GITNUXREPORT 2025

Supply Chain In The Material Handling Industry Statistics

Material handling industry grows with automation, e-commerce, safety, and efficiency.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

The e-commerce sector drives over 50% of new material handling equipment sales

Statistic 2

Direct-to-consumer supply chains experienced a 150% increase in demand for material handling solutions during 2020

Statistic 3

The growth of online grocery delivery has increased demand for specialized material handling equipment, with a growth rate of 18% annually

Statistic 4

The global material handling equipment market was valued at approximately $35 billion in 2020

Statistic 5

The global pallet truck market size was valued at $2.1 billion in 2021

Statistic 6

The use of smart sensors in supply chains is expected to grow at a CAGR of 25% through 2026

Statistic 7

The material handling equipment market is projected to reach $67 billion by 2027

Statistic 8

The largest segment in material handling equipment is forklifts, accounting for about 35% of the market share

Statistic 9

The adoption of robotics in warehouses has increased by 40% annually over the past five years

Statistic 10

Approximately 60% of warehouses are planning to increase their automation investments in the next two years

Statistic 11

The U.S. material handling equipment market was valued at $16 billion in 2021

Statistic 12

The global demand for conveyor systems is expected to grow at a CAGR of 4.2% until 2028

Statistic 13

The use of drones in supply chain inspection is projected to grow at a CAGR of 20% through 2025

Statistic 14

The global forklift truck market is expected to reach $18 billion by 2026

Statistic 15

The demand for electric forklifts is growing at a CAGR of 7% due to environmental concerns

Statistic 16

The global mobile shelving market for warehouses is projected to grow at 5% annually till 2025

Statistic 17

The use of simulation software for logistics planning has increased by 45% in the past three years

Statistic 18

The global consumables in material handling consumables market is projected to reach $4.5 billion by 2025

Statistic 19

The global growth of the pallet racking market is expected to reach $12 billion by 2028

Statistic 20

The average lifespan of warehouse forklifts is approximately 10 years, after which replacement is typically considered

Statistic 21

The total market value of conveyor systems is projected to reach $8 billion by 2025

Statistic 22

The automation investment in supply chain logistics increased by over 30% from 2020 to 2022

Statistic 23

The market share of electric forklifts is expected to reach 40% by 2030, driven by sustainability goals

Statistic 24

The global market for modular conveyor belts is estimated to reach $1.5 billion by 2025

Statistic 25

The use of alternative energy sources in material handling equipment is projected to grow at 12% CAGR through 2027

Statistic 26

Supply chain traceability solutions have increased in adoption by 35% over the past four years

Statistic 27

The material handling industry is forecasted to grow at a compound annual growth rate of 4.5% from 2022 to 2028

Statistic 28

The leading regions for material handling equipment investments are North America, Europe, and Asia-Pacific, with North America holding the largest share

Statistic 29

The global market for compact forklifts is expected to reach $3 billion by 2025

Statistic 30

The global industry for automated guided carts is projected to reach $1.2 billion by 2027

Statistic 31

78% of supply chains are implementing or planning to implement AI for logistics optimization

Statistic 32

65% of logistics companies are investing in data analytics for supply chain visibility

Statistic 33

The adoption of cycle counting methods in inventory management can improve accuracy levels to over 99%

Statistic 34

50% of supply chain disruptions in 2022 were caused by transportation failures

Statistic 35

90% of supply chain professionals see improving supply chain resiliency as a top priority

Statistic 36

The use of predictive analytics in supply chain management can forecast demand with up to 85% accuracy

Statistic 37

Over 60% of supply chain disruptions in 2023 were caused by cyberattacks

Statistic 38

80% of warehouses are investing in warehouse management system (WMS) upgrades

Statistic 39

Over 55% of supply chain companies plan to adopt blockchain technology for tracking and transparency by 2025

Statistic 40

The use of pressure-sensitive adhesives in pallets and containers can improve stability and reduce product damage by 15%

Statistic 41

Warehouse layout optimization software can increase storage capacity by up to 25%

Statistic 42

The average cost reduction from implementing lean principles in material handling is approximately 12%

Statistic 43

Approximately 65% of supply chain executives cite data security concerns as a barrier to adopting new digital solutions

Statistic 44

Smart warehouses utilizing IoT technologies report a 15% reduction in energy consumption annually

Statistic 45

The global industry is aiming to reduce carbon emissions by 20% through optimized logistics and handling processes

