Automated Material Handling Business Boosts Forecasts for Growth

The growing presence of start-ups offering robotic solutions for warehouse automation, the growing popularity of automated material handling (AMH) equipment among leading industries, substantial recovery in global manufacturing, and emerging labor costs and safety concerns are key drivers of AMH market growth, according to a new study by Research and Markets, an industry analyst company.

The demand for AMH equipment is expected to reach $53.59 billion by 2024 at a compound annual growth rate (CAGR) of 8.2 per cent from $33.46 billion by 2018. Nevertheless, the high upfront cost of AMH equipment to small and medium-sized businesses, as well as high cost of integration and switching, are factors that hinder market growth.

Between 2018 until 2024, the robots market is expected to expand at the highest levels. Implementing robotics greatly increases efficiency and productivity for companies operating in manufacturing and warehouses. In addition, the use of robots can reduce labor costs, protect staff or employees from injuries and deliver high returns on investment. Such benefits fuel the demand for robots in the production units and warehousing facilities.

The unit load material handling systems market for AMH equipment will expand at a higher CAGR during 2018—2024, the study estimates. Unit load material handling systems involve properly sized items arranged into a single unit which can be easily moved. The movement of a large number of items in a single run is a fast and economical process.

Unit load material handling systems are widely used in different industries because they are cost-effective and able to handle multiple items simultaneously, It reduces the number of journeys and the time required for loading and unloading as well as the handling costs.