North America Automated Material Handling Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The North America Automated Material Handling Market is segmented by Product Type (Hardware, Software, Service), by Equipment Type (AS/RS(Fixed Aisle, Carousals, Vertical Lift Modules), Mobile Robots(AGV, Autonomous Mobile Robots, Laser Guided Vehicles), Automated Conveyor (Belt, Roller, Pallet, Overhead), Palletizer (Conventional, Robotic), Sortation System), End-user Vertical (Airport, Automotive, Food and Beverage, Retail/Warehousing/DC/Logistic Center, General Manufacturing, Pharmaceutical, Post and Parcel), and by Country.

Market Snapshot

North America Automated Material Handling market overview
Study Period: 2019- 2026
Base Year: 2020
CAGR: 7.73 %

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Market Overview

The North America Automated Material Handling market was valued at USD 9862.34 million in 2020 and is anticipated to witness a CAGR of 7.73% over the forecast period (2021 - 2026).

  • The United States is one of the largest and most developed markets for automated material handling (AMH) solutions globally. The strong economy, with substantial port traffic, increased e-commerce activity, and critical manufacturing indices, results in significant growth in manufacturing, and it is poised to drive the demand for AMH in the country.
  • Sectors, including retail, automotive, food and beverage, and pharmaceutical, are the largest sources of demand for automated material handling solutions in the country. Food and beverage is the largest industry and represents more than 35% of US packaging shipments annually.
  • Additionally, owing to low vacancy and a surge in the rental prices of warehouses, enterprises are progressively looking for smaller places to rent out for warehouse purposes. In order to optimize the productivity of these narrow spaces, they are expected to deploy more automated solutions soon.
  • Moreover, the e-commerce logistics costs in the United States account for over 6.9% of the total US logistics costs. The importance of the last mile in the supply chain will never be lost; however, manufacturers realize that there is no last-mile without the first. Applying the proper material handling technology produces measurable cost savings while bringing an immediate ROI.
  • The covid-19 pandemic revolutionized the material handling industry due to social distancing norms. A study from Cornell University showed that as many as 31% of employees were laid-off-post covid to implement automated material handling infrastructure in the industries.

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 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.

By Product Type
Hardware
Software
Services
By 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
By End-user Vertical
Airport
Automotive
Food and Beverage
Retail/Warehousing/ Distribution Centers/Logistic Centers
General Manufacturing
Pharmaceuticals
Post and Parcel
Other End Users
By Country
United States
Canada

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Key Market Trends

Retail/Warehousing/Logistics to Hold Significant Share

  • E-commerce is a significant driving factor for the demand from automated distribution warehouses, as consumers seek ever-shorter delivery times. According to Trading Economics, customer spending in the United States grew to USD 13,410.42 billion in the fourth quarter of 2019, from USD 13,353.12 billion in the third quarter of 2019. According to the US Census Bureau, the US retail sales rose by 0.3% in January 2020, hitting a record of USD 3.68 trillion in 2018, according to data from the National Retail Federation, driving almost 70% of the economic growth in 2020.
  • Despite growth in the manufacturing industry, there is a considerable demand from the warehousing and logistics sector dedicated to e-commerce activity in the country. The Canadian warehouse portfolio majorly comprises e-commerce, and it is estimated to make up more than 50% of the warehouse business in the country.
  • In the Canadian retail industry, rising labor costs, waning employee productivity, and the need for building more immense distribution centers to accommodate the increasing number of items being sold in its supermarkets are expected to drive the demand for automated material handling solutions.
  • Even with such high activities in the e-commerce and warehousing segment, more than 80% of the warehouses are still operated manually. A mere 15% of all the warehouse establishments in the country are mechanized, and only 5% are estimated to be completely automated. With the extended benefits, like the potential to cut costs, increase efficiency, and provision for new services, autonomous mobile robots (AMR) are slowly being adopted by various developed and developing countries in the forecast period.
North America Automated Material Handling market trends

United States to Hold Major Share

  • The United States is the most advanced economies in the world. The country’s manufacturing sector, which is a huge source of demand for the AMH market, hinges on the dominant US economy, accounting for 82% of the region’s economic output.
  • The country has a high trading profile and a highly active e-commerce sector, which increases the demand for warehouse space.
  • Moreover, the North American airport industry is one of the largest airport industries in the world. It provides services to about 1,011.5 million domestic and international passengers every year. It is also home to some of the world’s biggest airports and is expected to bolster the adoption of automation to ensure no disruptions in the business model.
  • For instance, Crisplant, a foremost global supplier of automated baggage handling systems, designed, manufactured, and installed fully automated baggage handling systems, integrated with the security screening equipment deployed by the Canadian Air Transport Security Authority (CATSA), in Canada’s Halifax International Airport.
North America Automated Material Handling market growth

Competitive Landscape

The North American automated material handling market is moderately fragmented and highly competitive. 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 intense competition.

  • January 2021 - MHS Holdings, Inc., a leading global provider of advanced material handling automation solutions, engineering, equipment, and software, acquired TGW Systems, Inc.’s U.S. conveyor business unit.
  • January 2021 - Leadec acquired Diversified Automation, an automation controls and software solution provider. With this acquisition, Leadec expanded its portfolio into parcel automation and strengthened its existing operations in North America.

Recent Developments

  • July 2021 - Zebra Technologies, a provider of enterprise data capture, mobile computing, and visibility solutions, announced to acquire Fetch Robotics, a provider of autonomous mobile robots (AMRs).
  • March 2021 - Cimcorp, a manufacturer and integrator of turnkey robotic order fulfillment and tire handling solutions, announces the successful implementation of a robotic Layer Pick solution to third-party logistics (3PL) provider GEODIS at its warehouse located in Clayton, Indiana.

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 advancments 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 By Product Type

      1. 5.1.1 Hardware

      2. 5.1.2 Software

      3. 5.1.3 Services

    2. 5.2 By 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 By 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 By Country

      1. 5.4.1 United States

      2. 5.4.2 Canada

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Dematic Corp.

      2. 6.1.2 Bastian Solutions Inc.

      3. 6.1.3 DMW&H

      4. 6.1.4 Westfalia Technologies Inc.

      5. 6.1.5 Premier Tech Chronos

      6. 6.1.6 Cornerstone Automation Systems LLC

      7. 6.1.7 Oceaneering International Inc.

      8. 6.1.8 Aethon Inc.

      9. 6.1.9 OPUS Automation Inc.

      10. 6.1.10 Creative Automation Inc.

      11. 6.1.11 Remtec Automation

      12. 6.1.12 Shuttleworth LLC

      13. 6.1.13 Siggins

      14. 6.1.14 Honeywell Intelligrated

      15. 6.1.15 JBT Corporation

    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 North America Automated Material Handling Market market is studied from 2019 - 2026.

The North America Automated Material Handling Market is growing at a CAGR of 7.73% over the next 5 years.

Dematic Corp., Premier Tech Chronos, Oceaneering International Inc., John Bean Technologies Corporation, Honeywell Intelligrated are the major companies operating in North America Automated Material Handling Market.

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