Automated Material Handling Market to grow by USD 46.5 Billion (2024-2028), driven by the expanding e-commerce sector. Report with market evolution powered by AI - Technavio

NEW YORK, Nov. 15, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global automated material handling (AMH) market  size is estimated to grow by USD 46.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  13.61%  during the forecast period.Growing e-commerce industry is driving market growth, with a trend towards increasing technological advances in industrial operation. However, high initial investments for acquiring automated material handling equipment  poses a challenge.Key market players include Addverb Technologies Pvt. Ltd., Beumer Group GmbH and Co. KG, Daifuku Co. Ltd., FIVES SAS, FlexLink Holding AB, Hanwha Corp., Honeywell International Inc., John Bean Technologies Corp., Jungheinrich Group, Kardex Holding AG, KION GROUP AG, KUKA AG, Mecalux SA, Murata Machinery Ltd., Robert Bosch GmbH, Siemens AG, SSI Schafer IT Solutions GmbH, TGW LOGISTICS GROUP GmbH, Toyota Industries Corp., and Wipro Ltd..

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Key Market Trends Fueling Growth

The Automated Material Handling (AMH) market is experiencing significant growth, driven by trends in warehouse service providers, e-commerce, and 3PL (Third-Party Logistics) industries. Cloud-based platforms and AMH equipment are key solutions, providing efficiency, cost savings, and safety benefits for manufacturing, warehousing facilities, and personal care industries. The integration of AMH software and hardware is crucial for real-time inventory control and error-free fulfillment. Emerging economies offer growth opportunities, but switching costs and industry reluctance present challenges. Flexible and scalable AMH equipment is essential for handling various product types and managing height limits in warehouses. Global market scenarios include electronics, storage capacity, and energy efficiency. Maintenance and control technologies are important for ensuring productivity and reducing labor utilization. The material handling ecosystem includes ASRS (Automated Storage and Retrieval Systems), which hold the largest share, offering benefits such as space optimization, rapid storage and retrieval, and production capacity enhancement. Order accuracy and consolidation of warehouses are also key advantages. The challenge for AMH market players is to provide cost-effective, efficient, and safe solutions for various industries, while adapting to the evolving landscape of manufacturing, warehousing, and logistics operations.

The global Automated Material Handling (AMH) market is experiencing significant growth due to increasing automation demands across industries. This trend, often referred to as Industry 4.0, integrates advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI). These technologies enable autonomous decision-making in labor-intensive processes through machine learning (ML), big data analytics, cyber-physical systems, and cloud computing. Industrial facilities are increasingly adopting robotic systems controlled by computers for smoother workflows, minimal human intervention, and improved efficiency. The AMH market is poised for continued expansion as automation becomes increasingly essential for businesses seeking to remain competitive.

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Market Challenges

• The Automated Material Handling (AMH) market is experiencing significant growth due to increasing demands from various industries, including e-commerce, 3PL, and manufacturing. Warehouse service providers face challenges in meeting efficiency and cost expectations, leading to the adoption of AMH equipment like ASRS systems. However, switching costs and industry reluctance pose challenges. Cloud-based platforms offer flexibility and scalability, but safety concerns and height limits require careful consideration. Emerging economies and industrial growth present new opportunities, especially in the personal care industry. AMH equipment integration with software and control technologies requires careful planning and maintenance for energy efficiency. The material handling ecosystem, including electronics, storage capacity, and real-time inventory control, offers benefits like space savings, labor utilization, productivity, and error-free fulfillment. Global market scenarios show a shift towards rapid storage and retrieval, consolidation of warehouses, and increased production capacity. Order accuracy and warehouse operations processes are crucial for success. Challenges include the costs of AMH equipment and the need for flexible and scalable solutions. Overall, the AMH market presents significant growth opportunities for businesses looking to streamline their operations and improve their bottom line.
• The global Automated Material Handling (AMH) market growth is hindered by the significant capital expenditure required to purchase automated equipment. While larger corporations can afford this investment, smaller businesses, including regional and local entities, are hesitant due to concerns over the cost and potential return on investment. For instance, Automated Guided Vehicles (AGVs) are cost-effective for warehouses handling over 40,000 pallets. However, the installation process of AMH equipment is time-consuming, potentially impacting a company's revenue generation capacity.

