Global Demand for Material Handling Equipment to Hit $176 Bil. by 2020

A new market forecast estimates the world’s demand for material handling equipment will reach $176 billion by 2020, with China and developing nations expected to drive the market.

The study by The Freedonia Group predicts that about two thirds of demand for new material handling machinery from 2015 to 2020 will come from industrializing nations. Of all the types of material handling equipment examined, the market research firm said automated guided vehicle (AGV) and automated storage and retrieval systems will have faster demand gains than any other category.

“As industrial enterprises around the world adopt advanced manufacturing techniques, build new factories and warehouses, and upgrade existing facilities, they will purchase new automated storage and retrieval systems and automated guided vehicles because they offer efficiency and productivity gains and reduce labor costs,” the report’s authors wrote in a press release announcing the issue of the report. “Logistics and transportation firms will also increase spending on these products to satisfy growing demand for their services and to boost the efficiency of their operations.”

Equipment sales in the US, Japan, and Western Europe are expected to grow more slowly compared to developing countries during the forecast period, with sales driven by a need to replace older products, government-backed infrastructure projects and growth in logistics and transportation.

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