The Italy Material Handling market is forecast to grow at a CAGR of 2.11%, reaching USD 6.60 billion in 2031 from USD 5.91 billion in 2026.
Italy is one of Europe’s top manufacturing economies and has significant demand for material handling equipment in numerous sectors, including automotive, machinery, food & beverage, pharmaceuticals, textiles, and luxury fashion. The continued growth of e-commerce and third-party logistics companies is increasing the demand for effective warehouse operations, with investments in forklifts, conveyors, pallet trucks, automated storage and retrieval systems (AS/RS), robotics, and warehouse management software.
Industry 4.0 and digital transformation efforts are driving businesses to incorporate IoT, AI, robotics, and predictive analytics into their handling systems to achieve advanced surveillance, predictive maintenance, and greater productivity. The EU Machinery Directive, CE marking requirements, and Italy’s adherence to workplace health and safety regulations ensure that equipment meets rigorous requirements for safety and performance. Meanwhile, the European Green Deal and Italy’s National Energy and Climate Plan encourage electric, low-emissions equipment and sustainable practices within warehouses and distribution centers.
Increasing demand for warehouse efficiencies and the implementation of automation and smart handling solutions are leading to investments in forklifts, conveyors, automated storage systems, and robotics. Italy’s strong automotive, food & beverage, and fashion industries will also play a major role in the demand for new material handling equipment.
The growth of e-commerce and the logistics industry is also changing demand since businesses are investing heavily in significantly larger new warehouses that service higher volumes rapidly and provide more accurate inventory management. According to the International Trade Administration, approximately 50 million Italians, or 85% of the population, are internet users and close to 40 million Italians shop online. Likewise, according to the GSMA research “The Mobile Economy Europe 2025”, the mobile data traffic is expected to grow from 22 GB per month in 2024 to 62 GB per month by 2030.
National authorities and European Union regulations impose strict requirements, as they relate to the occupation and design of handling equipment (forklifts, conveyors, cranes), to protect operators and prevent accidents. The EU Machinery Directive and CE marking requirements are the principal regulations that necessitate performance and safety requirements. Environmental rules associated with the EU Green Deal and the Italian National Energy and Climate Plan also require industries to switch to electric-powered and energy-efficient material handling systems, limit emissions, and contribute to sustainability objectives.
Consequently, the Italian material handling market is growing in both size and type as it transitions from traditional manual systems to high-tech, automated, and green alternatives that cater to the increasing demands of the country's industrial, retail, and logistics sectors.
Significantly, all the major players in the Italian material handling market are global and regional leaders. This includes Caterpillar, Volvo Construction Equipment, Liebherr, Komatsu, CNH Industrial, Hitachi, JCB, Xuzhou Construction Machinery Group Co., Ltd. (XCMG), Kubota, and SANY. They provide equipment of all types, ranging from trucks, lifts, and cranes to automated systems to support various industry sectors (manufacturing, construction, automotive, and logistics) and have established a dominant market presence in Italy. These players invest heavily in advanced technology (which includes a further commitment to safety and sustainability), and they are active in the increasing investment in automation and electrification of handling solutions to support materials handling modernization in Italy.
As companies are increasingly pushed to improve productivity and lower operational costs, the Italian material handling industry will be expected to continue its modernization and digitalization patterns. Additionally, global supply chain disruptions have highlighted the necessity for the Italian market to create resilient and flexible material handling infrastructures capable of facilitating domestic and international trade flows.
Expansion of Manufacturing and Automotive Industries
Italy's manufacturing and automotive sectors are crucial to the growth of the material handling industry; these sectors rely on advanced, efficient, and dependable technology, which is utilized to improve operations. Italy has historically been a center for automotive production, machinery, and industrial equipment production. Presently, as global and domestic demand continue to increase, these global and domestic companies are raising their production output.
Among the five largest EU countries, Germany had by far the largest contribution from manufacturing, adding to almost one-third (32.0%) of total EU value added in 2022, more than its contribution of 29.3% to the total EU business economy. Italy had the 2nd share of value added in both manufacturing (12.7%) and all business economy (10.5%), while France had the 3rd share of value added in manufacturing (11.4%) and the 2nd share in the total business economy (14.5%).
