Material Handling Equipment Market Size, Share, and Growth Forecast for 2025 - 2032

Material Handling Equipment Market Size and Share Analysis

The global material handling equipment market is estimated to reach a size of US$ 263.3 Bn in 2025. It is predicted to rise at a CAGR of 6.2% through the assessment period to attain a value of US$ 400.6 Bn by 2032.

The material handling equipment market is estimated to be driven by rapid industrialization, increased automation demand, and improvements in Industry 4.0 technologies. Labor shortages and warehouse interruptions brought on by the epidemic have also boosted investments in robots and IoT-enabled systems, highlighting the need for automated solutions.

• According to studies, global material handling equipment sales reached US$ 198 Bn in 2023, with the U.S. benefiting from strong private investment in industrial equipment, signaling economic resilience.
• In October 2023, Honeywell introduced its next-generation robotic picking system, designed for e-commerce warehouses, offering enhanced efficiency and safety.
• In November 2023, Toyota Material Handling introduced the Autonomous Mobile Robot (AMR) series, aimed at the retail and logistics industries.

The rise of e-commerce, driven by platforms like Amazon and Walmart, has raised the need for sophisticated storage solutions. This has altered the industrial and logistical operations globally for worker productivity and safety.

Key Highlights of the Market

• The global e-commerce industry is boosting demand for advanced material handling equipment.
• Development of warehouse automation and robotics is altering the material handling technology landscape.
• Growth of the manufacturing industry is causing a surging demand for efficient material movement solutions.

• Integration of IoT and smart technologies is revolutionizing logistics and supply chain management.
• In 2025, cranes and lifting equipment are estimated to attain a market share of 37.6% due to their high efficiency in multiple industries.   
• In 2025, e-commerce applications are set to hold a dominant 25.4% market share owing to rising utilization of online platforms.
• North America is projected to generate a market share of 36.5% in 2025 due to the presence of leading industry players. 
• Europe is anticipated to hold a market share of 28.9% in 2025 with ongoing industrialization in warehousing and supply chain operations.  

Market Attributes	Key Insights
Material Handling Equipment Market Size (2025E)	US$ 263.3 Bn
Projected Market Value (2032F)	US$ 400.6 Bn
Global Market Growth Rate (CAGR 2025 to 2032)	6.2%
Historical Market Growth Rate (CAGR 2019 to 2023)	4.1%

Rising E-commerce Operations in North America to Spur Automation

North America is set to maintain its dominance in the global material handling equipment market, holding around 36.5% of the share in 2025. The region is set to record a CAGR of 5.3% from 2025 to 2032, driven by automation needs in retail, manufacturing, and logistics sectors.

The post-pandemic boom in online shopping, automation, e-commerce, and technical improvements have made the U.S. the global leader, driving demand for material handling systems. For example,

• Companies like Amazon.com, which employed approximately 200,000 robots in its U.S. warehouses as of January 2020, have been pioneers in implementing robot-guided warehouse systems.

Market players such as Dematic and Honeywell International are at the forefront, developing robotic systems and automated storage solutions.

Automation in Retail and Logistics Warehousing Operations to Bolster Europe

Europe is poised to be a key market for material handling equipment, with the U.K. and Germany driving much of the growth. The region is set to hold a share of 28.9% of the market in 2025 and is projected to report a CAGR of 6.2% from 2025 to 2032.

The U.K. has seen substantial investments in automation and material handling solutions, especially in the retail and logistics sectors. Growth is driven by companies like Ocado Group, which heavily utilize robotics in their supply chain.

Germany, known for its robust manufacturing and automotive industries, is increasingly adopting automation solutions, with companies such as KUKA and Siemens leading innovations in robotic systems. Legislative reforms in Europe and sustainability standards, as well as capital backing for technology-driven logistics solutions, are projected to boost development. 

Cranes and Lifting Equipment Lead Amid Need for Efficient and Safe Solutions

In 2025, cranes and lifting equipment are predicted to dominate with 37.6% of the global market share due to their use in construction, logistics, and manufacturing industries. In order to provide safe and effective storage, building, and infrastructure projects drove an 8% growth in sales for cranes and industrial pallet trucks worldwide in 2023. For example,

• In October 2023, Liebherr launched its LTM 1100-5.3 mobile crane, featuring advanced telemetry and remote monitoring capabilities for construction and logistics applications.
• In November 2023, Konecranes introduced Smart Features to its overhead cranes, aiming to improve precision and safety.

Adoption of IoT and remote operation technologies ensures the continued dominance of cranes and lifting equipment in material handling.

Booming E-commerce Sector to Augment Material Handling Machinery Demand

The e-commerce sector is projected to account for 25.4% of the material handling equipment market share in 2025. It is driven by the penetration of online shopping platforms, efficient transportation, and demand for fast order fulfillment.

