Material Handling Equipment Market Size, Share, Report 2026 to 2035

What is the Material Handling Equipment Market Size and Growth from 2026 to 2035

The global material handling equipment market size reached at USD 253.71 billion in 2025 and is expected to be worth around USD 457.18 billion by 2035, exhibiting at a compound annual growth rate (CAGR) of 6.1% over the forecast period 2026 to 2035. The material handling equipment market is expanding as more organizations want to move and store products quickly and easily. Warehouses, factories, and ports are using material handling equipment to eliminate heavy labor and save time. The increase in online shopping has pushed businesses to invest in forklifts, conveyors, cranes, and automated systems in order to process volume of orders. Many companies are also want to improve safety and decrease human labor costs, enhanced efficiency and effectiveness, as such are investing more money in material handling machine systems.

Another significant growth factor for the material handling equipment market is the emergence of automation and smart technology. Organizations are implementing robots, sensors, and software to increase their operations precision and efficiency. The increase in industrial production, particularly in emerging countries, is also contributing to the market growth. Additionally, the emphasis on expedited delivery, increased inventory management, and smart warehousing have led organizations to purchase more advanced material handling equipment.

Report Highlights

• By Region, the Asia-Pacific region is the largest market, accounting for a share of 41.4%, as a result of rapid growth in manufacturing, e-commerce, and infrastructure.
• By Region, the North America, with a share of 29.5%, has strong adoption of automation, robotics, and smart warehouses within logistics and retail.
• By Product, the industrial trucks dominate with a share of about 32.0% owing to their widespread usage in warehouses, factories, and logistics facilities.
• By End-use, the e-commerce segment is estimated to account for a share of approximately 24.0%, primarily due to the growth of online shopping and the rise of fulfillment centers.

Growth of E-commerce Boosting the Material Handling Equipment Market

The rapid expansion of the e-commerce sector has significantly fueled growth in the material handling equipment market. As online shopping has surged, the number of warehouses and distribution centers has also increased. All of these facilities require fast and efficient methods to move, sort, and store the increasing volume of goods. Consequently, demand for conveyors, forklifts, automated storage systems, and robots is growing. Additionally, logistics companies continue to experience demand from e-commerce customers for quicker order fulfillment and increased volume. As a response to these market pressures, logistics companies are turning to more modern material handling equipment to reduce the amount of manual work, reduce the amount of time it takes to process products, and minimize errors in handling equipment. The advancement of e-commerce is sure to lead to further growth, which in turn will also fuel more demand for advanced material handling systems.

In summary, the significant growth in e-commerce sales in key regions between 2020 and 2025 is directly contributing to the material handling equipment market. As online sales increase, organizations need more sophisticated warehouses, quicker order fulfillment, and more efficient logistics systems. This leads to organizations needing to invest in automation, conveyors, robotics, and storage systems to manage higher throughput with better speed and accuracy. As a result, the expanding demand for e-commerce will increase the adoption of modern material handling solutions throughout global supply chains.

What are the major milestones of material handling equipment market?

1. “The Raymond Corporation’s iWAREHOUSE® ObjectSense Wins 2025 Innovation Award”

In 2025, SupplyTech Breakthrough selected Raymond Corporation's iWAREHOUSE® ObjectSense system as the "Material Handling Innovation of the Year". The iWAREHOUSE® ObjectSense system promotes operator awareness in warehouse processes by providing dynamic object detection, intelligent alerts, and actionable enhanced situational awareness. It addresses the demand for smarter, more automated solutions by increasing safety, speed and control in intralogistics applications.

2. “Godrej Enterprises Group’s Material-Handling Business Debuts Smart & Sustainable Tech at LogiMAT India 2025”

Godrej Enterprises Group's material handling equipment business unveiled smart and sustainable technology at LogiMAT India 2025. This included eco-friendly materials, digital controls, and modular designs tailored for Indian logistics and manufacturing. Technology demand in emerging regions expands the material handling equipment market and technology is critically localized to be accessible and relevant to the local situation.

3. “Gonvarri Material Handling Sets Strategic Roadmap for 2025-2027, Launches Automation Division”

Gonvarri Material Handling announced its strategic roadmap for the years 2025-2027 that will focus upon digital innovation, worldwide growth and operational excellence, which includes launching a dedicated automation division. Through commitment to automation and heightened global footprint, Gonvarri shows its confidence for increased demand for sophisticated material handling equipment, which, in turn, will create further investment and acceptance within the industry as a whole in the material handling equipment industry.

