Global Automated Material Handling Equipment Market Outlook
Revenue, 2024
$68.4B
Forecast, 2034
$258B
CAGR, 2025 - 2034
14.2%
The Automated Material Handling Equipment industry revenue is expected to be around $78.1 billion in 2025 and expected to showcase growth with 14.2% CAGR between 2025 and 2034. The market shows strong potential because automated material handling equipment functions as a vital component in worldwide warehouse automation and manufacturing automation systems which customers want to achieve better production rates and decreased personnel expenses and enhanced workplace protection; Storage and Transport and Tow applications together make up 63.0% of market demand because users want to enhance their smart warehouse and e commerce fulfillment center and production plant intralogistics operations. The Mobile Robots Product Outlook functions as the main growth driver which generated $23.05 billion in sales during 2025 because customers want flexible software controlled mobile robots and automated guided vehicles and autonomous mobile robots which adjust to changing order patterns and provide instant data insights for building a digital supply chain that is more resistant to disruptions.
The automated material handling equipment system includes conveyor systems and automated storage and retrieval systems and sortation systems and mobile robots and robotic palletizers which work together to handle goods through movement and storage and tracking and control operations. The system operates at high speeds continuously while using advanced sensors to maintain warehouse management and execution software connectivity which enables accurate inventory tracking and predictive equipment maintenance and optimized material movement throughout storage and transport and tow and order picking and packing operations. The combination of robotics with advanced analytics and the development of modular solutions and data based control systems drives increasing adoption of automated material handling systems in logistics and automotive and food and beverage and pharmaceutical and other discrete and process industries which need better material flow efficiency.
Market Key Insights
The Automated Material Handling Equipment market is projected to grow from $68.4 billion in 2024 to $258 billion in 2034. This represents a CAGR of 14.2%, reflecting rising demand across Automated Storage, Transport & Tow, and Picking & Placing.
The market competition exists between Daifuku and Dematic and SSI Schaefer which operate as three of its main competitors.
The Automated Material Handling Equipment market has the United States and China as its leading markets which will experience CAGR growth of 12.8% to 17.0% during 2024 to 2030.
The research predicts that India, Mexico and Vietnam will experience the most significant market expansion at rates between 9.9% and 14.9% CAGR.
The market expansion of Automated Material Handling Equipment will receive $22 billion worth of growth from Transition like From Islands To Platforms during the period ending in 2030.
.The Automated Material Handling Equipment market will experience $190 billion growth during 2024-2034 while manufacturers focus on Transport and Tow & Picking and Placing Application to achieve higher market penetration.
With
accelerated e-commerce fulfillment demands and omnichannel retail complexity driving next-generation automated material handling equipment adoption, and
Industry 4.0 driven need for connected, data-centric intralogistics optimizing automated material handling equipment utilization, Automated Material Handling Equipment market to expand 277% between 2024 and 2034.
Opportunities in the Automated Material Handling Equipment
The fast growth of online retail in India has also put excessive pressure on traditional warehouses which now present a significant business opportunity for automated material handling systems to enter e commerce fulfillment centers. Mobile robots together with robotic palletizers enable automated put away and picking and dispatch operations at high volume hubs and new tier 2 and tier 3 city facilities. The worldwide mobile robot market will expand from 23.05 billion dollars to 53.41 billion dollars between 2025 and 2030 which creates opportunities for vendors who develop rugged warehouse automation solutions at affordable prices for the Indian market to achieve significant market penetration.
Growth Opportunities in North America and Asia-Pacific
The North American market for automated material handling equipment leads with advanced Storage applications because warehouse automation and distribution centers need high density racking systems and AS/RS and integrated material handling systems to handle increasing SKU numbers and same day delivery requirements. The market requires three main factors to operate which include persistent employee shortages and strict safety standards and the requirement to update outdated facilities which drives customers to purchase conveyor systems and autonomous mobile solutions and software based intralogistics platforms. The established global OEMs and system integrators face strong market competition while regional players succeed through their ability to provide customized engineering solutions and fast deployment services and complete life cycle maintenance for smart warehouse operations. The company should focus on three main business opportunities which include brownfield logistics site modernization and WMS and ERP platform integration and performance based Storage solution contracts. The company can expand its Transport and Tow fleet operations through electric vehicle adoption and fleet performance tracking systems.
