India Material Handling Equipment Market: Trends, Growth Outlook, and Segment Analysis (2020–2027)
The India Material Handling Equipment Market is poised for significant expansion, projected to grow at a CAGR of 9.8% by 2027. Driven by rapid industrialization, the rise of e-commerce, and the increasing adoption of automation, the sector is emerging as a crucial pillar in India’s manufacturing and logistics ecosystem.
Market Overview
Material handling equipment (MHE) includes tools and machinery used for movement, storage, protection, and control of goods throughout manufacturing, warehousing, distribution, and logistics operations. The market’s evolution is closely linked to India’s infrastructure development, supply chain modernization, and Make in India initiatives.
The COVID-19 pandemic introduced both short-term uncertainties and long-term opportunities. While lockdowns disrupted supply chains, the surge in e-commerce and the need for efficient warehouse operations strengthened demand for automated material handling solutions. The report covers the pandemic’s varying regional impacts and provides strategic insights for both short-term and long-term planning.
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Key Market Drivers
- Expansion of Core Manufacturing
Government initiatives—such as Make in India and the Production-Linked Incentive (PLI) schemes—continue to stimulate investments in automotive, metals, electronics, and consumer goods manufacturing. This directly increases the demand for cranes, forklifts, conveyors, and automated handling systems.
- Rise of E-Commerce & Warehousing
India’s e-commerce sector is growing 25–30% annually, creating massive demand for efficient warehouse infrastructure.
- Total warehousing requirement is projected to grow at 7.5% CAGR.
- Returns on warehouse investments range from 12–20% per annum, attracting both domestic and international investors.
- Growing Preference for Automation
Shrinking project timelines, rising labor costs, and a push toward operational efficiency are accelerating the adoption of automated MHE across sectors.
- Infrastructure Growth
Urban infrastructure, highways, smart cities, metro projects, and industrial corridors are key contributors to the increasing appetite for material handling solutions—especially cranes and forklifts.
Market Restraints
- High initial investment
- Limited awareness in small and medium enterprises
- Real-time technical challenges and maintenance issues
Segment Analysis
By Product
- Pick and Carry Cranes – 30% Market Share
The largest segment in India’s MHE market, driven by:
- Construction projects
- Steel, power, and industrial applications
- Rapid urban development
- Forklifts – Fastest-Growing Category
Forklifts are gaining traction due to:
- High flexibility and mobility
- Suitability for warehouse operations
- Demand from retail, FMCG, logistics, and 3PL operators
- Screw, Crawler, Tower & Other Cranes
These advanced cranes serve heavy-duty applications such as:
- Refineries
- Mining
- Metro, ports, and industrial infrastructure
As the scale of construction projects increases, demand for tower and slew cranes is expected to outpace the overall crane segment.
By Application
- Manufacturing – Dominant Segment
The backbone of the Indian MHE market, supported by:
- Industrial automation
- Robust production activities
- Expanding export capability
- Warehousing & Logistics – Rapid Adoption
Driven by:
- Growth of organized retail
- Rising 3PL activities
- Need for faster order processing
- Retail and Others
Retail supply chains are embracing automated storage and retrieval systems (ASRS), conveyors, and forklifts to handle high SKU volumes.
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Regional Insights
The market evaluation includes five key regions—North America, Europe, Asia Pacific, MEA, and Latin America. While the focus is India-specific, global benchmarking highlights the country’s positioning in the broader MHE landscape.
Within India, major growth clusters include:
- Western India (Maharashtra, Gujarat) – Manufacturing and logistics hubs
- Southern India (Tamil Nadu, Karnataka) – Automotive and electronics
- Northern India (Delhi NCR) – Warehousing, retail, and construction
The report provides a detailed analysis using:
- PEST framework
- Porter’s Five Forces
- SWOT assessment
These tools help stakeholders prioritize investments in high-potential sub-segments.
Competitive Landscape
The Indian MHE market is moderately fragmented with strong domestic players and increasing global participation. Competitive strategies include capacity expansion, local manufacturing, automation integration, and cost-efficient product portfolios.
Key Players
- Godrej & Boyce Mfg. Co.
- McNally Bharat
- Mukand Ltd.
- Escorts Ltd.
- Ahluwalia Contracts
- Saico Engineers
- Elecon Engineering
- ElectroMech
- ACE
- Omega
- Voltas
- TIL
- Telcon
- Ashoka Machines
- Venus Engineers
- Mekonix Systems
Both established brands and emerging companies are investing in R&D, smart equipment, and operator safety systems to strengthen market presence.
Conclusion
The India Material Handling Equipment Market is on a strong growth trajectory, supported by:
- Rapid industrial and infrastructure expansion
- Warehouse growth driven by e-commerce
- Increasing adoption of automation
- Strong government support for manufacturing
As India moves toward becoming a global manufacturing powerhouse, the demand for advanced, efficient, and safe material handling equipment will continue to surge through 2027.
