The Automated Material Handling Equipment Market is expected to grow at the CAGR of 12.12%

 

Global Automated Material Handling Equipment Market by Manufacturers, Countries, Type and Application, Forecast to 2022

 

The automated material handling equipment market in manufacturing is expected to grow at the CAGR of 12.12% between 2015 and 2020. It covers different type of products, namely, automated storage & retrieval systems, automated conveyor & sortation systems, automated guided vehicle systems and robotic systems.

The automated material handling is used to reduce labor cost and manufacturing cost, eliminate human intervention, increase safety, and enable delivery on time. The AMH market in manufacturing has various applications, namely, automotive, chemical, aviation, semiconductor & electronics, energy, food & beverages, healthcare, metal & heavy machinery, and others (paper & printing, textile & clothing).

The market for automated material handling equipment is fragmented with players such as Daifuku, Schaefer Systems International, KION Group, Murata Machinery, Vanderlande, and so on. Top 17 companies occupy about 50% market share in 2016. North America and Europe are dominating the market both in production and consumption with 50%-60% share.

Continuous rise in demand for automation in industries has revolutionized the adoption of automated material handling equipment. With the advent of technologies such as robotics, wireless technologies, and driverless vehicles, the automated material handling equipment market has witnessed significant growth over the last few years. Major players in automated material handling industry focus on the development of affordable, small, compact, and energy-efficient material handling solutions to reach a wider customer base. Recent boom in e-commerce is a major driver for the materials handling systems, with widespread demand for process automation worldwide. E-commerce industry players aim on improving the quality of their service through minimal waste generation. In developing nations, industrialization and modernization primarily support the market growth.

The major restraints for automated material handling equipment is high initial investment. The initial cost required for the set up and integration of the automated material handling equipment is high, which limits the use of these equipment in heavy manufacturing organizations. Industries with high labor costs are anticipated to use robotic systems and automated guided vehicles to reduce their labor costs and produce high quality products. Industries, such as automotive and electronics, where precision and accuracy play a major role, use automated systems to meet international quality standards. However, with new emerging technologies, and growth in competition in the market, the initial costs of automated material handling equipment would reduce in the future.