The Report Market Research Hub provides an in-depth analysis of the material handling equipment manufacture industry, key insights into material handling equipment manufacturing, the global market for material handling equipment manufacturers, and the present challenges faced.
Definition of Material Handling Equipment
Material handling is the process of moving and storing materials, which includes everything from loading and unloading trucks to picking and packing orders. There are many different types of material handling equipment, from conveyor belts to cranes, and each type has its own unique set of benefits and drawbacks. And the material handling industry is vital to the economy, as, without it, manufacturers would not be able to move or store their products efficiently. However, what exactly is Material Handling Equipment (MHE)?
MHE is defined as “equipment used to move and control materials in a manufacturing or distribution facility”, with the main purpose being to improve efficiency and safety while reducing costs in the workplace.
Each material handling equipment has its own unique set of features and benefits. To find the right piece of equipment for your needs, it’s important to consult with a knowledgeable specialist who can help you identify which products will work best for your application.
SUNTECH has decades of experience in the material handling manufacturing industry. We offer a wide range of products from warp beam storage systems to motorized warp beam lift trolleys for leading textile manufacturing enterprises, for you to be sure to find the perfect solution for your business.
As one of the largest industries in the world, the material handling equipment manufacturing industry produces a wide variety of products that are used in countless applications. Some of the most common material handling equipment used in the textile industry and manufactured by SUNTECH include Electric Warp Beam Trolley Series STelego, Computerized Warp Beam Storage System, and the AGV Series.
ST-MBT-02I SUNTECH ELECTRIC WARP BEAM LIFT TROLLEY WITH HARNESS MOUNTING DEVICE
Faced Issues of Material Handling Equipment Manufacturing Industry
The material handling equipment manufacturing industry is diverse, with businesses ranging in size from small family-owned operations to large multinational corporations. The industry produces a wide variety of products, including conveyors, cranes, elevators, and platform lifts.
The global material handling equipment market is expected to grow at a compound annual growth rate (CAGR) of 6.2% between 2016 and 2022, according to a report by MarketsandMarkets.
Several factors are driving the market growth, including the increasing number of warehouses and distribution centers, the growing e-commerce sector, and the need for automated material handling solutions in various industries. However, the global material handling equipment market faces some challenges that could impede its growth. For example, the high cost of automated systems is a major barrier to adoption for many businesses. In addition, the complex nature of some material handling applications can make it difficult to find a turnkey solution that meets all of the requirements. As a result, many businesses opt for custom-built solutions, which can be costly and time-consuming to implement.
Another challenge faced by the industry is the need for trained operators. Many material handling applications are highly technical and require operators who are trained in both the operation of the equipment and the specific application itself. This can make it difficult for businesses to find qualified workers, especially in regions where unemployment is high.
Global Market Outlook for Material Handling Equipment Manufacturers
The material handling equipment manufacturers market is expected to grow at a CAGR of around 5% during the forecast period. The study analyses the historical data from 2014 to 2019 and forecasts the market size till 2025. The report provides an in-depth analysis of the global material handling equipment manufacturers market, segmented by product type, end-use industry, and geography. It also covers the market dynamics such as drivers, restraints, opportunities, and trends.
The global material handling equipment manufacturers market is driven by the growing demand for automated systems in various industries such as automotive, food & beverage, pharmaceuticals, e-commerce, and warehousing & logistics. Automated systems help reduce operational costs and improve efficiency. The rising labor costs and stringent government regulations are also propelling the growth of the market. However, the high initial investment required for setting up automated systems is restraining the market growth.
regionally, Asia-Pacific is projected to be the largest and fastest-growing market for material handling equipment manufacturers during the forecast period. The region's growth can be attributed to factors such as rapid industrialization and economic development in countries such as China India, South Korea, Malaysia, Thailand, Vietnam, Indonesia, Philippines, and Singapore.
The U.S. material handling equipment manufacturing industry is comprised of about 1,200 companies with combined annual revenue of about $42 billion. Major companies in the industry include Honeywell International, Crown Equipment Corporation, and Kion Group AG.
In 2018, the top 3 companies in the United States held a market share of 25 percent. The remaining 97 percent of companies in the United States held a market share of 75 percent.
Honeywell International was the largest material handling equipment manufacturer in the United States in 2018 with a market share of 10 percent. The company designs and manufactures products that optimize productivity in warehouses and distribution centers.
Crown Equipment Corporation was the second largest material handling equipment manufacturer in the United States in 2018 with a market share of 7 percent. The company is a leading provider of forklifts and other material handling solutions for businesses around the world.
Kion Group AG was the third largest material handling equipment manufacturer in the United States in 2018 with a market share of 5 percent. Kion Group is a German company that manufactures industrial trucks, including forklifts and warehouse management system software.
Growth Rates by Sales Segment (2015, 2020)
Sales of material handling equipment are projected to grow at different rates by segment in the next 5 years. In general, sales of traditional warehouse products are forecast to rise modestly through 2020, while sales for automated solutions and software are expected to grow more rapidly during that time. The glowing outlook for the industry is due largely to the blossoming e-commerce sector driving demand for ever-more sophisticated fulfillment solutions.
As the second largest continent in the world, Europe is an important market for material handling equipment manufacturers. The region is expected to have a compound annual growth rate (CAGR) of 3.4% from 2018 to 2025, reaching a value of $33.8 billion.
The major player in the European market is Konecranes from Finland, Dematic from Germany, and Hyster-Yale from the United States. These companies hold a combined market share of over 50%. The high level of concentration can be attributed to the fact that the barriers to entry into this industry are very high. New players would need to make significant investments in research and development, as well as manufacturing capabilities, to compete with the existing manufacturers.
The leading countries in Europe for material handling equipment are Germany, France, Italy, Spain, and the United Kingdom. These countries accounted for over 65% of the regional market in 2017.