AUTOMATED MATERIAL HANDLING EQUIPMENT MARKET (2025 - 2030)

The Automated Material Handling Equipment Market was valued at USD 54.83 Billion in 2024 and is projected to reach a market size of USD 364.76 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 37.14%.

Key Market Insights:

Confronted with inefficient and aging warehouse processes, the organization initiated a strategic plan for automation retrofitting. This end-to-end approach encompassed a thorough evaluation of network optimization scenarios in conjunction with various distribution center (DC) automation alternatives. It conducted a detailed review of DC layout, operational performance, and capacity, while also simulating projected growth to align with proposed material handling equipment (MHE) and desired automation technologies. Ultimately, a comprehensive business case was formulated to support automation investments, exploring multiple pathways for phased implementation.

Market Drivers:

The advancement of Industry 4.0 and the rise of smart factories are significantly driving the demand for related products.

Technological progress, coupled with the adoption of Industry 4.0, robotics-driven solutions, and technology-integrated management platforms, is contributing to the expansion of the automated material handling equipment market. The growing emphasis on smart factory development is expected to further propel the material handling sector. Within manufacturing environments, continuous monitoring across all operational stages—such as picking, sorting, and conveying—is essential to optimize efficiency and minimize waste. In this context, smart factories equipped with automation technologies facilitate real-time oversight of each process. Moreover, the incorporation of advanced features such as cloud connectivity and data analytics within material handling systems enhances asset performance and delivers timely, actionable insights. The deployment of these intelligent systems also enables wireless remote control functionalities, which support improved diagnostics and reduce commissioning durations. Collectively, these factors underscore how the evolution of Industry 4.0 and the construction of smart factories are creating substantial growth opportunities within the market.

The expansion of the e-commerce industry, increased manufacturing activity, and the rising reliance on third-party logistics providers are collectively contributing to the growth of the market.

The global e-commerce sector is expanding rapidly, driving a substantial demand for process automation solutions. Leading players such as Walmart, Amazon, and others are increasingly deploying automated technologies to enhance operational efficiency, accuracy, cost-effectiveness, and safety. In parallel, the manufacturing sector’s steady growth is playing a pivotal role in supporting market expansion. Manufacturers are emphasizing faster product delivery, improved quality, and reduced operational costs to remain competitive. Additionally, the third-party logistics (3PL) and warehousing sectors are witnessing notable growth, particularly in emerging economies like India. The adoption of automation within 3PL operations is enabling quicker task execution, lower turnaround times, and improved inventory management, while also offering significant cost advantages to end users. As a result of these combined factors, the demand for automated material handling systems is anticipated to accelerate over the forecast period.

Market Restraints and Challenges:

Significant integration and switching costs are expected to act as barriers to market growth.

One of the key challenges restraining the growth of the automated material handling equipment market is the substantial upfront investment required. These costs typically encompass the installation process, integration of advanced sensors and software platforms, ongoing after-sales support, and routine maintenance—collectively contributing to a high total cost of ownership. As a result, many companies face financial constraints when considering investments in automated systems. Furthermore, small and medium-sized enterprises (SMEs) often struggle to transition from traditional material handling methods to automated alternatives. This hesitation is largely due to limited production volumes, lower return on investment, and the need for extensive modifications to existing warehouse infrastructure. These factors collectively hinder widespread adoption across various segments of the industry.

Market Opportunities:

The rapid expansion of micro-fulfillment centers and the increasing adoption of third-party logistics services are expected to create significant growth opportunities in the market.

The rising demand for third-party logistics services and micro-fulfillment centers in emerging Tier II and Tier III cities is anticipated to accelerate the growth of automated material handling systems. Distribution and logistics hubs are increasingly incorporating automation and intelligent handling technologies, thereby unlocking substantial market opportunities. Additionally, the expansion of e-commerce platforms and the improvement in consumer purchasing power across developing and emerging economies are expected to further propel the adoption of automated handling solutions.

AUTOMATED MATERIAL HANDLING EQUIPMENT MARKET

Market Segmentation:

Segmentation By Product:

• • Robots
  • Automated Storage and Retrieval System (AS/RS)
    • Unit Load
    • Carousel
    • Mid & Mini Load
    • Vertical Lift Module (VLM)
    • Shuttle
  • Conveyors Systems
  • Cranes
  • Sortation Systems
  • Collaborative Robots
  • Warehouse Management System (WMS)
  • Autonomous Mobile Robots (AMR)
    • Goods-to-Person Picking Robots
    • Autonomous Inventory Robots
    • Self-driving Forklifts
    • Unmanned Aerial Vehicles
  • Automated Guided Vehicle (AGV)
    • Tow Vehicle
    • Pallet Truck
    • Unit Load Carrier
    • Hybrid Vehicles
    • Forklift Truck
    • Others

The robotics segment has emerged as the market leader, primarily driven by the integration of artificial intelligence (AI) and machine learning (ML) technologies into robotic systems. These advancements are enhancing functionality and operational efficiency across various applications. For example, Third Wave Automation's Reach forklifts leverage its Collaborative Autonomy Platform, which features intelligent fleet management software and remote assistance capabilities. By incorporating AI and ML, the platform enables businesses to optimize forklift operations more effectively.