The Asia Pacific region experiences growing demand for automated material handling equipment because of its need for Picking and Placing applications which support the regions large e commerce operations and electronics production and flexible manufacturing systems that need expandable robotic systems and person to goods delivery solutions. The fast growth of industry together with increasing manufacturing costs in major production countries and official support for smart factory development create three main factors which push companies to spend more on modular warehouse automation and data rich intralogistics systems. The market competition exists between international companies and domestic producers who use their affordable product designs and local support systems to serve customers who want affordable prices. The company should use its flexible Picking and Placing platforms to support omnichannel fulfillment and work with automotive and electronics clusters to create customized solutions and enter new Southeast Asian markets through partnerships which will help them adapt their products for local customers.
Market Dynamics and Supply Chain
01
Driver: Accelerated e commerce fulfillment demands and omnichannel retail complexity driving next generation automated material handling equipment adoption
Distribution centers must also create new workflow systems which use advanced automated material handling equipment to handle rising e commerce delivery demands. The implementation of high throughput conveyor systems and shuttle based automated storage and retrieval systems and robotics enabled sortation lines also serves as the solution for distribution centers to handle increased order volumes. Retail businesses now dedicate substantial funds to warehouse automation because they need to achieve fast order selection and person directed product retrieval and operate small fulfillment centers near city centers. The growth of omnichannel retail operations through buy online pickup in store and ship from store models requires businesses to achieve real time inventory tracking and maintain synchronized intralogistics operations. The solution for handling broken order profiles and regular SKU updates includes operators using adaptable AGVs together with robotic palletizing cells and adjustable racking systems which operate through intelligent control software. The specific market trends are also creating demand for smart warehouse systems which need to handle high volumes of products while maintaining precise product placement and optimal storage capacity through advanced automated material handling systems for retail and third party logistics operations to achieve competitive advantage.
The adoption of Industry 4.0 architectures by manufacturers and logistics providers enables them to link automated material handling equipment with industrial IoT platforms and MES and WMS solutions. The sensors embedded in conveyor systems and AGVs and AS/RS systems provide real time data which allows users to track their assets and their energy usage and production rates in real time. The system uses advanced analytics together with ML models to perform predictive maintenance and dynamic routing and automated bottleneck elimination which results in better equipment effectiveness and improved line balancing. Operators can also use digital twins of plants and smart warehouses to integrate material flow data which enables them to test layout modifications and verify automation spending and develop logistics automation plans that optimize operational availability and production capacity and delivery speed.
02
Restraint: Elevated upfront investment and integration costs discourage small facilities from adopting automated material handling equipment
The high costs of robotics and AS/RS systems and conveyor systems and warehouse automation software together with their complicated integration process with current material handling systems and industrial IoT platforms force small and mid sized manufacturers to delay their projects which results in reduced new equipment installations and increased demand for budget friendly system upgrades that eventually reduce market revenue expansion and automated material handling technology adoption rates.
03
Opportunity: Expanding cold chain logistics in Europe accelerating adoption of automated storage and retrieval systems and Automotive smart factories in United States upgrading conveyor and sortation lines with robotics
European operators now need automated temperature controlled material handling systems because their fast growing food and pharmaceutical product flows require both product protection and higher operational capacity. The combination of automated storage and retrieval systems with shuttle based racking technology provides warehouses with dense storage capabilities and complete product traceability and continuous operation throughout the day and night in frozen and chilled storage areas. The global ASRS market will experience revenue growth from 17.99 billion dollars to 35.71 billion dollars during the period from 2025 to 2030. The market shows strong potential for growth because providers can create specialized low energy compact solutions which serve the needs of regional cold chain logistics hubs and mid sized distributors.
