GLOBAL AUTOMATED MATERIAL HANDLING & STORAGE SYSTEMS MARKET 2014 - 2019 Market Shares, Forecasts & Trends
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3. MARKET OVERVIEW 3.1 Current Market Scenario The Global Automated Material Handling and Storage Systems Market is poised to break into double digit growth in 2014 again after a slow 6% growth in 2013. The demand is global with increasing need for automation in a multitude of fields like pharmaceutical/healthcare, e-commerce/multichannel, fashion, retail and cosmetics. Rising labor costs and increased affordability have recently given the industry a boost. Today, AGVs play an important role in the design of new factories and warehouses as more companies recognize the technology as an efficient, dependable and versatile material handling solution The investment trend will tend to shift from a 75-25 split between manufacturing and Warehousing & Distribution to a 50-50 split by 2020. Simpler User interfaces will replace black box type technology. The market will be driven forward by increasing trade volumes thereby needing delivery times to become shorter and shorter and raising the demands on logistics. The industry in APAC and other developing economies will be driven by the incredible rise in ecommerce logistics. Investment in warehousing projects will lead to a higher need for automated systems.
3.3 Factors driving the technology 3.3.2. Increasing focus on Workplace safety
The greatest asset of any company is its workforce, an injury or death to any one person in the workforce is a direct blow on the productivity of the company and the morale of the labour. Workplace safety is about preventing injury and illness to employees and volunteers in the workplace. According to the UK Govt. Health and Safety statistics, the rates for fatal injuries at work are:
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Great Britain – (0.71 per 100 000 workers)
France (X.X per 100 000)
Germany (0.81 per 100 000)
Italy (X.X per 100 000)
Spain (X.X per 100 000).
The rates for work – related injuries are:
UK workers – (X.X%)
Portugal (X.X%)
Bulgaria (2.4%),
Germany (X.X%)
Spain (4.2%)
Poland (X.X%)
EU-27 (5.5%)
Although these rates are considerably lower than the rest of the world. They still pose a considerable threat to the workforce thereby drastically increasing the need for workplace safety. Automation is the way to do this as it considerably reduces the probability of injuries or incidents in the workplace. Automation, in the process of increasing efficiency also makes Workers move to supervisory roles where they no longer have to perform dangerous applications in hazardous settings. The Occupational Safety and Health Act of 1970 (OSHA) of the US Government has been promoting the use of automation and robotics in the factory to make work safer and protecting the physical well-being of the worker. The guidelines of the act are followed all over the world with minor modifications.
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3.4 Factors restraining the market 3.4.1 High initial investment
Automated Equipment requires high capital expenditure to invest in automation (an automated system can cost millions of dollars to design, fabricate, and install), a higher level of maintenance is needed than with a manually operated machine, and a generally lower degree of flexibility in terms of the possible products as compared with a manual system (even flexible automation is less flexible than humans, the most versatile machines of all). With the economy in flux, the materials handling equipment industry’s short term future is simply not as rosy as hoped. The company’s willing to spend more are reducing year on year. However Companies are cautious about hiring people so they are investing in existing facilities and making people more productive which is the sweet spot for this business. The bigger companies with resources might invest in new technologies but the smaller ones will sit back and see until a proven solution is known due to their inability to take risks. This is a major hindrance to the up and coming technologies in the field.
3.5 Current Opportunities in the Market
Automated Material Handling market presents a unique opportunity for vendors. Now, when there is a considerable debate over the efficiency of new products, cost savings and environmental concerns, vendors of these products are investing in research and development to make sure the new systems adhere to the norms set by government policies or industry regulations. One of such offerings is highperformance FCvelocityÂŽ 9SSL fuel cell stacks for use in the material handling market. This product being manufactured by Ballard, is used in zero-emission fuel-cell powered lift trucks which delivers economic, operational as well as environmental benefits. Growth of this market will also help allied
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industries to manufacture products which are used in assembly of automated material handling systems.
E-commerce is another such market which is yet to reach its full potential. With increasing preference of consumers for online shopping and subsequent growth in online retail market, logistics and large warehouses will become a necessity in future. This presents a significant opportunity for vendors of Automated Material Handling solutions who can target this potential; high growth market segment. Significant focus on manufacturing in developing economies like India and increasing penetration of smartphones will are also revenue generation opportunities for the vendors of automated material handling solutions.
3.7 Porter’s Five Forces 3.7.5 Competitive Rivalry within the Industry
The presence of large number of manufacturers of Automated Material Handling products increases the competition between them for market dominance. The players are continuously expanding their operations by acquisitions and focusing in research and development. Beumer, one of the market leaders in this segment expanded its footprint by acquiring EnexcoTeknologies in 2011. Similarly Swisslog, another market leader formed a joint venture with Heron Corp. for its light foods technology expansion. As the market expands further with increase in economic activity in Asia Pacific, competition will become fiercer and cost will play an important factor in determining the profitability of the players.
Competitive rivalry is high.