Meanwhile, the warehouse management system (WMS) segment is projected to experience substantial growth over the forecast period. WMS software offers a comprehensive suite of functionalities, including inventory control, order processing, and shipment tracking. The implementation of WMS significantly reduces reliance on paper-based processes by automating key warehouse operations such as counting, receiving, monitoring, and dispatching. According to Steve Belardi, Vice President of Operations at Performance Team in the United States, WMS adoption has enabled them to meet rising demand for quicker and more accurate order fulfillment, particularly for both mobile and in-store purchases.

By System:

• • Unit Load Material Handling
  • Bulk Load Material Handling

The unit load material handling segment held the largest share of market revenue. This segment involves the movement and storage of single entities such as pallets and containers, which consolidate multiple individual items into one manageable load. Unit load equipment is recognized for its cost-effectiveness and efficiency, enabling the simultaneous transfer of numerous items far more quickly than handling each item individually.

Meanwhile, the bulk load material handling segment is projected to experience notable growth throughout the forecast period. This segment prioritizes improving operational efficiency, reducing costs, and enhancing workplace safety. Bulk load equipment reduces reliance on manual labor by minimizing the number of personnel required to complete tasks, thereby cutting labor costs. Additionally, it improves inventory accuracy and control, mitigating issues related to damage, misplacement, and other common problems. For example, in March 2025, Ocado Group plc introduced the Porter Autonomous Mobile Robot (AMR), designed to automate critical warehouse operations such as bulk-item picking, cross-docking, putaway, and pallet transport. The Porter AMR is capable of accurately picking, moving, and placing densely packed pallets directly from the floor—even when arranged back-to-back—and can be configured to transport cages, offering enhanced flexibility and fulfillment efficiency. The robot supports a payload capacity of 3,300 pounds, can carry either two roll cages or one pallet per trip, and features an onboard touchscreen with a live front-camera view to facilitate manual control when necessary.

By Vertical:

• • Automotive
  • E-commerce
  • Semiconductor & Electronics
  • Metals & Heavy Machinery
  • Healthcare
  • Chemicals
  • Food & Beverages
  • Aviation
  • 3PL
  • Others

The e-commerce segment accounted for the largest share of the market. As one of the fastest-growing industries, e-commerce heavily relies on automated material handling (AMH) equipment to optimize warehousing and fulfillment processes. The rapid expansion of this sector has significantly driven the demand for automated handling systems capable of efficiently managing high order volumes while minimizing manual labor requirements. Additionally, there is an increasing focus on workplace safety, with automated equipment playing a critical role in reducing accidents and injuries.

The e-commerce segment is expected to witness substantial growth during the forecast period. To ensure efficient and precise handling of goods, e-commerce companies deploy a diverse range of AMH solutions. These integrated systems provide end-to-end visibility and control over the entire supply chain, from inventory storage through to final delivery. This integration facilitates enhanced coordination, faster response times, and elevated customer service standards. A notable trend within e-commerce warehouses is the adoption of collaborative robots, or cobots. Unlike traditional industrial robots, cobots are designed to work alongside human operators, supporting tasks such as picking, packing, and sorting. This collaboration not only improves worker safety but also helps reduce labor costs and boost overall productivity.

Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

The North American automated material handling equipment market is projected to experience substantial growth, driven by the region’s status as a center of technological innovation. This environment fosters the development of increasingly advanced and sophisticated automated material handling (AMH) systems. Companies across North America are making significant investments in research and development to produce more efficient, adaptable, and intelligent solutions. The expansion of facilities, such as the Auburn Hills plant, is also expected to generate new employment opportunities, further enhancing ABB’s impact on the local economy.

The U.S. automated material handling equipment sector is anticipated to grow steadily over the forecast period. As a key manufacturer of AMH equipment tailored for warehouse automation and fulfillment centers, the U.S. market is benefiting from rapid production increases. This growth is propelled by technological advancements and heightened investments in automation. Innovations in machine learning, artificial intelligence (AI), mobile networking, and vision systems have notably improved the mobility and collaborative capabilities of automated material handling equipment.

Globally, the Asia Pacific region dominates the automated material handling equipment industry. The market has witnessed remarkable expansion in recent years, driven by strong demand across multiple sectors, including e-commerce, automotive, and food and beverage industries.

COVID-19 Impact Analysis:

The COVID-19 pandemic had a notable impact on the automated material handling equipment market due to the shutdown of production facilities and widespread disruptions within the supply chain ecosystem. Additionally, planned or ongoing infrastructure investments, often supported by financial institutions, experienced temporary delays or cancellations. Nevertheless, over the long term, the market has stabilized as key industries increasingly adopt automated material handling solutions to minimize reliance on manual labor and improve operational efficiency on the factory floor.

Latest Trends and Developments:

Generative AI is significantly enhancing the operational capabilities of material handling systems. By enabling predictive maintenance and early failure detection, generative AI optimizes maintenance scheduling and reduces equipment downtime. This leads to improved operational efficiency and smarter inventory management, which collectively minimize turnaround times across facilities. Furthermore, the integration of advanced technologies such as simultaneous localization and mapping (SLAM), the Internet of Things (IoT), and artificial intelligence is driving transformative advancements within the material handling industry.

Key Players in the Market:

Daifuku Co., Ltd

Jungheinrich AG

Toyota Industries Corporation

BEUMER Group

Cargotec

Kion Group AG

Crown Equipment Corporation

Honeywell International

SSI Schaefer AG

Hytrol Conveyor Company, Inc.