Material Handling Integration Market Size
Hey there! So, there's this market called Material Handling Integration, and it's growing like crazy! It was worth a whopping $41.3 billion in 2022, and it's expected to grow by over 8.5% every year for the next 10 years. That's huge! Why is it growing so fast? Because companies are getting smarter about how they make things. They're using automation and all kinds of fancy Industry 4.0 stuff to streamline their operations and make them more efficient. And material handling is a key part of that. These integrated systems help companies move materials around their factories smoothly and efficiently. They make sure everything is where it needs to be, when it needs to be there. It's like having a super-smart robot army organizing your whole production line! As companies race to stay competitive in this automated world, they're investing heavily in these material handling solutions. It's helping them boost productivity, cut costs, and improve the overall quality of their products. So, it's no wonder this market is booming!
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In April 2022, a private equity firm in Chicago called May River Capital put together a new company called Automated Handling Solutions. This new company focuses on providing advanced material handling equipment and automation solutions to companies that are growing in the lower middle market industrial sector. It was created by combining two other companiesSpiroflow and Cablevey Conveyors. Spiroflow makes equipment that helps move materials, and it also knows how to put together control systems. Cablevey Conveyors is known for its special tubular drag conveying systems, which are used in important industries like food and beverage manufacturing. By putting these two companies together, Automated Handling Solutions can now give big-name customers all over the world a wider range of material handling and industrial automation solutions.
Material Handling Integration Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2022 |
| Material Handling Integration Market Size in 2022 |
USD 41.3 Billion |
| Forecast Period |
2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR |
8.5% |
| 2032 Value Projection |
USD 90.3 Billion |
| Historical Data for |
2018 - 2022 |
| No. of Pages |
220 |
| Tables, Charts & Figures |
315 |
| Segments covered |
Component, Application, and Industry Vertical |
| Growth Drivers |
- The rapid growth of e-commerce and online retail
- The adoption of Industry 4.0
- Evolving manufacturing practices
- Focus on warehouse optimization
|
| Pitfalls & Challenges |
- High initial costs
- Integration complexity
|
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The material handling integration market faces a challenge in terms of the high initial costs associated with implementing integrated systems. The upfront expenses for acquiring and installing advanced technology, automation equipment, and integrated solutions can be significant. This financial barrier may deter some businesses, especially smaller ones, from adopting material handling integration despite the long-term benefits, thus limiting market growth.
COVID-19 Impact
The COVID-19 pandemic significantly impacted the material handling integration market forecast, causing disruptions in global supply chains and industrial operations. Lockdowns, restrictions, and workforce challenges led to delays in the implementation of material handling integration projects. The uncertainty also prompted some businesses to reevaluate their investment plans, affecting the overall market outlook. However, the pandemic underscored the importance of resilient and flexible material handling systems, accelerating interest in automation and integration solutions to enhance supply chain resilience in a post-pandemic landscape.
Material Handling Integration Market Trends
The material handling integration industry is witnessing a growing trend towards the integration of robotics and autonomous systems. Advanced robotic technologies, including autonomous mobile robots (AMRs) and robotic arms, are being incorporated into material handling systems to enhance efficiency, speed, and flexibility in warehouse and distribution operations. These systems offer the capability to automate tasks such as picking, packing, and palletizing, contributing to increased productivity and reduced labor costs.
The boom in automation and robotics has businesses scrambling to cash in on the benefits. They're stepping up their game to seize every chance for growth, which is boosting the market as a whole. For example, just last December, two big players in the industry, Tecsys Inc. and SVT Robotics Inc., teamed up. Tecsys makes software for managing supply chains, while SVT specializes in software that helps businesses roll out industrial robots fast. By joining forces, they've created a seamless link between Tecsys' system and SVT's. This means that customers of Tecsys Elite, the company's supply chain software, can now set up and use robots much more easily. They don't have to spend hours writing custom code to make the two systems work together, which can be a headache and slow everything down.
Material Handling Integration Market Analysis
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Based on component, the hardware segment held over 61% of the market share in 2022, due to increasing demand for advanced technologies that help enhance efficiency and automation. Businesses seek robust hardware solutions to optimize material handling processes, such as conveyor systems, robotic arms, and automated storage and retrieval systems. The imperative for improved productivity, streamlined operations, and the ability to handle diverse goods fuels the adoption of these hardware components, positioning them as essential elements in modern material handling integration strategies.
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Based on industry vertical, the retail & e-commerce segment accounted for 22% of the material handling integration market share in 2022, owing to the imperative for streamlined and efficient logistics. The surge in online shopping necessitates sophisticated systems that can handle increased order volumes with precision. Material handling integration, incorporating automation, robotics, and data-driven technologies, optimizes warehouse operations, accelerates order fulfillment, and reduces errors. With consumers expecting swift deliveries, the retail and e-commerce sector adopts integrated solutions to meet these expectations, enhancing overall operational agility and customer satisfaction in the dynamic landscape of online commerce.
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Asia Pacific material handling integration market recorded around 35% of the revenue share in 2022, attributed to burgeoning industrialization, increasing e-commerce activities, and a focus on technological advancements. The region's rapid economic development has spurred demand for efficient supply chain solutions, prompting widespread adoption of material handling integration technologies. As businesses strive for heightened productivity and cost-effectiveness, the deployment of integrated systems, incorporating automation and robotics, becomes instrumental. The dynamic market landscape in Asia Pacific reflects a strategic alignment with modernization goals, driving the industry to unprecedented growth in the region.
Material Handling Integration Market Share
Major companies operating in the material handling integration industry are
- Daifuku Co., Ltd.
- Fives
- Honeywell International Inc
- Jungheinrich AG
- KION Group
- Knapp AG
- Murata Machinery Ltd.
- SSI Schaefer Group
- TGW Logistics Group
Companies in the material handling integration market bolster their presence through strategic measures such as technological innovation, partnerships, and participation in industry events. Emphasizing efficiency, cost-effectiveness, and sustainability, these strategies aim to capture market share and meet evolving customer demands.
Material Handling Integration Industry News
- In November 2023, Daifuku Intralogistics India, a prominent player in material handling solutions worldwide, declared its participation in the India Warehousing & Logistics Show (IWLS) 2023, hosted at the Bombay Exhibition Centre in Mumbai. This decision represents a notable stride in Daifuku's commitment to advancing automation within the Indian manufacturing sphere, signifying their active engagement in fostering technological advancements in the region.
The material handling integration market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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Market, By Component
- Hardware
- Automated Storage and Retrieval Systems (AS/RS)
- Conveyors
- Automated Guided Vehicles (AGVs)
- Robotics
- Others
- Software
- Warehouse Management System (WMS)
- Transportation Management System (TMS)
- Manufacturing Execution System (MES)
- Others
- Services
- Professional Services
- Managed Services
Market, By Application
- Conveyance
- Assembly
- Transportation
- Packaging
- Others
Market, By Industry Vertical
- Retail & E-Commerce
- Automotive
- Healthcare
- Transportation & Logistics
- Manufacturing
- Food & Beverages
- Others
The above information has been provided for the following regions and countries
- North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Russia
- Asia Pacific
- China
- India
- Australia
- Japan
- South Korea
- Southeast Asia
- Latin America
- MEA
- UAE
- South Africa
- Saudi Arabia
