Automated Material Handling Market by Product (Hardware, Software and Services), by Equipment Type (Robots, Automated Storage and Retrieval System (AS/RS), Cranes, Warehouse Management System (WMS), and Automated Guided Vehicle (AGV)), by System Type (Unit Load Material Handling (ULMH), and Bulk Load Material Handling (BLMH)), and by End User (Automotive, Food & Beverages, Chemical, Healthcare, E-commerce, and Others) – Global Opportunity Analysis and Industry Forecast-2024-2030

Market Definition

The Automated Material Handling Market size was valued at USD 43.99 billion in 2023 and is predicted to reach USD 81.43 billion by 2030 with a CAGR of 9.2% from 2024-2030.

Automated Material Handling (AMH) systems are computer-based robots that are used to automate the movement, storage, control, and protection of materials & products within a manufacturing, distribution or storage facility. AMH systems aid industries, including supply chain, logistics, commerce, and manufacturing, in enhancing workflow through the use of robotic devices instead of manual labour. This technology is particularly beneficial for precise handling, from lifting to retrieving products. The AMH provide the routes for the supply of material with help of manufacturing execution system (MES) and the material identification process is initiated with the help of OCR (Optical Character Recognition), barcodes, RFID (Radio Frequency Identification), and near field communication for the positioning those materials.

Market Dynamics and Trends

The increasing demand for automation to manage and organize product process in various industries such as automotive and transportation is boosting the automated material handling market. According to the International Federation of Robotics (IFR), in the global ranking of robot density in the automotive industry, the U.S. holds the 7th position, with 1287 units per 10,000 employees. Germany follows closely behind with a density of 1311 units, while Japan ranks 3rd with 1248 units.

Moreover, the booming e-commerce industry impacts the demand for efficient and rapid material handling processes, fostering the adoption of automated solutions to meet the increasing demands of online order fulfilment. According to International Trade Administration (ITA), the global B2C ecommerce revenue is expecting to grow USD 5.5 trillion by 2027 with a steady 14.4% compound annual growth rate.

In addition, the rising R&D in automated material handling system by various manufacturers such as KUKA AG, Right Hand Robotics Inc, and Daifuku Co Ltd are expected to drive market growth. For instance, KUKA robotics launched KUKUA KMP-600S automated diffdrive mobile platform during ATX west show. This mobile platform provides Lasser scanner option and it allows to travel high speed direction in cyclic manner.

However, the initial high cost of automated material handling system restricts the small and medium-sized enterprise to install the system restrains the growth of material handling market. On the contrary, integration of artificial intelligence (AI) and natural language process (NLP) into the automation material handling system to improve operations such as delivery and pick up raw materials, finished products and in-process products is expected to provide ample growth opportunities for the market.

Market Segmentations and Scope of the Study

The automated material handling (AMH) market share is segmented on the basis of product, equipment type, system type, end user, and region. On the basis of product, the market is divided into hardware, software and services. On the basis of equipment type, the market is classified into robots, automated storage and retrieval system (AS/RS), cranes, warehouse management system (WMS), automated guided vehicle (AGV). On the basis of system type, the market is divided into unit load material handling (ULMH), and bulk load material handling (BLMH). On the basis of end user, the market is bifurcated into automotive, food & beverages, chemical, healthcare, e-commerce, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW. 

Geographical Analysis

Asia-Pacific holds the dominant share in automated material handling (AMH) market and is expected to continue its dominance during the forecast period. This is attributed to the factor such as growing manufacturing industry in countries including China and India that extensively promote automation initiative such as industry 4.0.

According to the World Economic Forum (WEF), China has grown majorly in manufacturing sector due to strong business ecosystem, skilled labour, strong network of suppliers, and with logistics companies. Also, the presence of prominent market players in automated material handling such THiRA Robotics Co., Ltd, Toyota Industries, and SSI Schaefer that are adopting various market strategies such as collaboration and product launch is boosting the market growth in the region.

For instance, THiRA Robotics Co., Ltd. launched its latest generation of autonomous mobile robots. These cutting-edge robots are designed to revolutionize logistics, warehousing, manufacturing, and healthcare operations.

On the other hand, North America expected to show steady rise in automated material handling market due to the growing e-commerce industry in countries including the U.S. and Canada to streamline their logistic business process.

According to Census Bureau of the Department of Commerce (CBDC) announced the estimate retail e-commerce sales of the U.S. for the third quarter of 2023, adjusted for seasonal variation, but not for price changes, was USD 284.1 billion, an increase of 2.3% from the second quarter of 2023.

Moreover, the rising government initiatives in countries such as the U.S and Canada to promote digital adoption in automation and robotics to increase the efficiency and productivity in e-commerce and manufacturing industries is driving the market growth.

According to the Canada Digital Adoption Program (CDAP) aims to provides SMEs with USD 4 billion investment, including USD 1.4 billion in grants and advisory services and up to USD 2.6 billion in loans, to facilitate the adoption of digital technologies.

Competitive Landscape

The automated material handling market (AMH) comprising of various market key player such as, Daifuku Co., Ltd., Dematic, Honeywell Intelligrated, Murata Machinery, Ltd., KION Group, Knapp AG, Toyota Industries Corporation, BEUMER Group, Vanderlande Industries B.V., SSI SCHAEFER, Fives Group, TGW Logistics Group, Witron Logistik + Informatik GmbH, Grenzebach Group, Mecalux, S.A., and others. These market players are adopting various strategies such as product launches to maintain their dominance in the global automated material handling market.

For instance, in May 2023, Toyota Material Handling (TMH) launched 3 new electric forklift models, which is adding company’s industry line-ups for material handling for product and solution. With this customer can avail the next-level efficiency, versatility, and performance which prioritize the operator’s comfort.

For instance, in March 2022, Right Hand Robotics Inc., launched an eco-system based partner Integrating program for warehouse technologies and solution provider to increase the demand of order fulfilment in various e-commerce sector.

Key Benefits

• The report provides quantitative analysis and estimations of the automated material handling market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the automated material handling market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the automated material handling market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Product

• Hardware

• Software

• Services

By Equipment

• Robots

• Automated Storage and Retrieval System (AS/RS)

• Cranes

• Warehouse Management System (WMS)

• Automated Guided Vehicle (AGV)

By System

• Unit Load Material Handling (ULMH) 

• Bulk Load Material Handling (BLMH)

By End User

• Automotive 

• Food & Beverages

• Chemical

• Healthcare

• E-commerce

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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