United Kingdom Material Handling Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Products (Automated Guided Vehicles, Automated Storage and Retrieval Systems, Trucks and Lifts, Cranes, Conveyor Systems, Others), By Application (Warehousing and Distribution, Airport Baggage Handling, Bulk Handling, Postal and Parcel Delivery, Assembly, Packaging), By Industry Vertical (Manufacturing, Healthcare, Chemical, Paper, Food and Beverage, Warehousing, Leisure, Other), And By States - Forecasts From 2023 To 2028

Description

The UK material handling market is projected to rise from USD 7.653 billion in 2025 to USD 8.854 billion in 2030, at a CAGR of 2.96%.

UK Material Handling Market Highlights

• Automation Surge: Increasing adoption of robotics and automated systems enhances efficiency in material handling.
• E-commerce Growth: Rising online shopping drives demand for advanced warehouse and logistics solutions.
• Sustainability Focus: Emphasis on eco-friendly equipment and energy-efficient practices shapes market trends.
• Safety Prioritization: Enhanced safety measures and ergonomic designs improve workplace conditions and productivity.

UK Material Handling Market Introduction

The UK material handling market refers to the industry that provides equipment, systems, and software, which are used for moving, lifting, storing, controlling, and managing materials and goods across factories, warehouses, airports, ports, and distribution centers. The market consists of equipment such as forklifts, cranes, conveyor, pallet trucks, and others, along with storage systems, software, and automation systems, and services like installations and maintenance.

Quoting the UK Material Handling Association, “Virtually all manufactured goods and commodities are moved by material handling equipment at some point in their journey from factory to end user. The material handling industry, therefore, plays a pivotal role in the UK economy. Thus, the UK material handling market is in a mature but growth phase. Its established infrastructure, regulatory demands, high adoption of advanced technologies, established supply chains, applications across diverse industries and verticals, and presence of many players have led to market growth. The country’s advanced economy with a well-developed logistics and manufacturing sector has driven the material handling equipment market.

In the coming years, the surge in e-commerce will drive the market growth. According to the data by the UK’s Office for National Statistics, the percentage of internet sales out of total retail sales is 27% in January 2025, 26.1% in February, 26.8% in March, 26.3% in May, 26.6% in June, and 27.2% in July. These internet sales percentages represent a huge growth when compared with the period before 2017, which generally stood at 15 to 16%. Due to a high surge in e-commerce, there is a significant increase in demand for warehouse space for fulfilment, driving the UK material handling market.

Additionally, the growing adoption of advanced technologies, such as AI, machine learning, and Autonomous Mobile Robots (AMRs), is leading to the UK material handling market’s expansion. Many logistics and fulfilment centres are increasing their investments in AI and automation to improve efficiency, reduce costs, and keep up with e-commerce demand, driving the market.

The market, in terms of players, is diverse. Various key players are offering a range of products, applications, and solutions across various industry verticals and regions. Global players such as Daifuku, KION Group, and Dematic hold significant market share due to their comprehensive portfolios and strong UK presence, while regional leaders like Toyota Material Handling UK and Crown Equipment Corporation are key in trucks and lifts, with extensive UK service networks. Other players like Schalmz and Kardex also compete in the market.

The market in terms of competitiveness is moderate, as players offer numerous products and compete by offering tailored solutions for industries. There is intense competition in price and cost due to key imports from German manufacturers as well. The market has a moderate to low threat of new entrants due to high capital requirements, brand loyalty, and regulatory and safety standards; however, there are key opportunities in emerging technologies and in niche markets.

UK Material Handling Market Overview

The material handling market in the United Kingdom has emerged as a key component of the industrial and logistics infrastructure due to the rapid growth of e-commerce, greater adoption of automation in warehousing and distribution, modernization of manufacturing sites, and continuous investment in infrastructure. The demand is soaring with organizations focusing on operational efficiency, worker safety, and integrating smart automation technologies in industries. This has made material handling solutions a fundamental to the competitiveness in a very globalized and technology-driven economy.

