Material Handling Integration Market Size & Share, by Component (Hardware, Software, Services); Application (Assembly, Conveyance, Transportation, Packaging); Industry Vertical (Retail & E-commerce, Healthcare, Automotive, Transportation & Logistics, Food & Beverages, Manufacturing) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6004
  • Published Date: Apr 11, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Material Handling Integration Market size is anticipated to reach USD 60 Billion by the end of 2036, growing at a CAGR of 8.6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of material handling integration was over USD 41 Billion. A significant catalyst for adopting material handling integration systems is the growing global adoption of e-commerce. For instance, in 2022, global retail e-commerce sales exceeded USD 5.7 trillion. In 2026, this sum is expected to rise by 43%. Demand for effective material handling systems is rising with millions of products imported every day worldwide. These systems are widely used by industry leaders to improve operational efficiency in an intensely competitive market for electronic commerce. Furthermore, by optimizing the flow of materials, minimizing delays, and reducing errors contribute to improved operating efficiency.

Moreover, integration of material handling is essential in a wide range of sectors, including manufacturing, logistics, retail, and healthcare. It improves the efficiency of production, minimizes interruptions, and enables accurate time inventory control for manufacturing. In logistics, it allows smooth movement and tracking of goods, shorten transit times and improves visibility across the supply chain. Integration of material handling enables efficient order fulfillment, mitigates out-of-stock situations, and increases customer satisfaction in the retail sector.

Material Handling Integration Market
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Material Handling Integration Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Integration of Automation and Industry 4.0 - The growing adoption of automation and Industry 4.0 practices in different sectors is a reason for this growth. Integrated material handling solutions are becoming increasingly important as businesses move towards smarter production. As per a report, at the top of the list is the Internet of Things (IoT), which almost 72% of respondents said would have the greatest influence on industry 4.0 technology in their company. In line with the principles of Industry 4.0, these systems play an essential role in optimizing processes, ensuring seamless coordination, and enhancing efficiency. Furthermore, the market is experiencing strong growth, driven by demand from industry for advanced solutions to remain competitive in the era of automated and interconnected production, which leads to increased investment and innovation.
  • Increased Adoption of Autonomous Mobile Robots (AMRs) - Manufacturers have been given more hope by the growth in demand for food & grocery products delivery and supply. In addition, massive automation is needed to cope with the growth of e-commerce as well as online shopping promotion. Therefore, automated guided robots, forklifts, and other material handling tools are gradually being integrated into their operations by e.g. online retailers such as Amazon, Walmart, Flipkart, and others that operate in this sector. This increased complexity is helping e-commerce retailers to deliver more precise, secure, and cost-effective deliveries with reduced labor resources. In addition, a major influence on the development of the market for material handling equipment is the improvement of the manufacturing sector.
  • Growing Implementation of Warehouse Automation - The benefits of material handling integration solutions, such as integrated inventory management software and automated storage and retrieval systems (AS/RS), which enable warehouses to address labor- and demand-management-related challenges, such as shorter delivery times and increased efficiency, are also expected to hasten the adoption of warehouse automation. Following the epidemic, scalable procedures using material handling integration technology were established by warehouses to manage erratic demand. The effectiveness and flexibility of the technologies enable warehouses to manage spikes in order demand.


  • Higher Upfront Costs - Given the high initial costs associated with the implementation of integrated systems, the market for material handling integration is facing a challenge. Significant upfront costs may be incurred to acquire and install modern technology, automation equipment, or integrated solutions. Despite the long-term benefits, this financing barrier may discourage certain businesses, particularly smaller ones, from taking advantage of material handling integration and thus hinder market growth.
  • Complexity Associated with Incorporation may Hinder Market Growth
  • Unwanted Equipment Outages Result in Lost Output and Financial Losses which may Impede the Market Growth

Material Handling Integration Market: Key Insights

Base Year


Forecast Year



~ 8.6%

Base Year Market Size (2023)

 ~ USD 41 Billion

Forecast Year Market Size (2036)

 ~ USD 60 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Material Handling Integration Segmentation

Component (Hardware, Software, Services)

Hardware segment for the material handling integration market is expected to hold a share of 50% during the forecast period. Increasing demand for advanced technologies that help improve efficiency and automation has led to an expansion of the market. To optimize the handling of materials, such as conveyor systems, robotic arms, and automatic storage and retrieval systems, companies need strong hardware solutions. The adoption of these components is supported by the need to improve productivity, simplify operations, and make it possible to deal with a wide range of goods, placing them at the core of integration strategies for material handling. Furthermore, for material handling and the introduction of new products, market players provide hardware solutions such as automatic guided vehicles or AMRs. For instance, ResGreen Group International, Inc., a provider of software solutions and next-generation mobile robots, unveiled its bidirectional BigBuddy, one of the most reliable AGVs available in the material handling integration market, which moves loads up to 5,000 pounds using magnetic tape.

