Material Handling Equipment Market Size - By Product, By Application, By Type, Analysis, Share, Growth Forecast, 2025 - 2034

Material Handling Equipment Market Size

The global material handling equipment market was valued at USD 178.2 billion in 2024 and is projected to grow at a CAGR of 6% between 2025 and 2034. The rapid expansion of e-commerce has significantly boosted demand for material handling equipment, as online retailers require efficient solutions to manage inventory, sort products, and fulfill orders quickly. With the rise of same-day and next-day delivery expectations, automated systems such as conveyors, automated guided vehicles (AGVs), and robotic pickers are becoming essential for high-speed, accurate order fulfillment. As e-commerce continues to grow, the need for advanced material handling technologies to streamline warehousing operations, reduce human labor, and improve inventory management efficiency also rises.
 

Increased investments in warehouses and distribution centers are directly driving the demand for advanced material handling equipment. As companies expand their operations to accommodate growing e-commerce and retail demands, they require efficient, scalable solutions for managing large volumes of goods. Modern warehouses are increasingly equipped with automated systems, including conveyors, robotics, and automated guided vehicles (AGVs), to enhance operational efficiency and meet fast-paced delivery expectations.
 

Material Handling Equipment Market Trends

Rising labor costs are prompting businesses to invest in material handling equipment to reduce reliance on manual labor and improve cost-efficiency. As wages increase, especially in labor-intensive industries, companies are seeking automation solutions like conveyors, robotic arms, and automated guided vehicles (AGVs) to perform repetitive tasks more efficiently. These technologies not only reduce labor costs but also minimize human errors, improve productivity, and enable businesses to maintain profitability even in a competitive labor market.
 

The high initial costs of material handling equipment pose a significant barrier to market growth, particularly for small and medium-sized businesses (SMBs) with limited capital. Advanced systems like robotic arms, automated guided vehicles (AGVs), and conveyor belts require substantial upfront investments, which can deter companies from upgrading their operations or adopting automation technologies. These costs can be particularly challenging for companies operating on thin margins, causing them to delay or forgo the adoption of modern material handling solutions despite the long-term efficiency gains. For example, cranes and lifting equipment constitute around 35% of the material handling market in 2023 due to their heavy-duty applications and expenses.
 

Material Handling Equipment Market Analysis

Based on type, the market is segmented into manufacturers and distributors. In 2024, the manufacturer segment generated revenue of USD 126.4 billion. Manufacturers, seeking heightened operational efficiency and automation, boost the demand for advanced handling solutions. Increased production and evolving supply chain dynamics contribute to the expansion of material handling equipment in this segment. As manufacturers embrace innovations for enhanced productivity, the market anticipates substantial growth, reflecting the pivotal role of material handling equipment in modern manufacturing processes.
 

Based on the application, the market is segmented into 3PL, e-commerce, general merchandise, food retail, food & beverage, manufacturing, and pharmaceutical/healthcare. the Third-Party Logistics (3PL) segment accounted for 20% share of the material handling equipment market in 2023, due to the increasing reliance on outsourcing logistics functions. As businesses focus on core competencies, the demand for efficient material handling solutions rises.
 

3PL providers play a pivotal role in optimizing supply chain operations, necessitating advanced equipment for warehousing, transportation, and distribution. This anticipated growth reflects a strategic shift toward outsourcing logistics activities, boosting the demand for material handling equipment in the 3PL segment.
 

In 2024, the China accounted for a revenue share of over 41% in Asia Pacific material handling equipment market attributed to expanding industrialization, rapid infrastructure development, and increasing e-commerce activities. The region's robust manufacturing sector, coupled with the rising demand for efficient logistics and supply chain solutions, propels the need for advanced material handling equipment. For instance, in December 2023, DHL Express revealed its newly expanded hub in Hong Kong. The enhanced facility will strengthen DHL's operational capabilities, improve processing efficiency, and accommodate the growing demand for express logistics services in the dynamic and strategic Asia Pacific region.
 

The U.S. leads the North American material handling equipment market due to the rapid expansion of e-commerce and the increasing demand for warehouse automation. Major industries like retail, automotive, food & beverage are adopting advanced material handling systems to improve operational efficiency. The integration of AI and IoT in material handling equipment is further driving innovation. Government initiatives to modernize and innovate logistics infrastructure and the presence of global players like Honeywell and Daifuku bolster market growth
 

Germany’s market is characterized by strong industrial automation and engineering expertise. Key industries like automotive, pharmaceuticals, and electronics are adopting advanced material handling solutions. The “Industry 4.0” initiative promotes the integration of smart technologies, such as IoT and AI, in equipment. Manufacturers prioritize energy efficiency, safety and precision to reduce operational costs.
 

Material Handling Equipment Market Share

Toyota, KION, Jungheinrich, Hyster-Yale, Daifuku, Crown Equipment, and SSI Schaefer Group collectively held a significant revenue share of 26% in the material handling equipment industry in 2024. Toyota Industries Corporation leads with a comprehensive portfolio of material handling solutions, including forklifts and automated systems. Its strong global presence, extensive dealer network, and emphasis on innovation ensure dominance in diverse industries. The company’s investment in sustainability and cutting-edge technologies, such as IoT-enabled equipment, solidifies its competitive advantage.
 

KION Group AG is renowned for its high-quality forklifts, automated warehouse systems, and innovative solutions for intralogistics. Leveraging its strong European base and expanding global reach, the company focuses on advanced automation and electrification to meet customer demands. Strategic acquisitions and partnerships further enhance its capabilities in warehouse optimization.
 

Material Handling Equipment Market Companies

Major players operating in the material handling equipment industry are:

• Crown Equipment
• Daifuku
• Fives Group
• Hyster-Yale
• JBT
• Jungheinrich 
• KION
• Murata Machinery
• SSI Schaefer Group
• Toyota
   

Material Handling Equipment Industry News

• In August 2024, Kalmar and CES partnered to distribute and service heavy-duty material handling equipment.  By partnering, Kalmar and CES will significantly expand their distribution capabilities, particularly in regions where one or both companies may have had limited penetration.
   
• In February 2024, Toyota Material Handling Europe and Gideon entered strategic cooperation agreement for new automated logistics solutions. With the increasing demand for automated solutions in the logistics sector, this collaboration will likely accelerate the adoption of automation in warehouses, distribution centers, and manufacturing plants.
   

The Material Handling Equipment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, By Product

• Storage and handling equipment
  • Racks
  • Stacking frames
  • Shelves, bins, and drawers
  • Mezzanines 
• Industrial trucks
  • Automated Guided Vehicles (AGVs)
  • Hand, platform & pallet trucks
  • Order pickers
  • Pallet jacks
  • Side-loaders
  • Walkie stackers
• Bulk material handling equipment
  • Conveyor belts
    • Case conveyors
    • Pallet conveyors
  • Stackers
  • Reclaimers
  • Elevators
  • Others
• Robotics
  • Autonomous Mobile Robots
  • Cobots
  • Scara robots
  • Industrial robots
  • Others
  • AS/RS
    • Unit-load AS/RS
    • Mini-load AS/RS

Market, By Application

• 3PL
• E-commerce
• General merchandise
• Food retail
• Food & beverage
• Manufacturing
  • Durable
  • Non-durable
• Pharmaceutical/Healthcare

Market, By Type

• Manufacturers
• Distributors

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa