Material Handling Equipment Market Revenue to Hit $200 Billion by 2027
The global material handling equipment industry is touted to gain massive proceeds over the coming years, owing to the expanding e-commerce sector and a subsequent increase in the automation of warehouses for ensuring on-time shipments and deliveries. The surging popularity of warehouse automation for streamlining the process of material handling is expected to stimulate industry growth.
According to the latest study by Global Market Insights, Inc., the global material handling equipment market size is projected to surpass USD 200 billion by 2027.
This growth is attributed to an increase in the adoption of acquisition and merger strategies by key material handling equipment manufacturers.
For instance, in April 2017, A.T.E. entered into a collaboration with Jost’s Engineering Company Limited for bringing the best material handling equipment to the textile industry across India and Bangladesh. The deal helped in enhancing the penetration of a range of products such as electric forklifts, racking systems, reach trucks, custom-built trucks, hand pallet trucks, scissor lifts, and others in the region.
Moreover, various integration technologies, comprising IoT and RFID, into the equipment will also play a pivotal role in augmenting material handling equipment market revenue through the estimated span.
Some major trends impelling material handling equipment industry expansion comprise:
Globally expanding 3PL industry
The expansion of the 3PL market at the global level is expected to augment the product deployment in distribution centers and warehouses, spurring material handling equipment market share over the coming years. Given that online retailing is in high demand, various companies are leveraging the advantages of third-party logistics providers for catering to an upsurge in the demand from consumers.
This, in turn, is expected to encourage 3PL service providers for the modernization of their storage facilities and warehouses so as to ensure fast and on-time delivery of shipments. Material handling equipment enables people to proceed with the efficient unloading/loading of products from transportation trucks, storing products at large heights in racks, and moving products easily throughout the facility through constrained spaces.
Surging demand for industrial trucks
An escalation in the demand for industrial trucks, that allow the transfer of heavy goods in an efficient and easy manner, is expected to drive material handling equipment market share through 2027. In addition, there is an increase in the demand for automated guided vehicles as they carry loads along the floor of the facility without the requirement of an onboard operator or a driver.
These vehicles are operated by means of an integrated system of hardware and software components. Furthermore, advancements in the sensor industry are set to fuel the research and development associated with AGVs, bolstering business expansion through the assessment period.
Expanding manufacturing sector in Latin America
Latin American material handling equipment industry is poised to register commendable growth through 2027, owing to the expansion of the manufacturing sector in the region. Mexico stood first amongst the trade partners of the U.S. in total trade in 2019 with a value amounting to USD 614.5 billion.
Moreover, the demand for bulk material handling equipment from the expanding processed foods industry is likely to boost the business landscape in the region. In addition, various regulatory bodies are encouraging the expansion of the overall industrial sector, increasing product adoption through 2027.
Source: Global Market Insights, Inc.