The global market for Material Handling Equipment (MHE) is projected to reach US$200 billion by 2027, driven by the strong emphasis on production and operational efficiency and worker safety, says a latest report from Global Market Insights Inc.
The market will witness growth with increasing number of industrial facilities modernising their infrastructure to boost productivity. Industries are employing sophisticated machines to increase throughput by speeding up the process of material movement.
The concept of 'last-mile' is widely popularised in supply chain management and transportation planning for its ability to increase customer satisfaction and profitability. Automation, optimisation and delivery route planning are therefore vital strategies adopted by companies to improve their last-mile performance. Of equal importance are the 'first-mile' operations involving indoor material handling on the plant floor. Raw material being the primary and most importance element in manufacturing needs to move through multiple stages of production and final packaging in a smooth and seamless manner to prevent logistical bottlenecks in production.
Not to question, timely handling of materials is important to ensure that right materials in right quantities are delivered to the right locations at the right time. Automation of material handling processes also has the benefit of making the workplace safer. Automation helps eliminate accidents and occupational safety issues associated with manual labor contributing towards better worker safety, health, wellness, and reduced company expenditure on employee insurance and compensation. The importance of the financial savings that can accrue from ensuring conformance to safety regulations cannot be undermined especially against the backdrop where legislations are becoming stringent and exceedingly punitive.
Trends, Drivers to Market Growth
Growing popularity of same day deliveries for e-commerce fulfillment as a service differentiator is also strengthening the business case for mechanised and automated handling of materials. One major trend in the market is recent and dramatic expansion in the development of robots for use in warehouses, predominantly those serving the rapidly growing e-commerce industry. At present, many companies in the USA, Europe and Asia stand strong to exploit this huge opportunity and now manufacture automated material handling equipment for use in warehouse and logistic operations across the globe.
The increasing popularity of customised orders has propelled the manufacturers and warehouse operators to increase the efficiency and speed of their picking and sorting processes to achieve business success. Also, the manual processing of customised orders increases the probability of errors due to the added complexity. Automated material handling (AMH) systems such as robotic pickers, ASRS, AGV, automated sorters, and conveyor systems can help handle the customised orders at a faster rate, along with reducing the error rate to a great extent.
According to the report, major driver in global AMH equipment market is constantly growing demand for automated material handling equipment as companies derive more and more worth from cost-cutting and labour-reduction. As sensor technologies advance and the capability to harness and investigate big data becomes more feasible in real time, the limits of operational efficiency in manufacturing, processing, material handling and logistics industries will continue to be pushed.
Also driving growth in the market is continuous technology developments and the resulting launch of sophisticated equipment with high levels of safety and well-researched ergonomics; and automation features that improve throughput and efficiencies. There is an increasing demand for industrial trucks that enable to transfer heavy goods easily and efficiently. There is a high demand for automated guided vehicles (AGVs) as they carry loads along the facility floor without the need of a driver or an onboard operator. They are operated using an integrated system of hardware and software components. Advancements in the sensor industry will fuel the R&D associated with AGVs. As they do not require personnel for operation, they significantly reduce the labor costs. There will also be an increasing demand for side loaders that carry long loads in the wood and steel industries.
Other noteworthy trends include healthy demand for alternatives such as electric tugs and manual stackers given the high risk of employee accidents and fatalities related to manually operated forklifts; and rising investments in robotics research and development and launch of new equipment with smart capabilities.
Underlying challenges
In 2020, COVID-19 had a negative effect on the AMH equipment market, resulting in decreased shipments of AMH equipment and the revenues generated from them. As a result, a drop was witnessed in the growth trend of the market during the first half of 2020. This trend is expected to discontinue in the latter half of the year as the demand is expected to increase due to the growing concern for material handling.
The COVID-19 pandemic has substantially impacted the value chain of the AMH equipment market. The US, China, India, South Korea, and Japan, which have been adversely affected by the pandemic, account for a significant share of the global AMH equipment manufacturing. The automotive, aviation, and metal & heavy machinery industries are witnessing a low demand, which is expected to continue for the short term due to the global slowdown and declining purchasing power.
APAC to lead AMH equipment market
Asia Pacific is expected to be the fastest-growing market for AMH equipment. Rising awareness related to warehouse automation, increasing emphasis of leading economies such as China and Japan on robotics and automation, and the growing e-commerce industry are some of the primary factors contributing to the high growth rate of APAC. The rapid growth of automotive, ecommerce, food & beverages, and healthcare industries in emerging economies, such as China and Japan, has contributed to the growth of the AMH equipment market in APAC.
Moreover, governments in APAC countries are increasingly emphasising safety on production floors, which can be best achieved by the implementation of AMH equipment. The market is witnessing rapid growth in countries such as China and Japan, owing to increasing investments by manufacturers and suppliers in the installation of such equipment at warehouses and distribution centers.
