LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global material handling equipment market to grow at a CAGR of almost 7% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global material handling equipment market for 2016-2020. To calculate the market size, the report considers the demand for material handling equipment in terms of revenue and volume.
Asia is the major region for the growth of the global material handling equipment market. Countries like China and India are investing in automated and manual material handling equipment, primarily due to the growth of the construction and infrastructure industry. China will emerge as a leading supplier of material handling equipment during the forecast period, with demands from the Chinese logistics market which is growing at 5.8% CAGR during the forecast period. Inexpensive labor and market for cross-border e-commerce will also drive the market for material handling equipment in China.
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Technavio transportation and logistics analysts highlight the following three factors that are contributing to the growth of the global material handling equipment market:
- Adoption of disruptive technology: Internet of Things (IoT)
- Demand for flexible distribution operations
- Growth of automation across key end user segment
Adoption of disruptive technology: Internet of Things
The Internet of Things is being widely accepted by the logistics and warehousing industry. Incorporation of sensors and RFID tags into material handling equipment are increasing to facilitate faster movement and error free procedures during material handling. Industrial trucks manufactured are now integrated with sensors that transmit automated signals, which tracks the speed of the truck, load capacity handled by the truck, and the number of inventories managed. The warehouse control systems speed up operations as they can direct industrial trucks such as forklifts to a pick location and determine the height in which products are stored.
Sharan Raj, a lead packaging analyst at Technavio, says, “RFID tags are being installed in warehouse floors of manufacturing companies, wherein the tags can signal the industrial trucks not to exceed a certain speed in a particular location, thus avoiding collision and improving safety. RFID installation in warehouses provides identification and tracking information, such as identifying arrivals of pallets in the warehouses and tracking environmental data, such as weather conditions, that can affect the quality of the products in transit.”
Demand for flexible distribution operations
Rapid rise in the e-commerce industry, primarily online shopping has resulted in product delivery in short time, which is increasing the pressure of distribution operations in warehouses and logistics. Increased demand for products by customers has led to warehouses being cluttered and disorganized, thereby hampering the distribution process and slowing the operation time.
“Retailers in Europe need 25 million square meters of additional logistics space in the forecast period with 5 million square units every year. The need for flexible distribution operations in warehouses have led to organizations implementing automation into material handling equipment applications to speed up the operations and meet the rising demands,” adds Sharan.
Growth of automation across key end user segment
The key end segment users such as the retail, automotive, and pharmaceutical sectors are incorporating automated technology into material handling equipment. This is driving the market for AMHE, as entire process starting from manufacturing, distribution, consumption and disposal is being automated. Some of the advanced automation systems include automated storage systems in warehouses, electrical trucks, and forklifts in the pharmaceutical sector, robot delivery systems in food and beverage and baggage transport systems in the airport. Automated material handling equipment optimize storage capacity and efficient use of vertical space. These advantages are driving end-users to adopt automation technology across all sectors.
Top vendors:
- Daifuku
- SSI Schaefer
- Dematic
- Beumer group
Browse Related Reports:
- Material Handling Equipment Market in Europe 2015-2019
- Material Handling Equipment Market in Asia 2015-2019
- Global Automated Material Handling Equipment Market 2015-2019
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