GLOBAL MARKET FOR MATERIAL HANDLING EQUIPMENT

 

The global market for material handling equipment reached a significant value of USD 213.35 billion in 2021 and is projected to experience a steady compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. This growth is primarily attributed to the rapid pace of industrialization and the escalating demand for automation in material handling processes. Over the forecast period, these factors are anticipated to drive the expansion of the market.

However, it is worth noting that the initial outbreak of the COVID-19 pandemic adversely affected the warehousing industry. The movement of products, particularly non-essential items, was severely hindered, leading to a significant slowdown. This, coupled with labor shortages on a global scale and a sharp decline in demand, had a substantial negative impact on the market during the initial phase of the pandemic.

The robust growth in private investment in industrial equipment and machinery serves as a positive indicator of a strong U.S. economy. This, in turn, is expected to stimulate activity in key downstream markets like manufacturing and wholesaling. Consequently, the increased investment in industrial equipment and machinery is anticipated to drive the demand for industry products, including material handling equipment.

Several factors contribute to the rapid development of this market. Firstly, there is a growing awareness of worker safety, prompting the need for effective management of bulk materials. Additionally, the rise of Industry 4.0, characterized by increased utilization of the Internet of Things, further accelerates market growth. The demand for material handling equipment is also fueled by the industry's emphasis on minimizing downtime and enhancing supply chain efficiency.

Furthermore, the adoption of automation and continuous technological advancements have led to the establishment of fully automated industrial facilities in developed nations. The ongoing modernization of industrial facilities and infrastructures to enhance production capacity is expected to be a key driver for the material handling equipment market.

In particular, the e-commerce application segment is poised for significant development throughout the forecast period. Factors such as the widespread adoption of online shopping platforms, the presence of major online retailers, and the expansion of logistics infrastructure contribute to this growth. As a result, warehouse owners are increasingly incorporating efficient material handling equipment into their facilities to effectively manage the supply chain ecosystem.

The e-commerce segment emerged as the market leader, contributing to over 20.0% of the global revenue in 2021. The growth of this segment is propelled by various factors, including the widespread adoption of online shopping platforms, the presence of major online retailers, and the continuous expansion of logistics infrastructure. These factors collectively drive the demand for material handling equipment within the e-commerce industry.

Additionally, the transformation of numerous grocery stores into convenience stores that offer fast-food-like services, including frozen food, ready-to-eat meals, and fresh items, has significantly impacted the food industry. This shift has brought about substantial changes in manufacturing and material handling procedures, particularly in the frozen food sector. The rise of the frozen food industry has necessitated new approaches and techniques in handling materials and managing production processes.

Global Material Handling Equipment Market Share in 2021

The pharmaceutical segment is projected to exhibit a strong compound annual growth rate (CAGR) of 6.6% during the forecast period. With the increasing prevalence of various diseases, there is a growing demand for pharmaceutical storage and material-handling equipment. These systems play a vital role in meeting the escalating need for medicines. They enhance productivity, reduce time, labor, and waste, optimize product quality, and ensure overall cost efficiency and safety.

In the aviation industry, baggage handling systems, which are a type of conveyor system, have become essential. These systems transport checked-in luggage from ticket counters to the aircraft and subsequently to the baggage claim area. The rising utilization of baggage handling systems in airports is driving the growth of material handling equipment in the aviation sector.

The Asia Pacific region dominated the market, accounting for more than 35.0% of the global revenue in 2021. The region's leadership can be attributed to the flourishing food retail sector, which presents numerous opportunities for the market. Material handling equipment plays a crucial role in improving the efficiency and speed of picking and sorting processes in this sector. In Europe, the market is expected to experience growth driven by integrated solutions that comply with new legislative reforms focusing on safety and quality.

Furthermore, the demand for material handling equipment in the manufacturing, ports, and warehousing industries is primarily fueled by industrial trucks and automated categories. These sectors rely heavily on efficient material handling systems to streamline operations and enhance productivity.

The increased adoption of e-commerce technologies created a considerable demand for modern products in warehouses, prompting companies to offer high-quality products. The market expansion is anticipated to be aided by the rising need for automated warehousing operations in North America. Latin America is estimated to register a CAGR of 6.0% over the forecast period. The industry in Latin America is majorly driven by increasing investments in various end-use industries such as automotive and food and beverage.