Statistic 46

75% of logistics companies view sustainability as a critical driver for investing in new material handling technologies

Statistic 47

The growth in urbanization has led to a 22% increase in demand for compact and modular material handling equipment

Statistic 48

Warehouse automation can reduce labor costs by up to 70%

Statistic 49

85% of supply chain managers believe automation improves safety

Statistic 50

Automated guided vehicles (AGVs) can increase warehouse productivity by up to 50%

Statistic 51

Inventory accuracy can improve by up to 30% through the use of RFID tagging in material handling

Statistic 52

The cost of damage during transportation is reduced by 20-30% through enhanced cushioning and handling equipment

Statistic 53

More than 70% of warehouses operate with real-time inventory tracking systems

Statistic 54

E-commerce fulfillment centers see a 25% increase in throughput when utilizing automation

Statistic 55

The integration of IoT devices in material handling equipment can reduce downtime by up to 15%

Statistic 56

About 40% of warehouses plan to upgrade existing material handling systems in the next year

Statistic 57

Automated storage and retrieval systems (AS/RS) can increase picking efficiency by up to 50%

Statistic 58

Material handling robots can operate continuously for over 16 hours without fatigue

Statistic 59

Automation in order picking processes can improve throughput by up to 60%

Statistic 60

The implementation of vertical lift modules (VLMs) can reduce labor costs by 20% and space utilization by 30%

Statistic 61

The use of predictive maintenance in material handling equipment can decrease downtime by 20-25%

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Key Highlights

The global material handling equipment market was valued at approximately $35 billion in 2020
Warehouse automation can reduce labor costs by up to 70%
The e-commerce sector drives over 50% of new material handling equipment sales
The global pallet truck market size was valued at $2.1 billion in 2021
85% of supply chain managers believe automation improves safety
The use of smart sensors in supply chains is expected to grow at a CAGR of 25% through 2026
The material handling equipment market is projected to reach $67 billion by 2027
Automated guided vehicles (AGVs) can increase warehouse productivity by up to 50%
The largest segment in material handling equipment is forklifts, accounting for about 35% of the market share
Direct-to-consumer supply chains experienced a 150% increase in demand for material handling solutions during 2020
The adoption of robotics in warehouses has increased by 40% annually over the past five years
Approximately 60% of warehouses are planning to increase their automation investments in the next two years
The U.S. material handling equipment market was valued at $16 billion in 2021

The material handling industry is riding a wave of innovation and growth, with projections estimating the market will nearly double to $67 billion by 2027, driven by a surge in automation, e-commerce demands, and cutting-edge technologies transforming warehouses worldwide.

E-commerce and Consumer Demand Impact

The e-commerce sector drives over 50% of new material handling equipment sales
Direct-to-consumer supply chains experienced a 150% increase in demand for material handling solutions during 2020
The growth of online grocery delivery has increased demand for specialized material handling equipment, with a growth rate of 18% annually

E-commerce and Consumer Demand Impact Interpretation

As the e-commerce boom propels over half of new material handling equipment sales and a 150% surge in DTC demand, the industry must skillfully navigate a rapid logistics revolution—especially as online groceries drive an 18% yearly rise in specialized solutions—highlighting the profound transformation sweeping through supply chains.

Market Size and Growth Trends

The global material handling equipment market was valued at approximately $35 billion in 2020
The global pallet truck market size was valued at $2.1 billion in 2021
The use of smart sensors in supply chains is expected to grow at a CAGR of 25% through 2026
The material handling equipment market is projected to reach $67 billion by 2027
The largest segment in material handling equipment is forklifts, accounting for about 35% of the market share
The adoption of robotics in warehouses has increased by 40% annually over the past five years
Approximately 60% of warehouses are planning to increase their automation investments in the next two years
The U.S. material handling equipment market was valued at $16 billion in 2021
The global demand for conveyor systems is expected to grow at a CAGR of 4.2% until 2028
The use of drones in supply chain inspection is projected to grow at a CAGR of 20% through 2025
The global forklift truck market is expected to reach $18 billion by 2026
The demand for electric forklifts is growing at a CAGR of 7% due to environmental concerns
The global mobile shelving market for warehouses is projected to grow at 5% annually till 2025
The use of simulation software for logistics planning has increased by 45% in the past three years
The global consumables in material handling consumables market is projected to reach $4.5 billion by 2025
The global growth of the pallet racking market is expected to reach $12 billion by 2028
The average lifespan of warehouse forklifts is approximately 10 years, after which replacement is typically considered
The total market value of conveyor systems is projected to reach $8 billion by 2025
The automation investment in supply chain logistics increased by over 30% from 2020 to 2022
The market share of electric forklifts is expected to reach 40% by 2030, driven by sustainability goals
The global market for modular conveyor belts is estimated to reach $1.5 billion by 2025
The use of alternative energy sources in material handling equipment is projected to grow at 12% CAGR through 2027
Supply chain traceability solutions have increased in adoption by 35% over the past four years
The material handling industry is forecasted to grow at a compound annual growth rate of 4.5% from 2022 to 2028
The leading regions for material handling equipment investments are North America, Europe, and Asia-Pacific, with North America holding the largest share
The global market for compact forklifts is expected to reach $3 billion by 2025
The global industry for automated guided carts is projected to reach $1.2 billion by 2027

