Material Handling Systems Market Report 2025 (Global Edition)

KEY DRIVERS

Surging E-Commerce Industry Driving Growth in Material Handling Equipment Market

As consumers increasingly shift to online shopping due to its convenience, speed, and personalization, businesses are under pressure to optimize their logistics and warehousing operations. Material handling equipment, such as conveyors, automated storage systems, and robotic pickers, plays a crucial role in enhancing operational efficiency, speeding up order fulfillment, and reducing labor dependency. For instance, according to a May 2024 report by the International Trade Administration (ITA), global e-commerce revenue reached USD3.6 trillion in 2023 and is projected to surpass USD5.5 trillion by 2027. (https://www.trade.gov/ecommerce-sales-size-forecast) This exponential growth fuels demand for smart warehousing solutions, directly boosting the material handling equipment market as companies scale up to meet evolving consumer expectations.

Growing Adoption of Automated Solutions Fueling Material Handling Equipment Market

Also, the rising adoption of automated solutions and robotics is further accelerating the expansion of the material handling equipment market. Automation technologies allow for faster, more accurate, and safer handling of goods, making them particularly valuable in high-volume environments like manufacturing and logistics. These systems reduce human error, improve workplace safety, and enable 24/7 operations. For instance, the International Federation of Robotics (IFR) reported in September 2024 that global industrial robot installations grew to 4.28 million units in 2023, a 10% increase from the previous year.( https://ifr.org/ifr-press-releases/news/record-of-4-million-robots-working-in-factories-worldwide#:~:text=Frankfurt%2C%20Sep%2024%2C%202024%20%E2%80%94%20The%20new%20World,a%20million%20units%20for%20the%20third%20consecutive%20year.) This surge in automation reflects a broader industry trend toward digital transformation, solidifying the role of advanced material handling systems as indispensable tools for modern, efficient supply chains.
 
Restraints

A surge in the prices of raw materials and operating costs can limit the global industry expansion  
  
Materials such as steel, aluminum, and electronics components, which are essential in the manufacturing of cranes, conveyors, and other handling equipment, have seen fluctuating prices due to global supply chain disruptions, trade restrictions, and geopolitical tensions. These price hikes directly impact the production costs, making it more expensive for manufacturers to deliver cost-effective solutions. Additionally, elevated operating expenses, including energy costs and labor, further strain profit margins and hinder the scalability of operations. Such financial pressures can delay infrastructure upgrades and slow down the adoption of advanced handling systems, particularly in emerging markets. Consequently, unless stabilized, these cost-related challenges could significantly constrain the market's expansion.

Opportunities

The rise in the need for renovating the infrastructure globally can generate new growth facets for the global market

The growing global demand for infrastructure renovation presents a major opportunity for the expansion of the bulk material handling system market. As countries invest heavily in modernizing outdated infrastructure and supporting new construction and industrial projects, the need for efficient material transport systems becomes increasingly vital. This surge is particularly evident in sectors such as mining, construction, and transportation, where large volumes of materials must be moved safely and efficiently. For instance, India’s National Infrastructure Pipeline (NIP), which aims to invest over USD1.4 trillion by 2025 in infrastructure development, is expected to significantly boost demand for high-capacity bulk handling systems.( https://indiainvestmentgrid.gov.in/national-infrastructure-pipeline) Similarly, the U.S. Infrastructure Investment and Jobs Act, with a USD1.2 trillion budget, is promoting large-scale upgrades to roads, bridges, ports, and rail systems, further fueling the need for advanced material handling solutions. This growth is complemented by rising concerns around waste management, which necessitates high-efficiency handling systems for sustainable operations in recycling and disposal sectors.
Additionally, the Predictive maintenance systems and sensor-based monitoring technologies have drastically improved operational reliability and safety. For instance, a grain handling facility that adopted AI-driven predictive analytics saw a 62% drop in unexpected conveyor failures, translating to a savings of over 120 production hours in just one year.( https://www.feedandgrain.com/grain-handling-processing/grain-elevators/news/15738356/how-to-prepare-for-ai-in-commercial-grain-handling) These smart systems are capable of real-time monitoring, analyzing over 500 data points per second, which has helped facilities cut unplanned downtime by 50% and save millions in potential losses. Furthermore, sustainability initiatives have sparked innovation in eco-friendly handling systems. A mining company’s transition to solar-powered conveyors reduced diesel use by 1.2 million liters and cut CO? emissions by 3,200 tons annually.(https://8msolar.com/how-solar-power-is-changing-the-face-of-mining-operations/) Waste management operations, particularly in Europe, have benefited from modern systems that increased recycling rates by 50% and decreased landfill contributions by 65%. (https://www.eea.europa.eu/en/analysis/indicators/waste-recycling-in-europe) In conclusion, the convergence of infrastructure investment, technological innovation, and environmental responsibility is unlocking significant growth potential in the global material handling equipment market.
 
Technological Developments and Improvements 

With leading companies increasingly focusing on electric and automated solutions to enhance efficiency, reduce emissions, and meet evolving customer demands. A major trend gaining momentum is the shift toward electric material handling equipment, aimed at offering cleaner and more energy-efficient alternatives to traditional machinery. For instance, in May 2022, Linde Material Handling, a Germany-based manufacturer, introduced a new line of electric heavy-duty forklift trucks with load capacities ranging from 10 to 18 tonnes.( https://www.forkliftaction.com/news/linde-launches-new-range-of-counterbalance-trucks.aspx?n=29694) These compact yet powerful machines feature double drives, dual lifting hydraulics, two batteries, and scaled pumps, allowing them to perform at par with diesel-powered equipment while minimizing environmental impact.
In addition to electric solutions, companies are also innovating in automation and advanced order-picking systems to streamline warehouse operations and improve fulfillment accuracy. For instance, in January 2022, Toyota Material Handling launched 22 new electric products, including low-level and furniture order pickers, stand-up rider pallet jacks, and electric pneumatic forklifts. (https://www.toyotaforklift.com/news/toyota-material-handling-introduces-22-new-electric-models) These additions enhance Toyota’s portfolio with versatile, sustainable options that cater to a wide range of warehouse needs. High-level order picking systems, which use advanced automation to fulfill orders efficiently, are becoming increasingly critical in the e-commerce and retail sectors, where speed and accuracy are paramount. Overall, these technological advancements are not only helping manufacturers stay competitive but also shaping the future of material handling toward smarter, greener, and more adaptable operations.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Material Handling Systems Market is witnessing significant growth in the near future.

In 2023, the Robotic Delivery Systems segment accounted for noticeable share of global Material Handling Systems Market and is projected to experience significant growth in the near future.

The Automotive segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Swisslog Holdings AG, Siemens AG and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions