A leading market intelligence and consulting firm Future Market Insights (FMI) said in its latest report ‘Material Handling Equipment Market: Global Industry Analysis and Opportunity Assessment 2014-2020’ that current global Material Handling Equipment market is dominated by Asia Pacific region and it is estimated to capture 30-40% of the total global material handling equipment market value. The Asia Pacific is followed by Europe and North America.
As per the study, the Global material handling equipment market is expected to grow at a CAGR of between 3-6% from 2014-2020 and the Asia Pacific will continue its dominance in the global market due to expected growth in end-use industries.
“The global material handling equipment market is segmented on the basis of end use industries such as Aerospace, Agriculture, Air Cargo, Automotive, Building and Construction, Electrical & Electronic Equipment, Industrial Machinery, Shipping Industry, Warehousing, Postal/Express Delivery and others. Currently, these industries are experiencing steady growth in regions like Asia Pacific, Europe and North America,” the report said.
As we have seen in India, the development in various sectors like shipping industry, infrastructure development, development of new airports and rising number of air passengers, rising demand of warehousing due emerging e-commerce companies and postal services, logistics sectors, industrialization, government initiative of ‘Make in India’ to set up manufacturing units in India, will further help material handling equipment market, and other sectors would also require a huge amount of material handling equipment in the country.
A study of ASSOCHAM-PwC said that e-commerce companies are expected to invest nearly USD 6-8 billion in Infrastructure, warehousing, and logistics in next few years in India on the back of growing popularity of online shopping in the country. It said, overall e-commerce industry of the country valued at USD 25 billion and would touch USD 80 billion by 2020 in India. The growth indicates, the demand for material handling equipment in the country.
The government has identified around 50 projects for port modernization & new port development to increase the port capacity from 1400 MMTPA to 2500 MMTPA by 2025, as capacity increases at the ports, it would require the good amount of material handling equipment for the goods movement at ports.
The growth in infrastructure development over the next few years will also help in driving the sales of material handling products. As air passengers are rising continuously in the country, airports would also require these products for handling goods and luggage at airports.
“The global material handling market can be segmented on the basis of product type such as conveying equipment, industrial trucks & lifts, hoist, cranes & monorails and automated material handling equipment. Many industries use material handling equipment to increase their productivity and accuracy,” it said.
The automation and technologically advanced material handling products are being preferred by end users for the faster movement and placement of the goods, which also help in increasing productivity.
Usually, industrializing nations consume a large amount of material handling equipment, China is one of the prime markets for material handling equipment manufacturers. The Indian government has taken various initiatives to increase the share of manufacturing sector to 25% of the Gross Domestic Product (GDP) by the year 2025. The government has launched ‘Make in India’ initiative and invited foreign companies to set up their industrial units in the country, many companies have started setting up their units in the country, as more companies will start setting up their units in the country, it will further revive the material handling markets.
Material handling equipment such as Forklift truck, Conveyors, Stackers, Mobile crane, Straddle carrier, Ship loaders, Container crane, Tug-master, Front/side loader, Bulk material handling, Automated storage and retrieval system and different other machinery would witness the sale in coming years.
Source: Information has been obtained from Future Market Insights, ASSOCHAM-PwC, & GoI