The global material handling services market was valued at around USD 26 billion in 2016 and is expected to surpass USD 37 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on material handling services for the period 2017-2021. This market study enlists the major drivers and key emerging trends that will influence the growth of the material handling services market during the forecast period. Some of the top vendors listed in this industry analysis include Daifuku, SSI SCHÄFER, KION Group, Murata Machinery, and Vanderlande Industries.
In terms of geographical analysis, North Americas is the largest shareholder in the global market, with a market share of around 31%. The rise in lucrativeness of the market and emergence of business opportunities will fuel the development of the North American market.
According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The increasing use of advanced software-based solutions will help in the growth of the material handling services market. These software solutions allow buyers and suppliers to monitor and use data collected from the connected systems. The use of advanced software-based solutions such as WMS, MES, and WCS that turns the isolated material handling systems into connected interfaces will boost the demand for these services in the global market.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Growth of the manufacturing sector
The increasing number of manufacturing activities in emerging economies across the world due to factors such as low production cost of both labor and materials and trade policies that promote manufacturing will help in the growth of the market. The growth in this sector is boosting the demand for material handling services that focus on increasing the performance of the equipment and reduce the associated operating costs. The rise in manufacturing activities in South America, APAC, and MEA is promoted by the availability of low-cost labor and political and economic factors that encourage FDI in manufacturing.
High level of innovation in the industry
The rising use of advance solutions to cater to the efficiency and performance related requirements from end-user industries will help in the development of the material handling services industry. The vendors in the market are focusing on innovations in the industry that will drive the demand for material handling solutions and services. Some of the technology introduced in the market include digital picking systems that facilitate automatic picking of materials, voice-directed picking systems, AGVs that operate with or without rails, and WCS interfaced with WMS.
Growth of online retailing
The exponential growth of online retailing is encouraging buyers to adopt solutions such as advanced sorting and picking systems. These solutions facilitate accurate delivery of products, with customers focusing on the same day shipment and delivery of the products ordered through online channels. Moreover, the suppliers are focusing on providing optimal distribution solutions that enable quick supply of products.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Material Handling Services Market – Procurement Market Intelligence Report 2017-2021.’
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