Material Handling Robot Market Size, Share & Trends Analysis Report By Product Type (Articulated Material Handling Robots, SCARA Material Handling Robot, Parallel Material Handling Robot), By Industry Verticals (Automotive, Chemical, Rubber, and Plastic, Electrical and Electronics) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global material handling robot market size was valued at USD 28.8 billion in 2023 and is projected to reach a value of USD 86.5 billion by 2032, registering a CAGR of 13.0% during the forecast period (2024-2032). The rising upgrading of existing infrastructure with sophisticated systems and the expanding usage of robots across numerous sectors to automate processes and operations are key market drivers boosting Material Handling Robot market growth.

Material handling robots are robotic systems intended and programmed to automate the movement, manipulation, and transport of items in industrial settings. These robots are important in various industries, improving efficiency, precision, and productivity in material handling procedures.

Industrialization has grown tremendously over the last few decades, bringing innovations in the manufacturing sector and introducing robotics into everyday processes. The proliferation of smart factories, which are fully or partially accessed by robots, has increased the number of production units dedicated to delivering materials from one location to another. Furthermore, robots increase material handling efficiency, flexibility, and consistency in production operations. The increase in demand for Material handling robots is estimated to drive the market share during the forecast period.

Highlights

Articulated Material Handling Robots account for the largest share of the market based on product type.

Automotive influenced the market growth based on industry verticals.

Market Dynamics

Global material handling robot market drivers

Rise in e-commerce and logistics

The rise in e-commerce activity, fueled by a growing preference for online shopping, has dramatically raised demand for Material handling robots in logistics and fulfillment centers. For example, Amazon, one of the world's major e-commerce platforms, relies heavily on Material handling robots to hold their massive warehouses efficiently. Amazon's use of robots, especially its Kiva robots for goods-to-person picking, demonstrates how vital automation is for managing enormous orders. Statista predicts global retail e-commerce revenues will total USD 5.8 trillion by 2023. Forbes expects e-commerce sales to increase 10.4% in 2023, reaching USD 6.3 trillion by the end of the year. Analysts expect it will reach USD 8.1 trillion by the end of 2024. This significant increase emphasizes the need for efficient logistics and Material handling systems to accommodate the rising requests. To meet consumer expectations of speedy and accurate order fulfillment, e-commerce giants and logistics providers spend extensively on automation technologies such as Material handling robots.

Furthermore, the International Federation of Robotics (IFR) projected in September 2023 that the industrial robot market is expected to increase by 7% in 2023 to more than 590,000 units worldwide. The demand for logistics robots stems from the requirement to handle a wide range of products, manage complex order-picking processes, and streamline warehouse operations. The development of e-commerce has increased the volume of goods to be taken and created a demand for faster and more precise processing. Material handling robots address these issues by automating processes like sorting, picking, packing, and delivering items, allowing e-commerce enterprises to meet client demands for speedy delivery while retaining operational efficiency. Thus, the Material handling robots market trend will continue over the forecast period.

Global material handling robot market restraints

High initial investment

Implementing Material handling robots requires a significant initial investment, which includes the cost of procuring the robots, any necessary infrastructure improvements, and integration with current systems. For example, a manufacturing plant that wants to automate its material handling procedures may need to invest in robotic arms, grippers, conveyors, and a complete control system. Integrating sensors, vision systems, and other technology to improve the robot's capabilities can add to the overall cost. Material handling robots in India can range from Rs.600,000 to Rs.28,00,000. The product volume and amount of automation determine the price. The ABB IRB 6640 robot costs Rs.1,50,000, while the YS10-1440-W handling robot costs Rs.9,20,000. 

