Canada Material Handling Market - Forecasts from 2025 to 2030

The Canada Material Handling market is expected to grow at a compound annual growth rate (CAGR) of 3.87% from US$4.089 billion in 2025 to US$4.944 billion in 2030.

The market is projected to increase at a substantial pace with increasing urbanization and expanding industrialization, contributing to the rise in the adoption of automation in the region. Additionally, the integration of automation in different industries like manufacturing and warehousing is improving effectiveness, accuracy, and efficiency by tending to labor issues and guaranteeing reliable productivity. With the growing labor costs, the market is predicted to grow with technological advancements such as the utilization of material handling solutions like automated guided vehicles, automated storage system and cranes will increase, fueling the market expansion in the country.

Moreover, the construction industry drives the development of the material handling industry due to expanded construction activity, which requires heavy-duty equipment such as cranes, trucks, and hoists for handling large volumes of materials and equipment. According to Government of Canada data from June 2024, The Investing in Canada Plan invested more than $151 billion from 2016 to 2024 which comprises 96,000 ventures related to infrastructure development in the region, with 93% of them completed or underway. This will contribute to the regional market expansion during the forecasted period.

Additionally, regional material handling companies are developing new and innovative products for warehousing storage facilities that require logistic and handling solutions, such as automated storage and retrieval systems and an efficient supply chain, to move their products much closer to the end consumers in the country.

Canada material handling market drivers

Growing demand from the e-commerce industry is projected to propel the Canada Material Handling market expansion.

The rise in the e-commerce market in Canada leads to an increased requirement for efficient material handling systems. Retail businesses find it difficult to streamline their operation efficiently and fulfill growing online customer demand for accurate and rapid deliveries. This leads to increasing adoption of efficient systems like automated material handling solutions to handle and process the demands faster at a minimal cost. International Trade Administration (ITA) report of November 2023 stated that Canada accounted for more than 27 million e-commerce users in 2022, making up 75% of the total population of the country. This figure is anticipated to increase to 77.6% by 2025, demonstrating a consistent increment in retail e-commerce sales. Additionally, e-commerce sales reached $2.34 billion in March 2022, with retail e-commerce sales anticipated to reach $40.3 billion by 2025. This rising e-commerce will increase the necessity for material handling solutions like automated guided vehicles and automated sorting systems for quick accuracy and increased productivity.

This increased e-commerce is also changing the approach towards the supply chain strategy of companies. Modern technology, such as robotics and artificial intelligence, is being implemented to update inventory management and order fulfillment procedures. These technologies improve speed and precision, which is critical in the increasingly competitive industry for meeting client expectations.

The integration of data analytics into material handling systems allows companies to better forecast demand and manage resources. This capability is essential because consumer preferences are changing rapidly, and retailers need to be agile in their responses.

Companies that invest more in innovative material handling solutions are likely to gain the edge. This is due to a growing interest in the areas of efficiency, speed, and accuracy that would further boost advancements in the material handling sector and make sure that it can meet the increasing needs of online shopping in Canada. With these developments, the future of the CanadaMaterial Handling market looks bright and promising, ready to grow significantly as it caters to the dynamic needs of the e-commerce industry.

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The Canada material handling market is analyzed into the following segments:

By Products

• Automated Guided Vehicles
• Automated Storage and Retrieval Systems
• Trucks and Lifts
• Cranes
• Others

By Application

• Warehousing and Distribution
• Airport Baggage Handling
• Bulk Handling
• Postal and Parcel Delivery
• Assembly
• Packaging

By Industry Vertical

• Manufacturing
• Healthcare
• Chemical
• Paper
• Food and Beverage
• Others