The Asia Pacific material handling market is expected to grow at a compound annual growth rate of 6.65% over the forecast period to reach a market size of US$113.556 billion in 2027, from US$72.357 billion in 2020. Material Handling refers to inventory management and control. The process involves storage, delivering, packaging, assembling, handling, distribution, movement, protection, and control of production throughout the industrial or organizational process. Material Handling is applied in almost every sector that involves the bulk of goods like the healthcare industry, food and beverage sector, airports, manufacturing industries, etc.
Market Trend:
The expanding industrialization in the Asia Pacific Region along with infrastructure development in the region is expected to give a major boost to the Material Handling market in the coming years. The booming manufacturing sector in the developing economies of India and China requires high usage of market handling equipment which can drive its market in the coming years. The technological development in these economies along with the role of Artificial Intelligence in the Material Handling Market is considered a key highlight for market growth. The booming e-commerce industry due to the high penetration of the internet and increased use of smartphones in the Asia Pacific region is expected to increase the demand for material handling solutions in the years to come by. Additionally, material handling has become necessary in every industry because of the attached accuracy and safety it provides to the workers while handling the processes.
One of the major challenges for the growth of the material handling market is the high initial investment.
Growth Factors
The rapid industrialization and infrastructure development in the Asia Pacific region is considered to be the key contributor to the growth of the Material Handling Market in the region. Industrialization is accompanied by the burden of handling and managing large-scale production and to handle that material handling equipment is widely demanded. The Asia Pacific is the fastest-growing region in the world and as per the data provided by IMF, Asia’s Average GDP Growth in 2021 was 6.5%. Pre covid data available from World Bank states that in 2019, East Asia and Pacific stood at 26.981 trillion economies registering a significant growth from 8.737 trillion in 2000. The upcoming industrial and infrastructure projects in the region like Lloyd’s Asia’s renewable energy consortium, Mumbai Ahmedabad bullet train project, etc. hold witness to the development of infrastructure which holds a wide scope of development for the Material Handling Market as well.
The growing e-commerce industry in Asia-Pacific is expected to provide a major boost to the material handling market in the coming years because of the attached needs to handle and manage warehousing and distribution. The major factors contributing to the growth of e-commerce in the Asia Pacific are the high internet penetration in the region along with the wide adoption of smartphones and advanced technology by the people. World Bank data reveals that Internet Usage has significantly increased in East Asia and the Pacific from 8.313% of the total population in 2005 to 68.864% in 2020.
Restraint
Due to the high initial investment required by the material handling equipment, the growth of the market is expected to witness some challenges. Not all equipment used in material handling is easy to procure, install, monitor, and manage. This makes it difficult to be adopted by every industry and sector.
Impact of COVID-19 Pandemic:
With the outburst of the covid pandemic that was accompanied by lockdown, curfew restrictions from the government, social distancing, etc., the Material Handling Market witnessed a negative impact. With the economies closing their border, the industries and companies too were advised to shut down their operations. This severely impacted the demand for Material Handling in Asia Pacific Region.
| Report Metric | Details |
| Market size value in 2020 | US$72.357 billion |
| Market size value in 2027 | US$113.556 billion |
| Growth Rate | CAGR of 6.65% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Product, Application, Industry Vertical, And Geography |
| Regions covered | China, India, Japan, Taiwan, Australia, South Korea, Others |
| Companies covered | Daifuku Co. Ltd., Honeywell Integrated, Schaefer Systems International Pvt. Ltd., Toyota Industries Corporation, JBT Corporation, Beumer Group, Swisslog, Dematic, Kion Group AG, Kardex Group |
| Customization scope | Free report customization with purchase |
Segmentation:
Daifuku Co. Ltd.
Honeywell Integrated
Schaefer Systems International Pvt. Ltd.
Toyota Industries Corporation
JBT Corporation
Beumer Group
Swisslog
Dematic
Kion Group AG
Kardex Group
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