The robust adoption of advanced technologies like industrial automation, IoT and big data has propelled the APAC material handling equipment market size in recent years. Material handling equipment have become an absolute necessity for large scale businesses as they help ease the transportation of goods or products around with minimum human effort. Moreover, as e-commerce giants like Amazon, Walmart, Alibaba, etc. have become ideal shopping platforms for millennials, material handling equipment have gained traction for supporting warehouse operations such as packaging, storage, transportation, and retrieval. Increased operational productivity and efficiencies offered by these systems in the warehouses has further helped companies improve their sales and productivity in recent years.
Hong Kong material handling equipment market, by application, 2018 & 2025 (USD Million)
The demand for e-commerce platforms is growing at a remarkable pace which indirectly puts pressure on online firms to management large warehouses to cater to wide-ranging consumer demand. Reports claim that the online retail space will continue to grow exponentially as sales are expected to reach $4.5 trillion by 2021. In fact, in its 2018 festive sale, Amazon India and Flipkart were reported to generate around Rs 15,000 crore sales in just five days, translating into about 64% annual growth compared to $1.4 billion generated in 2017. Quite overtly, companies are actively focusing on increasing throughput, reducing order errors, and achieving maximum efficiencies by using advanced material handling equipment.
Furthermore, with attractive offers on the radar, like one-day delivery rush, gift packaging and more, online shopping firms now demand efficient material handling equipment that help reduce turnaround time to quickly deliver goods to customers, which would augment APAC material handling equipment industry.
With rising shift towards online shopping, warehouses are bound to increase their product storage capacity using material storage equipment. Storage equipment mainly includes shelves, racks or pallets onto which goods and products can be stacked in an arranged manner to await delivery orders or transportation. Floor type storage shelves are generally preferred in warehouses as they offer vertical storage capabilities, thus allowing storage of more units per item in smaller spaces. Similarly, the depth area offered by the segment enables storing large size products more efficiently. These systems have hence provided enhanced control over inventory and reduced labor costs to warehouse.
With the growing use of floor storage shelves, warehouses now mandate the use of forklifts to move things at higher locations that can’t be accessed easily. Since their invention, forklifts have helped workers to move materials easily to different locations, increased productivity and eliminated the occurrence of body strain caused by lifting heavy objects. The increasing number of companies constructing or upgrading warehouses across the economies of China, India, etc., are now demanding these systems which will certainly augment the APAC material handling equipment market growth.
Bulk equipment demand to propel the APAC material handling equipment industry over 2018-2024
Bulk material handling systems are mainly composed of machinery such as conveyor belts, tubular drag conveyors, moving floors, top loaders and more. Products such as machine spare parts and components that are loose or bulky require such effective technologies for transport without damage. The growing use of conveyor belts by industries to transport products or materials from one production unit to other will drive the market demand. Equipment handling manufacturers are also incorporating innovative technologies into their products to enhance business outlook. For instance, nowadays conveys are equipped with smart motors and controllers that offers enhanced control and productivity with specific systems.
Driven by the convenience provided by these products, bulk equipment, in 2018, held close to 35% of the Asia Pacific material handling equipment market share and is slated to emerge as a key product driving the regional industry in the years to come.
The ever-growing demand for storage & handling equipment across several industries is thus majorly propelling the APAC material handling equipment market growth. Several warehouses and distribution centers across the region are now optimizing their material handling systems to meet growing demands. Reports from Global Market Insights, Inc. cite that the Asia Pacific material handling equipment market share will exceed $80 billion by 2025.