GLOBAL MATERIAL HANDLING EQUIPMENT MARKET
Material Handling Equipment is a machine used in the manufacturing process by companies for carrying out various functions such as moving, collecting, storing and disposing of the goods. This equipment helps to make the process more efficient and effective. These machines have been in use since over 100 years and technology used in these has seen tremendous improvement since its invention. It is a cost effective and error free method which also makes it very attractive for the manufacturing companies.
MATERIAL HANDLING EQUIPMENT MARKET DRIVERS
The following factors are expected to drive the growth in this market:
- Many companies these days are in the process of automating and modernizing their production process for which material handling equipment is necessary. Adoption of new technology such as the Internet of Things in different sectors is also an impact factor for growth.
- Importance is being given to employee safety and cost effectiveness and this can be achieved through mechanization of the process. Increasing labour costs is also another reason why material handling equipment is gaining prominence.
- The transportation and e-commerce industry use material handling equipment. Though the transportation sector and aviation sector has been negatively impacted during the Covid period, the e-commerce sector has been substantial growth. This will further help the global material handling market to grow.
- There is also demand for more flexible and transparent supply chain and warehouse operations.
- Due to the growing population, the need for consumer goods is also increasing and hence to improve efficiency in operations many companies are purchasing more material handling equipment.
- Investments through FDIs in the production process in developing countries is also pushing the demand.
- The Government is also focusing on development of infrastructure facilities such as building new airports, railways and seaports. This will further increase the demand for material handling equipment.
MATERIAL HANDLING EQUIPMENT MARKET CHALLENGES
- The cost of purchasing material handling equipment is very high. Along with that, operational and maintenance costs associated with this equipment may act as a hindrance to growth for this market. The small and medium scale enterprises thus, find it difficult to integrate such technology in their operations.
- There is a lack of awareness in certain parts of the world regarding the cost effectiveness and high level of productivity that can be achieved using this equipment.
- There are many technical challenges that an organization may face while using material handling equipment. Specialized knowledge might be required to solve those issues and expertise may not be available at all times. Cyber security threats also remain a major concern for the organizations.
- The impact of Covid cannot be neglected in this industry since the supply chains had been disrupted, there was lack of demand since the manufacturing sector faced a complete lockdown. Unlike other sectors, in the manufacturing sector the work from home model cannot be adopted bringing a complete halt in operations. Companies were cutting down on capital expenditure due to which the demand for material handling equipment faced a negative impact.
MATERIAL HANDLING EQUIPMENT MARKET SEGMENTATION
Material Handling Equipment Market By Equipment Type
- Cranes and Lifting equipment
- Industrial Trucks
- Continuous handling equipment
- Racking and Storage Equipment
- Automated Storage Retrieval System
The crane and lifting equipment has a considerable market share currently and is expected to retain its position as activities related to metal mining are increasing in some countries. Along with this large scale commercial and residential projects where heavy material is required to be lifted, the role of cranes and lifting equipment becomes indispensable.
The automated storage retrieval system is expected to show the highest CAGR. The market for industrial trucks is also expected to grow.
Material Handling Equipment Market By System Type
By system type, the following categorization is done:
- Unit Load Material Handling system
- Bulk load material handling system
The unit load material handling system is expected to grow more owing to the fact that it allows many items to be loaded and unloaded together which saves time and cost for the organizations.
Material Handling Equipment Market By Operations
The transportation segment is expected to hold the highest market share in the forecasted period 2021-2026. This is due to the increase in the trend of e-commerce.
Material Handling Equipment Market By Industry
The main industries where material handling equipment is used are:
- Consumer Goods
- Food and Beverage
During the period 2020-2025, the e-commerce segment is expected to showcase the highest growth owing to the growth of this sector during the pandemic. Material handling equipment is effective in helping in packaging and distribution in the warehouses and therefore, their demand is expected to grow within this segment.
Material Handling Equipment Market By Region
The different regions identified for analyzing the market are:
- North America
- Asia Pacific
- Middle East and Africa
- Latin America
Region wise, North America had the highest market demand and it is forecasted that in the period 2020-2025 it will retain its prominence. This is due to the growth of the e-commerce industry in this region. Consumer goods are also highly demanded in this region and the companies wish to automate their processes.
The Asia Pacific region is expected to have the highest CAGR as there is a rise of investments in this region to meet the increasing demands of the consumers. In countries such as China, South Korea and Taiwan the technology that is being used is advanced and with rise in their population and national income the need for material handling equipment would also rise.
MATERIAL HANDLING EQUIPMENT MARKET COMPETITIVE LANDSCAPE
There are many small and large players across the globe for material handling equipment. Some of the key companies in this market are:
- Bastian Solutions, LLC
- Beumer Group GmbH & Co.
- Columbus McKinnon
- Crown Equipment Corporation
- Daifuku Co.Ltd
- Dematic GmbH & Co.
- Hyster-Yale Materials Handling
- JBT Corporation
Some strategies that are being adopted by the key players are mergers and acquisitions along with emphasis on developing improved models.
MATERIAL HANDLING EQUIPMENT MARKET RECENT DEVELOPMENTS
To deal with the change in environment in the coronavirus pandemic, the manufacturers have come up with the following strategies :
- In order to get a mechanism in place for purchase returns, companies are using the recent technology.
- With the rise in e-commerce, faster deliveries are expected. Therefore, companies are shifting their warehouses to urban areas.
- One company, Godrej Material Handling has diversified its current offerings by the name Godrej RenTrust which is a rental company and provides a complete range of solutions to customers in terms of labour, fuel and maintenance for material handling equipment.
- C & M Conveyor has been acquired by CapitalWorks which would help it make use of automated material handling technology in its operations.
THIS MATERIAL HANDLING EQUIPMENT MARKETREPORT WILL ANSWER FOLLOWING QUESTIONS
- Material Handling Equipment Market size and Forecast, by region, by application
- Average B-2-B price for Material Handling Equipment Market, by region, per user
- Technology trends and related opportunity for new Material Handling Equipment Market tech suppliers
- Material Handling Equipment Market share of leading vendors, by region,
- Coronavirus impact on Material Handling Equipment Market earnings