Automated material handling equipment market is expected to reach $44.68 billion by 2022
Market for automated guided vehicles expected to grow at the highest CAGR between 2016 and 2022.
The automated material handling equipment market is expected to reach $44.68 billion by 2022, at a CAGR of 7.9% between 2016 and 2022.
These are among the findings of a recent report by Markets and Markets titled “Material Handling Equipment Market - Global Forecast to 2022.”
According to the report, the growth of this market is propelled by the increasing demand for automated solutions, advancements in technology, the need to ensure a safe working environment, and reduction in labor cost through advanced robotics.
Unit load material handling systems are estimated to hold a large share and grow at a high CAGR in the automated material handling equipment market during the forecast period.
E-commerce and aviation applications are expected to witness a high growth rate between 2016 and 2022. The report suggests e-commerce companies are increasingly adopting automated material handling equipment to shorten the delivery time of products to the customers and for storing goods in warehouses to ensure the quick delivery of the products. Moreover, automated material handling is gaining popularity in the aviation industry as it offers ease for manufacturing and assembling the aircraft. The systems are used for storing parts of aircraft, picking and handling of components during assembly of aircraft, and organizing aircraft parts efficiently.
The Asia-Pacific region (APAC) is expected to be the leading and fastest-growing market for automated material handling equipment during the forecast period. The increase in production facilities and the expansion of plants is driving the market for automated material handling across the APAC countries. Further, the report states that in the APAC region, governments are increasingly emphasizing safety and security on the production floor, which can be achieved by the implementation of automated material handling equipment. In countries such as China and Japan, the automated material handling equipment market is expected to witness a high growth rate owing to the increasing investments by manufacturers and suppliers in their warehouses and distribution centers.
Moreover, the economic growth of APAC has benefited the manufacturing sector which is a primary end user of automated material handling equipment. The leading players contributing to the growth of the region are Toyota Industries Corporation (Japan), Daifuku Co., Ltd. (Japan), Murata Machinery, Ltd. (Japan), Fanuc Corporation (Japan), UniCarriers Corporation (Japan), Shanghai Zhenhua Heavy Industries Co., Ltd. (China), and Xuzhou Heavy Machinery Co., Ltd. (China).
The market for automated guided vehicles (AGV) is expected to grow at the highest CAGR between 2016 and 2022, mainly driven by the introduction of intelligent and customized AGVs, high throughput rates, optimization of logistic systems, increased reliability, and reduced operating costs.
According to the report, one of the key restraining factors for the automated material handling equipment market is the requirement of high capital expenditure.
The report indicates key market players such as Toyota Industries Corporation (Japan) and KION Group (Germany) are focusing on expansion and acquisition strategies to expand their business and leverage the benefits of the particular geography.
Companies mentioned:
● Bastian Solutions, LLC
● Beumer Group GmbH & Co. Kg
● Daifuku Co., Ltd
● Dematic GmbH & Co. Kg
● Hyster-Yale Materials Handling, Inc.
● JBT Corporation
● Jungheinrich AG
● KUKA AG
● KION Group AG
● Toyota Industries Corporation
