Automated Material Handling Equipment Market
Report ID: SQMIG25A2390
Automated Material Handling Equipment Market Trends
Skyquest Technology's expert advisors have carried out comprehensive research on the automated material handling equipment market to identify the major global and regional market trends and growth opportunities for leading players and new entrants in this market. The analysis is based on in-depth primary and secondary research to understand the major market drivers and restraints shaping the future development and growth of the industry.
Automated Material Handling Equipment Market Dynamics
Drivers
Rising E-commerce Industry is Favoring Market Growth
- The e-commerce is growing at a rapid pace across the globe resulting in huge demand for process automation. Key vendors such as Amazon, Walmart, and others are increasingly integrating automated solutions to carry out operations in a manner that is efficient, precise, cost-effective, and safe. For instance, in January 2020, Amazon signed up a deal with Baylo, a French robotic software startup. This commercial agreement will add value to design and develop innovative robotic solutions for material handling trucks. This strategic move will enhance Amazon’s warehouse material handling functioning, further easing the e-commerce business.
Increasing E-Commerce and Implementation of AGVs
- During the global COVID lockdown, growth in demand for grocery and food items delivery and distribution has given manufacturers higher hopes. Additionally, the growth across e-commerce sector and promotion of online shopping necessitates huge automation. Thus, e-commerce giants operating in the industry such as Amazon, Walmart, Flipkart, and other operational retailers, are gradually integrating automated guided robots, forklifts, and other automated material handling tools in their operations. This added upgradation is helping e-commerce retailers to make more precise, secure, and cost-effective delivery while minimizing labor resources.
Restraints
High Integration and Switching Costs of Automated Material Handling Equipment
- The challenging factor for the market is the massive investments required at the initial stage. The associated costs are mainly installation, integration of intelligent sensors and software solutions, after sales services and timely maintenance increases the overall ownership costs, making it difficult for companies to invest in AMH equipment. Also, small and medium enterprises find it difficult to switch from conventional material handling to automated products owing to low production output and investment returns, restructuring of existing warehouses, facility designs, and others.
High Initial Investment and Frequent Maintenance are Probable Restraints to the Market Growth
- Automation is the need for the current fast-paced logistics and e-commerce sector, and automated handling equipment fits right into it. Although, the high initial investment in integrating material handling equipment across warehouses for procurement, installation, and packaging that involves complex accessories, programming, and other services is restricting the market growth. This constraints businesses, particularly Small and Medium-sized Enterprises (SMEs). As a result of the low-volume manufacturing & delayed Return on Investments (ROI), many businesses need help to raise huge amounts of cash. High maintenance costs are also a stumbling block to the expansion of the global market.
Automated Material Handling Equipment Market Report Snapshots
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