In fact, China ranks as the fastest growing market with a CAGR of 7.3% over the analysis period supported by factors such as increase in new warehouse establishments against the backdrop of improving global trade and domestic consumption; developing internet infrastructure and the resulting increase in e-commerce and urban logistics; and the Made in China (MIC) 2025 initiative that aims to bring the country's massive manufacturing and production sector into the forefront of global technology competitiveness.
Geographically, APAC accounted for the largest market share of more than 35% revenue in global automated material handling equipment market. Growing manufacturing units in countries like China, Japan and also India will augment the application of such equipment over the next few years. The Asia Pacific region is projected to grow at a CAGR of around +10% during the forecast period. On the other hand, Europe is closely followed by the APAC, which occupied about 28% of the market share owing to presence of big automotive industry players and huge automobile production in the region.
Going forward, the expanding 3PL industry globally will boost the adoption of material handling equipment in warehouses and distribution centers. As online retailing has gained traction, several companies are leveraging the benefits of third-party logistics (3PL) providers to cater to the increasing consumer demands. This will encourage 3PLs to modernise their warehouses and storage facilities to ensure on-time and fast delivery of shipments. AMH equipment enables them to efficiently load/unload products from transportation trucks, store products at large heights in racks, and move products easily throughout the facility through constrained spaces.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
Building a visionary company requires one percent vision and 99 percent alignment. This analogy resonates deeply when we compare the process of building a company to conducting a symphony orchestra. Just as a conductor leads musicians to create a harmonious masterpiece, a successful business and its management fosters alignment among team members to achieve extraordinary success. In the business world, this vision translates into a clear understanding of where the company wants to go and what it aspires to achieve. The one percent of vision acts as the guiding force that sets the stage for greatness. However, a conductor alone cannot create a symphony. The true magic lies in the collective effort of the musicians, each playing their part to perfection. Similarly, in a visionary company, alignment becomes paramount. Every team member needs to be facing in the right direction, equipped with the right skills, and focused on delivering the right results at the right time. By fostering alignment, harnessing the diverse talents within the team, and continuously fine-tuning performance, savvy teams and visionary leaders carry the potential to transform their companies into harmonious and successful organisations that resonate with greatness. Embracing the power of alignment, inspiring teams with a clear vision, and actively cultivating an environment where every member can contribute their unique talents, RE Rogers India has over the years formed an indispensable pillar of business triumph. Most recently, the company orchestrated a symphony of success handling over 300 events in the fiscal year 2023. Four of these were mammoth events taking place in four different cities at around the same time frame. And these were not merely gatherings, they were milestones. The four gigantic events (CPHI and PMEC 2023 – 28 to 30 November at India Expo Centre, Noida; ENGIMACH 2023 – 6 to 10 December at Helipad Exhibition Centre, Gandhinagar, Gujarat; EXCON 2023 – 12 to 16 December at Bangalore International Exhibition Centre, Bengaluru; PLASTIVISION 2023 – 7 to 11 December at Bombay Exhibition Centre, Mumbai) entailed approximately 650 on-ground manpower, 4300 packages, 370 equipment display, and 3600 vehicles. The symphony of greatness bubbled up in RE Rogers India's operational procedures and functions, and the teams and management leadership soared to create a masterpiece of lasting success as always. "To our heroes who faced the challenges head-on in handling their jobs with total finesse, and to our valuable customers who trusted us blindly during our busiest period pan-India: A HUGE THANK YOU!," the RE Rogers India team was quoted expressing in a LinkedIn post. As the demand for large-scale events and exhibitions continues to rise, the need for comprehensive and reliable exhibition logistics services has never been more critical. In India, where the exhibition industry thrives, one name stands out among the rest — RE Rogers India — who have been delivering unparalleled logistical solutions tailored to the unique demands of the exhibition sector. RE Rogers India have years of first-hand, specialist experience in handling every aspect of exhibitions, ranging from freight forwarding, transportation, customs formalities, secure handling of materials, on-time delivery and site assistance and supervision. Remember that logistics is not just about getting your materials from point A to point B; it’s about ensuring a seamless and stress-free experience for everyone involved in your exhibition, from exhibitors to attendees. So, if you partner with RE Rogers India, you’re not just hiring a logistics company; you’re bringing a dedicated and reliable team on board to ensure your exhibition materials reach their destination in perfect condition and on time. Having served a variety of clients from both the domestic and international arena, the company has developed deep understanding of the unique challenges of delivering time-critical goods in the face of huge crowds, open day pressure, and complex logistical requirements. RE Rogers India fully understands the value of complete exhibition sets in terms of the clients’ reputation and market standing, ranging from trade show booths, exhibits, and other equipment, which include wooden panels, steel frames, prefabricated designs, bunk houses, E-houses, printed material, lights, electronic items and other display resources. The company therefore takes utmost care to pay close attention to critical things like packing, loading, storing, lifting, etc. so as to eliminate any chance of damage. Due diligence is also exercised in choosing optimum and fastest mode of transport to enable the materials to reach the venue well in time, so as to facilitate timely set-up by the clients team at the venue. Post-exhibition, pick-up and delivery back to the shipper is also handled. With RE Rogers India as your esteemed logistics partner, you can focus on wowing your audience and making the most of your exhibition experience. Under the astute leadership of Ravinder Sethi, RE Rogers India is not just reaching new heights; it is setting successive benchmarks. With the innate ability to see through the intricacies and a commitment to perfection down to the minutest detail, Sethi has steered the company towards a trajectory of unparalleled success. His visionary approach complemented by the team's meticulous attention to excellence have become the driving force behind RE Rogers' ascent in the events and exhibition logistics sector. The collective efforts of Sethi and his entire team continue to sculpt a legacy of precision and excellence in the world of logistics that remains exciting, challenging and rewarding.
