Industrializing Nations Drive Demand for Material Handling Equipment

Development of infrastructure, logistics and transportation to drive growth in mature markets.

Manufacturing activity is on the rise across the globe and industrializing nations, including those like China, who are experiencing large initiatives to revolutionize their industries, are the ones growing the fastest.

As a result, global demand for material handling equipment is expected to reach USD$176 billion by 2020, rising 5.3 percent per annum according to a new report from Freedonia Group. Industrializing nations are responsible for nearly two-thirds of the growing demand for material handling machinery between 2015 and 2020.

Fixed investment spending, industrial output, power generation and mining activity are expected to rise in industrializing nations as these nations’ infrastructures continue to develop and local industries attract more foreign capital.

Sales of material handling machinery across Japan, the US and Western Europe are expected to rise in a “somewhat more restrained pace,” according to Freedonia.

Replacement product demand is cited as the major contributor to market growth in these regions. Additional government spending on public infrastructure, growth in logistics and transportation industries, as well as the adoption of new material handling technologies will be necessary to see significant gains in mature markets.

Material Handling Equipment in Demand as Global Manufacturing Activity Rises

Automated storage and retrieval systems along with automated guided vehicles (AGVs) are expected to achieve the fastest demand gains among all other product types as global manufacturing activity increases.

Freedonia cites these technologies as becoming increasingly necessary as manufacturers adopt more advanced production techniques, build new factories and warehouses, as well as upgrade existing facilities.

Logistics and transportation firms are also expected to increase spending on these and similar technologies to satisfy growing demand and boost efficiency.

The World Material Handling Equipment report also presents historical data and forecasts for 2020 and 2025 concerning supply and demand by type and market across six regions and 26 countries. The study covers market environment factors, industry structure, company market shares and profiles industry competitors across the globe.

For more information, visit the Fredonia Group website