Moreover, the specific costs of material handling robots vary depending on the complexity of the robotic system, the level of customization needed, and the sector. For example, a small and medium-sized firm (SME) wishing to automate its warehouse procedures with robotic palletizers may confront a different cost structure than a large-scale car manufacturer implementing robots for complex assembly line activities. The total cost of ownership also includes continuing operational expenses like maintenance, improvements, and future worker training programs. Regardless of the initial expenditure, firms frequently examine the long-term benefits, such as higher productivity, lower labor costs, and improved accuracy, to justify the costs of installing Material handling robots.

Global material handling robot market opportunity

Integration with the internet of things (iot) and industry 4.0

The combination of Material handling robots, the Internet of Things (IoT), and Industry 4.0 principles provides a transformative potential for organizations to improve operational efficiency, obtain real-time insights, and achieve higher degrees of automation. In 2023, robotics and automation will significantly shape warehouse automation trends. The drive for faster and more efficient deliveries has led warehouses to use robots to improve operations. Renishaw, a global engineering technologies business, will, for example, exhibit its new innovative manufacturing data platform at EMO Hannover in June 2023. Renishaw Central is a data-driven system that aims to improve industrial productivity, capability, and efficiency. The current revolution in Industry 4.0 represents a fundamental shift in industries' operations. The revolution is driven by the convergence of the Internet of Things, data analytics, cyber-physical systems, and artificial intelligence. These factors work together to improve manufacturing efficiency, quality, and agility.

Additionally, the ever-changing technology landscape is reshaping the manufacturing industry. Some technologies, including industrial robots, IoT, and 3D printing, have matured, while others, like digital twins, AR/VR in manufacturing, wearables, and sensors, are still in the early stages of adoption. Furthermore, utilizing cloud-based platforms allows for smooth connection and data sharing between material handling robots and warehouse systems. This allows for centralized monitoring and management of the robots, regardless of their physical location. As a result, organizations may increase visibility and agility in their warehouse operations, resulting in higher productivity and customer satisfaction.

Regional Analysis

Asia-pacific dominates the global market

The global material handling robot market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global material handling robot market shareholder and is estimated to grow at a CAGR of 13.3% over the forecast period. One of the primary causes for the rise is the substantial expansion of the automotive industry in Asia-Pacific. The growth is partly attributed to the increased use of technological advancements in Material handling robots to meet the growing need for modernization of industrial operations and business processes. Many regional sectors are working on automating conventional manual business operations, driving up demand for material-handling robots. The advantages of material-handling robots, such as remote monitoring, digital analytics, and self-driving cars, are increasing demand. The Asia-Pacific food and beverage business is rapidly expanding, with significant firms automating operations to save time and improve industrial efficiency. Essential food and beverage enterprises demand these material-handling robots in warehouses, driving market expansion.

Furthermore, emerging economies such as China, India, and Japan contribute significantly to the region's rapid market expansion. Since 2012, China has been a global leader in the robotics sector. According to its "Made in China 2050" goal, it aims to be the technological and automation leader by 2050. The country's burgeoning manufacturing industry and the automation of manufacturing processes are driving demand for materials handling robots. According to a September 2023 study from the International Federation of Robotics (IFR), China had a record high of 290,258 robot installations in 2022, accounting for 52% of total global installations. China will dominate the Asian market for material-handling robots in the next few years.

North America is anticipated to exhibit a CAGR of 14.0% over the forecast period due to the region's significant presence of prominent companies. Furthermore, the growth of the e-commerce sector is causing an increase in market data for Material handling robotics in the coming years. Artios states US internet sales will increase by 9.3% in 2023, totaling USD 1.137 trillion. This represents an increase from 2022, when e-commerce comprised 14.7% of total sales. Furthermore, the Material handling robots market in the United States is growing because of decreasing labor and transportation costs.

Additionally, the growing market share for Material handling robotics is driven by increased demand for innovative technologies such as the Internet of Things (IoT) and big data analytics in logistics for managing operational needs. Given the nation's manufacturing and warehousing infrastructure growth, the United States is expected to have a substantial material-handling robots market over the forecast period.

