Material handling equipment market forecast to grow by 2034

The global material handling equipment market was estimated to be worth US$261.71 billion in 2025.

According to a report by Fortune Business Insights, it is expected to grow to US$492.46 billion by 2034, representing a compound annual growth rate of 7.4%.

The UK market is worth around US$20.75 billion, accounting for about 5.5% of the global market.

Material handling equipment is defined as equipment used to store and move goods safely, mainly in manufacturing facilities and warehouses.

The Fortune Business Insights report notes a shift towards AI-powered warehouse systems that help improve route planning and space utilisation. Even in warehouses that rely mainly on manually operated equipment, AI is being used to simulate operations so that new layouts, picking routes and workflows can be tested. These new AI innovations are cited as a reason for the projected growth for the market as a whole.

Growth in demand for warehouse equipment is driven mainly by the rise of e-commerce and large fulfilment centres. Warehouse operators are under pressure to manage high order volumes, shorten delivery times and handle a wider variety of inventory. Warehouse equipment manufacturers are striving to develop more durable and reliable equipment that is also safe to operate in very busy working environments.

Although large warehouses are increasingly adopting automated systems, the report acknowledges that fully automated warehouses are too expensive to install and impractical for many smaller operators with limited budgets. For these warehouse owners, retaining manual handling equipment is the only viable option.

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