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APAC Automated Material Handling & Storage Systems Market Analysis

The Asia Pacific Automated Material Handling And Storage Systems Market size is estimated at USD 26.11 billion in 2024, and is expected to reach USD 49.40 billion by 2029, growing at a CAGR of 13.60% during the forecast period (2024-2029).

With the rapid growth in stock-keeping units (SKUs), wholesalers and distributors are finding it difficult to make informed decisions about operations. This dilemma underscores the pressing need for more efficient labor, equipment, and technology utilization. Key factors driving the need for automated material-handling systems include cost savings, enhanced labor efficiency, and space optimization.

The market landscape is witnessing a surge in product variety and a demand for more frequent, smaller deliveries. Automated distribution operations can significantly boost an organization's order accuracy, often by several percentage points. The Asia-Pacific market’s growth is propelled by urbanization, surging e-commerce sales, and a robust technology provider presence. These providers are intensifying their R&D efforts to offer cutting-edge solutions and maintain a competitive edge.

Asia-Pacific has cemented its position as a global e-commerce powerhouse. This status has been bolstered by the region's expanding retail e-commerce, driven by a burgeoning middle-income group in countries like China, India, and Indonesia, coupled with a fondness for mobile devices. Notably, China commands a staggering 40% share of global retail e-commerce sales. In several Asia-Pacific nations, the availability of warehouse land is dwindling, prompting a shift toward multi-story facilities and taller, narrower aisles. These adaptations are poised to fuel the demand for advanced material handling systems.

Material handling has witnessed a profound evolution over the past seven decades, with machines and robots increasingly replacing individual workers. This transformation has not only reshaped the industry but also fueled the growth of enterprises, notably in the automotive industry, which has seen a tenfold expansion. Countries like India are significantly investing in material handling equipment, with the MHE market, as per the Wisconsin Economic Development Corporation, capturing around 13% of the country's construction equipment industry. Southeast Asian nations, including Thailand, the Philippines, and Vietnam, are witnessing a surge in manufacturing establishments, bolstering employment and, subsequently, disposable incomes. This rise in income, coupled with a growing awareness of international brands, is spurring demand for local warehouses.

Indonesia stands out as a nation swiftly embracing automation, with a notable uptick in robotic usage for industrial applications. Given Japan's dual role as both a supplier and a consumer, Indonesia stands to benefit from heightened trade activities, further propelling the region's automation demand.

The global industrial landscape faced significant disruptions due to the COVID-19 pandemic and ensuing lockdowns. These disruptions spanned supply chain challenges, raw material shortages, labor scarcities, fluctuating prices, and shipping bottlenecks, all of which threatened to inflate production costs and exceed budgets.

APAC Automated Material Handling & Storage Systems Market Trends

Assembly Line Segment to Witness Significant Growth in the Market

APAC Automated Material Handling & Storage Systems Industry Segmentation

Automated material handling equipment streamlines operations by reducing human intervention. The growing appetite for automation, bolstered by advancements in robotics, wireless tech, and autonomous vehicles, has reshaped industries spanning food and beverages, retail, manufacturing, pharmaceuticals, and logistics.

The Asia-Pacific automated material handling and storage systems market is segmented by product type (hardware, software, services), by equipment type (mobile robots (automated guided vehicles (automated forklift, automated tow/tractor/tug, unit load, assembly line, special purpose), autonomous mobile robots), automated storage and retrieval systems (fixed aisle, carousel, vertical lift module), automated conveyors (belt, roller, pallet, overhead), palletizer (conventional, robotic), sortation system), end-user industry (airport, automotive, food and beverage, retail/warehousing/distribution centers/logistics centers, general manufacturing, pharmaceuticals, post and parcel, electronics and semiconductor manufacturing, other end-user industries), and country. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.