There is a broad range of products under adoption, which includes automated guided vehicles (AGVs), automated storage and retrieval systems (AS/RS), trucks and lifts, cranes, conveyor systems, and even specialized solutions. AGVs and AS/RS are witnessing the greatest growth with companies adopting autonomous and smart systems to improve throughput in warehouses, airports, and manufacturing facilities. Cranes, trucks, and lifts are considered essential for heavy industries.

Through application, the market is being reconfigured by the increasing demand in warehousing and distribution driven by the booming e-commerce and retail sectors in the United Kingdom. For instance, bulk handling helps the country in port and mining operations. The development of postal and parcel delivery solutions is growing swiftly in tandem with digital commerce, and assembly and packaging systems remain popular in manufacturing facilities, which ensures productivity and flexibility.

Through the degree of automation, the market is increasingly shifting towards automation and robotics-based products, highlighting a strong momentum in smart robotics, automated conveyors, and AGVs that reduce the need to use manual labor. Other systems (i.e., semi-automated or traditional systems) are still used in niche or cost-sensitive markets, but strategic emphasis in all industries is moving towards full automation and integration with robotics.

The market is also divided into stationary/fixed equipment, including conveyors, cranes, and automated storage systems, and mobile equipment, such as AGVs, forklifts, and mobile robots. In high-volume warehousing and airline baggage handling, stationary equipment remains predominant, whereas mobile equipment is experiencing a surge of growth as industries emphasize scalable and flexible, space-efficient logistics operations.

Adoption in industry has been spread across manufacturing, healthcare, chemicals, paper, and food and beverages, with the sectors using customized material handling technologies. Manufacturing and food/beverage are still the two most popular verticals as the level of automation is very high, whereas healthcare and chemical industries are characterized by safety, compliance, and accuracy in handling. Paper and other industries also make a contribution to the constant demand.

The market is spread regionally in England, Scotland, Wales, and Northern Ireland; however, England has been the quickest to embrace it due to its concentration of logistics centers, airports, and industrial locations. Scotland is progressing in manufacturing, particularly in renewable energy handling systems. Wales has to play its part by producing food, beverages, and industrial products, and Northern Ireland is investing in the modernization of its logistics.

Strategies of technological innovation coupled with service-based differentiation are being sought by major players in the United Kingdom material handling market, such as Honeywell International, BEUMER Group, Dematic, Vanderlande Industries, and Swisslog. These involve investments in robotics and AI-based automation, the incorporation of IoT-based warehouse execution systems, and collaborations with logistics providers, airports, and e-commerce leaders to provide them with specific solutions. Sustainability-based practices are also being adopted by companies, as they are introducing energy-efficient conveyor systems, electric-powered trucks, and recyclable packaging systems to satisfy the expectations and regulatory requirements of customers. Their decision to build on presence and competitiveness in the UK market is further emphasized through acquisitions and expansion into the regions.

In the future, the material handling market in the United Kingdom is expected to continue growing in the 2020-2030 period, supported by the rising use of robotics, IoT-based automation, and the transition towards sustainable and energy-efficient systems. The convergence of digital logistics solutions with physical handling infrastructure is expected to fuel the market growth.

UK Material Handling Market Dynamics

Market Drivers

·        Increasing Demand from the E-commerce Industry

The United Kingdom material handling market is witnessing considerable growth, primarily driven by the swift expansion of the e-commerce sector. Online retail, transforming the consumer purchase experience, now expects shorter delivery times, larger product choices, and a smoother shopping experience.

According to the data from the UK Government Office for National Statistics, the internet sales in the country were 26.7 percent of the total sales in 2023, rising to 27.2 percent internet sales of the total retail sales in 2024. Additionally, in 2025, monthly sales also experienced growth, accounting for 26.8 percent of internet sales of total retail sales in March 2025, which increased to 27.2 percent in July 2025, as per the same source.

