Material Handling Equipment Market Size, Share, Growth, and Industry Analysis, By Type [Storage & Handling Equipment, Industrial Trucks, Bulk Material Handling Equipment and Automated Storage & Retrieval System (AS/RS)], By Application (Durable Manufacturing and Food & Beverage), and Regional Forecast to 2033

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MATERIAL HANDLING EQUIPMENT MARKET OVERVIEW

The material handling equipment market size was valued at USD 137.15 billion in 2024 and is expected to reach USD 194.98 billion by 2033, growing at a compound annual growth rate (CAGR) of 3.9% from 2025 to 2033.

The Material Handling Equipment (MHE) industry comprises machines, equipment, and systems applied in manufacturing operations, in logistics, and in distribution to facilitate storing, moving, and controlling materials. The purpose of MHE is to enable processes of flow to be as safe as possible while fairly reducing labor costs, thus increasing productivity. Products of MHE include a vast range of equipment such as cranes, automated storage systems, industrial trucks, conveyor systems, and bulk materials handling systems. As the collection of creating more industrial establishments and automation takes place, the market is expected to spur within the corridors of an urgent demand for efficient material-handling solutions across various industries. Another booming opportunity for this market will be in the area of the shift from traditional material-handling methods to robotic, AI, and other support technologies for more precise, dependable, and agile applications.

COVID-19 IMPACT

"COVID-19 disrupted material handling equipment, but market growth is recovering"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The material handling equipment market was hugely impacted due to COVID-19 with the systemic interruptions caused to many industries. Whereas the manufacturing units were either absolutely shut down or operating only partially amidst labor unavailability, social distancing, and restrictions enforced by the authorities severely impacted the production thereof. The logistics chains had also suffered from disruptions, with hurdles to the import of raw materials, including problems down the supply chain. Contrarily, a complete cessation in the use of non-critical MHE products occurred simply because firms were directing their efforts toward the fulfillment of primary needs and survival. By the present moment, the market is recovering, although the degree of recovery is still lagging due to investments in new technology and infrastructure required to sail the high-performance market during the pandemic when capturing location was essential.

LATEST TREND

"Market growth in material handling is driven by AS/RS automation"

The recent trends in the material handling equipment industry are geared toward more automation, focusing on Automated Storage and Retrieval Systems (AS/RS). These systems interface with robotics and the same AI technology to achieve maximal operational efficiency by the automation of storage and retrieval activities within warehouses and distribution centers. In addition to the growth of e-commerce per se, labor shortages have also affected processing times, thus further pushing the adoption toward automation. AS/RS applications are reducing space in order-picking with human errors to maximize fulfillment speeds; therefore, AS/RS is one of the most demanded technologies in this space.

MATERIAL HANDLING EQUIPMENT MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Storage & Handling Equipment, Industrial Trucks, Bulk Material Handling Equipment and Automated Storage & Retrieval System (AS/RS)

• Storage & Handling Equipment: It actually could be said that moving and so-called materials could not just be an element; these are what you are really going to equip your storage with, for example, shelving, pallets, racks, containers, or those basic things that are meant to store and handle materials within the warehouses and manufacturing plants. As organizations realize that space, labor, and costs could be maximized quite effectively with innovative development in storage solutions that see newer systems becoming rapidly adaptable to different operational needs, much of the heaviness, strength of construction, flexibility, and increased capacity have added value to storage and handling solutions. Their worth is spread across various industries, such as retail, e-commerce, and, of course, logistics.

• Industrial Trucks: Forklifts, lift trucks, and pallet trucks are used to move loads into factories or warehouses or shift them from one site to another place inside that same facility. They are very often intended for short distances and facilitate the functioning of production processes in moving materials efficiently. Technological improvement in electric trucks has recently resulted in enormous savings in overall operational costs and the impact of these businesses on an environmentally friendly side. The benefits accrue directly to cleaner business practices. Demand for mobility and strength in industrial trucking is heavy, propelling this segment strongly into automotive, food, and retail logistics.

