Pharmaceutical Storage and Material Handling Equipment Market - By Product (Transport Systems {Conveyors}, Storage Systems), Sales Channel (Manufacturers), Mode of Operation (Automatic, Semi-automatic) Dosage Form (Solid, Semi-solid) & Forecast 2023 - 2032

Pharmaceutical Storage and Material Handling Equipment Market Size

Pharmaceutical Storage and Material Handling Equipment Market size accounted for USD 4.2 billion in 2022 and is estimated to grow at 6.3% to reach USD 7.7 billion by 2032. Increasing focus on automation in pharmaceutical industry is one of the key factors for growing the demand for pharmaceutical storage and material handling equipment.
 

Also, as pharmaceutical industry is expanding at rapid pace, the growing need for automation, for efficiently handling from stocking up inventory to finished goods will significantly propel the market expansion. Further, rising technological advancements are encouraging key market players to offer energy-efficient material handling systems, thereby driving the market development.
 

Pharmaceutical storage and material handling equipment refers to a wide range of specialized tools, devices, and systems used in the pharmaceutical industry for the storage, handling, and transportation of pharmaceutical products, raw materials and components. These equipment and systems are designed to meet the unique requirements and regulations of the pharmaceutical sector, ensuring the integrity, safety and quality of the stored and transported materials. The primary goal of adopting a pharmaceutical storage and material handling system is to ensure that the correct amount of material is delivered to the desired location at the right time.
 

COVID-19 Impact

The outbreak of COVID-19 pandemic had a negative impact on the pharmaceutical storage and material handling equipment market, as the pandemic was noted to have disrupted the healthcare system worldwide, causing significant delays in diagnosis and treatment of non-emergency disease conditions. With the increasing number of COVID-19 cases, several local and national regulatory bodies-imposed lockdowns, restricting the movement of people and goods. The imposed lockdowns largely affected the company’s operations while also hindering the overall market’s supply chain, resulting in the delayed and limited supply of finished goods to end users.
 

However, in the initial quarter of 2021 the market witnessed considerable surge in the demand for pharmaceutical storage and material handling equipment owing to growing demand for vaccines and medication to control and contain the spread of COVID-19 infection, thereby propelling the market trends.
 

Pharmaceutical Storage and Material Handling Equipment Market Trends

In North America and Europe, the cost of manual labour is experiencing substantial growth. For instance, according to the Eurostat, in 2022, average hourly labour costs was estimated at USD 32.5 t0 USD 35.8 in the European countries. Similarly, according to the U.S. Department of Labours, in 2022, the unit labour cost in the pharmaceutical industry increased by 8.3% as compared to 2021 in the U.S. Thus, the high labour cost is significantly propelling the demand for automated storage and material handling equipment.
 

Pharmaceutical Storage and Material Handling Equipment Market Restraint

High investments and maintenance costs of material handling equipment are significantly hindering market progression. The cost of equipment depends on the capacity, tires, and fuel type. For instance, the cost of an electric forklift is around 50% higher than the Internal Combustion (IC) lift truck, restraining small & mid-sized enterprises (SMEs) & original equipment manufacturer (OEMs) from implementing and procuring energy-efficient systems. Also, electric lift trucks require industries to invest in advanced hardware, software, and technology that lead to high operational expenditures compared to the unit cost of these vehicles. Material handling equipment also require regular inspection and maintenance for proper usage, leading to higher maintenance costs.
 

Pharmaceutical Storage and Material Handling Equipment Market Analysis

By product, the pharmaceutical storage and material handling equipment market is classified into transport systems, storage systems, lifting and positioning systems and stacking and unit formation systems. The transport systems segment accounted for 32.4% of the market share in 2022 and is projected to witness robust growth over the analysis timeframe. High segmental growth is owing to increasing demand for efficient and reliable material transport solutions. The transport system consists diverse range of products such as conveyor systems, autonomous mobile robot systems among others. These systems offer operational efficiency, enhanced product safety and integrity, streamlined inventory management, reduced labour costs and enables to adhere various regulatory compliance.
 

Furthermore, integration of advanced technologies such as IoT, artificial intelligence (AI) for transportation systems enable to improve factors such as route optimization, load balancing amongst others will lead to minimal damage and cost savings, thereby fostering the market share.
 