4. “SILA and Nilkamal Launch Electric-Fleet Rental Solutions for Material Handling Equipment in India”

In July 2025, SILA worked with Nilkamal to introduce a rental-business for electric material handling equipment within India, focusing upon warehouses and the manufacturing sector. This establishes a lower barrier for companies to enter for adoption of modern equipment by offering rental vs purchase. Therefore, demand will likely increase within the material handling equipment industry for electric fleet, especially among smaller companies or companies in developing economies.

Report Scope

Market Dynamics

Market Drivers

• Growth of E-commerce and Warehousing: The rapid development of online shopping has led to an increased need for big and smart warehousing around the world. Firms manage millions of items every day and need faster picking, sorting, packaging, and shipping systems. Therefore, they are implementing more conveyors, automated storage and retrieval systems, and sorting machines than before. Heightened customer expectations for quicker delivery, in-turn, pushes firms to constantly innovate within their warehouses. All these factors drive demand and growth in the material handling equipment industry.
• Rising Automation in Industries: Many industries are transitioning into automated processes in order to limit human effort and deliver higher precision and accuracy. Automated guided vehicles (AGVs), robotic palletizers and smart conveyor are all modern solutions helping companies reduce labor, and design warehouse solutions which operate 24 hours a day. Automation reduces accidents that are often due to human handling, therefore also improving safety. Rising labor costs and labor shortages have led to increasing investments in automated processes, therefore helping stimulate the growth and demand for material handling equipment.

Market Restraints

• High Initial Investment Cost: Sophisticated material handling equipment entails considerable capital expenditure, inclusive of the equipment, robotics integration, automation software, installation, and custom features. The overall cost of this equipment may prove to be very high, particularly for small and medium companies. Costs associated with high-tech equipment may influence companies to continue using manually operated processes and use basic equipment that may have a lower associated cost. This leads to delays in wider utilization of automation and serves as a major constraint for the material handling equipment segment.
• High Maintenance and Operational Costs: Some modern material handling equipment demands ongoing servicing of the equipment while also requiring periodic replacement of spare parts. These systems also need operators and IT technicians who are skilled at understanding these systems and ensuring they are working correctly. Any failure in the operation of equipment can disrupt the entire warehouse operation. These costs add increased financial stress for organisations as margins are generally limited with equipment like this, which leads companies to delay in upgrading the equipment. This has a negative impact on market growth in the material handling equipment industry.

Market Opportunities

• Growth in Developing Countries: Asia, Africa, and Latin America are experiencing rapid growth in developing areas such as industrial development. Governments are investing in various infrastructure, ports, smart cities, and industrial zones. Many new manufacturing plants and distribution centers are being constructed. This leads to greater opportunities in the material handling equipment market considering that all of these facilities will require modern equipment to handle raw materials and finished goods properly.
• Increasing Demand for Green and Electric Equipment: All companies across the world are paying more attention to sustainability and carbon reduction. This has led to increased demand for electric forklift equipment, solar powered systems, and energy efficient equipment. Many governments have also introduced incentives for technology to be more environmentally conscious. The environmental undertaking allows a number of opportunities in the material handling equipment market for suppliers and manufacturers.

Market Challenges

• Lack of Skilled Workforce: Modern equipment requires advanced workers to be able to learn about robotics, controls, systems, and digital tools. Many businesses struggle to find trained employees to be able to teach them. This may lead to not using the equipment properly, outages, or downtime. The lack of technical skills is a significant obstacle to the material handling equipment market in regard to both installation and long-term operations.
• Integration with Existing Systems: Many warehouses still rely on legacy systems and manual processes. Thus, there is complexity and associated cost with retrofitting new automated equipment into antiquated software and legacy infrastructure. Upgrading software may require an updated building design and retraining of employees. These aforementioned barriers slow the infusion of new technology and present a challenge for the material handling equipment market growth.