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5. AUTOMATED GUIDED VEHICLES SYSTEMS MARKET BREAKDOWN BY TYPE – MARKET SHARE, FORECAST
5.2 Tow Vehicles
These vehicles are the most productive form of Automated Guided Vehicles, as they can make more loads per trip than other types of AGV’s. There are also known as “Tuggers”, because they are designed to pull wheeled carts which can be loaded and unloaded with material automatically or manually. Some of the benefits of these systems are: material handling is efficiently planned and predictable, increased safety and can be operated to meet high production rates.
5.2.2 Market Share, Size and Forecast
Tow Vehicles Market Trends - ($ billion)
2014
2015
2016
2017
2018
2019
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Being one of the most efficient systems, these are in huge demand. With the present market estimate of $2.36 billion, the market for these is expected to cross $X.X billion by the end of first quarter of 2020. By the end of 2019 these systems will contribute to XX% of the Global AGV’s market.
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6. AUTOMATED STORAGE AND RETRIEVAL SYSTEMS (AS/RS) MARKET BREAKDOWN BY TYPE – MARKET SHARE, FORECAST
6.2 Mini Load AS/RS
6.2.1 Introduction
The Mini load AS/RS are designed to handle small parts, totes, trays, and cartons. These systems are capable of rapid acceleration and high-speed movement. These products are ideally suited for automatic inventory storage and retrieval in high density warehouse operations and for dynamic picking / automated replenishment in order fulfillment systems. 6.2.2 Market Share, Size and Forecast
Mordor estimates present market for Mini load AS/RS systems to be approximately $X.X billion and is expected to grow at a CAGR of X.X% to cross $X.X billion mark by the end of 2019.
Mini Load AS/RS Market Trends - ($ billion)
2014
2015
2016
2017
2018
2019
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7. AUTOMATED MATERIAL HANDLING MARKET BY INDUSTRY – MARKET SHARE, FORECAST 7.4 Retail
7.4.1 Introduction
With increasing competition in retail industry, cost-savings become paramount. Warehouse space, increasing throughput and increased forklift operator productivity are all important to maximize the efficiency and reducing the cost of handling per unit. Retail enterprises are increasingly investing material handling solutions to maximize their process efficiency whiles saving on labor costs. 7.4.2 Market Share, Size and Forecast
Retail remains one of the biggest industry for material handling solutions across the world. Growing competition across the industry is putting significant cost pressure on enterprises operating in these industries. It becomes imperative of them to invest in technology to remain competitive and ready to face uncertain economic conditions.
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Automated Material Handling Market - Retail - ($ billion)
2014
2015
2016
2017
2018
2019
The market for Automated Material Handling solutions is expected to grow at a CAGR of X.X% to cross $X.X billion by the end of 2019 from the current estimates of $X.X billion. Material Handling solutions for retail in European market is the highest growth market. The disruptive e-commerce market is changing the way enterprises operate. They are investing in logistics and warehouses to optimize their supply chain and improve their business operation. Growing consumer confidence and improving economic conditions of major countries will drive the need for investment in these solutions and making it a high growth market
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8. AUTOMATED MATERIAL HANDLING AND STORAGE SYSTEMS MARKET BY GEOGRAPHY 8.2 Europe 8.2.2 Germany 8.2.2.1 Market Share, Size and Forecast by Automated Guided Vehicles Systems
The long recessionary period has hit the industry. Uncertainties in euro zone and excessively long stretch of excessively low consumer-price growth has slowed the manufacturing industry and in turn the market for Automated Material Handling. Though the measures are being taken by the European Central Bank and German manufacturers were one of the driving factors for sustaining the euro zone economy, a slowdown in German market can have an impact on the European market on the whole. The manufacturing activity is expected to pick up in the last quarter of this year with an improving market scenario across the Euro zone, the market for automated guided vehicles is expected to perform better in future.
Germany Automated Guided Vehicles Systems Market - ($ billion)
2014
2015
2016
2017
2018
2019
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Presently, Germany is a more than $X.X billion market for automated guided vehicle systems. It is expected to become a $X.X billion market by the end of 2019 growing at a CAGR of X.X% for this period. Germany remains the biggest market in Europe for these systems as it is the biggest economy of Europe along with strong manufacturing industry which contributed XX% to its GDP for the period 20092013 (Source: World Bank).
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8.3 Asia Pacific 8.3.2 China
8.3.2.1 Market Share, Size and Forecast by Automated Guided Vehicles Systems
Manufacturing contributes to XX% of GDP to Chinese economy. Being one of the major hubs for companies around the world, China has been one of the major manufacturing destination in Asia Pacific. Government policies and low cost labor caused a tremendous growth in this sector. Though, there has been some decline in recent time, it still remains a major market for Automated Guided Vehicle systems. Investments are being planned for quality of growth, addressing environmental concerns and reducing overcapacity. This focus will enhance investments in technologies and in turn for Automated Guided Vehicle systems.
China Automated Guided Vehciles Market ($ billion)
2014
2015
2016
2017
2018
2019
The market for Automated Guided Vehicles in China is expected to grow at a CAGR of X.X% to reach $X.X billion mark by the end of 2019, from the present estimate of $X.X billion. The high growth market is an opportunity for vendors of Automated Guided Vehicles to expand their footprint apart from big markets like Europe and North America.
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9. VENDOR MARKET SHARE- AUTOMATED MATERIAL HANDLING SYSTEMS Vendor Market Share
Daifuku Kardex AG
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