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New Revenue Pockets - Automated Material Handling Market in Manufacturing
Automated material handling is an integrated system which involves activities such as handling, storing, and controlling material during manufacturing, distribution, consumption, and disposal. Automated material handling systems are required in manufacturing plants due to the increased pressure on cost reduction and the growing competition. This, in turn, has increased the demand for material handling automation.
The boom in factory automation has transformed the automated material handling systems. Automated material handling plays a significant role in manufacturing facilities, notably by eliminating human labor which in turn reduces labor cost and increases the productivity of the manufacturing plant. Moreover, it reduces the damage to materials during storage and movement, maximizes space utilization, minimizes accident during material handling, and reduces overall cost through efficient material handling.
The automated material handling is used by many industry players worldwide. Europe holds the largest market share for AMH in manufacturing and this trend is expected to continue during the period between 2015 and 2020. North America is the second-largest market for AMH in manufacturing, while APAC is expected to grow at the highest CAGR between 2015 and 2020. Europe, North America, and Asia-Pacific are the key revenue pockets in the AMH market in manufacturing.
The APAC is a key growing region in the AMH market in manufacturing. It is expected to grow at a CAGR of 10.27% between 2015 and 2020. Large-scale installations of automated material handling systems in the emerging economies of APAC are propelling the growth of the AMH market in manufacturing in this region. Further in the APAC region, the government is greatly emphasizing safety and security on the production floor, which can be best supported by the implementation of automated material handling. Moreover, implementation of AMH requires less human labor; material can be transported safely and within the defined duration to the required destination. APAC represents a huge opportunity for new installations of AMH systems as companies have now started realizing the benefits of automation in material handling.
Europe and North America have established a value chain for the automated material handling and the major players in the industry are involved in new product launches, acquisitions, R&D investments and product gradation. These activities are expected to enable them to sustain their market leadership in the AMH market in manufacturing. Hence, North America, Europe, and APAC hold a high potential in terms of growth in the AMH market in manufacturing.
Automated Material Handling Market in Manufacturing by Product (AGV, AS/RS, Automated Crane, Robotic System), System Type, Operation, Application (Automotive, Chemical, Food & Beverages, Healthcare, Metal Manufacturing), and Region - Forecast to 2020
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