspects of the automated handling equipment to ensure that more people prefer cost-effective products to eradicate the only restraint in the market. Hence, it will help with an overall increase in the global sales rate.
Companies' overall earnings can have a severe impact due to the failure or breakages of the material handling automation equipment as it delays the entire production process and experiences production loss. The food and beverages, automotive, and metals, and heavy machinery companies require investing more in preventive maintenance of their automated handling equipment to ensure equipment's smooth functioning.
The report explained that the key players are trying to cope with the challenges to overcome the situation and have picked up the pace for increasing the supply rate to reach the enhanced demand rate.
As per the Automated Material Handling System analysis, in terms of growth is concerned, the predicted market size is expected to experience more than 12.0% CAGR growth in the current forecast year 2027.
To give it exact figures, the market size in 2021 was USD 43.6 billion, which is expected to grow up to USD 76.8 billion by the end of the forecast years by 2027.
Value Chain Analysis
During the forecast period, the global market is increasing its market value and market growth. The global market has maintained its stability over the previous periods, and in the future, it has aimed to achieve its targeted audience. Thus, the key drivers have contributed to all the regions with the best automated material handling (AMH) equipment and developing its market value and size.
The report explains that the COVID-19 outbreak has gradually impacted the material handling equipment market's value chain. The industries of aviation, automotive, and metal and heavy machinery have witnessed a low demand over its sales, which are expected to grow in the forecast period.
According to the segmental classification, the automated market has various operations such as assembly, waste management, packaging and distribution, storage, and transportation.
The report mentions that the automated market's segmental operations have their functions and features, which help generate market value worldwide.
According to the segmental classification, the chlorella market has various applications, including healthcare, chemicals, automotive, foods and beverages, aviation, electronics, e-commerce, semiconductors, etc.
The report explains that material handling in various applications has brought a revolution in the global market. To meet the consumer's demand, the global market requires more key players to explore their products.
Based on the segmentation, the automated market has various software and services like warehouse management system (WMS), Transportation management system (TMS), Maintenance and repairs, training, and software up-gradation.
The global market has automated equipment such as automated storage and retrieval system, robotics system, conveyors, automated guided vehicles, and automated cranes based on segmentation.
Based on the regional analysis, the global market is widely spread across various regions of the globe. Some of the top-performing areas worldwide are North America, Europe, Asia-Pacific, and The Middle East & Africa.
Out of all the continents, Asia-Pacific has domination by giving maximum profit to the market as the demand rate is considerably growing in this region.
The key players of this automated market are:
The key players have adopted various strategies to uplift the Automated Material Handling Market Size.
The report overview is as follows:
The report puts light on some of the global network's essential growth factors as a service market.
|Market Size||2027: USD 76.8 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Operation, Software & Services, Application, Automated Equipment|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Swisslog AG (Switzerland),, Kardex (Switzerland),, Intelligrated (U.S.),, Murata Machinery (Japan),, Mecalux (Spain),, Schaefer Holding International (Germany),, Daifuku Co. Ltd (Japan),, Dematic (U.S.),, Vanderlande Industries (U.S.),, BEUMER Group (Germany)|
|Key Market Opportunities||
|Key Market Drivers||immense growth in the e-commerce industry|
Frequently Asked Questions (FAQ) :
Some key applications of automated material handling include e-commerce, healthcare, automotive, chemicals, foods and beverages, and others.
Constant technical progress and modernization of industrial plants are the key factors driving the automated material handling market.
Key players profiled in the automated material handling market include Schaefer Holding International (Germany), Daifuku Co. Ltd (Japan), Dematic (U.S.), Murata Machinery (Japan), Mecalux (Spain), Vanderlande Industries (U.S.), BEUMER Group (Germany), Swisslog AG (Switzerland), Kardex (Switzerland), Intelligrated (U.S.) among others.
The expected growth rate is 12.0% CAGR for the present forecast years, i.e., from 2021-2027.
The Asia-Pacific region has domination over the automated market.