Automated Material Handling Systems Market by Type (ASRS, AGV, Robotic Systems), Component, Function (Assembly, Picking, Sorting), End-use Industry (Automotive, Healthcare, Semiconductor, Manufacturing, Retail, Aviation, Postal) - Global Forecast to 2030

The Automated Material Handling Systems Market is projected to reach $70.1 billion by 2030, at a CAGR of 8.3% during the forecast period 2023–2030. The growth of the automated material handling systems market is mainly attributed to the growing importance of AMHS across the industry, enterprises’ increasing focus on improving floor space utilization and order processing capabilities, and rising demand for warehouse automation. Although the high initial cost involved in deploying AMHS may hinder the growth of this market, the growing significance of online retail platforms and associated ted supply chains, increasing utilization of RFID and barcode technologies, integration of cloud and IoT technologies in AMHS, and the advent of industry 4.0 are expected to propel the growth of the automated material handling systems market in the coming years. In addition, expansion and automation of warehouses without hampering operations and cybersecurity risks are major challenges for the players operating in this market.

Growing Importance of AMHS Across Industry is Expected to Drive Market Growth

The importance of automated material handling systems (AMHS) across multiple industries stems from the increasing need for improved operational efficiency, cost reduction, enhanced safety, increased accuracy, and scalability. AMHS enables organizations to streamline material handling processes, reduce manual labor, minimize errors, and optimize workflows. The systems offer increased productivity, reduced labor costs, improved product quality, enhanced workplace safety, and better space utilization. The adoption of AMHS allows businesses to streamline operations, save on costs, improve customer satisfaction, and gain a competitive edge in the market.

Several companies are implementing AMHS to reduce operational costs by minimizing labor requirements, improving resource utilization, and optimizing material flow. Also, enable better inventory management, minimizing stockouts, preventing overstocking, and improving supply chain visibility.

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Some of the recent developments are as follows:

• In May 2023, Kulicke and Soffa Industries, Inc. (Singapore), a manufacturer of semiconductor and electronics assembly solutions, collaborated with AUO Digitech Taiwan Inc. (Taiwan) to accelerate packaging and assembly markets’ transition to smart manufacturing by integrating ADT autonomous mobile robot (AMR) systems with the global installed base of K&S assembly systems.
• In April 2023, OTTO Motors (Canada) collaborated with Kollmorgen Corporation (U.S.) to deliver autonomous material handling self-driving vehicles to their original equipment manufacturers and systems integrators globally.
• In August 2022, BALYO SA (France) partnered with Linde Material Handling GmbH (Germany) to install four of the world's tallest autonomous VNAs at Singapore Storage and Warehouse (SSW).
• In May 2023, Kulicke and Soffa Industries, Inc. (Singapore), a manufacturer of semiconductor and electronics assembly solutions, collaborated with AUO Digitech Taiwan Inc. (Taiwan) to accelerate packaging and assembly markets' transition to smart manufacturing by integrating ADT autonomous mobile robot (AMR) systems with the global installed base of K&S assembly systems.
• In August 2022, BALYO SA (France) partnered with Linde Material Handling GmbH (Germany) to install four of the world's tallest autonomous VNAs at Singapore Storage and Warehouse (SSW).
• In February 2022, Wise Robotics (U.K.) Ltd. (U.K.) launched VisionNav’s vision-guided, counterbalanced VNP15 automated forklift to automate material handling, storage, and retrieval operations in autonomous warehouses.
• In January 2022, Wise Robotics (U.K.) Ltd. (U.K.) partnered with VisionNav Robotics USA INC (U.S.) to design vision-guided autonomous robotic forklift to meet warehouse operation requirements.

Such developments, along with the increasing importance of AMHS across multiple industries, including automotive, electronics & semiconductor, general manufacturing, and retail, are expected to drive the growth of the overall market during the forecast period.

Key Findings in the Automated Material Handling Systems Market Study:

In 2023, the Robotic Systems Segment is Expected to Dominate the Automated Material Handling Systems Market

Based on type, the automated material handling systems market is segmented into automated storage & retrieval systems, vehicle systems, conveyor & sortation systems, palletizing & depalletizing systems, and robotic systems. In 2023, the robotic systems segment accounted for the largest share of the global automated material handling systems market. The large share of this segment is mainly attributed to the growing adoption of automation in manufacturing, increasing use of robotic systems to handle hazardous or dangerous tasks, improved overall equipment effectiveness (OEE) and increased production output, and advancements in robotics technology.

However, the vehicle systems segment is projected to register the highest CAGR over the forecast period. Factors such as the increasing adoption of AGVs in various industries, including automotive and manufacturing, the growing need to enhance production output, faster cycle times, and reduced labor costs, increasing industrial growth in emerging economies, and the growing need for advancing automated material movement are supporting the segment growth.

In 2023, the Hardware Segment is Expected to Dominate the Automated Material Handling Systems Market

Based on component, the automated material handling systems market is segmented into hardware, software, and services. In 2023, the hardware segment is expected to account for the largest share of the global automated material handling systems market. The large share of this segment is mainly attributed to the rising demand for sensors and reliable performance controllers, rapidly increasing industrialization, and the growing need for industrial hardware components, such as programmable logic controllers (PLCs), robotics, sensors, and industrial networking equipment for smart manufacturing, and increasing need for robust hardware to support data storage, processing, and networking.