Regional Analysis

The material handling equipment market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

North America Material Handling Equipment Market: Strong Warehouse Automation Adoption Driven by E-commerce Expansion and Labor Shortages

The North America material handling equipment market size accounted for USD 74.84 billion in 2025 and is forecasted to grow around USD 134.87 billion by 2035. The North American region is considered a mature and technologically sophisticated area of market. The rapid expansion of e-commerce, rising costs associated with labor, and the labor shortage in warehouse fulfillment are motivating firms to make substantial investments in automation and robotic material handling systems. Large distribution centers, smart warehousing, and logistics operations are experiencing growth across the United States and Canada. Additionally, industries such as retail, automotive, and food & beverage utilize sophisticated material handling equipment such as ASRS, mobile robots, and smart conveyor systems. The emphasis on delivery speed, efficient operations, and worker safety is bolstering the ongoing demand in this region.

Recent Developments:

• Expanded automated fulfillment centers with large retailers.
• Increased installations of autonomous mobile robots (AMRs) in warehouses.
• Growth of electric and lithium-ion powered forklifts.
• Rising implementation of AI-based warehouse management systems.

Asia-Pacific Material Handling Equipment Market: Rapid Industrialization and E-commerce Growth Driving Large-Scale Demand for Handling Solutions

The Asia-Pacific material handling equipment market size estimated at USD 105.04 billion in 2025 and is expected to be worth around USD 189.27 billion by 2035. The Asia-Pacific region is the most rapidly expanding region, due to the rise of industrialization, urbanization, and growth of e-commerce in these markets. Countries such as China, India, Japan, and South Korea are investing heavily in manufacturing facilities, logistics parks, and smart warehouses for the region. The region is benefitting from strong growth in their electronics industry, automotive sector, e-commerce, and heavy industries. Rising foreign investments in various sectors coupled with growth in infrastructure is giving strength to this market expansion. A number of companies are implementing automation in their respective operations, in response to increasing labor costs come competitive pressure.

Recent Developments:

• Rapid growth in warehouse and logistics infrastructure in China and India
• Strong demand for robotics in electronics and semiconductor sectors.
• Growth of smart ports and automated container handling systems.
• Enhanced levels of investment in manufacturing automation.

Europe Material Handling Equipment Market: High Focus on Sustainable and Energy-Efficient Material Handling Systems Due to Strong Environmental Regulations

The Europe material handling equipment market size valued at USD 56.07 billion in 2025 and is projected to hit around USD 101.04 billion by 2035. The Europe is propelled by stringent environmental regulations and an emphasis on sustainability. Enterprises in this region are transitioning to energy efficient, low-emission, and electric material handling equipment. Nations, like Germany, France and the UK, are at the forefront of automated Smart Logistics. Furthermore, the evolution of automotive, pharmaceutical and food processing Industry stimulates demand. European companies are proactively developing green warehouses to digital-based supply chain intelligence, operational efficiency and lower carbon footprint, which adds overall strength to the demand for modern material handling systems.

Recent Developments:

• High adoption of electric and hydrogen-powered forklifts.
• Strong growth of smart manufacturing in Industry 4.0.
• Growth in the use of recyclable and environmentally-friendly material handling systems.
• Increase in the number of automated logistics hubs in Germany and Netherlands.

Material Handling Equipment Market Share, By Region, 2025 (%)

LAMEA (Latin America, Middle East & Africa) Material Handling Equipment Market: Growing Infrastructure and Logistics Development Supporting Adoption of Modern Handling Technologies

The LAMEA material handling equipment market size reached at USD 17.76 billion in 2025 and is anticipated to reach around USD 32 billion by 2035. The LAMEA region is growing steadily with increasing infrastructure investment, financing of ports, and industrialization. Countries in the Middle East are working on logistics hubs and smart ports, while Latin America is developing growth in retail, food processing, and mining industries. In Africa, port modernization and the construction of warehouses are emerging sectors to watch. Although automation is still considered a developing technology, many industries are transitioning toward modern material handling equipment to increase productivity and reduce manual compliance.

Recent Developments:

• Growth of logistics hubs in the UAE and Saudi Arabia.
• Emerging port automation projects in Latin America.
• Growth in the construction of warehouses in South Africa and Nigeria.
• Emerging industrial truck use in the mining and construction industry.

Segmental Analysis

The material handling equipment market is segmented into product, end use, and region.

Product Analysis

Industrial trucks, including forklifts, pallet trucks, reach trucks, and stackers, are the leading segment in material handling equipment, as these trucks are widely used throughout almost every industry. Industrial trucks are utilized to lift, move, load, and unload heavy goods in factories, warehouses, construction sites, and ports. Industrial trucks are favored due to their adaptability, minimal operation requirements, and lower cost compared to fully automated systems. Many industrial customers prefer industrial trucks to other forms of material handling due to their ability to be utilized indoors and outdoors, and for the versatility across types of loads and environments. The growth of industrial truck sales is being continuously driven by strong demand from sectors including retail, logistics, manufacturing, and construction.

