|Status : Published
|Published On : Dec, 2023
|Report Code : VRSME9149
|Industry : Semiconductor & Electronics
|Available Format :
|Page : 220
The Global Automated Material Handling Market demonstrated substantial growth, reaching USD 60.20 billion in 2023. Projections indicate a continued upward trajectory, with an anticipated value of USD 116 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 9.36% during the forecast period from 2025 to 2030. This growth is fueled by the escalating demand for automated material handling, primarily attributed to the heightened focus on efficiency, cost reduction, and productivity within logistics and manufacturing sectors.
Automated Material Handling (AMH) involves leveraging technology and machinery to optimize the movement, storage, and control of materials within facilities or warehouses, reducing reliance on human intervention. It encompasses various automated systems such as conveyor belts, robotic arms, and automated guided vehicles, designed to efficiently transport and manage goods. The overarching goal of AMH is to elevate operational efficiency, curtail labor costs, and enhance overall productivity by automating tasks like loading, unloading, sorting, and storage.
This technology assumes a pivotal role in contemporary logistics, ensuring a seamless and optimized flow of materials across the supply chain. The advantages of automation in material handling are manifold, encompassing the minimization of manual labor, acceleration of processes, reduction of errors, and an overall enhancement of supply chain performance. As industries strive to remain competitive in a dynamically evolving business landscape, the strategic adoption of automated material handling is increasingly becoming a preferred choice.
Geographically, the global automated material handling market is expanding rapidly in North America, Europe, and the Asia Pacific due to heightened focus on advanced logistics, increasing e-commerce, and the pursuit of operational excellence, driving widespread adoption of automated systems in these regions; however, the market confronts constraints such as high initial implementation costs, integration complexities with existing systems, workforce adaptation, and the need for continuous technological upgrades to stay abreast of evolving industry demands. Overall, the automated material handling market offers potential prospects for market participants to develop and fulfill the growing needs of a wide range of industries including packaging, food and beverages, healthcare/pharmaceutical, and other industries.
Insight by Product Type
Based on the product type, the global automated material handling market is segmented into hardware, software, and services. Hardware segment dominated the global automated material handling market in 2023 as it includes automated guided vehicles, conveyor systems, and robotic arms that physically handle materials. For instance, the demand for advanced robotic systems like robotic palletizers and pick-and-place robots is surging across industries. While software is essential for control and coordination, and services play a vital role in system integration and maintenance, the hardware segment remains central to the market's growth. The tangible, physical automation components are pivotal in optimizing material flow, driving efficiency, and meeting the rising demands of industries emphasizing advanced logistics and supply chain management.
Insight by Equipment Type
Based on equipment type, the global automated material handling market is segmented into mobile robots, automated storage and retrieval system, automated conveyor, palletizer, and sortation system. Mobile robots segment dominated the global automated material handling market in 2023 owing to its versatility, adaptability, and efficiency in navigating dynamic environments. Mobile robots, such as autonomous guided vehicles (AGVs) and autonomous mobile robots (AMRs), are increasingly adopted for tasks like material transportation and order picking in warehouses. Their ability to operate collaboratively with human workers and easily adapt to changing layouts makes them crucial in industries like e-commerce and manufacturing. Examples include Amazon's Kiva robots and Fetch Robotics' AMRs, which significantly enhance operational flexibility and throughput. As industries prioritize agile and responsive automation, mobile robots stand out for their capacity to optimize material handling processes.
Insight by System Type
Based on system type, the global automated material handling market is segmented into unit load system and bulk load system. Unit load systems dominated the global automated material handling market in 2023 owing to its efficiency in handling standardized loads. Examples such as pallets or containers demonstrate the widespread use of unit load systems, streamlining the movement and storage of goods in warehouses and distribution centers. Automated systems like robotic palletizers and automated guided vehicles (AGVs) are tailored for unit load handling, facilitating seamless processes. The standardization allows for easier integration of automation technologies, optimizing material flow and storage. While bulk load systems are essential for specific industries, the adaptability and widespread applicability of unit load systems underscore their dominance in meeting the diverse needs of modern supply chain and logistics operations.