However, the software segment is projected to register the highest CAGR over the forecast period due to the increasing need for remote monitoring and control, seamless integration and connectivity between different components of the automated material handling system, growing need for real-time visibility into inventory levels, automated workflows, and efficient utilization of resources. Also, the increasing need to manage and schedules tasks, including picking, sorting, packing, storage, retrieval, and transportation, the growing need to ensure consistent and efficient execution of operation, lower manual errors, and high compliance with operational guidelines is supporting the segment growth.

In 2023, the Picking Segment is Expected to Dominate the Automated Material Handling Systems Market

Based on function, the automated material handling systems market is segmented into assembling, picking, sorting, packaging, shipping, receiving, and storing. In 2023, the picking segment is expected to account for the largest share of the global automated material handling systems market. This segment is projected to record the highest CAGR during the forecast period. The segment's large share is attributed to the growing need to ensure accurate inventory tracking, efficient replenishment, and timely reordering to avoid stockouts and backorders, reduce the time taken to pick and pack items, enable faster order processing and shipping, increase need to optimize the picking process and maximize overall throughput in warehouse and distribution center.

In 2023, the Automotive Segment is Expected to Dominate the Automated Material Handling Systems Market

Based on end-use industry, the automated material handling systems market is segmented into automotive, electronics & semiconductor, general manufacturing, retail & warehousing/logistics, aviation, chemicals, rubber and plastics, healthcare & pharma, food & beverage, postal & parcel, and other end-use industries. In 2023, the automotive segment is expected to account for the largest share of the global automated material handling systems market. The large share of this segment is mainly attributed to the increasing need to optimize material flow, reduce manual labor, and improve production efficiency, inventory management, and overall supply chain efficiency, a growing need to automate material handling tasks such as conveying, sorting, palletizing, depalletizing, and storage/retrieval processes for smooth production flow and minimal inventory buildup.

However, the healthcare & pharma segment is projected to grow at the highest CAGR over the forecast period. Factors such as the growing need for accurate tracking, tracing, and handling of pharmaceuticals and medical supplies and the increasing need to improve efficiency and safety in processes, including manufacturing, distribution, and hospital operations, support the segment growth.

Asia Pacific to be the Fastest Growing Regional Market

Based on geography, the global Automated Material Handling Systems market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific is projected to register the highest CAGR and growth during the forecast period. Factors such as the rapidly transforming manufacturing and warehousing infrastructure, increasing investments in several innovative technologies, consistent technological advancements, growing need to enhance manufacturing competitiveness and productivity, increasing emphasis on robotics and automation, and growth in the e-commerce sector are driving the growth of this market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the automated material handling systems market in the last three to four years. The key players profiled in the automated material handling systems market report are Daifuku Co., Ltd. (Japan), SSI SCHÄFER AG (Germany), Dematic Corp. (U.S.) (a part of KION GROUP AG), Honeywell International Inc. (U.S.), Toyota Industries Corporation (Japan), Murata Machinery, Ltd. (Japan), KNAPP AG (Austria), BEUMER Group GmbH & Co. KG (Germany), Swisslog Holding AG (Switzerland) (a part of KUKA AG), TGW Logistics Group GmbH (Austria), WITRON Service GmbH & Co. KG (Germany), Kardex Holding AG (Switzerland), E80 GROUP S.P.A. (Italy), System Logistics S.p.A. (Italy) (a part of Krones AG), DMW&H (U.S.), viastore SYSTEMS GmbH (Germany), Lödige Industries GmbH (Germany), Stöcklin Logistik AG (Switzerland), Jungheinrich AG (Germany), and Mobile Industrial Robots A/S (Denmark).

Scope of the report:

Automated Material Handling Systems Market Assessment, by Type

• Automated Storage & Retrieval Systems
  • Unit Load AS/RS
    • Fixed-Aisle ASRS
    • Movable-Aisle ASRS
  • Mini-load ASRS
  • Multi-shuttle Load
  • Vertical Lift Modules (VLM)
  • Carousels
    • Horizontal Carousels
    • Vertical Carousels
  • Micro-load ASRS
• Vehicle Systems
  • Automated Guided Vehicles (AGV)
    • Laser-guided Vehicles
    • Magnet-guided Vehicles
    • Vision-guided Vehicles
    • Inductive-guided Vehicles
    • Other Guided Vehicles
  • Rail-guided Vehicles (RGV)
• Conveyor & Sortation Systems
  • Conveyor Systems
    • Belt Systems
    • Roller Systems
    • Pallet Systems
    • Overhead Systems
    • Other Conveyor Systems
  • Sortation Systems
• Palletizing & Depalletizing Systems
• Robotic Systems

Automated Material Handling Systems Market Assessment, by Component

• Hardware
• Software
• Services

Automated Material Handling Systems Market Assessment, by Function

• Assembly
• Picking
• Sorting
• Packaging
• Shipping
• Receiving
• Storing

Automated Material Handling Systems Market Assessment, by End-use Industry

• Automotive
• Electronics & Semiconductors
• Retail & Warehousing/Logistics
• General Manufacturing
• Aviation
• Chemical, Rubber, and Plastic
• Healthcare & Pharma
• Food & Beverage
• Postal & Parcel
• Other End-use Industries

Automated Material Handling Systems Market Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Poland
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Indonesia
  • South Korea
  • Malaysia
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Israel
  • Rest of Middle East & Africa

Key questions answered in the report: