India Automated Material Handling Market

India Automated Material Handling Market Overview

• The Indian automated material handling (AMH) market is valued at USD 1.12 billion in 2023. The growth of this market is primarily driven by increasing demand for automation in sectors such as manufacturing, warehousing, and logistics. The market has experienced a rapid growth, mainly due to the increasing emphasis on improving efficiency and reducing labor costs. The rapid adoption of technologies such as robotics and artificial intelligence in logistics is a key contributor to this market's expansion.
• Major players dominating the market include Daifuku India Pvt. Ltd., Schaefer Systems International Pvt. Ltd., Honeywell Automation India Ltd., Murata Machinery India Pvt. Ltd., and KION India Pvt. Ltd. These companies have invested in research and development and set up manufacturing bases within India to meet the growing demand for automated systems. Daifuku India, with its robust portfolio of AMH solutions, leads the market by providing solutions across manufacturing and logistics industries.
• In 2024, Daifuku India formed a strategic partnership with a top logistics company to implement its advanced automated storage and retrieval systems (AS/RS) in key warehousing hubs. This collaboration strengthens Daifuku's position as a market leader in India's automated material handling sector.
• Cities such as Mumbai, Bengaluru, and Chennai dominate the market due to their established industrial and logistics sectors. Mumbai, with its large port and extensive warehousing infrastructure, is a hub for automated solutions in both the logistics and manufacturing sectors. Bengaluru, with its growing tech ecosystem, has become a focal point for the integration of AI-driven automation in handling systems, while Chennai’s automobile and manufacturing industries drive significant demand for material handling automation.

India Automated Material Handling Market Segmentation

By Product Type: India's automated material handling market is segmented by product type into automated storage and retrieval systems (AS/RS), automated guided vehicles (AGVs), and conveyors and sortation systems. In 2023, AS/RS systems dominate the market, accounting for 35% of the market share. This is due to their widespread adoption in industries such as warehousing, pharmaceuticals, and retail. The flexibility, high throughput, and improved space utilization offered by these systems make them a popular choice for Indian companies looking to optimize their storage operations.

By End-User Industry: The market is segmented by end-user industries into manufacturing, e-commerce, logistics, and automotive. In 2023, the e-commerce industry dominated the market. The rapid growth of e-commerce giants such as Amazon and Flipkart, coupled with the increasing consumer demand for faster delivery times, has led to extensive deployment of automation systems in fulfillment centers. Additionally, the integration of robotics and AI technologies to handle high-volume operations efficiently has contributed to the dominance of this segment.

By Region: The market is segmented by region into North, South, East, and West. The southern region dominates in 2023. This is largely due to the presence of major manufacturing hubs and technology companies. These cities are home to many large-scale manufacturing and warehousing operations, driving demand for automated handling systems. Furthermore, the increasing focus on infrastructure development in the southern states has contributed to the region’s dominance.

India Automated Material Handling Market Competitive Landscape

• Schaefer Systems International: SSI Schaefer India collaborated with Amul Dairy to optimize its cheese storage facility using a high-density single-level shuttle automated storage and retrieval system (ASRS). This solution addresses Amul’s need for efficient storage of over 6,000 pallet locations, combining mobile racking and high-density ASRS. This project highlights SSI Schaefer’s ability to deliver customized automated material handling solutions tailored to specific client needs in the Indian market.
• Honeywell Automation India Ltd.: In March 2023, Honeywell expanded its automation capabilities by introducing the Honeywell Universal Robotics Controller (HURC), designed to address interoperability gaps between various robotics systems in warehouses. This solution enhances data exchange and communication between systems, improving efficiency and laying the foundation for future "dark warehouses" with minimal human intervention. Honeywell's new technologies, including AI-driven Automated Storage and Retrieval Systems (AS/RS), significantly boost warehouse efficiency and productivity.

India Automated Material Handling Market Analysis

Growth Drivers

• Rising Demand in E-commerce Sector: The increasing demand from the e-commerce and retail sectors, which require faster and more efficient order fulfillment, is driving the market. Automation technologies like automated storage and retrieval systems (AS/RS) and robotic systems are being adopted to streamline operations, improve accuracy, and reduce labor costs. This demand is further propelled by the rise of same-day and next-day delivery services.
• Government's National Logistics Policy: The Indian automated material handling market is expanding due to the National Logistics Policy, which aims to reduce logistics costs and improve efficiency by promoting the adoption of advanced technologies like automation and robotics in warehousing. This policy encourages investments in infrastructure and automation to streamline supply chains, driving the demand for automated systems in various sectors, including e-commerce and manufacturing.
• Manufacturing Sector Automation: India’s manufacturing sector, which contributed USD 450 billion to the GDP in 2023, is increasingly automating its operations to remain competitive globally. Automation of material handling processes, particularly in industries such as automotive, pharmaceuticals, and electronics, has been essential in reducing labor costs and increasing production efficiency. The government’s Make in India initiative has encouraged domestic and international companies to invest in smart manufacturing, which has fueled the demand for material handling automation.

Challenges

• High Initial Investment Costs: Automated material handling systems require a significant upfront investment, which poses a challenge, especially for small and medium-sized enterprises (SMEs). The cost of integrating automated storage and retrieval systems (AS/RS) and automated guided vehicles (AGVs) into existing operations can range from INR 20 million to INR 50 million, depending on the scale of the business. This high capital expenditure prevents smaller companies from adopting automation on a large scale.
• Skill Shortage in Managing Automation: India faces a shortage of skilled labor capable of managing and maintaining automated systems. According to a 2023 survey by the Ministry of Skill Development and Entrepreneurship, some companies reported difficulties in finding qualified personnel to operate advanced material handling systems. This gap in technical expertise can slow the adoption of automation, especially in sectors like logistics and manufacturing where efficiency depends heavily on proper system management.

Government Initiatives

• National Logistics Policy (2022): India's National Logistics Policy, launched in 2022, aims to reduce logistics costs, improve efficiency, and streamline supply chains through the adoption of automation and advanced technology. The policy promotes infrastructure upgrades and supports investments in robotics, artificial intelligence, and warehouse automation to drive operational efficiency across industries.
• Make in India Campaign: The Make in India program is the provision of incentives to promote local production and automation. These include fiscal incentives, such as tax breaks, subsidies, and funding support, specifically aimed at companies that adopt advanced technologies like automated material handling systems. This initiative is designed to boost manufacturing efficiency and competitiveness in India, encouraging both domestic and international companies to invest in automation technologies.

India Automated Material Handling Market Future Outlook

The India Automated Material Handling Marketis projected to grow exponentially in the future. This growth will be driven by rising demand in e-commerce sector, government's national logistics policy and manufacturing sector automation.

Future Trends

• Expansion of Robotics and AI: By 2028, the Indian automated material handling market will be increasingly driven by the integration of robotics and AI-based solutions. As companies continue to adopt AI-driven warehouse management systems and robotic arms for picking, sorting, and packaging tasks, operational efficiency will increase. The continuous push for faster and more accurate order fulfillment, particularly in the e-commerce sector, will be a key driver of this trend.
• Shift Towards Green Automation: Sustainability will become a major focus for Indian companies by 2028. As part of the National Green Hydrogen Mission, the government is promoting eco-friendly automated material handling solutions that use green energy. By 2025, new material handling equipment deployed in India will be powered by renewable energy sources, helping companies reduce their carbon footprint while maintaining operational efficiency.