North America Material Handling Equipment Market size exceeded USD 30 billion in 2020 and is anticipated to witness 4% CAGR between 2021 and 2027.
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The market growth is driven by the trend of industrial automation to maximize efficiency. A strong presence of industrial automation companies that offer software, machine vision, and automation solutions will increase the market value. For instance, Automate Canada enables manufacturing automation through its members such as ABB Inc., Forcen Inc., Morrell Group Inc., and many more. Currently, manufacturers are using powerful machinery to replace human labor as automation simplifies operations & accelerates the industry's manufacturing process. Machines aid in easy transportation and storage of large volumes of products, thus lowering the overall time spent on material transportation and thereby enhancing profitability.
The COVID-19 pandemic had a significant impact on the economic conditions of the U.S. and Canada in 2020. Supply chain disruptions and limited availability of electronic components to produce material handling equipment caused a decline in the North America material handling equipment market growth. The temporary closure of industrial enterprises in the region had a negative impact on the material handling equipment sector in the first half of 2020. With the gradual resumption of production activity in the second half of 2020, the industry regained traction. The increased adoption of e-commerce technologies created a considerable demand for modern material handling equipment in warehouses in 2021, prompting companies to offer high-quality products.
North America Material Handling Equipment Market, By Application
A major portion of the regional population is using various e-commerce platforms, thus spurring the North America material handling equipment market growth as it automates the movement of large product volumes in the warehouses. According to the U.S. Census Bureau of the Department of Commerce, the Q3 2021 e-commerce estimate increased by 6.6 % from the Q3 of 2020. Automation has been implemented in e-commerce facilities by deploying modern material handling equipment such as Automated Guided Vehicles (AGVs) to transport a case to a Goods-To-Operator (GTO) pickup station. This factor is encouraging companies to introduce new products with high dependability and long life.
The expanding North America pharmaceutical and healthcare sectors are supporting the material handling equipment market expansion as it enables fast & efficient movement of heavy materials and large volumes of goods. The rising focus on on-time delivery of medicines by pharmaceutical manufacturers including Pfizer Inc., Johnson & Johnson, Merck & Co., and AbbVie Inc. in the U.S. is increasing the demand for material handling equipment for fast handling of products in manufacturing facilities. As pharmaceutical companies strive to keep their facilities clean, there will be an increased need for material handling equipment that can be readily dismantled and cleaned regularly.
North America Material Handling Equipment Market, By Product
Original equipment manufacturers are increasing their sales and market shares by selling their products through physical stores and online platforms. The volume of counterfeit products supplied through third-party online stores is increasing. This has motivated customers to purchase products directly from the company's website or physical retail outlet. To ensure equipment authenticity, consumers prefer direct sales channels. Manufacturers offer a wide collection of products on their websites and physical stores, allowing customers to evaluate different machines and choose the optimum product. They also offer after-sales services for the material handling equipment, enabling smooth functioning of the products for a longer period.
Competitive Industry Landscape
Key players operating in the North America material handling equipment market include Beumer Group GmbH & Co. KG, Clark Material Handling Company, Columbus McKinnon Corporation, Crown Equipment Corporation, Daifuku Co., Ltd., Dearborn Mid-West Company, Fives Group, Flexlink AB, Grenzebach Maschinenbau GmbH, Honeywell Intelligrated, Hyster-Yale Materials Handling, Inc., JBT Corporation, Jungheinrich AG, KION Group AG, Knapp AG, Mecalux S.A., Mitsubishi Caterpillar Forklift America Inc., Murata Machinery, Ltd., Siemens AG, SSI Schaefer Group, System Logistics SPA, TGW Logistics Group GmbH, Toyota Industries Corporation, Viastore Systems GmbH, and Witron Logistik + Informatik GmbH.
The market players are focusing on introducing new material handling equipment solutions to meet the massive demand from omnichannel operators. For instance, in March 2022, Honeywell Intelligrated established a new partnership with Clearpath Robotics, allowing warehouses and distribution centers to seamlessly automate activities and boost supply chain productivity using autonomous mobility robots (AMRs). AMR capabilities will allow for customized processes and an interface to existing robotic and storage solutions.