Order picker forklifts and platform trucks are in high demand owing to the expansion of logistics operations by big companies like Amazon, Alibaba, and Walmart. For example,

• According to studies, global e-commerce sales increased by 11% in 2023. Consequently, this encourages investments in cutting-edge warehouse automation systems.

• In October 2023, Honeywell launched its Intelligrated robotics solution, specifically designed for order picking in e-commerce warehouses, improving efficiency by 30%.
• In November 2023, Jungheinrich introduced its EKS 412s order picker, specifically designed for high-density storage facilities.

Rising emphasis on speed, precision, and scalability in e-commerce logistics is driving growth of the material handling equipment market.

Market Introduction and Trend Analysis

The global e-commerce growth is driving a surge in demand for unique material handling equipment. Warehouse automation and robotics are transforming the industry, and the manufacturing sector is developing, leading to increased demand for efficient material movement solutions.

The adoption of IoT and smart technologies in logistics and supply chain management is also driving investment in unique equipment. Expansion of cold chain and pharmaceutical logistics necessitates specialized equipment requirements. For example,

• Amazon's US$ 1.5 Bn investment in advanced robotic material handling systems in January 2024 has led to a 55% increase in automated warehouse equipment deployment.
• Leading manufacturers like Toyota and Hyster have launched next-generation autonomous material handling robots, demonstrating a 60% efficiency improvement in warehouse operations.
• The manufacturing sector is undergoing digital transformation, with a 35% increase in smart material handling equipment investments.

Key technologies include autonomous mobile robots, IoT-enabled tracking systems, predictive maintenance technologies, and energy-efficient equipment designs. These are estimated to boost the supply chain operations of the logistics industry.

Historical Growth and Course Ahead

The global material handling machinery market recorded a CAGR of 4.1% in the historical period from 2019 to 2023. Demand for material handling equipment in end-use industries increased, but COVID-19 restrictions led to a decline in sales. Factory automation is replacing human labor, increasing demand and optimizing production processes, with autonomous robots and the IoT playing crucial roles. For instance,

• In April 2022, KION Battery Systems GmbH added a second production line for 24-volt batteries used in mobile warehouse handling equipment at its Karlstein production facility.
• In March 2021, Liebherr Group sold an industrial vehicle to Aarekies Brienz AG. These changes demonstrate how automation is becoming more and more significant in the market for material handling equipment.
• In September 2022, Toyota Material Handling Japan (TMHJ) developed an AI-powered autonomous lift truck that enables loading operations to follow automated travel routes.

Demand for material handling tools is estimated to record a considerable CAGR of 6.2% during the forecast period between 2025 and 2032.

Market Growth Drivers

Rising E-commerce Operations to Drive Demand

Sales of sophisticated material handling equipment are estimated to reach US$ 6.3 Tn in 2024 due to the rise of global e-commerce operations, which is driving automation in warehouses and distribution hubs. Amazon employs over 500,000 robots in its global fulfillment centers as of 2023, demonstrating the popularity of technologies like automated guided vehicles and robotic picking systems.

• In September 2019, Shopify invested US$ 2.1 Bn in robotics company 6 River Systems to streamline warehouse operations.

Demand for material handling solutions is pronounced in high-demand markets like the U.S., China, and India, where e-commerce growth rates exceed 20% annually. Real-time inventory tracking, predictive maintenance, and scalability requirements are just a few of the ways that AI and IoT technologies are transforming inventory management for the e-commerce industry.

Automation and Robotics in Warehouse Management

Warehouse automation and robotics are transforming material handling technology, with key players like Daifuku, Dematic, and Honeywell delivering advanced solutions. For example,

• In June 2023, Honeywell launched its Smart Flexible Depalletizer, leveraging AI and ML to streamline warehouse operations.
• Amazon, a pioneer in warehouse robotics, expanded its robotic fleet to over 750,000 units globally by mid-2023, boosting efficiency in order fulfillment.

Growing reliance on automation in supply chain management is evident through Walmart's implementation of automation technologies, such as collaborative robots (cobots) and AI-driven predictive analytics. These innovations aim to enhance e-commerce throughput, reduce labor costs, and minimize errors.

Market Restraining Factors

High Initial Cost Impedes Adoption among SMEs

The progress of the market is being hindered by the high initial cost of purchasing and maintaining material handling equipment. It keeps small and medium-sized businesses from competing with multinational behemoths.

Adoption by small and medium-sized businesses is restricted by implementation obstacles for sophisticated automated systems, which vary from US$ 500 Th to US$2 Mn. Further impeding market growth is the fact that 30% of businesses have difficulties integrating new material handling systems with their current infrastructure. Technological intricacy of the sector and these variables make it extremely difficult for small and medium-sized enterprises to expand their market share.

