Automated Material Handling Systems (AMHS) Market to Reach $53.5 Billion by 2027 -Exclusive Report Covering Pre and Post COVID-19 Market Analysis by Meticulous Research®


London, Dec. 04, 2020 (GLOBE NEWSWIRE) — According to a new market research report titled, “Automated Material Handling Systems Market by Type (ASRS, AGV, and Robotic Systems), Component, Function, Industry (Automotive, Healthcare, Food, Semiconductor, Manufacturing, Retail, Warehousing, Logistics, Aviation, and Postal)—Global Forecast to 2027″, the automated material handling systems market is expected to grow at a CAGR of 5.8% from 2020 to 2027 to reach $53.5 billion by 2027.

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Increasing deployments of automated material handling equipment for warehouse automation, rising investments in automation, increased focus on Industry 4.0, the rapidly growing e-commerce sector, favorable government initiatives and increasing investments to support digital infrastructure, rising need to reduce labor costs, and consistent technological advancements are the key factors driving the growth of the automated material handling systems (AMHS) market. Moreover, increasing industrialization, rising safety concerns, the growing popularity of automated systems among SMEs, and growing strategic partnerships among advanced technology providers and automated material handling equipment manufacturers to strengthen their product portfolios and positions in the global market are expected to propel the growth of the automated material handling systems market over the next few years. However, the high initial cost of deploying robotic systems and lack of proficient personnel, particularly in developing countries, may restraint the growth of this market marginally.

The Impact of COVID-19 on the Automated Material Handling Systems Market

The COVID-19 crisis has significantly affected the global economy in the first half of 2020. The global pandemic caused sudden disruptions in the global supply chains, driving distribution centers to adopt remote operations and observe social distancing during work processes. The outbreak has created various obstacles in the growth of the AMHS market, such as a slowdown in production and plants and factories being forced to function at reduced capacities. The coronavirus has had a major impact on some industries, including automotive, owing to the plummeting demand. According to the German Automotive Industry Association (VDA), in 2020, the number of new cases in Europe decreased by 43% compared to last year.

Companies are planning to increase automation investments owing to the impact of the COVID-19 outbreak. According to the 2020 Honeywell Intelligrated Automation Investment Study, more than half of the companies in the U.S. are increasingly open to investing in automation to survive changing market conditions brought about by the coronavirus pandemic. The industries that are most willing to invest more in automation are e-commerce (60%), grocery, food & beverage (59%), and logistics (55%). Moreover, three of the most widely implemented solutions expected to receive further investments are warehouse execution software, order picking technology, and robotic solutions.

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In the first half of 2020, many leading players performed well despite the tense market environment resulting from the global COVID-19 pandemic. For instance, in the first half of 2020, Dematic (KION Group), a leading supplier of integrated automated technology, software, and services, recorded a revenue increase of 0.3%; whereas, in the first quarter of 2020, Swisslog Holding AG, a part of the KUKA group, registered a revenue increase of 3.7%. The impact of the pandemic will eventually subside due to factors such as the growth of e-commerce, the move to local manufacturing, the growing need for automation across several industries, and the desire to reduce dependency on human labor. Thus, the demand for AMHS …

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