This volume growth, along with an increase in demand for faster order fulfillment and adverse return policies, has applied enormous pressure on logistics, warehouse, and distribution centers. As a result, these facilities are compelled to invest in advanced material handling systems to enhance the efficiency, accuracy, and scalability of the country's e-commerce sector. The growing sustainability and goal of reduction in carbon emission in the country is also influencing the adoption of electric material handling equipment like electric forklifts, energy-efficient conveyors, and automated storage and retrieval systems (AS/RS), among others, as e-commerce companies are under pressure to align with the government's decarbonization targets.

In addition to this, the growing trend towards same-day and next-day delivery design models is also necessitating efficient and upgraded intralogistics operations within the e-commerce industry. The warehousing or fulfillment centers, located in urban areas for the fulfillment of orders, rely on flexible and compact material handling operating machines that can manage the workload while optimizing time and space. This is also promoted with the shortage in labor in the United Kingdom, which demands automation, encouraging the material handling manufacturers to offer energy-efficient, advanced, and customized material handling equipment and solutions specific to diverse applications in the e-commerce industry.

UK Material Handling Market Segmentation Analysis

·        By Industry Vertical: Manufacturing

By industry vertical, the United Kingdom material handling market is segmented into manufacturing, healthcare, chemical, paper, food and beverages, warehousing and logistics, and others. The manufacturing industry is a major segment in the UK material handling market. According to the UK Government Office for National Statistics, in 2023, the UK manufacturers' product sales were valued at £456.1 billion, representing a rise of 3.9 percent from the previous year, which was £438.9 billion. Additionally, the United Kingdom is the 8^th largest manufacturing country globally, and £34 billion was invested by manufacturers into the UK economy annually, according to the ‘2023 Make UK’ data.

In addition to this, Industry 4.0 has been continuously supporting the adoption of material handling by the manufacturing sector in the country. UK manufacturers have rapidly been integrating smart technologies such as IoT-enabled systems, artificial intelligence, and robotics to strengthen supply chain efficiency. Automated handling of materials reduces human errors, shortens production times, and establishes safer working conditions, especially when dealing with heavy loads, precision instruments, or hazardous materials. This trend is demonstrated through the automotive industry as a major branch of UK manufacturing.

The United Kingdom automotive industry, ascribed as a major sector under the country’s manufacturing industry, reflects the same trend. As large production facilities of automotives like Jaguar Land Rover, Nissan, and BMW rely more on robotic handling systems and AGVs for assembling, transporting, and storage of parts, this leads to increased demand for material handling in the segment. For instance, the motor vehicle manufacturing in the country was £53.3 billion in 2023, representing a 22 percent rise from 2022, which was the largest value from all the manufacturing divisions of the country, and is expected to grow in the coming years.

Moreover, through the country’s growing emphasis on decarbonization and sustainability, the government is also shaping the manufacturing segment's necessity for material handling. Manufacturing plants have been increasingly adopting energy-efficient forklifts and environmentally friendly conveyors to align with the UK's net-zero targets by 2050. Furthermore, material handling producers are focusing on the development of innovative, energy-efficient, and sustainable solutions that lead to a reduction in operational costs, which will help manufacturing companies to align with environmental goals and standard regulations, thus promoting overall market growth.

·        By States: England

Based on geography, the United Kingdom material handling market is segmented into England, Scotland, Wales, and Northern Ireland. England's material handling market, both nationally and regionally, is also greatly influenced by industrial activities. The South East plays a significant role as it is the region with the export value, which will continue to influence national trade flows. For example, despite only a small part of the total exports, the North East has a higher export value than in the past. This could indicate that these enterprises are beginning to shift their industrial activities back in line with exporting more goods from these regions.

As the UK government pursues its goal of establishing resilient supply chains, the material handling industry will be a beneficiary of this agenda. The government’s Critical Imports and Supply Chains Strategy illustrate how access to goods has to build and maintain reliable supply chains by gaining an understanding of critical goods, beyond the goods, operating systems, transport, and other routes, and the relevant infrastructure that is part of supply chains necessary to the economy in general. To conclude, England’s material handling industry will encompass change, growth, investment, and overall a level of increasing complexity driven by changes in industrial policy, resilience agenda, and expansions across market regions.  Whilst the market may experience shifts towards or away from the regional influences on activities and trade flows, industry participants should be alert to evolving activities over the next few years to position the material handling industry to meet the changing needs and opportunities engendered by these influences.