A significant milestone has been achieved in the Indo-Bangla railway project with the inauguration of the inaugural freight train connecting Bangladesh's Gangasagar to Tripura's Nischintanpur. This momentous event marks a significant step forward in strengthening the rail connectivity between the two neighboring countries. The new railway connection is set to enhance trade and commerce between India and Bangladesh, providing a more efficient and cost-effective mode of transportation for goods. It will not only boost bilateral trade but also promote economic development in the region by opening up new opportunities for businesses and industries. The Indo-Bangla railway project is part of a broader effort to improve connectivity and foster closer ties between the two nations. It is expected to play a vital role in facilitating the movement of goods and passengers, ultimately contributing to the economic growth and prosperity of both countries.
The past decade has been a transformative period for the Indian logistics sector, characterised by a blend of challenges and growth opportunities. Key milestones such as the formal recognition of logistics as infrastructure, the implementation of GST, and disruptions from COVID-19 have reshaped the industry landscape. During this time, technology adoption surged, sustainability became a focal point, and the sector prioritised agility and resilience. As a result, new business models emerged, and the sector registered a growth rate of 8%-9%. Throughout this period of growth, logistics companies have created significant value for their customers by offering innovative solutions, improving efficiency, and providing exceptional service experiences. However, the process of capturing and capitalising on this value is complex, requiring long-term investment and strategic focus. Companies typically follow one of two paths: competitive pricing or superior customer value. Yet, only a few have successfully extracted profits and solidified their competitive position, while others have faced decline. On a broader scale, while the logistics sector has made substantial progress in innovation, infrastructure, and technology, its financial returns and profitability have often fallen short of expectations. The challenge lies in the varied performance of subsegments such as express delivery, e-commerce logistics, and contract logistics. Each of these subsegments faces distinct challenges, influenced by factors such as market demand, regulatory policies, technological integration, and investment levels, leading to diverse outcomes across the sector. India's transportation sector is predominantly road-based, with nearly two-thirds of the market share. Among road logistics, Full Truck Load (FTL) remains highly fragmented, with a minimal presence of organised players. While the market has nearly doubled over the last decade, along with technology adoption in fleet and transport management, startups like Blackbuck have made attempts to drive the sector toward organisation, but no significant breakthroughs have emerged. As a result, FTL has struggled to create substantial value for customers, and profitability within the segment has remained stagnant. The second major segment in road logistics is Part Truck Load (PTL) services, where organised players have made gradual improvements. Companies like VRL and V-Trans India have established a national presence, supported by relevant infrastructure and technology. These organised players have delivered tangible value to customers, improving profitability alongside revenue growth through a cost-conscious approach. Rail logistics, on the other hand, has created significant value in specific subsegments, such as container train operators, private rail operators, and car carriers. While Indian Railways remains the primary infrastructure provider, private players like Adani, DP World, Gateway Distriparks, and Pristine have experienced profitable growth over the past decade. E-commerce logistics has been the most hyped segment in the last ten years. While e-commerce logistics started gaining traction in 2010, it exploded in 2014 with technological advancements and the emergence of new-age companies. This segment has grown into a US$6 billion market, creating immense value by reducing transit times, improving customer service, and offering tech-driven solutions. However, as these differentiators become industry standards, the rate of value creation has slowed. Despite significant investments to achieve profitability, most e-commerce companies are still either EBITDA-negative or marginally positive. While they have made strides in reducing losses, profitability remains below industry benchmarks. The express logistics segment, largely controlled by organised players, has also experienced incremental improvements in service offerings and customer service. Despite challenges such as declining document volumes, slow air cargo growth, and cost pressures, express logistics has achieved double-digit growth. However, the segment has failed to create significant new value, as many differentiators have now become standard offerings. This inability to create and capture value raises concerns for the future of express logistics. In contrast, the contract logistics segment has benefited from complex global supply chains and the post-GST momentum, providing significant opportunities for value creation through optimisation. Organised players, with their advanced solutions, technology, and automation, have been able to capture substantial value in this segment. Overall, while the logistics industry has created value across most of its segments, the ability to capture this value has been suboptimal. Factors such as technological advancements, sustainability trends, and evolving customer expectations will continue to influence value creation. However, value capture will hinge on effective pricing strategies, market positioning, and operational scalability. In the future, a balance between continuous innovation and profitability will be essential for long-term success in the logistics industry. Author: Vikash Khatri, Founder, Aviral Consulting
