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The material handling equipment market size is estimated to increase by USD 13.19 billion at a CAGR of 5.86% between 2023 and 2028. Market expansion hinges on various factors, including heightened construction activities globally, stricter government regulations concerning safety and security, and the rising demand for enhanced operational efficiency. However, challenges persist, such as concerns regarding data security, escalating initial setup costs, and a shortage of skilled labor. Addressing these challenges necessitates strategic approaches, including implementing data security measures to safeguard sensitive information, exploring cost-effective solutions to mitigate initial setup expenses, and investing in training programs to address the shortage of skilled workers. Proactive measures are essential to navigate the complexities of the market landscape effectively. By prioritizing innovation and adopting efficient strategies, businesses can overcome challenges and capitalize on the opportunities presented by increased construction activities and evolving regulatory frameworks, ultimately driving growth and success in the market.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator's stage and the laggard's stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2023 to 2028.
Global Market Customer Landscape
The cranes and lifting equipment segment will account for a major share of the market's growth during the forecast period. The growth of the construction and heavy equipment manufacturing industries is increasing the demand for cranes and other lifting equipment for material handling applications. Bridge, port, truck-mounted, and jib cranes are widely used for lifting and lowering materials.
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The cranes and lifting equipment segment was valued at USD 13.52 billion in 2018. Cranes are designed to perform horizontal movement using a gantry or trolley system. Cranes such as gantry cranes and jib cranes are also equipped with lifting systems for vertical cargo handling. A truck crane is a dynamic loading and unloading machine that is attached to the body of a truck along with a workstation. Truck cranes are used to load and unload heavy loads on construction and manufacturing sites. Improved site accessibility, easier material handling, reduced operating costs, minimized footprint, and reduced make-ready time before loading and unloading are the key factors driving the demand for truck-mounted cranes in various industries. is. Harbor cranes are primarily designed to handle cargo and containers. Harbor cranes are equipped with different tools depending on how they handle different types of cargo. Increased lifting capacity and the use of electrical energy to remove exhaust gases from diesel engines have increased the acceptance of harbor cranes in various industries.
Based on application, the market has been segmented into construction, e-commerce, foods and beverages, automotive, and others. The construction segment will account for the largest share of this segment. The construction industry relies heavily on material handling equipment to move heavy materials such as construction blocks and heavy prestressed beams around construction sites. Moreover, the construction industry is growing rapidly, with more construction projects being undertaken than ever before. This has led to an increased need for equipment to move and transport heavy materials on construction sites. Material handling equipment is necessary and essentially used in construction sites, which in turn increases the demand in the construction industry will grow during the forecast period.
APAC is estimated to contribute 40% to the growth by 2028. Technavio's analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Another region offering significant growth opportunities to companies is Europe. Increasing urbanization is fueling the demand for residential properties in European countries, another key factor augmenting the demand in Europe. According to the data published by the European Commission, the population in urban areas is estimated to increase to 80% by 2050 in Europe. This is expected to encourage the construction of residential and commercial buildings, which will subsequently support the growth of the material-handling equipment market in Europe during the forecast period.
The material handling industry is undergoing a transformative shift, driven by the increasing demand for non-essential items and the integration of innovative technologies like the Internet of Things (IoT) and automation. These advancements aim to reduce downtime and improve supply chain efficiency in downstream markets, particularly within the manufacturing and warehousing sectors. With the rise of automation, labor shortages are being addressed through private investment in robotics and smart systems, ensuring worker safety awareness remains a top priority. The handling of bulk materials is streamlined through the implementation of conveyors and cranes, while selective pallet racks optimize storage space for consumer goods in the food and beverages and semiconductor industries. In the food and beverages industry and the semiconductors industry, reducing downtime is crucial for operational efficiency, and e commerce platforms are increasingly incorporating advanced dock leveler to streamline the handling of both essential and non-essential items. Electric forklifts are revolutionizing logistics operations, enhancing efficiency in the transportation of goods within the logistics sector. This convergence of technology and industrialization underscores the pivotal role of innovative material handling solutions in shaping the future of manufacturing and logistics industries.
The global market is witnessing growth driven by the escalating demand for enhanced operational efficiency across industries. Material handling plays a pivotal role in sectors like manufacturing and construction, where the need for efficient and cost-effective solutions is paramount. The proliferation of online shopping and globalization has further accentuated this demand, necessitating more efficient material handling equipment to navigate complex supply chains and ensure timely delivery of goods.
