Global market for material handling equipment (MHE) - estimated at $ 118.7 billion in 2020 - is projected to reach a revised size of $156 billion by 2026, growing at a CAGR of 4.7% over the analysis period, according to a new report of Research and Markets (RM).

The rising need for global production companies to automate operations, and foster flow of goods in an efficient manner is the key force driving the market, at present. Growth in the market is also driven by improving investment in the construction and industrial sector, growing consumer spending on non-durable as well as durable products, improvement in fixed investment spending, and rise in mining activities worldwide.

Growth in the MHE industry is further underpinned by the replacement of antiquated machinery with new automated systems and robotics amid the increasing production shift towards artificial intelligence and Industry 4.0. A notable trend in the industry is increasing switch to cleaner battery-powered electric materials handling systems.

Demand for automated guided vehicles, and automated conveyors are expected to particularly register strong gains through the forthcoming years. Mature industrialised countries in Europe and the US contribute to the bulk of revenues, fueled by healthy replacement demand and the move towards automation and modernization of production processes in key end-use sectors.

Conveyor Systems, one of the segments analysed in the report, is projected to grow at a 4.3% CAGR to reach $ 68.1 billion by the end of the analysis period.

After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the forklifts segment is readjusted to a revised 5% CAGR for the next 7-year period. This segment currently accounts for a 32% share of the global material handling equipment market. Conveyors represent the most common MHE available as well as an imperative component of the material transition process in manufacturing facilities globally.

The forklifts segment is anticipated to benefit from technological advances and availability of automated platforms like monitoring and tracking solutions. The broader adoption of forklifts and industrial trucks is attributed to their ability to efficiently lift and move materials over different paths without any restrictions.

The material handling equipment market in the US - estimated at $ 32.2 billion in 2021 - currently accounts for a 26.39% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of $27.3 billion in 2026 trailing a CAGR of 6.4% through the analysis period.

Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.2% and 3.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.3% CAGR while Rest of European market (as defined in the study) will reach $ 29.2 billion by the end of the analysis period.

North America represents a key market and growth is anticipated to gain from rising awareness regarding worker safety, the need to efficiently manage bulk materials and emergence of Industry 4.0 with increasing penetration of IoT. In addition, the requirement to minimize downtime along with strong focus on making the supply chain more efficient is expected to further drive the adoption of MHE like electric lift trucks.

Growth in Europe market is attributed to increasing use of automation solutions and significant investments by governments to foster adoption of advanced platforms. The region is also witnessing increasing launch of sophisticated solutions to ensure seamless and efficient operations.

Factors such as promising outlook of the manufacturing sector, ongoing transition towards automation and increasing labour costs are anticipated to compel manufacturers in Asia-Pacific region to embrace material handling equipment to increase process throughput.