Material Handling Equipment (MHE) Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Material Handling Equipment (MHE) market reached a value of about USD 41 billion in 2021. The industry is projected to grow at a CAGR of around 3% in the forecast period of 2022-2027 to reach a value of about USD 50 billion by 2027.

The global Material Handling Equipment (MHE) industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The growing use of the equipment for industrial operations is driving the market growth. Europe, the Middle East, and Africa are the highest category spender by region, driving the demand for the Material Handling Equipment (MHE) industry.

Material Handling Equipment (MHE): Industry Definition and Segmentation

Material handling equipment (MHE) is mechanical machinery that moves, stores, controls, and protects materials, commodities, and products during the manufacturing, distribution, consumption, and disposal processes. Forklifts, shelf pickers, motorised pallet jacks (hand trucks), tractors, and other specialised industrial trucks are driven by electric motors, or internal combustion engines are all types of materials handling equipment. The Material Handling Equipment (MHE) industry report comprises segments by type (Unit Handling, Bulk Handling, Belting, Parts, and Attachments), by equipment (Stackers & Reclaimer, Conveyor system, Others), and by region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

Europe, the Middle East, and Africa Regions are Driving the Growth of the Industry

Europe, the Middle East and Africa are the major regions contributing to the industry significantly. In Europe, increased usage of automation solutions and significant government funding to stimulate the use of sophisticated platforms are credited for the market's growth. Several industries in Europe provide sales prospects, ranging from food and beverage to electronics production. Market expansion will be aided by adopting innovative goods to support a large-scale industrial presence in the area. In addition, innovative solutions are increasingly being introduced in the region to ensure smooth and effective operations.

The market is driven by the growing requirement for global manufacturing organisations to automate processes and promote effective product movement. The need for mine material handling equipment might be fueled by rising mineral output growth rates and predicted increases in exploration activities and mine automation. Due to the plunge in commodity prices and volatility in demand, mining corporations have been pushed to automate their mines to increase profit margins and cost savings, resulting in increased use of MHE. To ensure prompt delivery of MHE equipment, e-commerce businesses are working on expanding their distribution networks and warehouses. Material handling equipment will be in high demand, allowing for more efficient storage and transportation of commodities in a system. Factors like improved investment in the construction and industrial sectors, rising consumer expenditure on non-durable and durable goods, increased fixed investment spending, and expanded global mining operations contribute to market growth.

Best Procurement Practices

The global Material Handling Equipment (MHE) industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Material Handling Equipment (MHE) regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

material handling is a term derived from material handling techniques that refers to the use of various forms of automation to assist people in a manufacturing facility in transporting products under construction between assembly stations or finished items to storage facilities. With the development of technology, machines took over these jobs, resulting in a market for automated material handling. This equipment helps to ensure that goods are circulated swiftly, smoothly, and efficiently during the production process.

Developments in the Sector, Further Augmenting the Procurement of Material Handling Equipment (MHE) Market

The industry is being propelled by the increased need for automation and modernisation in industrial methods to turn the manufacturing process easier and more cost-effective. The replacement of old gear with modern automated systems and robotics and the rising industrial shift towards artificial intelligence and Business 4.0 is furthering the MHE industry. The automation of mines is a crucial development predicted to impact MHE. Due to unpredictable commodity demand, mining and construction companies are increasingly striving to reduce costs. Also, AS/RS has emerged as one of the most dynamic materials handling equipment options. They're primarily used in distribution centres and warehouses, resulting in the market's expansion.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Material Handling Equipment (MHE) Industry Report

• FLSmidt A/S
• Metso Outotec Oyj
• ThyssenKrupp AG
• Elecon Engineering Company Limited
• Groupe Michelin (Fenner Dunlop)

Market Landscape

Material handling equipment is a highly consolidated market characterised by fierce rivalry. Vendors plan to use organic and inorganic ways to maintain the competition as an effective growth strategy. Key suppliers are also focusing on mergers and acquisitions to expand their geographic reach and boost their market presence. Original equipment manufacturers deliver their solutions through physical storefronts and online platforms to enhance sales and market share. To confirm the validity of the devices, consumers prefer direct sales methods.

Key Initiatives by Companies

• September 2020 – Bohus, a leading furniture manufacturer in Norway, has tasked Jungheinrich with developing a new central warehouse in Lillestrom, near Oslo. The project entails a high-density pallet racking warehouse, Miniload, conveyor systems, and software, among other things. The facility is expected to open for business in 2021.
• TJ Morris Ltd, one of the UK's fastest-growing and best-rated retailers in Europe, has chosen WITRON to help its development plans. In Warrington, the business obtained a contract to design and construct a 79,000 square metre highly dynamic distribution facility (North West England). It will be able to hold 12,000 different dry goods items.