Europe Automated Material Handling Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Europe Automated Material Handling Market, By Offering (Hardware, Software, Services), System Type (Bulk Load Material Handling Systems, Unit Load Material Handling Systems), Product Type (Robots, Automated Storage and Retrieval System (ASRS), Conveyors and Sortation Systems, Cranes, Warehouse Management System (WMS), Automated Guided Vehicle (AGV)), Function (Storage, Transportation), Industry (Automotive, Semiconductor and Electronics, Metals and Heavy machinery, Pharmaceuticals, Food and Beverages, Retail, Construction, E-commerce, Chemicals, Paper, Others), - Industry Trends and Forecast to 2032

Europe Automated Material Handling Market Size

• The Europe Automated Material Handling Market size was valued at USD 13.20 Billion in 2024 and is expected to reach USD 23.60 Billion by 2032, at a CAGR of 8.65% during the forecast period
• The rapid growth of e-commerce has significantly increased demand for efficient warehouse automation and fulfilment solutions, driving widespread adoption of automated material handling systems.

Europe Automated Material Handling Market Analysis

• The surge in e-commerce has intensified the need for efficient order fulfillment processes. Automated systems like conveyor belts, robotic pickers, and sorting technologies are being adopted to handle increased order volumes and meet consumer expectations for rapid delivery. This trend is particularly evident in the United States, where the robust e-commerce ecosystem is encouraging distribution centers to implement innovative and flexible automated solutions.
• The incorporation of Artificial Intelligence (AI) and the Internet of Things (IoT) into AMH systems is revolutionizing operations. These technologies enable real-time monitoring, predictive maintenance, and intelligent decision-making, leading to optimized material flow and reduced downtime. In U.K., for instance, AI and Machine Learning are increasingly being integrated into AMH solutions to improve operational efficiency.
• Germany dominates the Europe Automated Material Handling Market with the largest revenue share of 45.01% in 2025, Increasing labor costs and persistent shortages of skilled workers are pushing companies to automate material handling tasks, reducing reliance on human labor and improving operational stability.
• Germany is expected to be the fastest growing region in the Europe Automated Material Handling Market during the forecast period due to Businesses are investing in automation to optimize supply chain efficiency and build resilience against disruptions, ensuring faster and more reliable movement of goods.
• The Software segment is anticipated to hold the largest market share of 61.9% in the Europe Automated Material Handling Market during the forecast period due to continuous improvements in robotics, artificial intelligence, sensors, and software integration are enhancing the capabilities, flexibility, and affordability of automated material handling equipment.

Report Scope and Europe Automated Material Handling Market Segmentation       

Europe Automated Material Handling Market Trends

“Accelerated Adoption Driven by Industry 4.0 and Technological Innovation”

• A major trend in the SiP technology market is the drive toward miniaturization, with manufacturers integrating multiple components into a single compact module. This enables the creation of smaller, lighter, and more efficient electronic devices, meeting the growing demand for advanced consumer electronics, wearables, and IoT applications.
• A significant trend is the convergence of automated material handling solutions with Internet of Things (IoT) devices and cloud-based platforms. This integration enables real-time monitoring, predictive maintenance, and centralized control over diverse warehouse assets. As a result, businesses can achieve greater visibility into their logistics processes and respond swiftly to dynamic market demands.
• The surge in e-commerce and the rise of omnichannel retailing are major catalysts for the adoption of automated material handling systems in Europe. Retailers and logistics providers are investing in robotics, automated storage and retrieval systems (AS/RS), and conveyor technologies to handle higher order volumes, ensure faster delivery times, and meet evolving customer expectations.
• There is a growing demand for modular and scalable automated systems that can adapt to changing business needs. Companies are prioritizing solutions that offer flexibility, such as autonomous mobile robots (AMRs) and collaborative robots (cobots), which can be easily redeployed or reconfigured as warehouse layouts and workflows evolve.
• The rapid proliferation of 5G networks and the Internet of Things (IoT) is significantly boosting SiP demand. SiP modules are critical for enabling high-performance, low-latency connectivity in smartphones, smart wearables, and connected devices, as they offer enhanced integration and efficiency in limited space.
• Europe leads the global market for automated material handling, supported by robust technological infrastructure and significant investments in research and development. The region’s established manufacturing and logistics sectors, combined with a strong focus on digital transformation, are expected to sustain market growth in the coming years.

Europe Automated Material Handling Market Dynamics

Driver

“Rising Demand for Warehouse Automation and E-Commerce Fulfillment”

• The rapid expansion of e-commerce and omnichannel retailing in Europe is fueling the need for automated material handling solutions to meet faster delivery expectations and manage high order volumes efficiently.

  • For instance, in early 2025, in early 2025, German logistics giant DHL announced the deployment of autonomous mobile robots (AMRs) and automated storage and retrieval systems (AS/RS) in its new fulfillment centers across Germany and the Netherlands to enhance operational efficiency and order accuracy.

• Automated material handling systems—including conveyor systems, automated storage and retrieval systems (AS/RS), and robotics—enable warehouses and distribution centers to achieve higher throughput, reduce labor costs, and minimize errors.
• This trend is further accelerated by labor shortages and rising wages, prompting companies to invest in automation for sustained productivity and competitiveness.

Restraint/Challenge

“High Initial Capital Investment and Integration Complexity”

• Automated material handling solutions often require substantial upfront investments in advanced robotics, control software, and supporting infrastructure, which can be a significant barrier for small and medium-sized enterprises (SMEs).

  • For example, in 2025, several mid-sized logistics firms in U.K. postponed automation projects due to the high costs associated with retrofitting legacy warehouses and integrating new systems with existing IT infrastructure.

• The complexity of integrating diverse hardware and software platforms, along with the need for skilled personnel to manage and maintain automated systems, can lead to longer implementation timelines and increased operational risk.
• Additionally, disruptions during the transition phase—such as system downtime or workflow bottlenecks—can impact short-term productivity, making some organizations hesitant to adopt automation at scale.

Europe Automated Material Handling Market Scope

The market is segmented on the Offering, System Type, Product Type, Function, Industry.

Europe Automated Material Handling Market Scope

The market is segmented on the basis of offering, System Type, Product Type, Function, Industry.

• By offering

On the basis of offering, the Europe Automated Material Handling Market is segmented into Hardware, Software, Services. The Software system segment dominates the largest market revenue share of 42.1% in 2025, The Software segment is driven by the rapid growth of e-commerce has significantly increased demand for efficient warehouse automation and fulfillment solutions, driving widespread adoption of automated material handling systems.

The Software segment is anticipated to witness the fastest growth rate of 20.1% from 2025 to 2032, Increasing labor costs and persistent shortages of skilled workers are pushing companies to automate material handling tasks, reducing reliance on human labor and improving operational stability.

• By System Type

On the basis of System Type, the Europe Automated Material Handling Market is segmented into Bulk Load Material Handling Systems, Unit Load Material Handling Systems. The Bulk Load Material Handling Systems held the largest market revenue share in 2025, Bulk Load Material Handling Systems is gaining traction in Europe due to Businesses are investing in automation to optimize supply chain efficiency and build resilience against disruptions, ensuring faster and more reliable movement of good.

The Unit Load Material Handling Systems segment is expected to witness the fastest CAGR from 2025 to 2032 Semiconductor qubits are driven by businesses are investing in automation to optimize supply chain efficiency and build resilience against disruptions, ensuring faster and more reliable movement of goods.

• By Product Type

On the basis of Product Type, the Europe Automated Material Handling Market is segmented Robots, Automated Storage and Retrieval System (ASRS). The Robots held the largest market revenue share in 2025, Continuous improvements in robotics, artificial intelligence, sensors, and software integration are enhancing the capabilities, flexibility, and affordability of automated material handling equipment.

The Automated Storage and Retrieval System (ASRS) segment is expected to witness the fastest CAGR from 2025 to 2032, The integration of Industry 4.0 principles—such as IoT, data analytics, and smart manufacturing.

• By Function

On the basis of Function, the Europe Automated Material Handling Market is segmented into Storage, Transportation. The Storage held the largest market revenue share in 2025, Storage deployment is driven by labor costs and persistent shortages of skilled workers are pushing companies to automate material handling tasks, reducing reliance on human labor and improving operational stability.  

The Transportation segment is expected to witness the fastest CAGR from 2025 to 2032, industries like automotive, food and beverage, pharmaceuticals, and logistics are increasingly adopting automation to boost productivity and maintain competitiveness.

• By Industry

On the basis of Industry, the Europe Automated Material Handling Market is segmented into Automotive, Semiconductor and Electronics, Metals and Heavy machinery, Pharmaceuticals, Food and Beverages, Retail, Construction, E-commerce, Chemicals, Paper, Others. Consumer expectations for rapid delivery, especially in e-commerce, are driving investments in high-speed automated systems for picking, sorting, and shipping.

The Semiconductor and Electronics segment is expected to witness the fastest CAGR from 2025 to 2032, Automated storage and retrieval systems (ASRS) and compact conveyor solutions help businesses maximize warehouse space and increase storage density without expanding physical footprints.

Germany Automated Material Handling Market Insight

The Germany Automated Material Handling Market captured the largest revenue share of 44.01% within Europe in 2025, Germany is driving Automated Material Handling Market through Vision 2030, Major industries like automotive, food and beverage, pharmaceuticals, and logistics are increasingly adopting automation to boost productivity and maintain competitiveness.

U.K. Automated Material Handling Market Insight

The U.K. Europe Automated Material Handling Market is poised to grow at the fastest CAGR of over 24.1% in 2025, The U.K. is accelerating Automated Material Handling Market through strong governmental support and advanced research centers like the Technology Innovation Institute. Consumer expectations for rapid delivery, especially in e-commerce, are driving investments in high-speed automated systems for picking, sorting, and shipping.

Europe Automated Material Handling Market Share

The Europe Automated Material Handling is primarily led by well-established companies, including:

• GreyOrange
• Geekplus Technology Co., Ltd.
• Eiratech Robotics Ltd.
• Scallog
• Dematic
• Witron
• TGW Logistics Group
• KNAPP AG
• Mecalux
• S.A., Arcadis NV
• Conveyco (Pty) Ltd
• Naumann/Hobbs Material Handling
• Daifuku Co., Ltd.
• IAM Robotics
• Material Handling Systems
• Swisslog Holding AG
• SCHAEFER SYSTEMS INTERNATIONAL PVT LTD
• Amber Industries
• Advanced Automation Systems, Inc.
• Taylor Material Handling
• Conveyor
• L3Harris Technologies, Inc.

Latest Developments in Europe Automated Material Handling Market

• In December 2021, KION Group established a new forklift truck manufacturing facility in Jinan, China. This site, spanning approximately 2.4 million square feet, is intended to produce industrial vehicles under KION's Linde Material Handling and Baoli brands.

• In October 2024, Murata Machinery, a Japanese company, continues to provide automated storage and transportation systems, including automated material handling systems for clean rooms in semiconductor fabs, serving the Asia-Pacific market.
• In 2024, ArcBest Corporation introduced the Vaux Freight Movement System, a suite of hardware and software that transforms the processes of loading, unloading, and transferring freight in warehouses, docks, and on the road. The system allows trailers to be unloaded in under five minutes, reducing driver wait times and improving dock utilization.
• In November 2022, KION Europe and Fox Robotics announced a non-exclusive strategic partnership to scale supply chains for FoxBot ATL and establish a nationwide service and support network for autonomous forklifts.

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