Middle East and Africa Automated Material Handling Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Middle East and Africa Automated Material Handling Market is segmented by Product Type ( Hardware, Software, Services), By Equipment Type (Mobile Robots (Automated Guided Vehicles, Autonomous Mobile Robots, Laser Guided Vehicles), Automated Storage and Retrieval System (Fixed Aisle, Carousel, Vertical Lift Module), Automated Conveyors (Belt, Roller, Pallet, Overhead), Palletizers (Conventional, Robotic), Sortation System), End-user Vertical (Airport, Automotive, Food and Beverage, Retail, Warehousing/Distribution Centers/Logistics Centers, General Manufacturing, Pharmaceutical, Post and Parcel), and Country.

Market Snapshot

Middle East and Africa Automated Material Handling Market
Study Period: 2019- 2026
Base Year: 2021
CAGR: 4.5 %

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Market Overview

The Middle East & Africa Automated Material Handling Market was valued at USD 1483.4 million in 2020 and is expected to reach USD 1885.8 million by 2026 and grow at a CAGR of 4.5% over the forecast period (2021 - 2026).

  • The growing demand for reducing operational costs significantly and boosting efficiency in the warehouses has supported the deployment of automated material handling systems and robots in the region. For instance, AutoStore uses robots and bins to process small parts orders quickly and provides better use of available space than any other automated system in the market.
  • According to Swisslog Middle East, several companies in the UAE and globally have benefitted immensely from logistics automation. There is an increasing demand for automated logistics solutions in industries ranging from e-commerce and retail to F&B and pharma in the Middle East.
  • Improvements in intra-Africa trade may also ease business in South Africa, by reducing the costs and time required to move goods and services within countries and across borders. With the increasing interest of the government and local players to develop the local market, global players like DHL are experimenting. Over the forecast period, the country is expected to draw more logistics players into the market, increasing the demand for AMH solutions in the country.
  • Automation is a crucial driver for the full spectrum of industries, including e-commerce. According to the Dubai Chamber of Commerce and Industry report, the UAE retail e-commerce market reached USD 3.9 billion in 2020, representing 53% YOY driven by the Covid-19-led digital shift, while e-commerce accounted for an 8% share of the retail market during the same year.

Scope of the Report

Automated material handling equipment eliminates the need for human interference in a material handling process. Continuous rise in demand for automation with the advent of technologies such as robotics, wireless technologies, and driverless vehicles in different industries like food and beverages, retail, general manufacturing, pharmaceuticals, and post & parcel has revolutionized the adoption of automated material handling the equipment. Type of equipment such as AS/RS, AGV, conveyor, palletizer, and sortation systems are considered under the scope of the market.

Product Type
Hardware
Software
Services
Equipment Type
Mobile Robots
Automated Guided Vehicle (AGV)
Automated Forklift
Automated Tow/Tractor/Tug
Unit Load
Assembly Line
Special Purpose
Autonomous Mobile Robots (AMR)
Laser Guided Vehicle
Automated Storage and Retrieval System (ASRS)
Fixed Aisle (Stacker Crane + Shuttle System)
Carousel (Horizontal Carousel + Vertical Carousel)
Vertical Lift Module
Automated Conveyor
Belt
Roller
Pallet
Overhead
Palletizer
Conventional (High Level + Low Level)
Robotic
Sortation System
End-user Vertical
Airport
Automotive
Food and Beverage
Retail/Warehousing/ Distribution Centers/Logistic Centers
General Manufacturing
Pharmaceuticals
Post and Parcel
Other End Users
Country
South Africa
UAE
Saudi Arabia
Isreal

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Key Market Trends

Retail Sector to Witness Significant Growth

  • The retail sector is one of the most significant contributors to the demand for automated material handling (AMH) solutions in the Middle East & African region. Almost 25% of the revenue obtained for AMH in the region was sourced from this sector.
  • The growth of the retail segment in the region was primarily governed by two factors, rapid growth in the e-commerce segment and increasing investments in tourism and hospitality services.
  • As most Middle Eastern countries depend on the oil and gas sector, they are taking the necessary steps to increase their non-oil revenue streams. This trend is evident in Saudi Arabia and the United Arab Emirates, which are investing heavily in special economic zones for the manufacturing sector and tourism development.
  • Companies like IHG, Marriott, Accor Hotels, and Hilton are continuously expanding, as the investments in tourism are fetching more international tourists. In the e-commerce sector, with increasing demand from countries outside GCC, the GCC countries are evolving as redistributors. This increases the number of warehouse establishments in the region, leading to growth in demand for automated material handling (AMH) equipment.
Middle East & Africa Automated Material Handling Market