Italian automotive and industrial manufacturers are subject to certain European Union occupational safety directives, such as Directive 2009/104/EC concerning work equipment. This directive requires strict safety provisions for machines and materials handling systems employed within manufacturing, warehousing, and distribution facilities. This environment, within which manufacturers operate, requires them to purchase and adopt new handling solutions that are both advanced and compliant with occupational safety practices, thereby limiting risks of injury within workplaces, while adhering to strict inspection and maintenance criteria.
By Application: E-commerce
Based on application, the Italian material handling market is segmented into warehouse and distribution, airport baggage handling, bulk handling, postal and parcel delivery, assembly, packaging, e-commerce, and transportation and logistics. Technological advancements and efforts by the Italian government to promote automation have positively impacted the usage of modern machinery and equipment for material handling applications. Material handling plays an integral role in inventory management in the e-commerce application, as it optimizes the overall process of order picking and sorting.
Hence, as the frequency of urban population increases, followed by changes in living standards, booming internet & smartphone penetration, the scale of e-commerce activities in Italy is also witnessing a constant progression. For instance, according to the Italian National Institute of Statistics, in July 2025, the online retail sector witnessed a 2.9% year-on-year growth, with overall retail sales growing by 2.8%. The same source also stated that in June, the online retail experienced 4.1% growth.
Furthermore, the development of online retail platforms, followed by the expansion of out-of-home delivery networks, has further impacted the demand for equipment in warehouses to improve the overall efficiency of product handling. For instance, on 8th September 2025, Italy-based retailer Coop Alleanza launched its advanced e-commerce services via its online portal, which enables customers to customize their ordering process and select a delivery date as per their convenience.
Likewise, the Italian courier and logistics company GLS, in March 2025, announced a project to expand its out-of-home delivery network in major Italian cities, namely Milan, Rome, Turin, and Bergamo, which forms an integral part of the company’s strategic move to enhance its e-commerce services. Additional factors, such as the well-established presence of market players such as Toyota Material Handling, Hitachi Ltd., and Caterpillar Inc., which offer an extensive portfolio of material handling solutions, are further augmenting the overall market expansion.
By Industry Vertical: Automotive
Based on industry vertical, the Italian material handling market is segmented into manufacturing, healthcare, chemical, paper, food and beverage, automotive, construction, and others. The automotive sector in Italy is one of the major GDP contributors, and with the growing emphasis on improving industrial productivity, the investments in smart manufacturing units in the automotive industry are anticipated to show progress. Hence, with efforts to improve automotive production, optimize resource allocation during manufacturing operations, followed by the ongoing trend of adopting advanced machinery, are also predicted to improve the market growth.
According to the data provided by the International Organization of Motor Vehicle Manufacturers, in 2024, Italy’s automotive production reached 591,067 units, of which passenger vehicles accounted for a significant share, with volume reaching up to 309,758 units, and the commercial vehicles accounting for the remaining volume.
Various automotive and components manufacturers are investing in the Italian market to expand their production scale, which is further anticipated to drive demand for material handling equipment in the country, thereby augmenting overall market expansion. For instance, in April 2024, Stellantis N.V. announced the launch of its electrified dual-transmission clutch (eDCT) at its Mirafiori manufacturing facility with an annual production capacity of 600,000 units. The product will be used for hybrid vehicles sold under the Stellantis Fiat brand.
Likewise, in April 2024, the Ministry for Enterprise and Made in Italy approved Piaggio Group’s development contract, which involved the establishment of an investment plant for nearly 112 million euros to expand the company’s production.
In 2024, Kubota Corporation unveiled its vision for a wide range of customer solutions at CES 2025, which will bring more connectivity and automation to its equipment portfolio.
| Report Metric | Details |
|---|---|
| Total Market Size in 2026 | USD 5.91 billion |
| Total Market Size in 2031 | USD 6.60 billion |
| Forecast Unit | Billion |
| Growth Rate | 2.11% |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Products, Applications, Industry Verticals |
| Companies |
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