Market Trends of MEA AMH Industry
This section covers the major market trends shaping the MEA Automated Material Handling Market according to our research experts:
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.
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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.
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