How is Automated Material Handling Equipment Market Changing?

Logistics Tech Outlook | Tuesday, November 16, 2021

During the forecast period 2021 to 2026, the market for unit load material handling systems is projected to be fueled by the growing need for automated material handling (AMH) equipment in the e-commerce industry.

FREMONT, CA:The AMH equipment market is estimated to increase at a CAGR of 12.0 percent from 2021 to 2026, from USD 43.6 billion in 2021 to USD 76.8 billion in 2026 as per MarketsandMarkets, a global market research and consulting firm. The primary factors driving market expansion are the growing demand for automated storage and retrieval system in e-commerce as a result of COVID-19 and the increased presence of start-up firms offering robotic solutions for warehouse automation.

In 2020, the robots category accounted for the majority of the global automated material handling equipment market. Robotics improves the efficiency and productivity of manufacturing organizations and warehouses dramatically, and can save money on labor, safeguard personnel from injury, and deliver a good return on investment. The demand for robots in manufacturing and warehousing operations is growing as a result of these benefits. Human workers' material handling activities, such as pick and place or palletizing, are among the most mundane and repetitious.

During the COVID-19 pandemic, industrial and warehousing firms understood the benefits of deploying robots for such repetitive activities. As a result, the robotics segment is likely to continue to dominate the AMH equipment market post-COVID-19.

The Unit Load Material Handling System Segment Will Increase at The Fastest Rate From 2021 To 2026

The rise of the AMH equipment market's unit load material handling system segment can be ascribed to its cost-effectiveness and capacity to handle many items concurrently, decreasing the number of trips, loading and unloading time, and handling costs. During the forecast period, the market for unit load material handling systems is projected to be fueled by the growing need for AMH equipment in the e-commerce industry. The AMH equipment market had a setback as a result of the COVID-19 pandemic.

However, it raised awareness of the benefits of unit load material handling systems among manufacturers and warehouse operators in the ecommerce, automotive, semiconductor, and electronics industries. As a result, there is likely to be a rise in the use of such technology in these industries.

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