The combination of electric vehicle adoption and insufficient workforce numbers has driven U.S. automotive facilities to invest more in automated material handling systems. The production line uses automated conveyor systems and intelligent sortation technology to deliver bodies and batteries and components at the right time while maintaining full integration with plant execution platforms. The global market for conveyors and sortation equipment will expand from 22.10 billion dollars to 35.68 billion dollars during the period from 2023 to 2030 because smart factories want to implement manufacturing automation which allows them to change production models quickly while tracking operations and enhancing processes in new and existing vehicle and battery manufacturing sites.
04
Challenge: Global supply chain disruptions and component shortages constrain production capacity and delay automation project deployments
The unstable market prices together with restricted access to essential electronics and steel and drives and sensors components have prolonged delivery times for automated material handling systems which forces manufacturers to focus on big orders while smaller customers must wait longer for their intralogistics solutions which results in project abandonment or reduced project scope and creates financial instability and unbalanced market demand throughout major automation markets.
Supply Chain Landscape
1
Components & Controls
Toyota Industries CorporationHoneywell International
2
Material Handling Equipment
Daifuku Co. Ltd.SSI Schaefer
3
Automated Systems Integration
DematicDaifuku Co. Ltd
4
End-User Operations
E-commerce fulfillmentAutomotiveFood & beverage
1
Components & Controls
Toyota Industries CorporationHoneywell International
2
Material Handling Equipment
Daifuku Co. Ltd.SSI Schaefer
3
Automated Systems Integration
DematicDaifuku Co. Ltd
4
End-User Operations
E-commerce fulfillmentAutomotiveFood & beverage
Use Cases of Automated Material Handling Equipment in Storage & Picking & Placing
Automated Storage : The automated storage application for automated material handling equipment produced USD 23.53 billion in 2025 and experts predict it will expand at 14.1% CAGR from 2026 to 2030 because of warehouse automation in manufacturing facilities and retail stores and e commerce distribution centers. The system depends on automated storage and retrieval systems and shuttle based storage and high bay warehouses and pallet shuttles which operate under integrated material handling systems and warehouse management software to store and retrieve pallets and totes and cases. The product demand for 2025 will reach 26.3% because automated storage and retrieval systems provide users with high density storage and better space utilization and faster inventory access and improved accuracy than traditional racking systems with manual forklifts. The three companies Daifuku and SSI Schaefer and Dematic maintain their market leadership through their extensive range of AS/RS systems and racks and shuttles and control software which enables them to deliver complete turnkey solutions for smart warehouses serving worldwide automotive and food and beverage and general manufacturing industries. Honeywell International enhances its automated warehouse capabilities through its integrated control systems and sortation technology and software solutions. Toyota Industries Corporation provides automated guided vehicles and mobile robots to Toyota Industries Corporation which enables storage aisle connection with incoming and outgoing material streams for fixed storage installations.
Transport & Tow : The transport and tow application produced USD 19.56 billion in 2025 and experts predict it will expand at 13.7% CAGR until 2030 because manufacturers and logistics providers and distribution centers use automation to support their continuous flow production and logistics operations. The main automated material handling equipment in this setting consists of automated conveyors and towlines and automated guided vehicles and autonomous mobile robots which transport pallets and roll cages and totes between receiving and storage and production and shipping region's with reduced human involvement. The market for mobile robots drives total product sales because they account for 33.7% of the market while automated conveyors make up 19.5% of the market through their popularity for flexible transport systems that adapt to new layouts and permanent conveyor systems. These systems provide better production capacity and they maintain consistent production rates and they reduce workplace accidents and employee injuries and they enable continuous monitoring of cargo movements which essential for busy package sorting facilities and factories that need parts at exact times. The company Toyota Industries Corporation leads this market through its complete product line of tow tractors and forklifts and automated guided vehicles which includes fleet management software. The company Daifuku along with Dematic and SSI Schaefer and Honeywell International provides customers with dependable conveyor and transport systems which include control systems and safety features and maintenance solutions throughout their equipment lifecycle.
