The material handling market is projected to grow at a CAGR of 6.01% to reach US$ 201.057 billion by 2025, from US $141.657 billion in 2019. The growing adoption of industrial automation solutions across various end-use industries is one of the major factors driving the growth of the global material handling market. Owing to the booming e-commerce industry, rising investments by manufacturers in the installation of various equipment at distribution centers and warehouses are also fueling the demand for material handling products and solutions across the globe. Stringent regulations regarding worker’s safety require manufacturers to implement material handling solutions in a hazardous work environment.
On the basis of product, trucks and lift segment is expected to account for holding a major share in the global material handling market in the forecast period.
This dominance is attributed to the shift towards automated lifts and trucks due to the expensive human workforce and growing need to improve operational efficiency throughout the entire supply chain. An increasing number of construction projects in developing countries is driving the demand for small trucks and specialized heavy lifting equipment. Moreover, the booming global logistics industry will further push the market growth over the next five years.
Automated storage and retrieval systems (AS/RS) will witness the fastest growth during the forecast period owing to the increasing demand for automated machines and equipment that assist in reducing floor space, labor cost, and inventory levels to enhance productivity while reducing manufacturing cycle time.
By application, warehousing and distribution segment is projected to dominate the global market showing good growth opportunities during the forecast period.
The growing global Third-Party Logistics (3PL) industry is significantly driving the demand for material handling solutions. The entry of new startups in the growing global e-commerce industry is boosting the demand for 3PL solutions, as they rely on other logistic enterprises as part of the supply chain. Thus, there is a high demand for material handling solutions from warehousing and distribution segment of the 3PL industry to smoothen the entire supply chain. Airport baggage handling application is poised to experience significant market growth due to the growing global tourism industry. The increasing purchasing power and improving living standards in the developing economies of the world have led to a significant shift towards air traveling. This has further led to a rise in the number of air travel passengers which, in turn, will spur the demand for airport baggage handling solutions at airports.
By industry vertical, the manufacturing sector is projected to dominate the global material handling market throughout the forecast period.
The rising global manufacturing activities and infrastructural development, especially in developing countries, will spur the demand for material handling solutions for timely production requirements and increased productivity. Moreover, high labor costs coupled with stringent regulations for providing a safer workplace is pushing manufacturers to shift from labor-intensive to capital-intensive production methods, thereby positively impacting the global material handling market growth. Additionally, the healthcare sector will witness the fastest market growth over the projected period due to the rising global geriatric population and the increasing cases of chronic diseases. The increase in demand for various medicines and medical devices will require the healthcare and pharmaceutical industry to opt for efficient material handling solutions.
Geographically, the Asia Pacific region is accounted for holding a significant market share in the global material handling market during the forecast period.
The rapid industrialization and rising manufacturing activities in developing Asian economies such as China, India, and South Korea are boosting the demand for material handling solutions. The growing e-commerce industry in India and China due to the rising use of smartphones and the proliferation of internet connectivity is also fuelling the demand for material handling solutions for warehousing and distribution applications. The booming construction industry and investments in infrastructural development supported by favorable government initiatives and policies will further propel the growth of the Asia Pacific material handling market over the next five years.