Automated Storage and Retrieval Systems (ASRS) are the fastest growing segment in the material handling equipment market due to the current trend toward warehouse automation. ASRS incorporates a combination of software, robots, and computer-controlled machines to automatically store and retrieve items from high-density storage aisles. Businesses can use ASRS to reduce human labor, save space, and heighten accuracy with inventory management. As e-commerce increases, with a growing expectation for same-day delivery, with limited space being sold as warehouse space in urban areas, companies have begun heavily investing into ASRS. The focus on smart warehouses, and digital transformation further enables the growth of ASRS systems in the material handling equipment market, along with the rise of Industry 4.0 for the modern supply chain and the increasing importance of Automation.

End Use Analysis

The e-commerce industry is the primary segment of the material handling equipment market due to its reliance on fast and efficient warehouse operations. Online retailers manage a very high volume of orders on a daily basis, which requires sophisticated handling systems such as conveyors, sorters, robotics, and automated storage. The e-commerce companies also require equipment for packaging, labeling, and order fulfilment. The constant driver of e-commerce companies is the demand for fast delivery, hassle-free returns, and same-day or next-day shipping. With this demand, e-commerce companies are investing more into modernized material handling technologies. The burgeoning growth of fulfillment centers in different regions contribute to the consistency of this segment.

Material Handling Equipment Market Share, By End Use, 2025 (%)

The semiconductor and electronics segment is one of the fastest growing end-use industries in the material handling equipment market due to the rising production of electronic devices, electric vehicles, and smart technologies. This industry needs highly precise, clean, and automated handling systems because electronic components are sensitive to dust, vibration, and human error. Automated and robotic handling systems help in protecting these components and improving production efficiency. As global demand for chips, sensors, and electronic components increases, more manufacturing units and cleanrooms are being built. This is creating strong demand for advanced material handling equipment, driving fast growth in this segment.

Material Handling Equipment Market Top Companies

• Daifuku Co., Ltd.
• Murata Machinery Ltd.
• Vanderlande Industries B.V.
• Honeywell International Inc.
• Kion Group AG
• BEUMER Group
• Mecalux, S.A
• SSI Schaefer AG
• Toyota Material Handling Group
• Swisslog Holding AG

Recently Introduced Material Handling Equipment:

“Linde Material Handling Launches New Electric Forklift Series and Automation Solutions”

• Linde Material Handling presented a new generation of electric forklifts (e.g., 1.0-2.0 ton and 3.5-5.0 ton series), as well as expanding their automation software and sensor systems with AI to assist and provide situational controls in tighter spaces. This type of innovation also supports growth in the material handling equipment market by delivering greener, safer, and more efficient machines—resulting in more companies replacing older machines, and subsequently boosting the replacement cycle and overall growth of the material handling equipment market.

“KION Group AG Integrates ‘Physical AI’ and Launches Battery Recycling Initiative”

• KION announced a partnership with NVIDIA and Accenture to implement Physical AI (a digital twin used to simulate a warehouse and real-time conditions for warehouse operations) into its warehouse automation business, as well as launch a lithium-ion battery recycling initiative through its subsidiary to reclaim materials to outfit new batteries. Both of these innovations are driving the material handling equipment market by advancing smart logistics operations and sustainability, which are two important purchasing drivers for companies, lowering the overall cost of automated, environmentally friendly equipment.

Market Segmentation

By Product

• Storage and Handling Equipment
  
  • Racks
  • Stacking frames
  • Shelves, bins, and drawers
  • Mezzanines 
• Industrial Trucks
  
  • Automated Guided Vehicles (AGVs)
  • Hand, platform & pallet trucks
  • Order pickers
  • Pallet jacks
  • Side-loaders
  • Walkie stackers
• Bulk Material Handling Equipment
  
  • Conveyor belts
    
    • Case conveyors
    • Pallet conveyors
  • Stackers
  • Reclaimers
  • Elevators
  • Others
• Automated Storage and Retrieval System
• Others

By End Use

• Automotive
• Chemical
• Food & Beverages
• Pharmaceutical
• Semiconductor & Electronics
• Aviation
• E-commerce
• Others

By Region

• North America
• APAC
• Europe
• LAMEA