South America Material Handling Market Forecasts from 2023 to 2028

The South American material handling market is estimated to grow at a CAGR of 8.96%, reaching US$11.991 billion in 2028 from US$6.574 billion in 2021.

The increasing automation in the region coupled with growth in logistics and e-commerce is providing an edge for market growth of material handling machines. The countries in the South American region are demographically buoyant, and resourceful and are expanding giving major opportunities to the sector such as e-commerce, automotive, and construction to flourish and the majority of these sectors use material handling equipment. Hence the expanding end-user industry is helping the market for material handling equipment grow in the projected period.

Expanding E-Commerce Sector

The increasing automation in the region coupled with growth in logistics and e-commerce is providing an edge for market growth of material handling machines. For instance, International Trade Administration published an article in March 2023, stating that, Brazil is one of the largest economies in South America and the e-commerce in the country is growing by 16% year on year. it is estimated that by the year 2025, Brazil’s e-commerce will reach a combined transaction value of US$ 79 billion.

Increasing Demand in End-User Industries

In South America, the demand for material handling machines is rapidly increasing in the food and beverage industries. The export of food products plays a crucial role in the economic structure of the region. Countries such as Brazil are one of the major exporters of coffee beans along with frozen food and Argentina is one of the major exporters of packaged and processed food. As the exports increase from these countries, the need for more collaborative material handling equipment and semi-automation solutions is expected to increase the demand in the coming years. Additionally, one of the major drivers of increase the in demand is the rising labor cost in the region which is pushing organizations to switch to a more sustainable solution. The data by Cepal.org indicated that the export value in 2019 was US$ 1, 183 billion which reached US$ 1, 237 billion in 2021. The need for material handling equipment is rising in various end-user industries to fulfill the increasing demand.

Government and Institutional Effort

The Brazilian government has been investing in improving the country's infrastructure, including transportation and logistics. Better roads, ports, and airports facilitate the movement of goods across the nation, driving the need for reliable material handling solutions to ensure smooth and efficient operations within warehouses and distribution centers. Moreover, like many other countries, Brazil has also witnessed a significant surge in e-commerce and online retail. The rise in online shopping has created a higher demand for efficient material handling systems within warehouses and fulfillment centers to handle the increased order volumes and speed up order processing.

Brazil is Expected Fastest Growing Market

The market of material handling in Brazil has been experiencing significant growth owing to industrialization, infrastructure development, and the expansion of e-commerce and logistics sectors. Brazil's ongoing industrialization and economic growth have led to an expansion of various industries, such as manufacturing, automotive, food and beverage, pharmaceuticals, and more. As these industries grow, they require advanced material-handling equipment to optimize their production processes and handle increasing volumes of goods. In this regard, according to the World Bank, the manufacturing industry of Brazil experienced growth in the year 2022 as compared to that of 2021. As a result, the growing manufacturing industry acts as a growth driver for the material handling market of Brazil.

Major Market Player

Toyota Material Handling strives to provide its clients with the best quality material handling equipment, solutions & services such as reach trucks, forklifts, automated guided vehicles, container handlers, and low tractors among others. The company aims to build an Individual centric business relationship with each of its customers with the utmost focus on the client's material handling needs.

Key Market Developments

• In January 2021, Dürr Brazil developed handling and assembly equipment called manipulators that do away with labor-intensive, uncomfortable tasks and promote a healthy, productive workplace. The new manipulating apparatus was created using vast knowledge of car assembly lines held by Dürr Brazil.
• In January 2022, Toyota Material Handling announced the launch of new electric products as part of the company's innovative portfolio under its material handling solutions.

Segmentation:

By Product

• Trucks and Lifts
• Cranes
• Conveying Systems
• Automated Guided Vehicles
• Others

By Application

• Warehousing and Distribution
• Airport Baggage Handling
• Postal and Parcel Delivery
• Others

By Industry Vertical

• Healthcare
• Chemical
• Food and Beverage
• Warehousing
• Others

By Country

• Brazil
• Argentina
• Colombia
• Chile
• Peru
• Ecuador
• Others