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

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.

Market Snapshot

Middle East and Africa Automated Material Handling and Storage Systems Market
Study Period: 2019- 2026
Base Year: 2021
CAGR: 11.2 %

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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 11.2% during the forecast period.COVID-19 had a negative impact on the AMH equipment market, resulting in lower AMH equipment shipments and revenue. Furthermore, consumer demand has decreased as people are now more focused on removing non-essential expenses from their budgets since the general economic situation of most people has been severely impacted by the outbreak. The revenue trajectory of the Automated Material Handling Equipment And Systems market is likely to be hampered by the factors mentioned above.

  • 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 are 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 production are likely to reduce the investments in the aviation sector, considerable recovery is expected in the next four years.
  • Small and medium-sized businesses (SMEs) play an essential role in a region's economic development. SMEs offer big companies crucial raw materials and components. As a result, material handling activities play a crucial part in these SMEs' supply chains. The significant upfront cost of deploying AMH technology, on the other hand, prevents SMEs from fully automating their supply chain activities.

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 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 and 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 Uludağ Automotive Industries Exporters, the Turkish automotive industry’s exports jumped by 40% in March 2021.
  • Many international vendors are seizing the opportunities by providing material handling and storage systems 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 lithium-ion batteries are replacing lead-acid 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.
  • Owing to this, automated storage and retrieval systems are expected to witness high demand due to an increase in automobile manufacturing capacity. The Automotive Production and Development Program (APDP) enforces new aims 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.
Middle East and Africa Automated Material Handling and Storage Systems Market

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.
  • As online shoppers' preferences for customized and personalized product orders grow, eCommerce enterprises find it increasingly challenging to fulfill complex orders using manual processes. Customers also want these customized purchases to be delivered at low prices and at the same time as standard orders. Because of the growing popularity of customized orders, manufacturers and warehouse operators have been compelled to improve the efficiency and speed of their picking and sorting processes to achieve economic success.
  • Additionally, because of the extra complexity, manual processing of bespoke orders increases the risk of errors. Robotic pickers, ASRS, AGV, automated sorters, and conveyor systems are examples of AMH systems that can help handle customized orders more quickly while also lowering the error rate. Amazon and JD.com, two e-commerce behemoths, have lately declared plans to expand their business in the country. They're joined by a host of Middle Eastern firms providing specific solutions for navigating Saudi Arabia's still-developing market.
  • 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, 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.
Middle East and Africa Automated Material Handling and Storage Systems Market

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.

  • March 2021: Swisslog has seen significant demand from the e-commerce industry, in addition to protecting vital supply chains for customers in the food and beverage, retail, and pharmaceutical industries. Swisslog, as one of the top AutoStore integrators, has received several requests from businesses in this area, which is presently under increased stress as a result of the pandemic. SynQ software is included in all new purchases, allowing Swisslog customers to increase their business performance through digital and robotic operations.
  • From Algeria, September 2020 - Hyundai Construction Equipment (Hyundai CE) received a large-scale order for more than 100 forklifts, including 3.3 ton small- to mid-sized forklifts. 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.

Recent Developments

  • June 2021: In response to the tremendous surge of demand from omnichannel and D2C operators, BEUMER Group, one of the leading global suppliers of automated material handling systems, has unveiled its own unique BG Pouch System. This advanced technology adds a pouch sortation solution to BEUMER Group's warehouse and distribution portfolio, meeting the ever-increasing demands of today's modern fulfillment and distribution operations. The BG Pouch System was created to alleviate the unprecedented strain to achieve financial and logistical efficiency in the demanding e-commerce industry. It seamlessly integrates with BEUMER Group's existing end-to-end integration solutions to address intralogistics challenges.
  • February 2021: Autostore AS and Kardex Holding AG have signed a global collaboration agreement. AutoStore is a high-performance, space-saving storage and picking solution that uses autonomous robots to process small parts orders quickly. The technology, which has been in use for several years and has been very successful in the market, complements Kardex's product and service offerings, notably in the field of comprehensive order fulfillment solutions.

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 Assessment of the Impact of COVID-19 on the Market

    6. 4.6 Market Drivers

      1. 4.6.1 Established e-commerce Industry

    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 and 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 Middle East and Africa AMH and Storage Systems Market market is studied from 2019 - 2026.

The Middle East and Africa AMH and Storage Systems Market is growing at a CAGR of 11.2% 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 Middle East and Africa AMH and Storage Systems Market.

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