Material handling equipment refers to any equipment used for the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. Material handling equipment helps in transporting materials from one place to another within a building, factory or warehouse effectively and efficiently. The need for automated material handling equipment is rising in the Asia Pacific region owing to growing e-commerce sector and demand for warehouse automation across industries.
The Global Asia Pacific Material Handling Equipment Market is estimated to be valued at US$ 112.45 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Asia Pacific Material Handling Equipment are Toyota Industries Corporation, KION Group AG, Jungheinrich AG, Mitsubishi Logisnext Co., Ltd., Hyster-Yale Materials Handling, Inc., Crown Equipment Corporation, Raymond Corporation, Komatsu Ltd., Doosan Industrial Vehicle. The market is highly fragmented with presence of several global and regional players. Strategic partnerships and collaborations among key players is expected to drive innovation and gain higher share in the market over the forecast period.
The Asia Pacific Material Handling Equipment Market Demand in the region has opened up opportunities for automation of warehousing and distribution operations. Rising demand for automation from industries such as automotive, food and beverage, cement and others is expected to drive the adoption of material handling equipment. Technological advancements in robotics, Internet of Things, wireless communication, machine vision is automating material handling processes and reducing cost of operations for end-use industries.
Rising urbanization, growing middle class, increasing investments in infrastructure projects, and expanding manufacturing sector are some of the key factors driving demand for construction and mining equipment in Asia Pacific countries. Growth in the construction and mining industries is generating demand for heavy earthmoving and cargo handling equipment.
Market Drivers
Growth of the e-commerce industry: E-commerce giants like Flipkart, Alibaba are expanding rapidly in the region. Rising penetration of internet and smartphone usage is propelling the e-commerce market in Asia Pacific. E-commerce companies are automating warehouses and distribution centers to handle the increased volumes efficiently which is driving demand for material handling equipment.
Growth of end-use industries: Industries like automotive, electronics, fast moving consumer goods (FMCG), pharmaceuticals are witnessing high growth in the region. Increasing manufacturing activities in these industries is generating need for efficient material handling within factories and warehouses, thereby positively impacting the market.
Challenges in the Asia Pacific Material Handling Equipment Market
The Asia Pacific material handling equipment market faces several challenges. Manufacturers are struggling with rising raw material costs. The costs of steel and plastics used in equipment production have increased significantly. This puts pressure on profit margins. Supply chain disruptions arising due to the pandemic have also impacted material delivery. Some key mechanical and electronic components see regular shortages, hampering manufacturing operations. Equipment buyers are cautious in making large capital investments amid ongoing economic uncertainty. Their focus on reducing costs and optimizing existing assets acts as a deterrent to new equipment purchases.
SWOT Analysis
Strength: Strong economic growth in several Asia Pacific countries leads to robust demand from industries like e-commerce, automotive, and manufacturing. Weakness: Market heavily reliant on China, which faces economic and geopolitical risks. Opportunity: Rapid infrastructure development and construction activity opens up opportunities. Threats: Trade wars and sanctions can disrupt supply chains and impact growth. Political and economic instability in certain nations poses challenges.
Geographical Regions
In terms of value, China accounts for the major share in the Asia Pacific material handling equipment market. The country is a manufacturing powerhouse with a highly developed industrial sector. It sees massive demand from several industries for a wide range of material handling solutions. Japan is another key market, driven by the country's advanced manufacturing prowess. South East Asian nations like India, Indonesia, and Vietnam contribute significantly due to their fast industrial growth.
The fastest growing region for the Asia Pacific material handling equipment market is South East Asia. Countries like Vietnam, Indonesia, and India are undergoing major industrialization supported by favorable government policies and investments. Rapid infrastructure expansion and the rise of industrial and logistics hubs create strong demand growth opportunities for material handling solutions in these developing Asian markets. Their double-digit annual GDP growth rates translate to increasing CAPEX in industries that utilize material handling equipment.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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