by The Asia Pacific material handling equipment market is primarily serving industries such as automotive, food and beverages, warehousing, e-commerce, and third-party logistics. Material handling equipment aids in the movement, storage, control and protection of materials and products throughout the process in these industries. The products that are categorized under material handling equipment are conveyor systems, industrial trucks, cranes, hoists, and automated guided vehicles. The material handling equipment streamlines manufacturing operations by reducing inventory levels and optimizing production line floor space. The rising popularity of e-commerce in Asia Pacific has boosted the demand for material handling equipment due to increasing inventory storage and order fulfillment needs.
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 key players are focusing on new product launches and mergers & acquisitions to gain a stronger foothold in the market. For instance, in 2023, Toyota Industries Corporation launched electric tow tractors and automated guided vehicles to capitalize on growing automation and sustainability trends.
The burgeoning e-commerce Asia Pacific Material Handling Equipment Market Demand has accelerated the demand for material handling equipment in the Asia Pacific region. E-commerce giants are automating warehousing operations and adopting automated guided vehicles, conveyor systems, sorting systems, to optimize order fulfillment. The growing online purchases of goods have mounted inventory handling pressures, boosting material handling equipment uptake.
The global material handling equipment manufacturers are expanding their presence across Asia Pacific to tap the potential of fast-developing economies. For example, in 2022, KION Group opened a new material handling solutions center in Pune, India to cater to Indian customers and solidify its position in the country. Moreover, China and India are emerging as manufacturing hubs for material handling equipment due to low production costs and supportive government policies, augmenting regional market growth.
Market Key Trends
One of the key trends gaining traction in the Asia Pacific material handling market is automation and robotics. Automated solutions help improve productivity and optimize warehouse operations. With rising labor costs, the incorporation of robotics for tasks like palletizing, sorting, and loading/unloading is increasing. This is stimulating the demand for collaborative robots and autonomous mobile robots. Further, growing sustainability awareness is propelling the uptake of electric trucks and vehicles in the region. Stringent emission regulations and technological advancements are pushing electric industrial vehicles` adoption over diesel/gasoline variants.
Porter’s Analysis
Threat of new entrants: Entry of new players gets difficult due to high initial investments required for R&D, infrastructure, skilled workforce etc. Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of various substitutes in the market. Bargaining power of suppliers: A few big players operate in the manufacturing of certain material handling equipment which gives them some bargaining power over buyers. Threat of new substitutes: Threat from substitute material handling equipment is moderate to high based on type and application of equipment. Competitive rivalry: Industry has many global players and competition is intense based on product quality, pricing, innovation, service.
Geographical Regions
Asia Pacific region accounts for around 40% value share in material handling equipment market led by China, Japan and India. China dominates the market owing to large manufacturing industry and government initiatives to strengthen infrastructure and logistics.
The fastest growing region for material handling equipment market is Southeast Asian countries like Indonesia, Vietnam, Thailand and Philippines due to rapid industrialization and infrastructure development projects underway. Countries are witnessing strong FDI inflows in manufacturing sector stimulating demand for material handling solutions.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
