Automated Material Handling Equipment Market Lifts Growth Projections
The growing presence of start-up companies offering robotic solutions for warehouse automation, the increasing popularity of automated material handling (AMH) equipment among leading industries, significant recovery in global manufacturing, and rising labor cost and safety concerns are among the key factors driving the growth of the AMH market, according to a new study from industry analyst firm Research and Markets.
The AMH equipment market is expected to reach $53.59 billion by 2024 from $33.46 billion by 2018 at a compound annual growth rate (CAGR) of 8.2 percent. However, the high upfront cost of AMH equipment for small and mid-sized enterprises, and high integration and switching costs, are factors restraining market growth.
The market for robots is expected to grow at the highest levels from 2018 to 2024. Implementing robots greatly increases the efficiency and productivity for manufacturing and warehouse operating companies. Moreover, the use of robots can reduce labor costs, protect personnel or employees from injuries, and provide a high return on investment. Such advantages are fueling the demand for robots in manufacturing units and warehousing facilities.
The AMH equipment market for unit load material handling systems will grow at a higher CAGR during 2018—2024, the study estimates. Unit load material handling systems involve appropriately sized items organized into a single unit that can be moved easily. It is a quick and economical method to move a large number of items in a single run.
Unit load material handling systems are widely used in various industries because they are cost effective and capable of handling several items simultaneously, thereby reducing the number of trips and time required for loading and unloading, along with handling costs.