Global Material Handling Equipment Market - 2023-2030

Overview

Global Material Handling Equipment Market reached US$ 215.3 billion in 2022 and is expected to reach US$ 398.4 billion by 2030, growing with a CAGR of 5.9% during the forecast period 2023-2030.

The rise of automation and the implementation of industry 4.0 principles increased the demand for efficient material handling solutions. Material handling equipment systems are integrated into automated manufacturing and distribution processes which leads to higher productivity, reduced labor costs and improved efficiency.

The rise in globalization trade increases the shipping and transportation of goods across the border. Efficient handling of goods is essential for smooth logistics operation that includes loading and unloading of cargo containers, optimization storage and timely deliveries. Rapid urbanization and infrastructure growth also emerges in the economies and led to increasing construction.

North America is expected to hold a share of around 1/4th of the global market during the forecast period 2023-2030. In North America, there is a rapid growth of e-commerce that fuels demand for efficient material handling solutions. As online shopping continues to rise, companies require advanced equipment to manage inventory order fulfillment and distribution within warehouses and distribution centers, these factors, boost the market.

Dynamics

Advancement in Technology

Automation technologies such as autonomous mobile robots, automated guided vehicles and robotic arms have revolutionized material handling processes. The technologies can perform repetitive tasks, optimize warehouse layouts and enhance overall workflow efficiency and also new electric material-handling vehicles shows tremendous growth in the market.

For instance, on 9 May 2023, Toyota Material Handling introduced three new electric material-handling vehicles that focus on enhancing operator comfort and efficiency and these new vehicles include a Side-Entry End Rider, Industrial Tow Tractor and Centre Rider Stacker. It aims to improve uptime and reduce energy costs with features like an automatic parking brake and standard power steering.

Growing automation acceptance and commercial technological developments have led to the establishment of completely automated industrial facilities in industrialized countries. Cloud-based platforms enable remote monitoring, management and analytics of material handling equipment from anywhere, enhancing visibility and control. Also, AR and VR technologies are used to provide training to the operator, guide them and offer remote assistance, these features enhance technology.

Bentley Systems is set to showcase upgraded features and innovations within its SYNCHRO platform at CONEXPO in Las Vegas in March. The company's SYNCHRO platform is transforming into the next generation of construction management for civil infrastructure projects and is a pivotal component of the new Bentley Infrastructure Cloud and also allows contractor and managers to enhance their project planning.

Rising Demand in Mining Industry

The rising demand for minerals, metals and resources across various industries that include construction, manufacturing and renewable energy led to increasing demand for mining activities. Materials handling equipment such as conveyors, loaders and trucks play an important role in improving efficiency and productivity. Companies are also focusing on various marketing strategies for the growth and development of the market.

For instance, on 27 July 2022, Tata Steel signed a Memorandum of Understanding with Aarav Unmanned Systems, a Bangalore-based start-up specializing in drone solutions, to enhance mine management effectiveness and this collaboration aims to jointly develop sustainable and integrated solutions to enhance efficiency, safety and productivity in open cast mining operations.

Require Regular Maintenance and High Cost

Material handling equipment requires regular maintenance to ensure smooth operation and safety. Unscheduled downtime due to maintenance or repairs can disrupt operations and lead to productivity losses. Skilled technicians are needed to perform maintenance tasks accurately and finding qualified persons is hard to find.

The cost of purchasing material handling equipment such as cranes, conveyors and forklifts makes a barrier for small businesses with these high budgets. Different types of equipment used for various task which increases overall acquisition costs. Also, unplanned breakdowns results in unplanned repair cost.

Environment Change and High Level of Corrosion

Environmental change becomes a challenging situation for material handling equipment such as extreme temperatures, humidity or corrosive conditions, which can affect their performance and longevity. Operating in environments with extreme temperatures, whether very hot or very cold affects the performance of equipment components, such as batteries, motors and lubricants.

Some industries, such as chemical processing and mining, involve exposure to corrosive substances that damages equipment over time. Corrosion can weaken structural components and compromise the overall safety and efficiency of the equipment. High level of corrosion and exposure to moisture leads to increase corrosion which can degrade the structure of the material.

Segment Analysis

The global material handling equipment market is segmented based on equipment, operation, technology, end-user and region.

The Investments in Infrastructural Projects Drives the Cranes and Lifting Equipment Segment

During the forecast period, cranes & lifting equipment is expected to hold a share of more than 1/4th of the global market. Increasing investment in industrial and infrastructure projects that includes the construction of bridges, roads and ports drives the demand for cranes and lifting equipment for handling heavy materials and components. The expansion of manufacturing units and industrial sectors requires cranes and lifting equipment for tasks such as moving raw materials and transporting raw materials.

For instance, on 23 February 2023, Liebherr introduced the LR 1400 SX, an addition to its range of crawler cranes. At CONEXPO, the LR 1400 SX will be equipped with a 134,514 ft. main boom and a 144,357 ft. luffing jib. Notably, the crane boasts a compact transport weight of 50,706 USt (46 t), facilitating easy transportation between different job sites.

Geographical Penetration

The Rising Need of Warehouse Storage in Asia-Pacific

In 2022, Asia-Pacific is expected to hold the dominant position in the global material handling market with around 1/3rd share of the market. Asia-Pacific witnessed a rise in infrastructure projects, such as the development of ports, airports and logistics parks, which require sophisticated material handling equipment to handle cargo efficiently. Increasing warehouse storage for facilitating raw materials boost the growth of the market.

For instance, on 26 September 2022, Mitsubishi Logisnext Co., Ltd. entered into a partnership with xSQUARE Asia to bring intelligent warehousing solutions to Asia-Pacific, this collaboration aims to address the increasing demand for warehouse automation in the region. Mitsubishi Logisnext, a prominent player in the material handling and logistics industry, will leverage its expertise in manufacturing a wide range of material handling equipment, including forklifts and other industrial vehicles.

Competitive Landscape

The major global players include: TOYOTA INDUSTRIES CORPORATION, Liebherr Group, Manitowoc, KION GROUP AG, Columbus McKinnon Corporation, BEUMER GROUP, Eisenmann SE, Crown Equipment Corporation, Daifuku Co., Ltd and Hyster-Yale Materials Handling, Inc.

COVID-19 Impact Analysis

Material handling equipment manufacturers faced disruptions in production due to lockdowns, restrictions and supply chain interruptions during the pandemic. Factories are closed, shortage of labor and logistical challenges hampered the production and delivery of mining equipment. Due to these, factors there is a downfall in the market.

Industries implemented strict health and safety measures to protect workers from COVID-19, these measures, include social distancing, reduced workforce capacity and increased sanitation protocols, which impacted productivity and efficiency in material handling equipment operations. Some industries had to close their warehouses because of less production of products.

Some companies accelerated the adoption of digital technologies and remote operations, this included the use of autonomous vehicles, remote monitoring systems and advanced data analytics to optimize material equipment performance and minimize the need for on-site personnel. Also, accelerated the adoption of automation and robots in warehouses.

The pandemic prompted material handling equipment manufacturers and mining companies to reevaluate their supply chain strategies, operational models and risk management approaches. Many companies find ways to enhance resilience and adapt to future uncertainties. Companies also conducted tests on their vulnerabilities.

AI-Impact

AI-powered robots and autonomous vehicles handle tasks such as sorting, material handling, packing and picking goods from warehouses and distribution centers also their robots work collaboratively with human operators which increases overall efficiency and leads to reduce risk of manual errors. Real-time tracking and monitoring of devices provide real-time visibility of goods. By automating material handling, the organization can create a more reliable supply chain or manufacturing schedule while also increasing productivity. Increased robot density results in a 5.7% improvement in productivity.

At any one time, robots can handle more work than the human workforce. For instance, on 15 June 2023, Cyngn Inc., a developer of AI-powered autonomous driving solutions, announced progress in adapting its DriveMod technology to enable autonomous forklifts. The development effort is part of Cyngn's ongoing contract with a customer in the building materials industry and has resulted in AI-powered autonomous capabilities for an electric BYD forklift.

AI can analyze historical sales data, market trends and external factors to predict future demand accurately and this enables businesses to adjust their material handling processes and inventory levels to match the expected demand, reducing excess inventory costs. AI enable the system monitors operations for safety and ensures that material-handling equipment operates with safety parameters.

For instance, on 22 April 2022, Linde Material Handling, a leading manufacturer of forklift trucks and warehouse equipment, introduced its AI-enabled Energy Navigator tool in the UK and this tool is designed to assist companies in selecting the most energy-efficient vehicles for their intra-logistics operations. The Energy Navigator utilizes AI to analyze a company's energy use and logistics requirements.

Russia- Ukraine War Impact

The rise in conflict leads to disruptions in trade routes or export restrictions, it could affect the supply of raw materials, components and finished products needed for manufacturing material handling equipment and this could result in delays in production and potential shortages. Conflict leads to the closure of borders and checkpoints that make challenging situations for the movement of raw materials.

Trade restrictions and geopolitical instability between countries involved in the conflict could lead to trade restrictions, tariffs or sanctions and this can increase the cost of importing or exporting material handling equipment and related components, affecting pricing and availability. The region also faces an economic downturn that impacts the business investors in investing in new equipment.

The ongoing conflict between Russia and Ukraine which has a higher level of equipment destruction even after loss is experienced during the invasion. Over the past months, both sides suffer extensive losses with more than 11000 military platforms being destroyed and materials handling equipment were also damaged.

Manufacturers often operate under contractual agreements with customers that include delivery schedules. Supply chain disruptions due to conflict can lead to breaches of these agreements and potential financial penalties. Businesses may delay capital investments, including the purchase of material handling equipment, due to economic instability.

By Equipment

• Cranes & Lifting Equipment
• Industrial Trucks
• Continuous Handling Equipment
• Racking & Storage Equipment
• Others

By Operation

• Assembly
• Distribution
• Transportation
• Others

By Technology

• Automatic
• Semi-Automatic
• Manual

By End-User

• Automotive
• Consumer Goods & Electronics
• Pharmaceutical
• Food & Beverage
• Construction
• Mining
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On 15 June 2023, ePicker, a new entrant in the material handling equipment market, introduced a range of stackers, pallet jacks, access vehicles and Lithium-Ion powered forklifts designed to improve the productivity and efficiency of material handling operations. The company aims to address the evolving needs of the supply chain and retail operations, which have been impacted by changes accelerated by the pandemic.
• On 6 January 2022, Toyota Material Handling has undertaken its largest product launch to date, introducing 22 new electric products as part of its efforts to provide innovative material handling solutions. The company aims to address the challenges faced by the global supply chain and warehouses by offering a comprehensive range of new warehousing solutions.
• On 24 April 2023, Gough Engineering, a material handling expert based in UK, introduced a rental service for manufacturers seeking to integrate sieves, screens and separators into their production lines. The rental service allows businesses to test the equipment before committing to a purchase, providing them with the opportunity to ensure that the chosen solution meets their needs effectively.

Why Purchase the Report?

• To visualize the global material handling equipment market segmentation based on equipment, operation, technology, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of material handling equipment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global material handling equipment market report would provide approximately 69 tables, 74 figures and 201 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies