Automated Material Handling Equipment Market Size, Share, Statistics and Industry Growth Analysis

Automated Material Handling Equipment Market Overview

[270 Pages Report] The automated material handling equipment market size is estimated to be worth USD 30.6 billion in 2023 and is projected to reach USD 45.7 billion by 2028, at a CAGR of 8.3% during the forecast period. Increasing demand for automated material handling equipment in e-commerce, 3PL, automotive, and food & beverage industries, and the growing need to improve efficiency, reduce costs, and increase safety in their material handling operations are major factors driving the automated material handling equipment market growth globally.

Automated Material Handling Equipment Market Trends

Download PDF Brochure @ 

https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=92483121

Driver: Rise in demand for automated material handling equipment across diverse industries

Benefits such as low cost of capital, fast return on investment (ROI), and a high degree of possibility of customization encourage manufacturing companies to invest more in factory automation. AMH equipment is used in many industries, such as automotive, chemicals, food & beverages, healthcare, aviation, and metals and heavy machinery. The advantages of this equipment are reduced production time, fewer human errors, increased safety, high-volume production, and increased accuracy and repeatability. The widespread use of AMH equipment, such as automated guided vehicles (AGV), ASRS, conveyors, cranes, and robots, helps fulfill the requirements related to material handling, such as pick and place, storage, retrieval, and transportation. AMH equipment enables just-in-time (JIT) delivery of raw materials, computerized control of received assembled parts, and tracking of articles in factories and storage places. Awareness of these advantages has increased the demand for various AMH products in numerous industries.

Restraint: High integration and switching costs

Companies invest a considerable amount in automating their manufacturing and warehousing facilities. Integrating new AMH equipment with existing equipment attracts a high cost for changing the layout and implementing different software. Moreover, after the successful adoption of automation, manufacturing and warehouse operating companies face another limitation in the form of high switching costs. Most companies —operating their manufacturing units— face problems when switching from one vendor to another, as the switching expense involves changing the software associated with the equipment and the changes needed to be made in facilities while changing the equipment. Therefore, the cost of integration and switching to a different vendor leads to industry reluctance in deploying AMH equipment, thereby hindering widespread adoption.

Opportunity: Substantial industrial growth in emerging economies

Rapid industrialization has resulted in significant investments in infrastructural development in emerging economies such as India, Brazil, Mexico, and Indonesia. This, in turn, attracts global companies to set up their manufacturing plants in these countries. This has created a requirement for advanced and sophisticated warehousing facilities to integrate and manage supply chains. The surge in investments in enhancing the capability of supply chains in emerging economies has opened new growth opportunities for AMH equipment providers.

Challenge: Development of flexible and scalable AMH equipment

With the ever-changing global market scenarios, industries need to adapt to the changes in their operations and processes. Industries such as automotive, electronics, food & beverage, and e-commerce are witnessing significant market developments; hence, they demand flexible and scalable AMH equipment to fulfill their current and future business needs. These needs are related to storage capacity, height limits, control technologies, ease of maintenance, energy efficiency, and ease of integration with existing infrastructure. However, providing a flexible and scalable solution is challenging for suppliers due to constantly changing technologies in the material handling ecosystem.