Based on sales channel, the pharmaceutical storage and material handling equipment market is segmented into manufacturers and distributors. The manufacturers segment is expected to register USD 5.3 billion by 2032.  Manufacturers are focused on high-end material handling equipment with advanced features and technologies. For instance, in February 2023, Dorner launched DCMove Belted Conveyor, a new conveyor for material handling and storage applications. The conveyor comprises feature & specifications including a wide load capacity and a motor mounted inside the conveyor tails to lower the footprint of large material handling systems. Thus, adoption of various advanced storage and material handling equipment by the manufacturers enables to maximize storage capacity and optimize inventory management effectively, thereby supplementing the market expansion.
 

By mode of operation, the pharmaceutical storage and material handling equipment market is segmented into automatic operation, manual operation and semi-automatic operation. The semi-automatic operation segment accounted for significant market revenue in 2022 and is expected to grow at 6.2% during the forecast period. The semi-automatic mode enables human intervention while offering effective control by leveraging automation for repetitive and heavy-duty tasks. This mode offers greater flexibility and adaptability to accommodate varying product type, sizes, and quantities.
 

Moreover, incorporating semi-automation in pharmaceutical companies can improve productivity and reduce labour costs by minimizing manual handling and streamlining workflow, thereby driving the market growth.
 

The dosage form in pharmaceutical storage and material handling equipment market is categorized into solid, liquid and semi-solid. Solid segment accounted for over USD 1.7 billion market revenue in 2022. Solid form of dosage encompasses tablets and capsules that are easy to store and handle as compared to other dosage forms. Solid dosage forms are chemically and physically more stable and are less susceptible to temperature fluctuations and contamination risks, making them easier to store and handle. Also, appropriate storage system offers controlled environments, such as humidity-controlled cabinets to safeguard against moisture and contaminants thus, preserving the quality of solid medications.
 

North America pharmaceutical storage and material handling equipment market accounted for over 22% business share in 2022 and is anticipated to grow at considerable growth rate during the forecast timeframe. Increasing market growth can be attributed to the developed supply chain structure and stable economic conditions favoring the adoption of the latest advanced technologies. Developments in the fields of robotics, electronics, and IoT in the region are further supporting the implementation of the latest technology. Additionally, high cost of labor in the North America region is expected to increase the demand for storage and material handling equipment, thereby significantly contributing to the North America market progress.
 

Pharmaceutical Storage and Material Handling Equipment Market Share

Major market players operating in pharmaceutical storage and material handling equipment market include

• Muller Group
• GEA Group Aktiengesellschaft
• Hanningfield Process Systems Ltd
• Servolift GmbH 

These industry players majorly adopt various strategies including collaborations, acquisitions, mergers, and partnerships to create a global footprint and sustain market competition.
 

Pharmaceutical Storage and Material Handling Equipment Industry News:

• In September 2022, FlexLink expanded its offerings of developed palletizing cells by adding RC12 and RC14 to the original RC10. The new robotic arms provide a higher payload capability of up to 12 kilograms as well as larger box sizes and pallet heights. They also enable faster relocations without any additional lifting devices. This strategy helped the company to enhance it product portfolio and increase customer base.
   
• In June 2022, Universal Robots launched UR20, a new 20kg cobot. The cobot possesses an entirely new joint design that allows for faster cycle times and capability to handle heavier loads. It has a 1,750mm reach designed to work to the full height of the standard Euro-pallet to modify the way businesses pack. This strategy helped the company to enhance its product offering thereby drive revenue growth.
   

The pharmaceutical storage and material handling equipment market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

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By Product

• Transport Systems
  • Conveyors
  • Autonomous Mobile Robots
  • Intermediate Bulk Containers (IBC)
  • Other transport systems
• Storage Systems
  • Racks
  • Stacking frames
  • Shelves, bins and drawers
  • Mezzanines
  • Other storage systems

• Lifting and Positioning Systems
  • Hoists
  • Lift Tables
  • Cranes
  • Robotic Arm
  • Other lifting and positioning systems
• Stacking and Unit Formation Systems
  • Stackers
  • Crates
  • Palletizers
  • Other stacking and unit formation systems

Sales Channel

• Manufacturers
• Distributors

Mode of Operation

• Automatic Operation
• Manual Operation
• Semi-automatic Operation

Dosage Form

• Solid
• Liquid
• Semi-solid

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • Rest of MEA