Material Handling Integration Market (By Component: Hardware, Software; By Application: Assembly, Packaging; By Vertical) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global material handling integration market size was estimated at around USD 45.34 billion in 2023 and it is projected to hit around USD 106.65 billion by 2033, growing at a CAGR of 8.93% from 2024 to 2033. 

Key Pointers

• Asia Pacific led the global market with the largest market share of 38% in 2023.
• North America is anticipated to grow at the fastest CAGR of 10.38% from 2024 to 2033.
• By Component, the hardware segment held the largest revenue share of 70% in 2023.
• By Component, the services segment is anticipated to witness the fastest CAGR of 9.44% from 2024 to 2033.
• By Application, the transportation segment generated the maximum market share 27% in 2023.
• By Vertical, the retail & e-commerce segment contributed the largest market share of 24% in 2023.

Material Handling Integration Market Overview

The material handling integration market is a dynamic sector driven by the increasing demand for efficient and automated solutions across various industries. With the rapid growth of e-commerce, manufacturing, and logistics sectors, there is a pressing need for streamlined processes to handle goods and materials effectively.

At its core, material handling integration involves the seamless integration of equipment, technologies, and systems to optimize the flow of materials throughout the supply chain. This encompasses a wide range of solutions, including conveyor systems, robotics, automated guided vehicles (AGVs), warehouse management systems (WMS), and software platforms.

Material Handling Integration Market Growth Factors 

The growth of the material handling integration market is propelled by the rising demand for automation across various industries to improve efficiency and reduce operational costs. This demand is particularly evident in sectors such as manufacturing, e-commerce, and logistics, where streamlined processes are essential for handling goods effectively. Secondly, technological advancements, including robotics, AI, and IoT, are driving innovation in material handling systems, enabling greater flexibility and intelligence in handling diverse materials and tasks. Additionally, the surge in e-commerce activities has led to an increased need for efficient order fulfillment and distribution processes, further fueling the adoption of material handling integration solutions. Moreover, the focus on workplace safety and ergonomics has prompted organizations to invest in automated solutions to minimize the risk of injuries and improve worker well-being. Lastly, the optimization of supply chain processes through material handling integration is crucial for reducing lead times, minimizing inventory levels, and enhancing order accuracy, thereby driving market growth.

Report Scope of the Material Handling Integration Market

Material Handling Integration Market Trends:

• Adoption of Robotics and Automation: Increased integration of robotics and automation technologies to streamline material handling processes, improve efficiency, and reduce labor costs.
• Embrace of Artificial Intelligence (AI) and IoT: Growing utilization of AI and IoT solutions to enhance the intelligence and connectivity of material handling systems, enabling real-time monitoring, predictive maintenance, and data-driven decision-making.
• Expansion of E-commerce Fulfillment Solutions: Rising demand for material handling integration solutions tailored for e-commerce fulfillment centers, driven by the exponential growth of online retail and the need for fast and accurate order processing.
• Integration of Warehouse Management Systems (WMS): Continued integration of WMS with material handling equipment to optimize warehouse operations, improve inventory management, and facilitate seamless order fulfillment.
• Focus on Sustainability and Green Initiatives: Growing emphasis on sustainability and environmental responsibility driving the adoption of eco-friendly material handling technologies, such as energy-efficient equipment and recyclable packaging materials.
• Rise of Autonomous Mobile Robots (AMRs): Surge in the deployment of AMRs for autonomous material transport and warehouse tasks, offering greater flexibility, efficiency, and safety in dynamic operational environments.

Component Insights

In terms of component, the market is segmented into hardware, software, and services. The hardware segment led the global market in 2023 with a revenue share of more than 70%. The hardware segment is further categorized as Automated Storage and Retrieval Systems (AS/RS), conveyors, Automated Guided Vehicles (AGVs), and robotics. Hardware in the material handling integration industry refers to the physical equipment and devices used to facilitate the movement, storage, and control of materials within various industries.

The hardware is integrated with the material handling integration software solutions to provide a comprehensive view of the material handling process across a warehouse or distribution center. Market players provide hardware solutions, such as AGVs and AMRs, for material handling and launching new products. Increasing automation across multiple industries and the availability of a wide range of material-handling hardware products are likely to drive the growth of the hardware segment.

The services segment is anticipated to witness the fastest CAGR of 9.44% throughout the forecast period. The material handling integration services encompass two main categories: professional and managed services. As businesses across various industries adopt warehouse automation technologies, the demand for material handling integration services is increasing. This demand is primarily driven by the complexities involved in integrating and implementing material handling systems effectively. To enhance customer experience, the majority of the players in the market offer services that cater to their specific needs.

Application Insights

Based on application, the market is segmented into assembly, conveyance, transportation, packaging, and others. Among these, the transportation segment dominated the market in 2023 with a revenue share of more than 27%. Assembly refers to combining separate components to create a final product. For example, fitting tires into cars before shipment involves assembly. In warehouse operations, assembly lines are commonly used, where product parts are passed along the line and assembled at different stages until the final product is completed.