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Segment Overview

This automated material handling (amh) market report extensively covers market segmentation by

1. Component 
• 1.1 Hardware
• 1.2 Software
• 1.3 Services
2. End-user 
• 2.1 Automotive
• 2.2 E-commerce and 3PL
• 2.3 Food and beverage
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Hardware-  The Automated Material Handling (AMH) market encompasses various hardware components, including conveyor systems, robots, and automated storage and retrieval systems (AS/RS). Conveyor systems play a vital role in moving materials between different points in the process, with hydraulic, mechanical, and fully automated options available. These systems facilitate the transfer of loads into and out of storage systems, such as AS/RS, and transport them to manufacturing floors or loading docks. Warehouses and distribution facilities utilize conveyor systems for tasks like unloading trucks, moving products along production lines, packaging, and storing goods. Robots, another essential component of AMH, are increasingly adopted in distribution centers and warehouses for material transfer and machine loading/unloading. Applications of robotics systems include carrying items, palletizing and depalletizing, and loading/unloading machines in production processes. The integration of these hardware solutions is expected to boost the growth of the AMH market during the forecast period.

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Research Analysis

The Automated Material Handling (AMH) market is experiencing significant growth due to the increasing demand from various industries, including warehouse service providers, e-commerce, and 3PL (Third-Party Logistics). The shift towards cloud-based platforms and AMH equipment is driving efficiency and reducing costs for businesses. The personal care industry is a key adopter of AMH solutions due to the need for flexibility and scalability in their operations. Efficiency and safety are major benefits of AMH systems, which are essential for manufacturing and warehousing facilities. The layout and integration of AMH equipment with software solutions are crucial for seamless operations. Switching costs can be a challenge for businesses looking to implement AMH solutions, but the long-term benefits often outweigh the initial investment. Emerging economies and industrial growth in regions like Asia-Pacific and South America present significant growth opportunities for the AMH market. Infrastructural development and the need for efficient logistics solutions are key drivers in these markets. However, the high initial costs and complex implementation process can be barriers to entry. Overall, the AMH market offers numerous growth opportunities, but it also presents challenges related to flexibility, scalability, and integration. Flexible and scalable AMH equipment and software solutions are essential to meet the evolving needs of businesses in various industries.

Market Research Overview

The Automated Material Handling (AMH) market is witnessing significant growth due to the increasing demand from warehouse service providers, e-commerce, and 3PL (Third-Party Logistics) industries. A cloud-based platform is becoming a preferred choice for businesses due to its flexibility and scalability. The personal care industry is one of the major consumers of AMH equipment due to the need for efficiency and cost savings. The layout and integration of AMH equipment with software are crucial factors in the market. Switching costs and industry reluctance are challenges that may hinder market growth. Emerging economies present significant growth opportunities due to industrial growth and infrastructural development. Flexible and scalable AMH equipment, such as ASRS (Automated Storage and Retrieval Systems), offer benefits like increased space utilization, labor savings, productivity, real-time inventory control, and error-free fulfillment. The market is driven by the need for rapid storage and retrieval, height limits, control technologies, maintenance, energy efficiency, and the material handling ecosystem. Global market scenarios indicate a large share for AMH equipment in manufacturing, warehousing facilities, and electronics industries. The benefits of AMH include increased production capacity, order accuracy, and consolidation of warehouses. However, challenges like costs, safety, and the need for skilled labor persist. The market is expected to grow as businesses seek to optimize their operations and processes.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
• Hardware
• Software
• Services
• End-user
• Automotive
• E-commerce And 3PL
• Food And Beverage
• Others
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio