The global automated material handling (AMH) market is expected to witness robust growth in the coming years, owing to the increasing adoption of automation and robotics in various industries such as manufacturing, warehousing, logistics, retail, and e-commerce.
According to a recent report by Mordor Intelligence, the AMH market size is estimated at USD 70.35 billion in 2024 and is projected to reach USD 126.20 billion by 2031, growing at a compound annual growth rate (CAGR) of 12.40% during the forecast period (2024-2031).
The AMH market is segmented by product type, equipment type, and end-user. The product type segment includes hardware, software, and services. The hardware segment accounts for the largest share of the market, as it comprises various equipment and systems such as mobile robots, automated storage and retrieval systems (ASRS), automated conveyors, palletizers, and sortation systems.
The software segment is expected to grow at the highest CAGR during the forecast period, as it enables the integration, optimization, and management of AMH systems. The services segment includes installation, maintenance, and consulting services for AMH systems.
The equipment type segment includes mobile robots, ASRS, automated conveyors, palletizers, and sortation systems. The mobile robots segment is further divided into automated guided vehicles (AGVs) and autonomous mobile robots (AMRs).
The mobile robots segment is expected to dominate the market during the forecast period, as they offer high flexibility, scalability, and efficiency in material handling operations. The ASRS segment is also expected to witness significant growth, as they provide high-density storage, improved inventory control, and reduced labor costs.
The automated conveyors segment includes belts, rollers, pallets, and overhead conveyors. The automated conveyors segment is widely used in various industries, as they offer high speed, reliability, and safety in material transport. The palletizer segment includes conventional and robotic palletizers.
The palletizer segment is used to stack and arrange materials on pallets for easy handling and transportation. The sortation system segment includes various technologies such as barcode, optical, and RFID, that are used to sort and divert materials to different destinations.
The end-user segment includes airport, automotive, food and beverages, retail/warehousing/distribution centers/logistic centers, general manufacturing, pharmaceuticals, post and parcels, and others.
The retail/warehousing/distribution centers/logistic centers segment is expected to hold the largest share of the market, as the rising e-commerce industry and the growing consumer demand for faster and more accurate delivery are driving the need for automated material handling solutions.
The automotive segment is also expected to grow at a high CAGR during the forecast period, as the increasing production and sales of vehicles and the rising complexity of automotive components are creating a demand for efficient and flexible material handling systems.
The airport segment is also expected to witness significant growth, as the increasing air passenger and cargo traffic and the growing security and safety concerns are driving the adoption of automated baggage handling systems.
The AMH market is also analyzed by geography, covering North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. The Asia-Pacific region is expected to lead the market during the forecast period, owing to the rapid industrialization, urbanization, and digitalization in the region.
The presence of a large number of end-use customers and market players, along with supportive government policies and initiatives for industrial automation, are also contributing to the market growth in the region. China, Japan, India, and South Korea are the major countries driving the AMH market in Asia-Pacific.
The North American region is also expected to hold a significant share of the market, as the region is home to some of the leading AMH system manufacturers and integrators, such as Honeywell, Daifuku, Dematic, and SSI Schaefer.
The increasing adoption of AMH systems in various industries, such as e-commerce, food and beverages, and pharmaceuticals, is also fueling the market growth in the region. The Europe region is also expected to witness considerable growth, as the region is witnessing a high demand for AMH systems in the automotive, airport, and post and parcel sectors.
The Latin America and Middle East and Africa regions are also expected to offer lucrative opportunities for the AMH market, as the regions are undergoing rapid economic and infrastructural development.
The AMH market is highly competitive and fragmented, with the presence of several global and regional players. Some of the key players operating in the market are Daifuku Co., Ltd., Honeywell International Inc., KION Group AG, Toyota Industries Corporation, SSI Schaefer Group, Murata Machinery, Ltd., Dematic Corp., Knapp AG, TGW Logistics Group GmbH, and Swisslog Holding AG.
These players are adopting various strategies, such as mergers and acquisitions, partnerships and collaborations, product launches and innovations, and research and development, to gain a competitive edge and expand their market presence.
For instance, in January 2021, Daifuku Co., Ltd. acquired Vega Conveyors & Automation Private Limited, an India-based company that provides material handling solutions for various industries, such as e-commerce, automotive, and food and beverages.
The acquisition is expected to strengthen Daifuku’s presence and offerings in the Indian market. In December 2020, Honeywell International Inc. launched a new robotic solution, called the Robotic Unloader, which can automatically unload packages from trailers and shipping containers.
The solution is designed to improve the efficiency and safety of material handling operations in warehouses and distribution centers. In November 2020, KION Group AG acquired Digital Applications International Limited (DAI), a UK-based company that provides software solutions for logistics and supply chain management. The acquisition is expected to enhance KION’s digital capabilities and offerings in the AMH market.
