Asia Pacific Material Handling Equipment Market size exceeded USD 50 billion in 2019 and is expected to expand at over 7.5% CAGR from 2020 to 2026.
The market growth is characterized by the requirement to deliver an enhanced means to store items and transit goods from respective locations to desired locations. Manufacturing industries are facing issues such as the management and storage of bulk materials. The rise in manufacturing activities in the food & beverage, chemical, pharmaceutical, and automotive industries is anticipated to spur the demand for material handling systems. The penetration of the e-commerce industry in the region necessitates the rapid delivery of goods and services, which will also augment the demand. The industry is also witnessing demand from the general merchandise sector that requires solutions to meet specific application needs of the distribution and warehousing environments such as configurations for retail store replenishment, e-commerce order fulfillment, inventory velocity, and returns processing.
The Asia Pacific material handling equipment industry witnessed a significant hit during the COVID-19 pandemic. Closure of manufacturing units and disruptions in the global supply chain have negatively impacted the material handling equipment market. Material handling equipment manufacturers are anticipated to enhance the automation level and reduce human intervention. However, R&D spending by manufacturers is estimated to fall by about 20 - 30% in FY2021. Market players are planning various strategies such as realigning product portfolio, developing experimentation as a core capability, end-to-end digital & data continuity, leverage ecosystem partnership, and build a responsive skill base to reposition their R&D activities. Manufacturers are reducing the complexity of their current products to enable rapid scaling in design, engineering, and production.
Industrial trucks held a significant market share in 2019. Industrial trucks are used to move materials over variable paths without restrictions on the area covered, supporting their widescale adoption. Trucks with forks are used due to their ability to handle pallets and place the loads. Powered-industrial trucks, such as forklifts, can be used to move large quantities of materials from around the production floor. These trucks are also utilized to efficiently unload or load heavy objects into the delivery trucks. The increase in cross-border commerce, factory production, and disposable incomes is further escalating the demand for industrial trucks. Buyers are often able to outsource maintenance services to third-party providers to obtain lower rates compared to manufacturers. The growth is attributed to the need for recurrent flow of goods, where the usage of a conveyor will not be useful.
The 3PL industry utilizes material handling equipment to enhance performance, increase IT integration, improve efficiency, and keep customers satisfied with accurate & on-time deliveries of a wide variety of products and packaging. The equipment offers flexibility in warehouse designs, which causes customers to interact better. The rise in manufacturing activities across several countries in Asia Pacific is encouraging 3PL companies, such as FedEx acquired TNT Express and Deutsche Post DHL to expand its business in Asia Pacific regions.
Get more details on this report - Request Free Sample PDF
Japan material handling equipment market is estimated to show substantial growth during the forecast period. Several Japan-based companies are continuously engaged in transforming industrial and warehouse operations from manual to robotic, improving the productivity and efficiency in industrial operations. The complete automation trend in the country will allow businesses to manage their packaging & logistics operations with the help of robotic solutions.
Some of the key industry players include Honeywell Intelligrated, Hyster-Yale Materials Handling, Inc., JBT Corporation, Mecalux S.A., SSI Schaefer Group, Toyota Industries Corporation, Murata Machinery, Ltd., and Mitsubishi Motors Corporation.
These companies are expanding their product portfolio to increase their global market share. For instance, in October 2020, KION Group AG expanded its product portfolio with the addition of Linde Series 1202 hydrostat forklift trucks. The product is designed with intensive research and discussion with forklift operators from 26 countries, resulting in convenient and easy-operated trucks. Through this launch, the company aims to strengthen its flagship product line of Linde forklifts in the industry.