Picking & Placing : The automated material handling equipment market for picking and placing operations reached USD 15.32 billion in 2025 and it will experience the highest growth rate of 17.2% CAGR until 2030 because of e commerce fulfillment and omnichannel retail and high mix manufacturing operations. The solutions for this problem include goods to person systems and robotic picking arms with machine vision and collaborative industrial robots and pick to light and pick to voice stations and mobile robots that transport totes and cartons to ergonomic workstations. The product demand segment of sortation systems amounts to 12.8% which operates with mobile robots and automated storage and retrieval systems to perform order sequencing and consolidation for achieving automated order picking and parcel handling. The implementation of automated picking and placing systems enables operators to achieve better order accuracy and faster delivery times while they can utilize their skilled workforce more efficiently to handle increased demand during peak periods. The business case for advanced warehouse automation depends on these key benefits. The market leaders in this segment include Honeywell International and Dematic which offer complete goods to person and sortation and robotic picking systems. SSI Schaefer and Daifuku offer flexible modular warehouse solutions which unite shuttles with AS/RS and robotics systems for smart warehouse operations. Toyota Industries Corporation expands its market reach through its collaborative robots and mobile robots which perfectly integrate with current material handling equipment.
Recent Developments
The current market shows increasing adoption of smart warehousing solutions because e commerce expansion and workforce shortages have driven the need for automated material handling equipment. Manufacturers now use robotics and AGVs and conveyor systems which work together with warehouse management systems to provide real time data access and schedule maintenance operations in advance. The market now focuses on flexible modular automation systems which enable businesses to scale their intralogistics operations and achieve just in time manufacturing capabilities.
June 2024 : Toyota Industries Corporation operates through Toyota Material Handling to introduce an expanded range of autonomous forklifts and AGVs which will enhance warehouse automation in North America while warehouse operators seek automated material handling solutions to replace their traditional lift trucks with connected intralogistics systems.
March 2024 : The North American plant of Daifuku Co. Ltd. will undergo a significant capacity growth to produce automated storage and retrieval systems and conveyor systems which will boost the availability of automated material handling equipment throughout the region for big e commerce and manufacturing distribution operations.
September 2023 : The company Honeywell International enhanced its Honeywell Intelligrated portfolio through new robotics based sortation and palletizing systems which enable warehouse automation to boost its market leadership in automated material handling equipment and drive more organizations to use flexible data driven intralogistics platforms in their worldwide distribution centers.
Impact of Industry Transitions on the Automated Material Handling Equipment Market
As a core segment of the Production Tools & Equipment industry,
the Automated Material Handling Equipment market develops in line with broader industry shifts.
Over recent years, transitions such as From Islands To Platforms and Toward High Mix Flexible Automation have redefined priorities
across the Production Tools & Equipment sector,
influencing how the Automated Material Handling Equipment market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
From Islands To Platforms
The Automated Material Handling Equipment market has shifted toward complete automation platforms because industrial data analytics and remote monitoring systems have advanced. The transformation has created a unified control system which integrates robotic palletizers with AGVs and picking solutions to boost operational performance throughout manufacturing facilities and distribution facilities. The market will experience $21 billion growth until 2030 because this transition enables predictive maintenance and shortens changeover periods and matches production schedules with logistics operations. The implementation of these new technologies at advanced facilities enables them to reduce equipment downtime while enhancing their overall equipment effectiveness and enabling fast responses to changing global supply chain demands which will help them gain market leadership in their industry. This industry transition is expected to add $22 billion in the industry revenue between 2024 and 2030.
02
Toward High Mix Flexible Automation
The growing demand for e commerce fulfillment and lack of available workers has led to a shift in automated material handling equipment from fixed high capacity production lines to adaptable modular systems which support diverse product ranges. Smart warehouses in retail and omnichannel logistics use adaptable sortation systems and shuttle technology and goods to person delivery methods which expand their capacity during high demand periods without needing major system redesigns. Third party logistics providers use mobile robots with their current racking systems to achieve faster order processing times through data based slotting methods which optimize storage capacity and service quality at reduced operating expenses during market demand instability.