Furthermore, organizations leverage a spectrum of manual, semi-automated, and automated solutions to optimize workflow efficiency, enhance customer service, reduce production costs, improve product quality, minimize material damage, and expedite delivery times. This growing emphasis on operational excellence underscores the importance of innovative technologies and automation in driving market growth, facilitating seamless material handling operations and supporting the evolving needs of diverse industries.
Increased digitization is the primary trend in the global market. Digitization is bringing about major changes in various industries, such as streamlining workflows and improving productivity. The rapid growth of the e-commerce industry, increased adoption of omnichannel distribution systems, and changing consumer expectations are driving an increase in online orders daily. The industry works in multiple shifts to meet customer needs. This has increased the need to digitize operations, enabling companies to obtain information about the operations of individual processes and stay connected within their facilities.
Further, digitizing processes and operations help companies improve reliability and productivity. The use of sensor technology and radio-frequency identification (RFID) is expected to drive product innovations in the global market. RFID is a solution designed for user authentication and access control, which can help companies manage the risks and liabilities associated with different types, such as trucks, cranes, and forklifts. Increasing digitization using RFID and wireless technologies and technological advances are expected to support the growth of the global market during the forecast period.
Shortage of skilled workforce is a major challenge to the growth of the global market. The shortage of skilled workers to operate advanced material handling equipment is a growing challenge for various end-use industries. The problem of an aging workforce reaching retirement age is affecting various industries such as manufacturing and construction. According to the Bureau of Labor Statistics, about 32% of U.S. construction workers were between the ages of 45 and 65. This has resulted in a shortage of experienced workers in the industry.
Furthermore, every industry has been compelled to adopt advanced technologies to improve its workflow, efficiency, and productivity to garner high revenues. The increasing adoption of automation in industrial applications has fueled the demand for skilled and trained professionals for diversified operations in the material handling process. Poor compensation, work-life balance issues, inefficient policies and procedures, and displeasure with the management are some major factors contributing to the shortage of trained professionals in organizations. Thus, the lack of a skilled and trained workforce in industries is expected to hinder the growth of the global market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Beumer Group GmbH and Co. KG: The company offers material handling equipment such as pipe conveyor, blending bed, and coal pile.
Columbus McKinnon Corp.: The company offers strategic material handling solutions such as automation, crane kits, crane solutions, and energy savings.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing growth, driven by industrialization and the expansion of the warehousing industry worldwide. With the increasing demand for non-essential items and the proliferation of e-commerce platforms, the need for efficient logistics infrastructure and advanced handling equipment like conveyors and dock levelers has intensified. Labor shortages and worker safety awareness are pressing concerns, prompting investments in technology breakthroughs and automation integration to enhance supply chain efficiency and reduce downtime. Legislative reforms and safety standards drive the adoption of innovative technologies such as robotics and smart systems in industrial facilities.
Moreover, IoT connectivity enables real-time monitoring and predictive maintenance of equipment, ensuring seamless operations in downstream markets across various industries, including pharmaceuticals, food and beverage, and semiconductors. The market is experiencing significant growth, influenced by various factors such as the increasing demand for non-essential items and the increase in private investment in logistics infrastructure. Wholesaling of bulk materials is driving the need for advanced equipment like selective pallet racks and motor vehicle lifts to optimize storage capacity and streamline operations. With the advent of e-commerce and online shopping platforms, there's a pressing need for efficient handling solutions to meet modern consumer demands. The integration of IoT technology enables real-time monitoring and reduces downtime, particularly in developed countries where modernization efforts are underway to enhance production capacity. Furthermore, industries like pharmaceuticals, food retail, and semiconductors prioritize safety, quality, and market consolidation amidst intense competition, driving the adoption of automated technologies such as electric forklifts and advanced baggage handling systems. These developments cater to the evolving needs of SMEs and logistics sectors, ensuring seamless operations and driving growth in the material handling equipment market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.86% |
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Market growth 2024-2028 |
USD 13.19 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.25 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, China, Germany, France, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Beumer Group GmbH and Co. KG, Columbus McKinnon Corp., Crown Equipment Corp., Daifuku Co. Ltd., FlexLink Holding AB, SSI Schafer IT Solutions GmbH, Godrej and Boyce Manufacturing Co. Ltd., Honeywell International Inc., Hytrol Conveyor Co., Interroll Holding AG, Jungheinrich AG, KION GROUP AG, KUKA AG, Liebherr International AG, Mecalux SA, Mitsubishi Chemical Group Corp., Murata Manufacturing Co. Ltd., NACCO Industries Inc., Toyota Industries Corp., and viastore SYSTEMS GmbH |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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