Material Handling Equipment (MHE)

Global Market Outlook on Material Handling Equipment

MARKET OVERVIEW

Global Market Size: $22.05 billion (2022)

Global Market Growth rate: 3.8 percent (2020–2024)

• APAC will continue to dominate the market, in terms of growth prospects, which is expected to grow at 3–4 percent annually until 2024

• Shift of market focus from product to service has been witnessed as an emerging trend in all the major regions to optimize buyer’s total cost of ownership

Global Material Handling Equipment (MHE) Market Maturity

• Key trend, which is expected to influence MHE would be the automation of mines. Both mining and construction customers are increasingly looking to optimize their cost due to fluctuating commodity demand.

MHE Market Overview : Global

• Global material handling equipment is expected to grow at a CAGR of 3–4 percent until 2024, driven by increasing demand from emerging countries such as India, Indonesia, China, and other Southeast Asia

• Sustainability initiatives adopted by miners, owing to volatility in the commodity prices, coupled with rising environmental concerns, are expected to be major demand drivers

• Belts and accessories used for conveyors constitute around 23 percent of the $21.17 billion global material handling equipment market share. Accessories include belts, rollers, structures, pulleys, scrapers, conveyor drives and skirting

• Increasing mineral output growth rate coupled with expected increase in exploration activity and automation of mines could further drive the demand for mine material handling equipment

Global MHE Drivers and Constraints

Drivers

Commodity Demand/Price

• Commodity demand is a result of the global economic situation. The average commodity price is expected to increase during 2023,after witnessing a downtrend during H2 2022.

Automation of Mines

• Decline in the commodity prices and fluctuations in the demand has forced the mining companies to go for automations of mines in order to improve their profit margin and cost savings which will result in increasing adoption of MHE in mines.

Constraints

Mining Industry Slowdown

• Reduction in mineral output from mines and closure of high cost mining operations due to current mining industry slow down is adversely impacting mine material handling equipment demand

Non-mining Sectors

• Shutdown of thermal power plants around the globe and sluggish demand from other sectors such as infrastructure had driven down the demand for material handling equipment in the recent years.

Cost Structure Analysis : Material Handling Equipment

• HRC ,Nickel and Rubber are the key raw materials in manufacturing of MHE . It accounts for more than 60 percent of the total manufacturing cost globally

• HRC prices rubber prices have become highly volatile owing to shortage of labor, weather related supply and low capacity utilization

• In order to mitigate price fluctuation, end user should enter in short to medium-term contracts for replacement parts

• Raw material is the key cost driver that constitutes ~70–80 percent of the production cost

• Based on demand, end-use industries should have short-medium term contracts with MHE manufacturers to avoid the price fluctuation risk.

Why You Should Buy This Report

This MHE industry report provides information on the global and regional levels. It lists out the key performance indicators (KPI) and drivers and constraints for the material handling equipment market. It provides Porter’s five forces analysis of the global MHE industry and the SWOT analysis of major players such as Sandvik, FLSmidth, Metso, etc. Further, the material handling equipment market report lists out the best industry practices and new innovations, the cost structure breakdown, price trend and price driver analysis.