A new market study report has predicted that the compound annual growth rate (CAGR) of the material handling market will be 5.5% for the period 2018 to 2024. In the USA, by 2024, the material handling equipment market is expected to be worth $190bn (£147bn).
The report defines material handling equipment as mechanical equipment to move, store, control and protect goods through the whole cycle of manufacturing, distribution, consumption and disposal. This includes motorised equipment such as forklift trucks and manual handling equipment including box trolleys and pick and pack trolleys.
One sector that is driving growth is online shopping, which has increased the demand for warehouses and distribution centres that require material handling equipment. Digital technologies are increasingly being used in warehouses to enhance picking, packing, and transportation of goods. The report notes that a lack of skilled technicians to operate advanced systems could hinder growth, and there are also cybersecurity issues in using automated networks of equipment.
The cost of installing automated systems and maintaining them is high, and many small businesses do not have the budget for them. Businesses that cannot afford robots rely on human workers to move goods from warehouse shelves to packing stations with manual handling equipment.
The report says that Europe will see a growth in demand for material handling equipment because of stricter safety regulations that require the use of advanced handling equipment to protects workers’ safety. Energy efficiency regulations will increase the use of electric vehicles.Get a free quote