The Indian Railways has unveiled an innovative new look for the Vande Bharat goods carrier, designed to enhance efficiency in freight transport across the nation. This state-of-the-art freight train features advanced technology and modern design, aimed at reducing transit times and improving the overall supply chain network. Equipped with upgraded features, the Vande Bharat goods carrier can transport a wide variety of goods, ensuring a more reliable and faster delivery system. The initiative is part of a broader strategy to modernise India's logistics infrastructure and promote the use of railways for cargo movement, which is essential for sustainable economic growth. This new freight carrier will not only help in decongesting road transport but also contribute to reducing carbon emissions, aligning with the government's commitment to environmental sustainability. With its introduction, Indian Railways aims to enhance cargo capacity and operational efficiency, providing a significant boost to the logistics sector. As the demand for efficient logistics solutions continues to rise, the Vande Bharat goods carrier is poised to play a crucial role in shaping the future of freight transportation in India.
The Zero Emission Port Alliance (ZEPA) has recently announced the onboarding of 11 key organisations from the container port industry. Notable members include APM Terminals (APMT), CATL, DP World, Kempower, Patrick Terminals, Port of Aarhus, Port of Rotterdam, Rocsys, Sany, SSA Marine, and ZPMC. These members are united in their commitment to accelerate the adoption of Battery-Electric Container Handling Equipment (BE-CHE). ZEPA aims to significantly advance port decarbonisation efforts, making BE-CHE both affordable and accessible within the next decade. In recent months, ZEPA has conducted working sessions, initial analyses, and held its first formal Steering Committee during the TOC Europe conference on June 11. The Steering Committee, which met at TOC Europe in Rotterdam, emphasized the importance of their collective membership in reducing emissions and achieving Total Cost of Ownership parity for battery-electric equipment compared to diesel. Industry leaders underscored that rapid change is achievable through cross-value chain collaboration. ZEPA's initiatives are meticulously designed and implemented in compliance with anti-trust and competition laws, with oversight from external legal counsel to ensure transparency and legality. Sahar Rashidbeigi, Global Head of Decarbonisation at APMT, reflected on ZEPA’s progress: “Reflecting on our journey, it is incredible to see how far we have come since defining the problem at last year’s TOC Europe conference. From the ‘tipping point’ White Paper nine months ago to launching ZEPA with DP World in December during COP28, and now onboarding 11 key members across the value chain, our progress highlights that we are addressing a valuable problem that resonates across the industry, and it affirms our conviction that collaboration is essential to tackle it effectively.” ZEPA's collective effort marks a pivotal step in the pursuit of sustainable and zero-emission port operations, showcasing the power of industry-wide cooperation in combating climate change.
Ekart introduced a new ‘Refinish Service’ to tackle the challenges of returns management in the fashion and lifestyle sector. This innovative service enables retailers to refurbish over 90 percent of returned inventory, helping brands mitigate losses and maximise revenue potential. The Refinish Service is designed for direct-to-consumer (D2C), e-commerce, and retail players in the fashion and lifestyle segments. It also caters to other industries, including footwear, handbags, accessories, and home and decor products such as curtains, bed sheets, and blankets. With a combined processing capacity of 55,000 units daily, Ekart employs best-in-class machinery and energy-conserving technologies. The refinishing process at Ekart's facilities involves rigorous quality checks, stain removal, box replacement, ironing, stitching (if needed), and final quality control to ensure the finesse of refurbished products. Mani Bhushan, Chief Business Officer of Ekart, commented, “By harnessing cutting-edge technology and sustainable practices, the refinishing service empowers brands to optimise their supply chains and drive positive change on a broader scale. The service sets a new standard for returns management, demonstrating our commitment to innovation, efficiency, and sustainability.” Ekart operates Refinish centers across major demand clusters in India, including Gurgaon, Mumbai, Bangalore, and Kolkata. These strategically located centers facilitate swift return processing and reduce transport costs for brands. The facilities are equipped with advanced machinery, including up-steam tables, steam vacuum tables, and industry-leading foam finishers, ensuring thorough and efficient processing of returned inventory. Ekart's Refinish Service marks a significant step forward in returns management, offering a sustainable and efficient solution that benefits both retailers and the environment.