Market Size and Growth Trends Interpretation

As the material handling industry's $35 billion foundation continues to grow at a steady clip—projected to double by 2027—innovations like robotics, sensor integration, and electric forklifts are not just transforming warehouses into high-tech battlegrounds but also proving that in supply chain logistics, the future is both smart and sustainable.

Supply Chain Management and Efficiency

78% of supply chains are implementing or planning to implement AI for logistics optimization
65% of logistics companies are investing in data analytics for supply chain visibility
The adoption of cycle counting methods in inventory management can improve accuracy levels to over 99%
50% of supply chain disruptions in 2022 were caused by transportation failures
90% of supply chain professionals see improving supply chain resiliency as a top priority
The use of predictive analytics in supply chain management can forecast demand with up to 85% accuracy
Over 60% of supply chain disruptions in 2023 were caused by cyberattacks
80% of warehouses are investing in warehouse management system (WMS) upgrades
Over 55% of supply chain companies plan to adopt blockchain technology for tracking and transparency by 2025
The use of pressure-sensitive adhesives in pallets and containers can improve stability and reduce product damage by 15%
Warehouse layout optimization software can increase storage capacity by up to 25%
The average cost reduction from implementing lean principles in material handling is approximately 12%
Approximately 65% of supply chain executives cite data security concerns as a barrier to adopting new digital solutions

Supply Chain Management and Efficiency Interpretation

As supply chains sprint towards digital resilience with AI, analytics, and blockchain, their potential to boost accuracy, safety, and efficiency is clear, yet persistent concerns over cyber threats and data security underscore that progress hinges as much on safeguarding innovation as on adopting it.

Sustainability and Urbanization Effects

Smart warehouses utilizing IoT technologies report a 15% reduction in energy consumption annually
The global industry is aiming to reduce carbon emissions by 20% through optimized logistics and handling processes
75% of logistics companies view sustainability as a critical driver for investing in new material handling technologies
The growth in urbanization has led to a 22% increase in demand for compact and modular material handling equipment

Sustainability and Urbanization Effects Interpretation

As smart warehouses harness IoT to cut energy use and the industry aggressively tackles carbon emissions amid urbanization-driven demand for compact gear, sustainability is not just a trend but a strategic imperative transforming the material handling landscape.

Technological Advancements and Automation

Warehouse automation can reduce labor costs by up to 70%
85% of supply chain managers believe automation improves safety
Automated guided vehicles (AGVs) can increase warehouse productivity by up to 50%
Inventory accuracy can improve by up to 30% through the use of RFID tagging in material handling
The cost of damage during transportation is reduced by 20-30% through enhanced cushioning and handling equipment
More than 70% of warehouses operate with real-time inventory tracking systems
E-commerce fulfillment centers see a 25% increase in throughput when utilizing automation
The integration of IoT devices in material handling equipment can reduce downtime by up to 15%
About 40% of warehouses plan to upgrade existing material handling systems in the next year
Automated storage and retrieval systems (AS/RS) can increase picking efficiency by up to 50%
Material handling robots can operate continuously for over 16 hours without fatigue
Automation in order picking processes can improve throughput by up to 60%
The implementation of vertical lift modules (VLMs) can reduce labor costs by 20% and space utilization by 30%
The use of predictive maintenance in material handling equipment can decrease downtime by 20-25%

Technological Advancements and Automation Interpretation

With automation transforming warehouses into lean, safe, and hyper-efficient hubs—cutting costs by up to 70%, boosting productivity by 50%, and enabling real-time inventory mastery—it's clear that the future of material handling is less about manpower and more about smart machines, where innovation and efficiency go hand in hand.