Middle East and Africa Automated Material Handling and Storage Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Middle East and Africa Automated Material Handling and Storage Systems Market is Segmented by Equipment (Automated Guided Vehicle Systems (Unit Load Carriers, Tow Vehicles, Pallet Trucks, Assembly Line Vehicles, Fork Lift Vehicles, Clamp Vehicles), Automated Storage & Retrieval Systems (Unit Load AS/RS, Mini Load AS/RS, Carousel Type AS/RS, Robotic AS/RS, Tunnel Style Systems, Others), Conveyor & Sortation Systems (Belt, Pallet, Screw, Overhead, Crescent, Roller, Others), Robotic Systems (Palletizing, Pick & Place Service, Case Packing, Others)), End-User Applications (Automotive, Retail, Transportation & Logistics, Healthcare & Lifesciences, Manufacturing, Energy, Others), Type of Operation (Packaging, Assembly, Storage & Handling, Distribution, Transportation, Others), Country (UAE, Saudi Arabia, South Africa, Turkey, Israel, Others)

Market Snapshot

graph
Study Period:

2018 - 2026

Base Year:

2019

CAGR:

3.5 %

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Market Overview

The Middle East and Africa automated material handling and storage systems market is expected to grow at a CAGR of 3.5% during the forecast period.

  • The increasing number of industries and manufacturing units is expected to drive the demand for automation in the region. In April 2019, MESA Africa (Manufacturing Enterprise Solutions Association) aligned with Africa Automation Fair in order to drive the next level of industrial automation in South Africa.
  • Saudi Arabia and the UAE account for the largest regional shares of the market, as both countries are making massive investments in infrastructure to position themselves as ideal destinations for logistics and warehousing operations. Due to this, most of the international companies are planning to expand their business in the Middle East region.
  • For instance, in August 2020, Swisslog has completed the construction of a fully automated storage and retrieval system (ASRS) for Mai Dubai, a leading Dubai-based bottled drinking water company. The major expansion project has implemented a six-aisle automated high-bay warehouse for raw material and packaging materials as well as only a few hundred meters away from a high-bay warehouse with 17,560 pallet locations for finished goods with ten aisles. The project is a part of Mai Dubai’s ongoing expansion initiative and involves the implementation of a fully automated and data-driven intralogistics system that is in line with industrial revolution 4.0.
  • Moreover, Saudi and UAE are the major tourist destinations in the world and is attracting many foreign tourists for shopping. This increase in the average air traffic in the country is propelling the demand for AMH equipment in the airport end-user segment. Although the slowdown of the global oil market and restrictions on productions are likely to reduce the investments into the aviation sector, considerable recovery is expected in the next four years.
  • With the on-going COVID-19 crisis, as online orders have picked up the pace, retailers are trying to find the best and safest options to ensure a smooth last mile. The answer to this is the usage of automated storage and retrieval systems, which ensure safety and well less dependency on human beings and thus are in demand for warehouse automation, which is further increasing in order to cope with the growing demand for e-commerce solutions in the region.

Scope of the report

Automated material handling equipment and storage system is an integrated system used for material handling and storing during manufacturing, warehousing, and distribution of products. The primary objective of deploying these systems is to ensure that the right amount of the material is safely delivered to the desired destination at the right time and at minimum cost. 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 equipment and storage system.

Equipment
Automated Guided Vehicle Systems (AGV Systems)
Unit Load Carriers
Tow Vehicles
Pallet Trucks
Assembly Line Vehicles
Fork Lift Vehicles
Clamp Vehicles
Others
Automated Storage & Retrieval Systems (AS/RS)
Unit Load AS/RS
Mini Load AS/RS
Carousel Type AS/RS
Robotic AS/RS
Tunnel Style Systems
Others
Conveyor & Sortation Systems
Belt
Pallet
Screw
Overhead
Crescent
Roller
Others
Robotic Systems
Palletizing
Pick & Place Service
Case Packing
Others
End-user Application
Automotive
Retail
Transportation & Logistics
Healthcare & Lifesciences
Manufacturing
Energy
Others
Type of Operation
Packaging
Assembly
Storage & Handling
Distribution
Transportation
Others
Country
UAE
Saudi Arabia
South Africa
Turkey
Israel
Others

