The global Material Handling Equipment Market size is expected to reach USD 44.5 billion by 2028, according to a study report by Grand View Research Inc. The market is expected to expand at a CAGR of 7.4% from 2021 to 2028. Rapid industrialization and increased demand for automation in material handling equipment will drive market growth over the forecast period. Further, an upsurge in e-commerce growth worldwide will also act as a catalyst for future market growth. However, the lack of a skilled workforce to operate automated system functions may limit adoption to a certain extent.
The COVID-19 pandemic forced several companies to operate with a limited workforce. Therefore, the demand for automated systems/equipment witnessed an uptick in 2020, a trend expected to continue over the next few years. Although the overall product demand witnessed a decline, the pandemic offered avenues for vendors to focus on encouraging the adoption of automated/robot-operated material handling systems. The year 2020 also witnessed an increased demand for battery-powered trucks to meet the growing demand that stemmed from a surge in e-commerce growth.
The surge in need for transparent supply chain processes and demand for a sophisticated system that offers flexible task operation in warehouses are presumed to be propelling factors for the material equipment market growth. The adoption of sophisticated automation systems, such as automated storage and retrieval systems, is increasingly used in warehouses for the easy storage and retrieval of raw materials and finished goods.
Plus, forklifts and electrical trucks find broad applications in the pharmaceutical and robot delivery systems in the food and beverage industry. In contrast, conveyors find applications in baggage transport systems at airports. Therefore, the expansion of the aviation industry worldwide will drive the demand for conveyor systems, which may contribute to market growth over the forecast period.
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Material Handling Equipment Market Report Highlights
- The automated storage retrieval segment is anticipated to register a CAGR exceeding 8.0% over the forecast period. The growth is ascribed to the increasing demand for automated systems with minimal human intervention
- The automotive sector segment was valued at USD 4.1 billion in 2020. Receiving, storing, and moving automotive components efficiently in automotive production is a critical area for all OEMs, and hence calls for the deployment of material handling solutions
- With rapid industrial development, Asia Pacific is estimated to register a CAGR of 9.7% from 2021 to 2028. The demand is anticipated to stem from increasing demand in India and Southeast Asia