The European market is expected to rise moderately due to increased demand for an efficient, streamlined, and flexible supply chain structure to improve operations. Furthermore, government promotional actions for intelligent and automated supply chain infrastructure benefit the market.

The Middle East and Africa region is experiencing consistent expansion in this industry. Government-supported logistics and mining infrastructure projects and measures to attract foreign direct investment are helping the sector flourish.

Segmental Analysis

The global material handling robot market is segmented based on product type and industry verticals.

The market is further segmented by product type into Articulated Material Handling Robots, SCARA Material Handling Robots, and Parallel Material Handling Robots.

The articulated Material handling robot segment dominated the market; articulated robots, which have many joints, are the most popular type of material handling robot. Because of their versatility, articulated robots are commonly utilized in material handling applications. These robots contain many joints, similar to a human arm, which allow them to navigate and manipulate items in various ways.

Moreover, Articulated material-handling robots excel at reaching small areas, picking objects off shelves, and adapting to demanding work conditions. Their capacity to transport payloads across many planes makes them ideal for various industries, including manufacturing, storage, and assembly lines. The articulated form allows for precise and delicate movements, making it suitable for applications that require accuracy and versatility.

SCARA robots, on the other hand, are expected to grow at the fastest rate over the projected period. SCARA robots are noted for their ability to move quickly and precisely in the horizontal plane. These robots have two parallel joints that allow them to move in a plane, or "elbow," position. SCARA material handling robots are often used in pick-and-place operations, assembly activities, and applications requiring quick and repeatable motions within a limited workspace. Their design allows for high-speed operation while maintaining good positional accuracy. It makes them ideal for shifting components on a production line or loading and unloading items in a small workspace.

The market can further be divided by industry verticals into automotive, chemical, rubber, plastic, electrical and electronics, metal and machinery, food, beverages, and pharmaceuticals.

The automotive sector is the world's top user of industrial robots, with Material handling robots accounting for about one-third of the total. Material handling robots are widely used in the automotive sector for various applications such as assembly line activities, part transfer, and palletization. Robots are essential in automating production processes, increasing productivity, and ensuring precision in welding, painting, and handling components. Material handling robots in automotive manufacturing help to boost productivity, reduce cycle times, and improve quality control. Even though the number of material-handling robots is increasing in other industries, it is apparent that the automotive sector is still the most prominent user of material-handling robots.

Furthermore, Material-handling robots aid the electrical and electronics industries by performing activities such as assembling, testing, and packing electronic components. These robots accurately handle delicate and sophisticated things, facilitating the efficient manufacture of electronic devices. Material handling robots help to achieve the speed and accuracy needed in electronics manufacturing, meeting the industry's demand for high throughput and quality assurance.

Impact of covid-19

Due to the outbreak of the novel coronavirus earlier in 2020, the rising graph of overall industrial robots has shifted downward as many industries came to a halt during the pandemic. This halt disturbed the supply chain, thereby resulting in demand loss across the world.

The automobile industry is one of the biggest users of material handling robots. Due to the lower demand, the automobile industry faced a reduction in production. Some companies started working on half capacity. These scenarios show that the demand for material handling robots has dropped and the market witnessed a huge setback in growth. In addition, the temporary shut-down of the manufacturing industry all over the world has affected the growth of the material handling robot market, thereby reducing the demand across the globe.

Recent Developments

• February 2024- OMRON Automation introduced TM S Series Collaborative Robots with Faster Joints and Expanded Safety Features in India.
• November 2023- ForwardX Robotics, a vision-based autonomous mobile robots (AMRs) and warehousing solutions developer, unveiled the Max 1500-L Slim. The tiny equipment, designed for warehouse logistics and manufacturing operations, stands only 245mm (9.6 inches) tall and has a payload capacity of 1500kg (3,306 pounds).
• November 2023- SSA Terminals, LLC ordered 33 terminal tractors equipped with fully automated high-power Quick Charging Connector (QCC) systems.