Key Market Opportunities

Integration of IoT and Smart Technologies

IoT and smart technologies are altering logistics and supply chain management, enhancing efficiency, transparency, and decision-making, with DHL and FedEx leading the way.

• DHL's Resilience360 platform uses IoT-enabled sensors to provide real-time shipment tracking and risk management, ensuring better supply chain visibility. FedEx's SenseAware ID leverages IoT to monitor package location, temperature, and humidity.
• In February 2023, Amazon expanded its smart warehouse initiative, incorporating IoT-enabled devices and robotics to enhance operational efficiency.

Smart technologies such as predictive analytics and AI are streamlining logistics, helping companies optimize routes and reduce fuel consumption. As e-commerce continues to expand, IoT adoption in logistics is set to play a pivotal role in meeting growing consumer demands.

Boom of Cold Chain and Pharma Logistics

In recent years, the need for specialist temperature-controlled material handling equipment has grown to about 70% due to the expansion of cold chain and pharmaceutical logistics. Companies are investing heavily in unique solutions to maintain product integrity during transit. Pharmaceutical giants like Pfizer and Moderna rely on ultra-cold storage and precise material handling for vaccine distribution, especially post-pandemic.

• In January 2023, Lineage Logistics expanded its temperature-controlled warehouse network in the U.S., showcasing rising investments in this space.

In the food logistics sector, companies like Americold are enhancing their temperature-controlled operations to cater to the demand for fresh and frozen food. IoT-enabled devices and real-time monitoring systems are being integrated to ensure compliance with stringent regulations, such as the FDA’s Food Safety Modernization Act (FSMA), driving innovation in cold chain material handling.

Competitive Landscape for the Material Handling Equipment Market

Key participants in the global material handling equipment market are enhancing their capabilities and resources to address the surging demand in the industry. They are strategically developing new manufacturing facilities and exploring partnership and joint venture opportunities to bolster their operational strengths. These innovative tools are designed to assist organizations in managing routine shipments and handling large commodities with greater efficiency and effectiveness.

In order to stay ahead of the competition and stay relevant in a market that is always changing, businesses in competitive markets are using both inorganic growth strategies. This mainly includes mergers and acquisitions as well as organic development methods, such as product expansion and operational improvements.

Recent Industry Developments

• In December 2024, Hapman introduced the CablePro Tubular Drag Conveyor, an FDA-approved, self-lubricating conveyor designed for efficient food and delicate item conveyance.
• In September 2024, Crown Equipment introduced Crown C-B Series 80V electric, pneumatic tire counterbalance forklifts, offering robust, efficient performance, ergonomic design, and clean power for operators.
• In August 2024, Godrej & Boyce introduced India's first lithium-ion battery-operated forklift, offering 15% more run time and scalability, and plans to extend the technology to other material handling equipment.
•  In August 2024, JCB India introduced its T 65D diesel-powered Telescopic Boom Platform, capable of carrying 450 kg, ideal for construction, cement, oil, and gas industries, with advanced safety features.
• In May 2024, KION North America and Fox Robotics partnered to manufacture and assemble FoxBot autonomous trailer loaders/unloaders, aiming to expand supply chain capabilities and improve workplace safety.
• In March 2024, Konecranes introduced its X-series industrial crane, offering a compact design, wireless upgrade capabilities, ergonomic CANMAN radio, and an S-series low headroom hoist for safety, efficiency, and sustainability.
• In February 2024, Yale Lift Truck Technologies launched new integrated lithium-ion counterbalanced lift trucks, ERP32-40UXTL and ERP30-70UXL, suitable for retail stores, warehouses, and home centers, offering reliable performance and lithium-ion power.
• In February 2024, Big Lift acquired ePicker to enhance lithium-powered forklift offerings, strengthen aftermarket support, and launch innovative products under Big Joe and EP brands.

Material Handling Equipment Market Report Scope

Attributes	Details
Forecast Period	2025 to 2032
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Key Market Segments Covered	Product Type Application Region
Key Companies Profiled in the Report	BEUMER Group Daifuku Co., Ltd. Honeywell International, Inc. KION Group AG Mecalux, S.A. Murata Manufacturing Co., Ltd. SSI SCHAEFER Swisslog Holding AG TOYOTA Industries Corporation Vanderlande Industries B.V.
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Material Handling Equipment Market Segmentation

By Product Type     

• Cranes and Lifting Equipment
• Racking & Storage Equipment
• Industrial Trucks
• Continuous Handling Equipment

By Application  

• E-commerce
• Automotive
• Food and Beverages
• Chemical
• Semiconductor & Electronics
• Aviation
• Pharmaceutical
• Others

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• Middle East and Africa

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