Market Overview
Automated material handling systems refer to equipment and software that aid in the movement, protection, storage, and control of materials and products in manufacturing, warehousing, and distribution. These systems are increasingly being adopted due to their ability to improve efficiency, reduce waste, and lower overall costs.
Analysts emphasize that industries are shifting toward automation to meet growing consumer demand, enhance accuracy, and streamline inventory and logistics. Integration of robotics, artificial intelligence (AI), and cloud-based software is transforming traditional storage operations into smart, responsive environments.
Market Drivers & Trends
- E-commerce Expansion: With online shopping becoming the norm, warehouses are under pressure to fulfill orders quickly and accurately. Automated systems enable faster picking, sorting, and delivery.
- 3PL Adoption: Third-party logistics providers are heavily investing in automation to manage inventory, optimize warehousing, and ensure timely delivery.
- Cloud-based WMS & TMS: Cloud platforms are replacing on-premise warehouse and transport management systems, offering scalability, data accessibility, and cost-effectiveness.
- Cold Chain Automation: The rise in demand for frozen food, pharmaceuticals, and temperature-sensitive products has led to the increased use of AMH systems in cold storage facilities.
- Labor Shortage: Automation helps address workforce challenges by reducing reliance on manual labor and minimizing human error.
Key Players and Industry Leaders
Leading market participants include:
- Daifuku Co., Ltd.
- Honeywell International Inc. (Honeywell Intelligrated)
- KUKA AG
- BEUMER GROUP
- Murata Machinery, Ltd.
- Jungheinrich AG
- Blue Yonder Group, Inc.
- Dematic
- KNAPP AG
- GreyOrange
- Geekplus Technology Co., Ltd.
These players are focusing on strategic partnerships, product innovation, and mergers and acquisitions to expand their global footprint and cater to dynamic industry needs.
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Recent Developments
- March 2022: RightHand Robotics launched a Partner Integrator Program to streamline robotic piece picking integration in warehouse operations.
- February 2022: Murata Machinery expanded its AGV offerings by adding seven new standard models to cater to diverse industrial needs.
- September 2021: Honeywell unveiled a robotic solution for automating pallet loading/unloading, helping reduce manual labor.
- May 2018: Coca-Cola Amatil implemented KUKA AG’s robot-based ACPaQ solution in New Zealand to improve delivery quality and meet increasing demand.
Latest Market Trends
- High Adoption of ASRS: Automated Storage and Retrieval Systems accounted for 26.5% market share in 2021 and are anticipated to grow at 10.5% CAGR. They improve space utilization and boost picking accuracy up to 99.9%.
- Surge in AMRs and AGVs: Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) are increasingly used for material transport within warehouses.
- Integration of AI and IoT: Advanced analytics, machine learning, and IoT-enabled systems provide real-time visibility and enhance predictive maintenance.
Market Opportunities
- Emerging Markets in Asia Pacific: Countries like India, China, and Southeast Asian nations offer untapped potential due to rapid industrialization and government support for smart manufacturing.
- Eastern and Central Europe: Nations such as Poland and Hungary present growing demand for automation in logistics and manufacturing, offering lucrative entry points for market players.
- SME Adoption: Small and medium enterprises (SMEs) are increasingly embracing semi-automated systems to remain competitive and meet rising customer expectations.
Future Outlook
The automated material handling market is expected to witness robust growth through 2031, underpinned by digital transformation across supply chains. Increased investment in Industry 4.0 technologies, warehouse robotics, and cloud-based management platforms will redefine how goods are stored and moved globally. Stakeholders must focus on modular, scalable, and interoperable solutions to address evolving operational challenges.
Market Segmentation
By Offering
- Hardware: ASRS, AGVs, AMRs, Palletizing Robots, RFID Scanners, Conveyors
- Software: Warehouse Management System (WMS), Warehouse Execution System (WES), Transportation Management System (TMS)
- Services
By Package Type
- Pallet, Containers, Totes, Bulk Containers, Cartons, Others
By Industry Vertical
- Food & Beverage
- Cold Chain
- Personal Care
- Pharmaceuticals
- Automotive
- Retail & E-Commerce
- 3PL
- Others (Healthcare, Airport Services)
Regional Insights
- North America (33.5% market share in 2021): The U.S. leads in warehouse automation adoption, with major investments in smart logistics and AI-driven inventory management.
- Europe (29.4% market share in 2021): Germany, France, and Austria dominate, but Poland and Nordic countries show growing interest due to expanding e-commerce and industrial automation.
- Asia Pacific: Fastest-growing region with high demand in manufacturing and retail sectors. China, India, and Japan are driving the surge due to robust industrial activity and government incentives.
- Middle East & Africa and South America: Emerging demand for automated solutions in logistics and food distribution.
Frequently Asked Questions
- What is the size of the global automated material handling market?
The market was valued at US$ 40.9 Bn in 2021 and is projected to reach US$ 85.1 Bn by 2031, growing at a CAGR of 8.3%. - What factors are driving the growth of this market?
Key drivers include the rise in e-commerce, 3PL automation, cloud-based WMS/TMS adoption, and the need for labor efficiency and accuracy in logistics. - Which region is expected to offer the most growth potential?
Asia Pacific is expected to grow the fastest due to industrial expansion and adoption of warehouse automation across major economies. - What is the role of ASRS in market growth?
ASRS enhances warehouse efficiency, reduces storage costs, and increases accuracy and space utilization, making it a vital component of the market. - Who are the top players in the automated material handling market?
Daifuku, Honeywell, KUKA, Dematic, Murata Machinery, and Geekplus are among the leading players. - What industries are the major adopters of AMH systems?
Industries such as retail, e-commerce, pharmaceuticals, food & beverage, and automotive are major users of automated material handling solutions.