The increasing complexity of products and the need for agile assembly processes drive the adoption of solutions that integrate material handling. Material handling equipment such as conveyors and Automated Storage and Retrieval Systems (AS/RS) are utilized in assembly lines. Conveyors enhance the assembly process flow, while AS/RS systems can store workpiece components during assembly for future production. AccuBilt, Inc., a U.S.-based automation integration service provider, offers a range of assembly and material handling products for various applications, including Pick and Place (PNP).

The packaging segment is anticipated to witness the fastest CAGR of 10.46% throughout the forecast period. Packaging is crucial to safeguarding materials during storage, distribution, and transportation. It encompasses various components, such as pallets, dunnage, unitizers, and containers, employed in manufacturing and warehouse settings. These packaging components come in diverse sizes, shapes, and materials. With the rise of e-commerce, businesses are increasingly offering customized packaging options to provide optimal shopping experiences for customers.

Vertical Insights

Based on vertical, the market is divided into retail & e-commerce, automotive, healthcare, food & beverages, transportation & logistics, manufacturing, and others. The retail & e-commerce segment led the market in 2023 with a revenue share of more than 24%. The retail and e-commerce segment involves the sale of goods or services to end-consumers, either through physical brick-and-mortar stores or online marketplaces. This sector has experienced significant disruptions in recent years, with a booming online retail industry and increasing adoption of omnichannel distribution.

Retailers encounter various challenges, such as meeting customer expectations for a seamless experience across channels, faster order-to-delivery cycles, and a rise in returns due to the surge in e-commerce. In response to these challenges, there is a high demand for efficient, error-free order processing in the retail and e-commerce sectors. This has driven the adoption of solutions that integrate material handling to manage changing consumer behavior and support the growth of e-commerce. Material handling integration solutions provide businesses with cost reduction and efficiency improvement opportunities.

The food & beverages segment is anticipated to grow at a considerable CAGR of 11.27% throughout the forecast period. The food and beverage industry encompasses businesses involved in processing, packaging, and distributing raw food materials. This industry handles a wide range of products, including packaged, fresh, prepared foods and non-alcoholic and alcoholic beverages. To ensure product quality and freshness, the industry strongly emphasizes spoilage prevention and the use of multi-temperature environments. In addition, handling fresh products and managing the replenishment of essential items present complexities within this sector.

Regional Insights

Asia Pacific led the overall market in 2023, with a revenue share of 38%. Asia Pacific is a region with significant potential, accounting for approximately 60% of the global population and hosting several developing economies with a promising technology infrastructure. The increasing penetration of the internet and smartphones in the region has resulted in a significant boost in e-commerce sales. Countries such as Australia, Singapore, South Korea, and Japan exhibit high levels of technology adoption.

Several national governments in the region are actively taking initiatives to promote automation across industries. For example, the Singapore government introduced the Integrated Robotics & Automation Solutions initiative. This initiative aimed to provide financial support to construction companies adopting robotics and automation solutions to address workforce shortages in Singapore. The region is witnessing growing investments in technology and automation, alongside the rapid expansion of the e-commerce sector. These factors are expected to drive the growth of the material handling integration industry in the Asia Pacific.

North America is anticipated to grow at the fastest CAGR of 10.38% during the forecast period. North America stands as a highly technologically advanced region, characterized by a vibrant presence of numerous technology companies and widespread internet and smartphone usage. The region is also home to a considerable number of solution providers specializing in integrating material handling systems. Governments, particularly in the United States and Canada, actively support developments in this field by investing in research and development (R&D) to drive innovation. As per the Association for Advancing Automation (A3), North American companies witnessed an approximately 11% increase in robot orders in 2023, with a total of 44,196 units ordered.

Material Handling Integration Market Key Companies

• Daifuku Co., Ltd.
• Jungheinrich AG
• Cargotec
• KION GROUP AG
• Honeywell International Inc
• SSI SCHAEFER
• KNAPP AG
• TGW Logistics Group
• Fives
• FORTNA Inc.
• Murata Machinery Ltd.
• Swisslog Holding AG

Material Handling Integration Market Segmentations:

By Component 

• Hardware
  • Automated Storage and Retrieval Systems (AS/RS)
  • Conveyors
  • Automated Guided Vehicles (AGVs)
  • Robotics
  • Others
• Software
  • Warehouse Management System (WMS)
  • Transportation Management System (TMS)
  • Manufacturing Execution System (MES)
  • Others
• Services
  • Professional Services
  • Managed Services

By Application 

• Assembly
• Conveyance
• Transportation
• Packaging
• Others

By Vertical 

• Retail & E-commerce
• Healthcare
• Automotive
• Transportation & Logistics
• Food & Beverages
• Manufacturing
• Others

By Region

• North America
• Europe
• Asia Pacifi
• South America
• Middle East & Africa