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Key Market Trends

Investment in Automotive Sector in Middle East and Africa is Expected to Drive the Market

  • The automotive industry in Turkey plays a major role in the manufacturing sector of the Turkish economy. The companies operating in the Turkish automotive sector are mainly confined to the Marmara Region. According to Anadolu Agency, Turkey has exported automotive subindustry products worth more than USD 5.5 billion in the first eight months of 2020.
  • Many international vendors in the market are seizing the opportunities by providing material handling and storage system for automotive manufacturers. For instance, Cimcorp has won a significant order to supply a fully automated handling system to Petlas Tire Corporation. The automation has taken care of the handling of PCR (passenger car radial) finished tires in the tire-finishing and palletizing areas.
  • As lead-acid batteries are being replaced by lithium-ion batteries, there is an increase in production volumes, as lithium-ion batteries are more suitable for AGVs and other material handling robots. The automobile part manufacturers invested significantly in lithium-ion battery factories while tracking the demand for AMH equipment in the automobile industry.
  • Moreover, in the region, automotive logistics are witnessing an increase in demand. The Jebel Ali Port in the United Arab Emirates established itself as a prime automotive logistics base, and it has a facility with space for 27,000 CEUs (car equivalent units). Currently, most vehicle transportations are import-focused. However, the market is expected to witness growth opportunities, primarily related to vehicle assembly operations.
  • In 2018, in South Africa, the automotive sector was at the heart of the national industrial base and accounted for 7% of the GDP and 30.1% of the manufacturing output. Furthermore, the performance of exports of automotive parts is expected to remain a function of the performance and direction of global markets.
  • Owing to this, automated storage and retrieval systems are expected to witness high demand due to an increase in the automobile manufacturing capacity. The Automotive Production and Development Program (APDP) enforces new aims in order to achieve local production of 1.2 million vehicles annually by 2020. This shows a robust potential for the growth of the South African automotive industry. This is increasing the demand for automatic conveyors.
REP.PNG

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Growing E-commerce in Middle East and Africa is Expected to Drive the Market

  • The Middle East is one of the fastest-growing e-commerce markets in the entire world as it has one of the youngest populations. Out of 108 million people, more than 28% of the population in the Middle East is between the ages of 15 and 29.
  • This is more prominent in specific countries, including Egypt, Iraq, Lebanon, Morocco, Oman, Tunisia, Jordan, Algeria, and Saudi Arabia, where around 20% of the total population is between the ages of 15 and 24 years. Most younger generations are shifting towards e-commerce and smartphone usage, due to which the upward trend of e-commerce is expected.
  • According to the Communications and Information Technology Commission (CITC), online shopping transactions in Saudi Arabia increased by 49.9% by volume in 2018. In physical products, the clothing, footwear, and accessories category were the most popular, followed by computers and smartphones. This indicates the increasing use of automated material handling and storage systems in this region.
  • Further, in 2020, Amazon, an e-commerce giant, has launched a website for shoppers in Saudi Arabia, showing its continued business interests. The website is a re-branding for Saudi customers of Souq.com, a Middle East e-commerce platform that it acquired in 2017. The company similarly converted Souq's website in the United Arab Emirates to a re-branded portal, amazon.ae, in order to increase its presence in the Middle East. This is expected to increase the utilization of automated material handling and storage systems, such as AGVs, in the e-commerce fulfillment centers, and the third-party warehousing sector.
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Competitive Landscape

The Middle East and Africa automated material handling equipment and storage system market is fragmented due to the presence of a large number of vendors in the market. The major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.