Insight by End-use Industry
Based on end-use industry, the global automated material handling market is segmented into airport, automotive, food & beverages, retail/warehousing/distribution centers/logistic centers, general manufacturing, pharmaceuticals, post & parcel, and other end-use industry. Retail/ warehousing/distribution centers/logistic centers industry dominated the global automated material handling market in 2022 due to extensive automation to enhance efficiency in handling, sorting, and transporting goods. Examples include the use of automated conveyor systems, robotic palletizers, and autonomous guided vehicles (AGVs) in e-commerce warehouses, such as those operated by companies like Amazon. The rapid growth of e-commerce and the demand for quicker order fulfillment drive the widespread implementation of automated material handling solutions in this industry. The need for precision, speed, and cost-effectiveness in managing complex supply chain operations positions the retail and logistics sector at the forefront of automated material handling adoption.
Global Automated Material Handling Market Report Coverage
2018 - 2023
Base Year Considered
2025 - 2030
Market Size in 2023
U.S.D. 60.20 Billion
Revenue Forecast in 2030
U.S.D. 116 Billion
Segments Covered in the Report
By Product Type, By Equipment Type, By System Type, By End-use Industry
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Regions Covered in the Report
North America, Europe, Asia-Pacific, Middle East, and Rest of the World
Exponential growth of e-commerce
The exponential growth of the e-commerce market is a key driver for the global automated material handling market. E-commerce demands swift order fulfillment, precision, and scalability, prompting companies to adopt automated solutions for streamlined operations. For instance, DHL Supply Chain, a logistics giant, has been actively investing in automation technologies, implementing robotic picking systems and automated conveyor belts to handle the surge in e-commerce orders. Similarly, Ocado, a UK-based online grocery retailer, has partnered with technology companies to deploy automated warehouses with robotic systems for efficient order processing.
Moreover, the collaboration between Shopify and 6 River Systems (now owned by Shopify) exemplifies the integration of automation in e-commerce. Shopify incorporated collaborative robots (cobots) to enhance warehouse efficiency and accommodate increased order volumes. As e-commerce continues its upward trajectory, the demand for automated material handling solutions will persist, driven by the need for agility, accuracy, and rapid order fulfillment in the competitive online retail landscape.
Synergy between internet-of-thing (IoT) and artificial intelligence (AI)
The synergy of IoT and AI is a major catalyst driving the growth of the global automated material handling market. These technologies enhance efficiency, predictive maintenance, and real-time decision-making in material handling systems. Companies like Siemens and Honeywell are leveraging AI and IoT to develop smart conveyor systems that monitor and optimize material flow. ABB, a leading robotics and automation company, integrates AI into its robotic systems for adaptive and learning capabilities in handling diverse materials.
Furthermore, partnerships like the collaboration between Intel and BlueBotics exemplify IoT's role. Intel's IoT technologies are integrated with BlueBotics' autonomous navigation systems, enhancing the intelligence and connectivity of automated guided vehicles (AGVs) for dynamic material handling in various industries.
In warehouse management, AI-powered predictive analytics, supported by IoT sensors, enable proactive maintenance, reducing downtime. As industries increasingly embrace Industry 4.0 principles, the symbiotic relationship between IoT and AI continues to propel the automation of material handling systems to new heights.
High upfront implementation cost
A significant challenge for the growth of the global automated material handling market is the high upfront cost of implementation. The initial investment required for integrating automated systems, including hardware, software, and associated infrastructure, can be substantial. This financial barrier may deter some companies, particularly smaller ones, from adopting automation despite its long-term benefits. Overcoming cost challenges through innovations, scalability options, and awareness of the potential return on investment remains crucial for wider market penetration and sustained growth in automated material handling solutions.