The material handling industry in England is experiencing significant growth regarding investments, evolving industrial policy, and an agenda around resilience in supply chains. The UK government highlights this anticipated growth through its £21 billion plan to double annual business investment in advanced manufacturing to £39 billion by 2035. This investment will ensure that the UK will become a leader in areas such as advanced materials, aerospace, agri-tech, automotive, batteries, and space, which are a significant focus of England's economic strategy.

UK Material Handling Market Products

• Barcode Scanners: These devices enable accurate and efficient scanning for inventory tracking and order fulfillment in warehouses and distribution centers.
• Voice-directed Software: This technology guides warehouse personnel through hands-free instructions, improving picking accuracy and productivity without relying on visual screens.

Market Segmentation:

• By Products
  • Automated Guided Vehicles
  • Automated Storage and Retrieval Systems
  • Trucks and Lifts
  • Cranes
  • Conveyor Systems
  • Others
• By Level of Automation
  • Automated
  • Robotics
  • Others
• By Mobility
  • Stationery/Fixed Equipment
  • Mobile Equipment
• By Applications
  • Warehousing and Distribution
  • Airport Baggage Handling
  • Bulk Handling
  • Postal and Parcel Delivery
  • Assembly
  • Packaging
• By Industry Vertical
  • Manufacturing
  • Healthcare
  • Chemical
  • Paper
  • Food and Beverage
  • Warehousing and Logistics
  • Others
• By States
  • England
  • Scotland
  • Wales
  • Northern Ireland

Table Of Contents

1. Executive Summary

2. Market Snapshot

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. Business Landscape

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. Technological Outlook 

5. United Kingdom Material Handling Market By Product Type (2020-2030)

5.1. Introduction 

5.2. Automated Guided Vehicles

5.3. Automated Storage and Retrieval Systems

5.4. Trucks and Lifts

5.5. Cranes

5.6. Conveyor Systems

5.7. Others

6. United Kingdom Material Handling Market By Level of Automation (2020-2030)

6.1. Introduction 

6.2. Automated

6.3. Robotics

6.4. Others

7. United Kingdom Material Handling Market By Mobility (2020-2030)

7.1. Introduction 

7.2. Stationery / Fixed Equipment

7.3. Mobile Equipment

8. United Kingdom Material Handling Market By Application (2020-2030)

8.1. Introduction 

8.2. Warehousing and Distribution

8.3. Airport Baggage Handling

8.4. Bulk Handling

8.5. Postal and Parcel Delivery

8.6. Assembly

8.7. Packaging

9. United Kingdom Material Handling Market By Industry Vertical (2020-2030)

9.1. Introduction

9.2. Manufacturing

9.3. Healthcare

9.4. Chemical

9.5. Paper

9.6. Food and Beverage

9.7. Warehousing and Logistics

9.8. Others

10. United Kingdom Material Handling Market By States (2020-2030)

10.1. Introduction

10.2. England

10.3. Scotland

10.4. Wales 

10.5. Northern Ireland

11. Competitive Environment and Analysis

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. Company Profiles

12.1. BEUMER Group GmbH & Co. KG

12.2. Kardex Holding AG  

12.3. JBT Marel Corporation

12.4. Crown Equipment Corporation

12.5. Daifuku Europe GmbH 

12.6. KION Group AG

12.7. KUKA AG

12.8. J Schmalz GmbH

12.9. Dematic GmbH

12.10. Toyota Material Handling UK Ltd

12.11. Honeywell International Inc.

13. Research Methodology

Companies Profiled

BEUMER Group GmbH & Co. KG

Kardex Holding AG  

JBT Marel Corporation

Crown Equipment Corporation

Daifuku Europe GmbH 

KION Group AG

KUKA AG

J Schmalz GmbH

Dematic GmbH

Toyota Material Handling UK Ltd

Honeywell International Inc.

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