  • September 2020 - Hyundai Construction Equipment (Hyundia CE) received a large scale order for more than 100 forklifts, including a 3.3 ton small- to mid-sized forklifts, from Algeria. The order is attributed to the company’s strategic localized marketing campaigns given the contracted global construction equipment market due to COVID-19. Hyundai CE surpassed last year’s forklift sales in Algeria with this order.
  • April 2020 - AFEEN, Abu Dhabi Ports’ maritime service arm acquired a Post Panamax bulk carrier, making it largest vessel ever to join its inventory. The vessel will operate under the name “HAFEET” and will initially undergo an extensive conversion, prior to commencing operations. The refitting will include modern cranes and conveyor system, which, when combined with other design parameters, will render the vessel a potent and efficient transhipment platform, enabling SAFEEN to provide solid bulk cargo transhipment services.

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 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitute Products

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Impact of COVID-19 on the Market

    6. 4.6 Market Drivers

      1. 4.6.1 Established e-commerce Industry

      2. 4.6.2

    7. 4.7 Market Restraints

      1. 4.7.1 High Cost of Infrastructure set up

    8. 4.8 Technology Snapshot

  5. 5. MARKET SEGMENTATION

    1. 5.1 Equipment

      1. 5.1.1 Automated Guided Vehicle Systems (AGV Systems)

        1. 5.1.1.1 Unit Load Carriers

        2. 5.1.1.2 Tow Vehicles

        3. 5.1.1.3 Pallet Trucks

        4. 5.1.1.4 Assembly Line Vehicles

        5. 5.1.1.5 Fork Lift Vehicles

        6. 5.1.1.6 Clamp Vehicles

        7. 5.1.1.7 Others

      2. 5.1.2 Automated Storage & Retrieval Systems (AS/RS)

        1. 5.1.2.1 Unit Load AS/RS

        2. 5.1.2.2 Mini Load AS/RS

        3. 5.1.2.3 Carousel Type AS/RS

        4. 5.1.2.4 Robotic AS/RS

        5. 5.1.2.5 Tunnel Style Systems

        6. 5.1.2.6 Others

      3. 5.1.3 Conveyor & Sortation Systems

        1. 5.1.3.1 Belt

        2. 5.1.3.2 Pallet

        3. 5.1.3.3 Screw

        4. 5.1.3.4 Overhead

        5. 5.1.3.5 Crescent

        6. 5.1.3.6 Roller

        7. 5.1.3.7 Others

      4. 5.1.4 Robotic Systems

        1. 5.1.4.1 Palletizing

        2. 5.1.4.2 Pick & Place Service

        3. 5.1.4.3 Case Packing

        4. 5.1.4.4 Others

    2. 5.2 End-user Application

      1. 5.2.1 Automotive

      2. 5.2.2 Retail

      3. 5.2.3 Transportation & Logistics

      4. 5.2.4 Healthcare & Lifesciences

      5. 5.2.5 Manufacturing

      6. 5.2.6 Energy

      7. 5.2.7 Others

    3. 5.3 Type of Operation

      1. 5.3.1 Packaging

      2. 5.3.2 Assembly

      3. 5.3.3 Storage & Handling

      4. 5.3.4 Distribution

      5. 5.3.5 Transportation

      6. 5.3.6 Others

    4. 5.4 Country

      1. 5.4.1 UAE

      2. 5.4.2 Saudi Arabia

      3. 5.4.3 South Africa

      4. 5.4.4 Turkey

      5. 5.4.5 Israel

      6. 5.4.6 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Swisslog Holdings AG

      2. 6.1.2 Murata Machinery USA, Inc.

      3. 6.1.3 Beumer Group

      4. 6.1.4 Dematic Group

      5. 6.1.5 Mecalux S.A

      6. 6.1.6 Kardex AG

      7. 6.1.7 Toyota Material Handling

      8. 6.1.8 Coesia Middle East DMCC (Flexlink)

      9. 6.1.9 SSI Schaefer

      10. 6.1.10 PCM ME (FZC)

    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 and Storage Systems Market market is studied from 2018 - 2026.

The MEA AMH and Storage Systems Market is growing at a CAGR of 3.5% over the next 5 years.

  • Murata Machinery Ltd
  • BEUMER Group GmbH & Co. KG
  • Swisslog Holdings AG
  • Dematic Group
  • Mecalux S.A.

Are the major companies operating in MEA AMH and Storage Systems Market.

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