Automated material handling market set for 13% annual growth through 2035

The global automated material handling market is projected to rise from $75.6 billion in 2025 to $256.5 billion by 2035, driven by labor shortages, e-commerce growth and wider use of AI and robotics in warehouses. The market outlook points to a shift toward software-orchestrated, robot-heavy fulfillment systems across manufacturing, logistics and retail.

Why it matters: - Automated material handling is becoming core infrastructure for supply chains that need faster fulfillment, higher accuracy and more scalable operations. - The market’s growth reflects a broader shift away from manual warehouse work toward AI-managed robotics and software. - Labor shortages, especially in manufacturing and logistics, are pushing automation from a nice-to-have to an operational necessity. - E-commerce growth is forcing warehouses to handle more orders with tighter delivery windows.

What happened: - Market Research Future said the global automated material handling market was valued at $75.6 billion in 2025. - The market is projected to reach $85.4 billion in 2026 and $256.5 billion by 2035. - The forecast implies a 13.0% compound annual growth rate through 2035. - The report was released June 29, 2026, from Tokyo. - The report covers software, services, packaging and distribution, storage and transportation, waste management and assembly. - The report also tracks AGVs, AMRs, robotic systems, conveyors, automated cranes and AS/RS.

The details: - The report says automated material handling now spans AGVs, AMRs, AS/RS, robotic systems, conveyors and warehouse management software. - E-commerce online retail sales surpassed $6 trillion in 2024, increasing demand for automated fulfillment capacity. - The U.S. Bureau of Labor Statistics reported more than 560,000 unfilled manufacturing positions in early 2025. - Europe’s logistics sector is also dealing with workforce shortages. - Amazon operates a 3.5 million square-foot fulfillment center in Colorado with 5,000 robots. - Walmart’s five high-tech perishable distribution centers doubled throughput and created 2,000 jobs collectively. - Manufacturing is projected to be the largest application segment, reaching $45.0 billion by 2035. - Order fulfillment is forecast to reach $35.0 billion by 2035. - The robotics technology segment is expected to reach $45.0 billion by 2035. - AMH software platforms are described as enabling dynamic task allocation, predictive maintenance and multi-robot fleet coordination. - The report says these systems can improve throughput by 40% to 60% versus manual baselines.

Between the lines: - The competitive center of gravity is moving from fixed hardware toward software orchestration, AI and flexible robotics. - Sustainability is becoming a buying criterion, not just an operational benefit. - Europe’s Corporate Sustainability Reporting Directive is pushing companies to weigh carbon metrics in automation spending. - Robotics-as-a-Service is widening adoption by lowering the need for $2 million to $4 million in upfront capital. - The report highlights BALYO’s performance-based AMR subscription model as an example of that shift. - Humanoid robot partnerships involving Foxconn-NVIDIA and Jabil-Apptronik point to a longer-term push beyond repetitive warehouse tasks. - Asia-Pacific held about 44% of global revenue in 2024, making it the largest regional market. - North America is the second-largest market and the main innovation hub. - Europe ranks third and is most focused on ESG-compliant automation.

What's next: - AI-driven warehouse platforms are likely to become more common as operators seek better task allocation and predictive maintenance. - More mid-market operators are likely to adopt automation through subscription-style RaaS offerings. - Energy-efficient systems should gain share as procurement teams prioritize footprint and power savings. - Additional investment is expected in digital twin tools, cloud analytics and predictive maintenance. - The report points to continued growth in Asia-Pacific, North America and Europe through 2035.

The bottom line: - Automated material handling is moving from a niche upgrade to a mainstream supply-chain requirement, with AI, robotics and labor shortages driving a long runway for growth.