Material Handling Market Report 2025

The material handling market size has grown strongly in recent years. It will grow from $44.54 billion in 2024 to $48.76 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to industrialization and manufacturing growth, e-commerce expansion, global supply chain networks, safety and ergonomics compliance, efficiency and cost reduction initiatives.

The material handling market size is expected to see strong growth in the next few years. It will grow to $70.83 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to e-commerce growth trajectory, automation and robotics integration, sustainability and green initiatives, rise of smart warehousing, adaptation to changing market dynamics, E-commerce growth trajectory, automation and robotics integration, sustainability and green initiatives, rise of smart warehousing, adaptation to changing market dynamics. Major trends in the forecast period include augmented reality (AR) for training and maintenance, predictive maintenance with machine learning, customization and scalability, human-robot collaboration (HRC), blockchain for supply chain transparency.

The growth of the e-commerce industry is anticipated to drive the expansion of the material handling market in the future. This growth is fueled by the widespread use of smartphones and improved internet access, which provide consumers with convenience and a wide array of product choices. Material handling plays a crucial role in enhancing the e-commerce sector by optimizing the movement, storage, and retrieval of products within warehouses, leading to greater order fulfillment efficiency and shorter delivery times for customers. For example, in May 2024, the Census Bureau, a US-based government agency, reported that e-commerce sales increased by 8.5% in the first quarter of 2024 compared to the same period in 2023, accounting for 15.6% of total retail sales, which rose by 2.8% year over year. Thus, the rise in the e-commerce industry is driving the growth of the material handling market.

The growing construction industry is expected to drive the expansion of the material handling market in the future. This industry encompasses the processes involved in delivering buildings, infrastructure, industrial facilities, and related activities throughout their entire lifecycle. Material handling in the construction sector aims to enhance the efficiency of material flow, reduce handling costs, improve facility utilization, boost safety and working conditions, facilitate construction processes, and increase overall productivity. For example, in July 2024, the US Census Bureau, a government agency, reported that the value of construction operations increased from $2.01 trillion in May 2023 to $2.14 trillion in May 2024. Therefore, the growth of the construction industry is driving the demand for material handling solutions.

The material handling market is witnessing the emergence of lithium-ion technology as a significant trend. Lithium-ion (Li-ion) batteries are gaining popularity due to their environmental friendliness and higher energy densities compared to lead-acid or nickel-metal hydride batteries. Li-ion batteries are particularly preferred for electric vehicles used in material handling, offering advantages such as higher energy storage capacity, lightweight construction, rapid charging, and elimination of cool-down intervals. For instance, in July 2023, Hyundai Material Handling introduced the B-X Electric Pneumatic Lithium Series, allowing forklift owners to opt for a lithium truck package comprising a truck, a lithium battery, and a charger. This series, with its energy-efficient design and capacities ranging from 5,000 to 7,000 lbs, leverages lithium-ion battery technology to deliver extended runtimes, quick charging, and zero emissions.

Major players in the material handling market are intensifying their focus on innovation, introducing a range of new products and solutions to stay competitive. These innovations aim to enhance efficiency, versatility, and overall performance, prioritizing operator comfort. For example, in May 2023, Toyota Material Handling (TMH) launched three new electric forklift models including the Side-Entry End Rider, a Center Rider Stacker, and an Industrial Tow Tractor. These models provide next-generation adaptability, efficiency, and performance, placing a strong emphasis on operator comfort. The Side-Entry End Rider, suitable for order pickup and cross-warehouse movement, features an automatic parking brake and standard power steering for increased uptime and reduced energy costs. The Center Rider Stacker boasts an inventive three-in-one design, combining the functions of a center rider, order picker, and counterbalanced forklift. The Industrial Tow Tractor, with a towing capacity of 15,000 pounds, offers electric power steering for effortless driving, enhanced ergonomics, and superior control. These innovations demonstrate a commitment to advancing technology and providing superior solutions in the material handling industry.

In January 2022, Hy-Tek Holdings (Hy-Tek), a leading US-based provider of material handling solutions, successfully acquired Advanced Handling Systems, LLC (AHS) for an undisclosed sum. This strategic acquisition positions Hy-Tek Holdings to expand its offerings in material handling and integrated systems, providing a more comprehensive range of solutions. The incorporation of AHS's robotic solutions into Hy-Tek's portfolio enables the delivery of cutting-edge technology aimed at optimizing fulfillment processes, accelerating distribution operations, and addressing challenges associated with labor shortages. AHS, a material handling automation integrator based in the United States, specializes in providing innovative material handling and storage products to diverse industries, including 3PL, ecommerce, retail, wholesale, food and beverage, and healthcare sectors.

Major companies operating in the material handling market include Mitsubishi Logisnext Co.Ltd., Komatsu Ltd., Toyota Industries Corporation, Liebherr Group, Doosan Corporation, Kion Group AG, Jungheinrich AG, Crown Equipment Corporation, Daifuku Co. Ltd., Cascade Corporation, Hyster-Yale-Materials Handling, Dematic Group, Manitou Group, Hangcha Group Co. Ltd., SSI Schaefer Systems International, Hoist Liftruck Mfg. Inc., Anhui Heli Co. Ltd., Clark Material Handling Company, Columbus McKinnon Corporation, Raymond Corporation, Bastian Solutions LLC, Eisenmann AG, Godrej & Boyce Manufacturing Co. Ltd., Hytrol Conveyor Co., Combilift Ltd., Viastore Systems, Schaefer Systems International Pvt. Ltd., EMH Inc., Carolina Material Handling Services Inc., Beumer Group, KUKA AG, AGV International, TGW Logistics Group, Interroll Group.

Asia-Pacific was the largest region in the material handling market in 2024. Western Europe was the second-largest region in the global material handling market share. The regions covered in the material handling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the material handling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Materials handling encompasses the movement of raw goods, manipulation in manufacturing, and the distribution of finished products.

Primary types include automated guided vehicles, automated storage and retrieval systems, trucks, cranes, pallet racking, conveying systems, hoists, among others. Pallet racking supports stacking single items or palletized loads in storage systems. Operations span assembly, distribution, transportation, among others, serving industries such as food and beverages, automotive, construction, consumer goods, pharmaceuticals, e-commerce, and more.

The material handling market research report is one of a series of new reports that provides material handling market statistics, including material handling industry global market size, regional shares, competitors with a material handling market share, detailed material handling market segments, market trends and opportunities, and any further data you may need to thrive in the material handling industry. This material handling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The materials handling market includes revenues earned by entities by automatic guided vehicles (AGVs), automatic identification and data collection, casters and wheels, controls, conveyors, dock equipment, and ergonomics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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