• Bulk Material Handling Equipment: Bulk material handling equipment plays a transport and management function with regard to bulk materials, including, but not limited to, coal, sand, grain, and chemicals. Equipment of this nature would include conveyors, stackers, and traveling reclaimers, designed to move and handle large quantities of materials common in mining, agriculture, and construction. As industrialization and demand for bulk commodities continue to expand, this segment grows. More often than not, businesses are busy investing in a more robust, energy-efficient, and versatile business degree for bulk material handling systems to allow smooth and continuous operations amid the resulting environmental and sustainability issues.

• Automated Storage & Retrieval System (AS/RS): Automated Storage Systems and Retrieval Systems (AS/RS) are those which require investment in robotic arms, conveyors, and automated shuttles to exist to facilitate moving materials into and out of storage locations with minimal human intervention. These systems tend to be very influential when it comes to managing inventories and minimizing the amount of time and human labor using order-picking. AS/RS capacity is such that it can handle very large quantities of products using only a small space; thus, this significantly contributes to space utility or better utilization of available space, contributing to its increasing number of users. These systems find a high degree of importance in an e-commerce and distribution center because such facilities have high volumes of orders that need fast-paced fulfillment that usually requires very high automation levels to remain competitive.

By Application

Based on application, the global market can be categorized into Durable Manufacturing and Food & Beverage

• Durable Manufacturing: The phase of material handling concerns the movement and treatment of raw materials into durable end products, such as electronics, machinery, vehicles, and heavy equipment, during the process of manufacturing. These systems ensure raw materials and their components travel efficiently from production lines to assembly areas and warehouses. The need for uninterrupted production flow with relatively low downtime in this sector creates an ironclad case for having highly reliable and rugged material handling systems. Durable goods are expected to see a fast-growing market among developing economies, especially where industrialization is making inroads as more demand comes in from all over the world.

• Food and Beverage Industry: It is a wide area profoundly dependent on material handling equipment since raw material preparation is done and packed in such a way that no harm will occur to them in handling during transport. Some of this equipment needs to be scaled up to special handling for perishables, guaranteeing safety in hygiene along the production and distribution chain for the items. As food handling automation devices like robotic arms for packaging and sorting are seeing faster growth, it has been observed that traditionally automated food handling systems have not grown as fast. In the meantime, what drives the call for even better advanced material handling systems, which improve efficiencies but minimize product contamination, is the growth of consumption of packaged boutique foods.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Technological Advancement"

The material handling equipment market is a function of technological innovations. The automated systems, such as Automated Guided Vehicles (AGVs), robots, and AI-driven implements, step up operational capabilities to help companies become efficient while minimizing human power. These innovations assist companies in streamlining logistics operations, enhancing storage space applications, and optimizing material flow. As industries increasingly adopt these technologies to sustain their competitive edge, an added growth of acceptance for automation is likely to occur within the material handling domain, especially pertaining to manufacturing and e-commerce.

"The Growth of E-commerce and Warehousing"

An e-commerce boom in the present creates a greater impetus toward the efficient material handling system, more so in terms of warehouses and distribution centers. With fast order fulfillment and efficient inventory management being the main driving factors, it is e-commerce firms that expand the market by readily adopting automated and intelligent material handling solutions. Equipment includes conveyor systems, automated picking solutions, and robotic arms, which scale businesses to meet customer demands. The increasing boom in online shopping shall have the material handling equipment market burgeoning, especially in areas thriving with e-commerce.

Restraining Factor

"High upfront costs deter SMEs, limiting market growth in emerging economies"

Many major businesses have been battered by the high cost of upfront investments in new equipment, particularly for the costly automated systems that they install; it is cost-effective in the long run but difficult for firms to pay back an initial capital expense. This usually counts as a deterrent for small and medium enterprises (SMEs) looking to use this kind of equipment. Even the cost of continual maintenance may prevent these companies from utilizing the improvements. Altered pacing of market adoption gets affected in areas where capital formation is restricted, mainly emerging economies.

Opportunity

"The IoT and AI convergence drives market growth in material handling"

A tremendous opportunity exists for the Material Handling Equipment Market Growth in harnessing the potential growth offered by the convergence of IoT and AI. By creating a network of sensors through having them embedded in equipment and augmenting it with connectivity, companies will be able to collect real-time data on how well systems are functioning, how high their inventories are, and the status of their equipment. Predictive maintenance can be made possible, reducing downtime and inventory holding. As more companies continue to adopt these technologies, the growth opportunity into more efficient, intelligent, and connected material handling is forged, resulting in increased growth potential for the market.

