According to SNS Insider Research, the global material handling equipment market was valued at $216.77 billion in 2023 and is projected to reach $353.67 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.59 per cent during the forecast period from 2024 to 2032.
THE RISE OF AUTOMATION AND INDUSTRY 4.0
The integration of automated mobile robots into material handling operations is revolutionising production processes across various industries. These robots are increasingly utilised in manufacturing facilities to enhance productivity. The rising demand for automation within supply chain operations is driving the adoption of advanced material handling equipment, which in turn boosts profitability for logistics and delivery service providers. This trend is expected to accelerate as industries transition toward fully automated production systems.
The US economy is experiencing positive trends in private investment in industrial equipment and machinery, potentially leading to increased demand for material handling equipment. This uptick in demand may enhance production capacity across various sectors. Furthermore, heightened awareness of worker safety, a growing need to manage bulk materials, and the influence of Industry 4.0 technologies, such as the Internet of Things (IoT), are additional factors driving market growth. Companies are increasingly focused on minimising downtime and optimising supply chain efficiency, further fueling the demand for material handling solutions.
MARKET SEGMENTATION
By Product: The cranes and lifting equipment segment dominated the market in 2023, accounting for 38.2 per cent of total revenue. This segment's prominence is attributed to its extensive applications in construction, automotive manufacturing, and large-scale logistics. Cranes and lifts are essential for handling heavy loads while ensuring operational safety, making them critical in both production and warehousing environments.
By Application: The e-commerce segment emerged as the leading application area, representing over 32.6 per cent of market revenue in 2023. The increasing prevalence of online shopping platforms, combined with advancements in logistics infrastructure, has driven demand for material handling equipment in this sector. Major companies like Amazon and Alibaba are continually investing in automation technologies for their distribution centers, further propelling growth in this segment.
REGIONAL INSIGHTS
Asia-Pacific: The Asia-Pacific region led the global material handling equipment market in 2023, capturing more than 34.8 per cent of the market share. This leadership is largely due to rapid industrialisation in countries such as China and India. Significant investments in infrastructure development, including logistics parks and e-commerce fulfillment centers, are driving the demand for advanced material handling solutions. China remains the world's largest manufacturing hub, with companies like XCMG Group and SANY Heavy Industry playing vital roles in expanding the equipment market.
North America: North America is expected to be the fastest-growing region during the forecast period. The US is experiencing a notable surge in automation within its automotive, e-commerce, and pharmaceutical sectors, which is accelerating the adoption of advanced material handling equipment.