Asia Pacific (APAC)
Middle East and Africa (MEA)
The global automated material handling market is segmented into North America, Europe, the Asia-Pacific, South America, and the Middle East and Africa region. The global automated material handling market was dominated by the Asia-Pacific in 2023 due to a combination of factors, including rapid industrialization, a burgeoning e-commerce sector, and proactive technological adoption. Companies like Geek+ in China have been pivotal, deploying thousands of robots for order fulfillment in warehouses. Japan, a key player in automation, witnessed collaborations such as Daifuku partnering with Germany's Siemens to enhance logistics automation solutions. The region's robust manufacturing base, expanding retail landscape, and strategic partnerships underscore its leadership. Additionally, the adoption of automation by major e-commerce players like Alibaba and JD.com further fuels the growth of automated material handling solutions across the Asia-Pacific region.
Honeywell is one of the leading players in the global automated material handling market due to its technology and innovative solutions. With a focus on IoT and AI integration, Honeywell's Intelligrated division provides advanced warehouse automation. Noteworthy is its collaboration with Fetch Robotics, combining Honeywell's material handling systems with Fetch's autonomous mobile robots. Honeywell's acquisition of Intelligrated underscores its commitment to bolstering automation capabilities. The company's diverse installations, such as automated sortation systems in distribution centers, highlight its versatility and commitment to providing comprehensive solutions, solidifying Honeywell's influential role in the evolving landscape of automated material handling.
Siemens is another prominent player in the global automated material handling market as a leading provider of industrial automation and digitalization solutions. The company's expertise lies in integrating IoT and AI technologies to enhance material handling systems. Siemens collaborates with key players like Atos, utilizing their joint capabilities to create advanced solutions for smart logistics. Siemens' installation of innovative conveyor systems and robotic solutions showcases its commitment to optimizing material flow. The company's acquisition of edge computing specialist Pixeom further solidifies its position by incorporating edge technologies into automated material handling, demonstrating Siemens' focus on staying at the forefront of technological advancements in the industry.
Recent Development by Key Players
In November 2023, DHL announced that it will significantly expand its utilization of AutoStore's automated storage and retrieval system (AS/RS) technology, with plans to implement it in five new facilities, bringing the total to 18 installations. The AS/RS systems optimize inventory management and space utilization within warehouses, especially for e-commerce and smaller products. DHL's existing AS/RS systems effectively handle 800,000 bins, and the upcoming installations will increase the total to 1.2 million bins. This expansion aligns with DHL Supply Chain's broader strategy of investing in warehouse technology, including the recent addition of autonomous mobile robots (AMRs) to its fleet.
In December 2022, Murata Machinery USA Inc. installed the Ledger A3 mini-load, a high-density, four-tote carriage automated storage and retrieval system (AS/RS). Unique for its simultaneous loading and unloading of four totes, it offers double the capacity of conventional miniload AS/RS. The system moves up to 400 totes per hour, enhancing efficiency and throughput. Integrated with Muratec's shuttle sortation loop, it minimizes errors and optimizes warehouse space, making it suitable for high-throughput distribution applications in various sectors, including medical, cosmetics, and food and beverage.
Key Players Covered in the Report
Dematic, Vanderlande, Honeywell, Siemens, Swisslog, KNAPP, Daifuku, Murata Machinery, Intelligrated, Bastian Solutions, TGW Logistics, SSI Schaefer, Fives Group, KION Group, and Beumer Group.
The Automated Material Handling Market Report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
By Product Type
By Equipment Type
Automated Guided Vehicle (AGV)
Autonomous Mobile Robot (AMR)
Automated Storage and Retrieval System
Vertical Lift Module
By System Type
Unit Handling System
Bulk Handling System
By End-Use Industry
Food & Beverages
Retail/Warehousing/Distribution Centers/Logistic Centers
Post & Parcel
Other end-use industry
Region Covered in the Report
Rest of Europe
Rest of Asia-Pacific
Middle East and Africa (MEA)
Rest of MEA
Rest of South America
Source: VynZ Research