NA AMH and Storage Systems Market Size

North America AMH & Storage Systems Market Analysis

The North America Automated Material Handling and Storage Systems Market is expected to register a CAGR of 8.2% over the forecast period from 2021 - 2026. The growth in e-commerce during the pandemic led to a demand for automated solutions. According to a report by Adobe's e-commerce division (March 2021), the pandemic boosted online shopping in the country by USD 183 billion. The figure represents the increase in online shopping during March 2020, when COVID-19 was reported in the United States through February 2021. During this time, US consumers spent a total of USD 844 billion online. Meanwhile, USD 813 billion was spent during 2020 alone, increased by 42% over 2019. This created significant opportunities for the market.

• Vendors of material handling solutions gradually veered toward the modern approach of helping end-users focus on their operations' space and time utility by manufacturing flexible systems that can seamlessly integrate with other systems as part of the overall material handling plan. Also, automated guided vehicles and AS/RS have emerged as the most dynamic material handling equipment and storage systems solutions and are mainly deployed in warehouses, distribution centers, and airports.
• Further, various partnerships are witnessing in the North American Market. For instance, In February 2021, Best Buy, a prominent US-based consumer electronics store, announced redesigning its regional distribution centers in partnership with Bastian Solutions. The project included integrating automated storage and retrieval technology, conveyor, and warehouse execution software to serve each facility best. The association has assisted Best Buy in offering next-day delivery and managing large inbound shipments effectively.
• The focus on Industry 4.0 across different end-user industries in the region also presents new opportunities for the market. According to the 2021 Industry 4.0 survey by the BDO United States, almost 50% of the manufacturers anticipate their digital investments may lead to revenue increases in the next 12 months. Also, 43% of the respondents have deployed robotic process automation (RPA), while 47% plan to deploy it in the future. Some of the crucial aspects for improving the supply chain include customer order cycle (19%), total delivery cost (18%), performance to plan (18%), and inventory turnover (16%).
• Additionally, the increasing labor rates in the region are also developing the need for new technologies that help reduce the dependency on laborers for material handling. According to Statistics Canada, Labour costs per unit of output of Canadian businesses increased by 2.7% in the second quarter of 2021, following slight increases in the previous two quarters. The more rapid growth in unit labor costs primarily reflects the rebound in the average compensation per hour worked (+3.2%), following three-quarters of the decline.