Challenge

"Market growth is hindered by a shortage of skilled automation labor"

A short supply of manual handling equipment in training the personnel to operate, maintain, and repair complex automated systems is one big problem. It may not decrease manual labor in some aspects of operation; however, it will definitely create a demand for specialized technical expertise within the range of managing the technologies. This global shortage of skilled labor—in particular, a shortage in areas where automation is followed strongly—really blocks any further advancement for these systems. Investments have to be made into training institutions and skilled workforce creation to protect the best possible investment in these automated material-handling solutions.

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MATERIAL HANDLING EQUIPMENT MARKET REGIONAL INSIGHTS

• North America

"North America's market growth is driven by automation in material handling"

North America is playing a disproportionate role in the development of the Material Handling Equipment market, revealing an early grasp of automation and robotics. The United States Material Handling Equipment Market directly leads the regional market, which owes this upsurge to high discernible demand from sectors engaged in e-commerce, automotive manufacturing, and logistics. The continent's solid industrial infrastructure is buttressed by a tap opening for large-scale warehouses and distribution centers that have begun to lambast artificial material handling solutions. The automation spree to enhance operational efficiency by companies seems to foster hopes for the market to grow in North America.

• Europe

"Europe's material handling market grows with eco-friendly, innovative, automated solutions"

Europe remains a major player in the overall Material Handling Equipment Market Share, dealing with high-tech automation and the ingress of robotics. Germany, the UK, and France are at the forefront in embracing new systems, viz., advanced constructs in material handling in the manufacturing, logistics, and warehousing sectors. The growing aspirations for [implementing] sustainability throughout Europe underpin the soaring upward move in demonstrating a palpable explanation of presenting eco-friendly material handling systems that check energy consumption and reduce carbon footprints. With mature branches for transformation like manufacturing and logistics, the market for material handling solutions remains strong in this region, characterized by high innovation with a conscious eye to the environment.

• Asia

"Asia's industrialization drives significant market growth in material handling equipment"

Asia, led by China, Japan, and India, is undergoing a rather accelerated industrialization that will buoy the Material Handling Equipment market into considerable growth. Consumer goods mixed with an expanding manufacturing base are creating a healthy market demand for high-tech material handling solutions in the region. Increased push for automation in logistics and manufacturing is also a reason for this growth in the Asian markets. As industries are pursuing higher productivity levels and process optimization, Asia is increasingly developing as a major hub for the market in material handling equipment for cost-effective and advanced systems.

KEY INDUSTRY PLAYERS

"Innovation, automation, and strategic partnerships drive market growth in material handling"

KION Group, Toyota Material Handling, and Jungheinrich AG state that innovation and portfolio expansion are the two important strategies that help in the development of the material handling equipment market. Heavy investments toward the advanced development of automation, robotics, and AI-driven solutions prove the enhanced level of efficiency expected in material handling processes. Through strategic mergers, acquisitions, and partnerships, these companies diversify and compete in consolidated offerings. This unbroken interest in innovation and the development of markets is going to be very important in determining the future of the material handling industry.

List of Top Material Handling Equipment Companies

• Hyster-Yale Materials Handling (U.S)
• KUKA (GERMANY)
• Kion Group (GERMANY)
• JBT Corporation (U.S)
• Flexlink (SWEDEN)

KEY INDUSTRY DEVELOPMENT

August 2020: With respect to a crucial industry development, KION introduced its next generation of battery-powered industrial trucks in August of the year 2020; all are energy-efficient as well as sustainable operations for warehousing. AI is embedded in trucks to enhance operational efficiency, reduce downtime, and make battery management systems more effective. This innovation fits perfectly within the current trends of automation and energy efficiency across the field of material handling. Therefore, this innovation will generate enormous upward movement in market growth for KION Group while also fulfilling the ever-increasing demand for energy-efficient and cost-effective material handling solutions for the period between 2018 and 2023.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.