The United States Material Handling market is forecast to grow at a CAGR of 5.08%, reaching USD 70.3 billion in 2031 from USD 49.1 billion in 2026.
Material handling is a systematic process that aims to efficiently manage the manufacturing, warehousing, and logistics landscape. Through material handling, the raw materials or goods are moved to the manufacturing sites, and finished products are stored and transported efficiently.
One of the major factors pushing the United States' material handling market’s growth is the increasing industrial production capability of the nation. The USA is among the biggest industrial manufacturers globally and produces a wide range of products.
Similarly, the growth of the nation's chemical industry production will also propel its material handling market. The American Chemistry Council, Inc., in its report, stated that in August 2024, the production of major plastic resins reached 8.9 billion pounds, which marked an increase of about 6.9% from July 2024. The total production of major plastic resins in the nation witnessed an increase of about 5.7% in August 2024 compared to August 2023. The association further stated that the production of total resin in 2022 was recorded at 125,490 million pounds, which increased to 130,115 million pounds in 2023.
Some of the major companies include BEUMER Group, Murata Machinery USA, Inc., and Kardex Group, among others.
BEUMER Group is a multinational logistics system manufacturer that offers a wide range of products and solutions for industries like baggage handling, building material, chemicals, e-commerce, mineral & mining, and consumer goods.
Murata Machinery USA is an American automation provider that manufactures machinery, and automation products and solutions. Its products include clean factory automation, logistics & automation, CNC Lathes, and fabrication machinery.
Kardex is a Swiss multinational intralogistics solution provider that offers a wide range of technologies, categorized by load unit, application, and product family.
Growing automotive production in the country
The growth of automotive production in the nation is a key factor pushing the USA material handling market forward. This growth is owing to the rising demand for material-handling conveyors, bucket elevators, forklifts, automated guided vehicles, and other material-handling systems.
According to the International Organization of Motor Vehicle Manufacturers (OICA), in its global production outlook, in 2021, total automotive production in the United States was recorded at 9.157 million units 2021 which increased to 10.052 million in 2022 and further expanded to 10.611 million in 2023.
Expansion in the warehouse and distribution sector
Key drivers for the United States material handling market growth are the increasing demand for warehousing and distribution, which depend on material handling equipment for the supply chain to function well, and the process uses several manual, semi-automated, and automated tools and systems. The number of accidents and injuries on the warehouse floor can be drastically decreased by providing the proper material handling equipment. Consequently, the productivity of warehouses is also potentially increased by the technology's ongoing improvements, which have provided new growth opportunities.
The United States material handling market is segmented by application into warehousing and distribution, airport baggage handling, bulk handling, postal and parcel delivery, assembly, and packaging. The country is witnessing an increasing trend toward warehousing and distribution, thereby utilizing material handling equipment for diverse applications. A standard definition of material handling in a warehouse setting is the movement, security, storage, and management of materials and products throughout production, warehousing, consumption, distribution, and disposal. To improve the supply chain and functioning, the process uses a variety of manual, semi-automated, and automated tools and systems.
Booming e-commerce operations have created opportunities for supply chain equipment companies to flourish, which has propelled the utilization of automation and material handling technology in warehouse logistics. Furthermore, the increase in warehousing and storage establishments will also provide a potential opportunity for the material handling market growth in the United States. Following this, the Bureau of Labor Statistics reported an increase in the number of establishments in the private warehousing and storage sector from 21,287 in 2022 to 22,049 in 2023 in the United States.
In addition, by incorporating new formats and chances to reach consumers across the country, companies are broadening the concept of material handling with revolutionary initiatives. Likewise, customers' demand for material handling is always evolving, particularly in same-day delivery, erratic product volumes, and personalization. However, because of a growth in warehouses and the necessity for locations closer to clients, producers must deal with shorter total lead times and more sophisticated logistics. This results in large corporations expanding their technological breakthroughs to advance and improve their market share in the coming years.
Additionally, the proper material handling equipment can drastically decrease the number of accidents and injuries on the warehouse floor. Consequently, the technology's ongoing improvements to material handling equipment's performance, design, and operation can also potentially increase warehouse productivity.
By state, Texas is expected to lead the market growth
The nation witnessed a significant growth in its total airport landscape, in which the material handling system plays a critical role in managing the luggage. The United States material handling market, by state, is segmented into California, Texas, Ohio, Illinois, Pennsylvania, and others. Texas is one of the major US states experiencing positive economic growth, which has elevated its scale of industrial activities. Major sectors such as manufacturing, healthcare, and chemicals are witnessing positive investments by private players for production expansion. For instance, in September 2023, ExxonMobil announced the establishment of its two new chemical production plants in Texas, which will produce a broad range of high-performance chemicals. The overall investment amounted to US$2 billion, forming a part of the company’s long-term growth strategy.
Texas also accounts for one of the largest strengths of airport facilities in the United States. With the ongoing investment in new establishments, the frequency will show positive growth. According to the National Plan of Integrated Airport System (NPIAS), Texas’s total airport strength was 2,080 in 2022, of which 1,686 were meant for private use and 394 for public use. With such high airport strength and investment in chemical and manufacturing facilities expansion, the scope of material handling is poised for a positive expansion in Texas.
Moreover, rapid industrialization in Texas has greatly boosted the adoption of technological innovations such as automated guided vehicles, conveyor systems, trucks & lifts, and cranes for material handling, which is acting as an additional driving factor. For instance, in September 2022, automotive manufacturer Continental AG opened its new manufacturing plant in Texas with an investment of US$110 million.
Burwell Material Handling Distributes CLARK SES Forklift Series: In July 2024, Burwell Material Handling began distributing the Next-Gen CLARK SES Forklift Series, designed for smarter and safer warehouse operations with advanced automation features.
Toyota Material Handling Starts New Factory Construction: In June 2024, Toyota Material Handling initiated construction of a 295,000-square-foot facility in Columbus, Indiana, to produce electric forklifts, enhancing sustainable material handling solutions.
| Report Metric | Details |
|---|---|
| Total Market Size in 2026 | USD 49.1 billion |
| Total Market Size in 2031 | USD 70.3 billion |
| Forecast Unit | Billion |
| Growth Rate | 5.08% |
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Segmentation | Products, Application, Industry Vertical, States |
| Companies |
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