South Africa to Hold Major Share

  • South Africa is the largest economy in the African continent. The GDP value of South Africa represented nearly 0.6% of the world economy and was valued more than USD 370 billion in 2020.
  • Although Africa has surplus trade overseas, intra-African trade remains low. The adoption of more open policies and investments in infrastructure by the African countries is expected to build momentum for intra-African trade, strengthening the local distribution channels.
  • With its well-built logistics networks in the region, South Africa is a promising platform for the e-commerce industry. More than 50% of the population in the country is estimated to have internet access, which accounts for around 83 million online shoppers in the region. Tourism is another primary driver for the increase in the demand for AMH equipment in the region, with its impact on the surrounding retail and food and beverage establishments.
  • As the food and beverage industry is the country's largest consumer of AMH equipment, automated conveyors are the top-grossing equipment type. Many special purpose conveyors suitable for sustaining severe temperatures without contaminating the product are key efficiency factors to many food processing units in the country.
Middle East & Africa Automated Material Handling Market

Competitive Landscape

The Middle East & Africa automated material handling market is consolidated and moderately competitive in nature. Product launches, high expense on research and development, partnerships and acquisitions, etc., are the prime growth strategies adopted by the companies in the country to sustain the growing competition.

  • November 2020 - UAE-based warehouse automation major ACME Intralog is set to embark on a major expansion both within and outside the Middle East region and has decided to invest AED 30 million over the next two years to beef up its research and development and manufacturing facilities in the UAE.

Recent Developments

  • January 2021 - Dematic announces the completion of a new automated distribution center for the Landmark Group in Dubai, UAE, allowing the multinational retailer to consolidate the logistics activities for part of its five existing manual distribution sites.
  • September 2021 - Spimaco, a leading pharmaceutical production, and storage facility in Qassim, Saudi Arabia, partnered with Germany-based Lodige Industries, a manufacturer of material handling solutions, to modernize the operation. The company decided to augment the existing facility with the addition of an automated high-bay distribution and storage center.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Impact of Covid-19 on the Market

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing technological advancements aiding market growth

      2. 4.3.2 Industry 4.0 investments driving the demand for automation and material handling

      3. 4.3.3 Rapid growth of e-commerce

    4. 4.4 Market Restraints

      1. 4.4.1 High Initial Costs

      2. 4.4.2 Unavailability for skilled workforce

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Hardware

      2. 5.1.2 Software

      3. 5.1.3 Services

    2. 5.2 Equipment Type

      1. 5.2.1 Mobile Robots

        1. 5.2.1.1 Automated Guided Vehicle (AGV)

          1. 5.2.1.1.1 Automated Forklift

          2. 5.2.1.1.2 Automated Tow/Tractor/Tug

          3. 5.2.1.1.3 Unit Load

          4. 5.2.1.1.4 Assembly Line

          5. 5.2.1.1.5 Special Purpose

        2. 5.2.1.2 Autonomous Mobile Robots (AMR)

        3. 5.2.1.3 Laser Guided Vehicle

      2. 5.2.2 Automated Storage and Retrieval System (ASRS)

        1. 5.2.2.1 Fixed Aisle (Stacker Crane + Shuttle System)

        2. 5.2.2.2 Carousel (Horizontal Carousel + Vertical Carousel)

        3. 5.2.2.3 Vertical Lift Module

      3. 5.2.3 Automated Conveyor

        1. 5.2.3.1 Belt

        2. 5.2.3.2 Roller

        3. 5.2.3.3 Pallet

        4. 5.2.3.4 Overhead

      4. 5.2.4 Palletizer

        1. 5.2.4.1 Conventional (High Level + Low Level)

        2. 5.2.4.2 Robotic

      5. 5.2.5 Sortation System

    3. 5.3 End-user Vertical

      1. 5.3.1 Airport

      2. 5.3.2 Automotive

      3. 5.3.3 Food and Beverage

      4. 5.3.4 Retail/Warehousing/ Distribution Centers/Logistic Centers

      5. 5.3.5 General Manufacturing

      6. 5.3.6 Pharmaceuticals

      7. 5.3.7 Post and Parcel

      8. 5.3.8 Other End Users

    4. 5.4 Country

      1. 5.4.1 South Africa

      2. 5.4.2 UAE

      3. 5.4.3 Saudi Arabia

      4. 5.4.4 Isreal

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 FlexLink Systems Inc.

      2. 6.1.2 Swisslog Middle East LLC

      3. 6.1.3 Famco

      4. 6.1.4 Dematic Corporation

      5. 6.1.5 Stor-Mat Systems LLC

      6. 6.1.6 Interroll Group

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The MEA AMH Market market is studied from 2019 - 2026.

The MEA AMH Market is growing at a CAGR of 4.5% over the next 5 years.

FlexLink Systems Inc., Swisslog Middle East LLC, Famco, Interroll Group, Dematic Corporation are the major companies operating in MEA AMH Market.

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