Industry Vertical (Retail & E-commerce, Healthcare, Automotive, Transportation & Logistics, Food & Beverages, Manufacturing)

The retail & e-commerce segment in the material handling integration market is anticipated to account for 34% of the revenue share by 2036. Due to the necessity of streamlining and efficient logistics, this segment will continue to grow. Sophisticated systems that are capable of handling the increased volume of orders with precision will be needed to cope with this increase in online shopping. Order fulfillment is expedited, errors are decreased, and warehouse operations are optimized through material handling integration, which combines automation, robotics, and data-driven technology. As per a report, by 2022, warehouse productivity is projected to increase by 27% due to the integration of automation and robotics. To satisfy consumer expectations for quick deliveries, the retail and e-commerce industries implement integrated solutions. This improves overall operational agility and customer happiness in the ever-changing world of online commerce.

Our in-depth analysis of the global material handling integration market includes the following segments:


  • Hardware
  • Software
  • Services


  • Assembly
  • Conveyance
  • Transportation
  • Packaging

     Industry Vertical

  • Retail & E-commerce
  • Healthcare
  • Automotive
  • Transportation & Logistics
  • Food & Beverages
  • Manufacturing

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Material Handling Integration Industry - Regional Synopsis

APAC Market Statistics

The material handling integration market in Asia Pacific is poised to hold a share of 37% during the foreseen period. The growth is due to growing industrialization, increasing e-commerce activities, and an emphasis on technology development. For instance, the two nations with the fastest-growing e-commerce markets, India and the Philippines, are predicted to have increases in online sales of more than 25%. Demand for effective supply chain solutions has risen as a result of the region's rapidly developing economy, leading to increased use of material handling integration techniques. The deployment of integrated systems, including automation and robotics, will become an important factor as enterprises strive to improve productivity and efficiency. Strategic alignment with modernization objectives is reflected in the dynamism of the Asian Pacific material handling integration market, which has triggered unprecedented growth.

North American Market Statistics

North American material handling integration market is projected to account for 26% by the end of 2036. North America is characterized by a highly technological region, with many tech companies active and more people using the internet and smartphones than anywhere else. A large number of solution providers specialized in the integration of material handling systems are also present in the region. By investing in R&D to boost innovation, governments are active in promoting the development of this region, especially in the United States and Canada.

Research Nester
Material Handling Integration Market Size
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Companies Dominating the Material Handling Integration Landscape

    • Fives Intralogistics Corporation ("Fives")
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Tompkins Solutions
    • ABB Ltd.
    • Honeywell International Inc.
    • KION Group
    • TGW Logistics Group
    • SSI Schaefer Group
    • Knapp AG
    • FORTNA Inc.
    • Swisslog Holding AG

In the News

  • Leading supply chain consultancy and material handling integration company, Tompkins Solutions announced a strategic alliance with Softeon, a global supplier of cutting-edge supply chain software. Through this partnership, enterprises will be able to increase order fulfillment and address operational issues by utilizing modern warehouse execution systems (WES), warehouse control systems (WCS), and warehouse management systems (WMS) solutions.
  • The world-renowned leader in supply chain facility transformation, Fives Intralogistics Corporation ("Fives"), announced that it has partnered with Freespace Robotics, a trailblazing producer of robotic storage and retrieval systems for supply chain, logistics, and material handling operations across the globe, to further expand its capabilities in Automated Storage and Retrieval (AS/RS). By exchanging technological know-how and a thorough grasp of market and customer demands, both companies will solidify their positions as major players in the warehouse automation space and work together on opportunities in industries like retail, warehousing, and defense logistics.

Author Credits:  Rushikesh, Richa Gupta

  • Report ID: 6004
  • Published Date: Apr 11, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing integration of automation & Industry 4.0, increased adoption of Autonomous Mobile Robots (AMRs), and growing implementation of warehouse automation are the major factors driving the growth of the material handling integration market.

The market size of material handling integration is anticipated to attain a CAGR of 8.6% over the forecast period, i.e., 2024-2036.

The major players in the market are Fives Intralogistics Corporation ("Fives"), Tompkins Solutions, ABB Ltd., Honeywell International Inc., KION Group, TGW Logistics Group, SSI Schaefer Group, Knapp AG, FORTNA Inc., Swisslog Holding AG, and others.

The hardware segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Material Handling Integration Market Report Scope

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