Impact of the Technological Advancements in the Automated Material Handling Market

automated material handling market

The automated material handling market was evaluated at US$26.485 billion for the year 2020, growing at a CAGR of 7.36%, reaching a market size of US$43.528 billion by the year 2027. 

The Global Automated Material Handling Market is becoming more popular as a result of numerous development reasons. Materials management and automation techniques have become more important in a variety of areas. Material handling is seen as a network that eliminates the need for product transfer from one place to another. It is a time-saving procedure that employs innovative technologies and machines. Even the increased digitalization of supply chain procedures and order customization opens new chances for the market. The increase in technical innovation, effectiveness and efficiency in running organizations benefits the market tremendously. The rising trend toward smart manufacturing is projected to boost the automated material handling sector. To assess operational efficiency and reduce waste, the whole production floor must now be monitored at every stage of the process. Smart factories with material handling allow constant monitoring of all operations in such instances.

Furthermore, several intuitive materials handling system technologies, such as cloud connection and data analytics, increase asset performance and provide real-time actionable data. In addition, most of the companies have launched new partnerships and investments that have boosted the profitability of the automated material handling market. For instance, Honeywell established a strategic partnership with OTTO Motors, a division of Clearpath Robotics, in March 2022, giving warehouses and distribution facilities across North America an automated option to fulfill some of the most labor-intensive positions in an increasingly scarce work market. Due to all these factors, the automated material handling industry will be highly benefitted in the coming years.

The automated material handling market is expanding due to the rise in the technology industry

The introduction of new technologies into these systems, such as deep learning, AI, IoT, and robots, is a significant driver driving the expansion of the automated material handling systems market. The technologies provide seamless and real-time order picking in production operations, allowing enterprises to accelerate their material handling procedures. Implementing sophisticated technology in distribution centers, such as Automated Guided Vehicles (AGV), allows enterprises to process enormous numbers of repeated material moves, resulting in increased throughput. Such systems enable cars to make route decisions based on real-time feedback from environmental circumstances as well as the simplicity with which navigational corrections may be made. Due to the rise of collaborating with robotics companies, the market for automated material handling is primarily driving growth from this segment. For instance, in May 2021, Rockwell Automation, a business that specializes in industrial automation and digital transformation, and Comau, a company that specializes in industrial automation and robotics, are collaborating to create unified robot control solutions to improve efficiency. Comau offers a variety of robotics solutions utilized throughout sectors, such as more than 40 industrial robotic arms with load capabilities ranging from 3 kg to 560 kg. Engineers can program a whole machine in a single environment, machine builders may use digital engineering tools, and operators can view both lines and robot control systems on a single platform. Additionally, Jungheinrich AG, located in Hamburg, purchased a share in Magazino, a robotics start-up based in Munich, in September 2020. Officials from the two firms signed the contracts Wednesday in Dingolfing, near Munich. Simultaneously, Jungheinrich and Magazino committed to a wide strategic partnership and plan to integrate their skill sets in mobile automation.

The development of the e-commerce sector will influence the profitability of the market


As the e-commerce sector develops, the market for automated material handling systems is expected to increase. The global e-commerce business is developing, producing high demand for process automation. Several companies have partnered with each other to extend their product range, in addition, to implementing the automated material handling segment into the e-commerce industry. Due to this reason, the rise of the e-commerce industry will benefit the automated material handling market. For instance, Dematic, an industry-leading automation supplier, announced a collaboration with Upshop in September 2022 to deliver integrated fulfillment solutions that grow with the grocery sector. The collaboration has enabled supermarkets wishing to expand their fulfillment operations to keep and control their consumer data. Upshop eCommerce fulfillment users may utilize Dematic to integrate automation features while maintaining their software base swiftly and efficiently. This news follows the August 2022 introduction of Upshop’s whole store operations platform, which includes a cutting-edge fulfillment orchestration solution. Additionally, in January 2020, Amazon signed an agreement with Baylo, a French robotic software company. This business agreement increased the value of the design and development of breakthrough robotic systems for materials management vehicles. This strategic strategy enhanced Amazon’s warehousing material management, resulting in a smoother e-commerce operation.

According to analysts, the Asia Pacific region is expected to occupy a notable share of the market in the coming years.


Due to the rising e-commerce industry and the emergence of technology in the Asia Pacific region, the market for this geographical segment is anticipated to grow in the upcoming years. For instance, according to China’s National Bureau of Statistics, overall retail sales in China’s consumer goods market in 2021 are expected to be roughly CNY 44.1 trillion. Retail sales in urban regions totaled CNY 38.2 trillion, while revenues in rural China reached CNY 5.9 trillion. Furthermore, in 2021, around 24.5% of all retail sales in China were made online, a slight decline from 24.9% in 2020, as per the same source. Additionally, South Korea has embraced the Fourth Industrial Revolution. Smart factories are going to be one of the most significant sectors in Korea. South Korea intends to build 30,000 smart factories by 2022. South Korea’s government launched an assistance program to assist existing businesses in becoming carbon-neutral smart factories.