The Asia Pacific material handling market is expected to grow at a CAGR of 7.17%, reaching a market size of US$130.879 billion in 2029 from US$92.570 billion in 2024.
Material Handling talks about the movement, protection, storage and control of materials of distinct kinds and sizes. The process includes storage, shipment, packaging, assembly, handling, and distribution of products. Most of the stuff we use in one way or the other every day without consciously taking note of how it came into existence has once passed through this industrial process.
The industrialization and increase in infrastructural development in the Asia Pacific region are anticipated to boost the market of material handling in the coming years. The expansion of the manufacturing sector in emerging economies such as India and China involves high adoption of market handling solutions which can propel its market in years to come. For instance, technological development in these economies is one of the key factors responsible for the growth of the market and the impact of artificial intelligence on the material handling industry. Rampant use of the internet and smartphones is also likely to fuel demand for these solutions in the coming years.
Rapid Industrialization to provide a boost to Asia Pacific Material Handling Market:
The growth of the material handling market in the Asia Pacific is largely attributed to rapid industrialization and infrastructural development. Given this, industries have been compelled to come up with means of handling huge amounts of production; hence there is an urgent need for machines that handle them. On an IMF scale, Asian has the world’s fastest developing area with an average GDP growth rate of 5.3% in Asia which is projected to rise up to 5.4% by 2024 (IMF). The upcoming projects in the sector besides infrastructure such as Lloyd’s Asia renewable energy consortium, and the Mumbai-Ahmedabad bullet train among others are highly dependent on infrastructural expansion whose impact similarly affects the material handling sector.
The growing e-commerce industry in the Region provides a boost to Material Handling Market
As a result of the requirement to deal with storage and distribution, the increasing Asia-Pacific electronic trade sector is likely to contribute significantly in future towards rising material handling industry. The high-flying web activity in the locality and this populace’s extensive embracing of advanced technologies and cell phones are key components of e-commerce expansion across the Asia Pacific. As per World Bank’s statistics, it appears that, in the region of East Asia Pacific, there is a wide-scale internet connection as 70% of their populace can access web facilities.
High Initial Investment can restrict the market growth in APAC:
Because of the expensive initial investment in material managing machines, it is projected that there will be obstacles faced by market growth. Not all equipment used in material handling is easy to procure, install, monitor, and manage. This makes it difficult to be adopted by every industry and sector.
China is expected to grow rapidly during the forecast period.
The Asia Pacific area's AMH market has grown significantly thanks in large part to China. The market is expanding favorably as a result of the rising demand for AMH products in various industries, including manufacturing, automotive, and e-commerce.
China follows an industrial policy and has a large population. Regarding purchasing power parity, the nation emerged as the global leader in exports, imports, and trade during the past ten years. The nation is currently transitioning from an economy driven by manufacturing and construction to one driven by consumers. The government's attempt to move the industries up to the medium-high end of the global value chain and support multiple clusters of advanced manufacturing is reflected in the ten-year plan, unveiled in May 2015. China is predicted to reduce manufacturing costs by 30% by 2025 due to the country's adoption of automation. The one-child policy and an aging workforce compound the shortage of skilled labor, necessitating the easing of job activities to maintain productivity at work.
In March 2023, Daifuku Intralogistics India announced the addition of a new manufacturing plant to enhance its market share. The new facility is expected to become operational in 2024, and it will so increase the firm’s production ability four times over. Daifuku Intralogistics India will remain Daifuku's base of operations in India, utilising the Daifuku brand in addition to the vast amount of technology and knowledge that Daifuku has developed through its international business development. Daifuku intends to leverage its brand going forward in order to grow its company in the markets of Asia and Oceania. Furthermore, Daifuku Intralogistics India has established plans for a new manufacturing facility with expectations for future growth. With this new plant starting in 2024, Daifuku Intralogistics India’s production capacity is set to increase four-fold.
In February 2023, Manitou Group and Kiloutou entered into an exclusive collaboration to enable their first retrofit project. In this contract, Manitou would provide telehandlers that have internal combustion engines already installed alongside their electrification kits. Retrofitting these devices can extend their lifespan and reduce their adverse environmental effects, particularly carbon emissions.
| Report Metric | Details |
|---|---|
| Total Market Size in 2024 | USD 92.570 billion |
| Total Market Size in 2029 | USD 130.879 billion |
| Forecast Unit | Billion |
| Growth Rate | 7.17% |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Segmentation | Product, Application, Industry Vertical, Geography |
| Geographical Segmentation | China, India, Japan, Taiwan, Australia, South Korea, Others |
| Companies |
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