LA AMH Market Size

Latin America AMH Market Analysis

The Latin America automated material handling market is expected to grow at a CAGR of 5.4% over the forecast period (2021-2026).

• Latin America is economically expanding, is resourceful, and demographically buoyant. Thus, it is a promising market for automation. The burgeoning population of the upper and middle classes in the region is expected to increase automation adoption. However, primarily due to a rapid increase in labor costs, many business models are likely to change.
• The delivery of a return on investment (ROI) from automation is generally fast in Brazil. ROI of 2-4 years is achievable, which is less as compared to other emerging countries. Decreasing operating costs and radically reducing inefficiencies in the processes by implementing automation are playing major roles in the adoption of automation in the country. Picking and pallet handling are the major areas in which many gains can be achieved with the help of automation technologies.
• The region has witnessed an increasing investment in e-commerce. For instance, the region witnessed the establishment of several new distribution centers in Argentina, Brazil, and Mexico post the investment of USD 750 million and USD 100 million by PayPal and Dragoneer in Argentina-based e-commerce giant, MercadoLibre.
• Besides, Brazil is expected to account for the most considerable retail e-commerce revenue in the region, with a value of USD 17.35 billion, at a slightly constant rate over the forecast period.
• The Covid-19 pandemic has ushered several companies to incorporate Material Handling products to minimize human interaction on the floor. Thus, to tap into this demand, in July 2021, Eastman Machine Company appointed CMP Trading of São José dos Campos (São Paulo), Brazil, to represent its line of automated cutting systems, material handling equipment, and design software.