Rapid advancement in integrating Industry 4.0 principles with automated material handling equipment, combined with the incorporation of IoT and data analytics, alongside heightened labour expenses and safety concerns, is expected to drive the expansion of the automated material handling equipment market.
According to a recent report titled “Automated Material Handling Equipment Market by Product (Autonomous Mobile Robots, Cobot Palletisers, Automated Storage & Retrieval Systems, Conveyors Systems, Warehouse Management System, Automated Guided Vehicles), Region – Global Forecast to 2029” by MarketsandMarkets, has stated that the market size is anticipated to grow from USD 33.3 billion in 2024 to USD 51.0 billion by 2029, at a CAGR of 8.9 per cent from 2024 to 2029.
Automotive industry segment to hold the largest market share in 2024
The market for automated material handling equipment is expected to be dominated by the automotive sector because of its great demand for the effective handling and transportation of parts and completed goods inside production facilities.
To increase production and reduce costs and errors, automobile firms that operate on a big scale actively invest in automation technology like robotics and automated guided vehicles (AGVs). Moreover, Industry 4.0’s objectives are in line with the sector’s emphasis on innovation and constant development, which encourages increased automation and digital technology integration. These elements place the automobile industry in a prominent position to propel the market for automated material handling systems.
WMS product grows at the highest CAGR
Warehouse Management Systems (WMS) are anticipated to exhibit the highest CAGR within the automated material handling equipment industry for several key reasons. The surge in e-commerce activity stands out as a significant catalyst, driving the need for efficient order processing amidst escalating order volumes.
WMS facilitates the automation of workflows, enhances warehouse space utilisation, and streamlines picking and packing operations. The increasing emphasis on enhancing labor productivity and safety is fueling the adoption of WMS. These systems reduce dependence on manual labor, thereby minimising the risk of workplace injuries and enabling companies to achieve more with fewer personnel.
WMS seamlessly integrates with other automated equipment such as robots and conveyor systems, fostering a more interconnected and intelligent warehouse environment. This seamless integration plays a pivotal role in the advancement of Industry 4.0 and smart factory initiatives, underscoring the role of WMS in contemporary material handling practices.
Unit load material handling type accounts for largest market share in 2023
Unit load material handling systems held the majority of the market share in 2023. They provide a great deal of adaptability. Palletised items can be handled by a variety of equipment, such as pallet jacks, conveyor belts, and forklifts, which makes them appropriate for a range of sectors. Businesses can streamline operations at various supply chain levels because of this flexibility. Systems with unit loads are very efficient. Palletised goods are easy to stack and move in large quantities, which maximises storage space and cuts down on transit time. Faster product delivery and cost savings are the results of this efficiency.
Unit load systems are often well-established technologies that have operators with the necessary skills and easily available parts. Their extensive use and pre-existing infrastructure make them a dependable and affordable solution for a lot of companies.
Asia Pacific region to grow at the highest CAGR
The industry for automated material handling equipment is expected to grow at the fastest rate in the Asia Pacific region. The growing need for effective production methods and higher output due to the growth of the manufacturing sector in nations like China, India, Japan, and South Korea. Automation is required due to the growing e-commerce industry’s demand for quicker and more efficient fulfilment.
Companies are also investing in automated solutions as a result of growing worker safety concerns and increased labour costs. Government programmers that rely on automation are aggressively pushing Industry 4.0 and smart factory concepts in a number of APAC countries. A perfect storm is being created by these interconnected factors for the Asia Pacific region to quickly adopt automated material handling technology.
