GCC materials handling equipment market ‘to reach $5bn in revenues by 2020’

Growth potential of region attracts top 20 global suppliers to Materials Handling Middle East 2017, organiser says

The market revenue for materials handling equipment in the GCC, which was worth $3.78bn in 2014, is set to maintain a CAGR of over 4% while reaching an estimated $4.8-5bn in revenues by 2020, according to research by analysts Frost & Sullivan.

Saudi Arabia, with about 46%, and the UAE with 35%, make up the largest markets in the region and are expected to continue to spearhead market expansion going forward, the research found.

Key drivers for the continued expansion in demand for materials handling equipment continue to be the ongoing focus of the GCC countries in large-scale infrastructural and logistics development, including that of key transport and shipping hubs, export processing and free zones, as well as the high dependence of many countries on import of goods and services that call for increased reliance on materials handling and logistics facilities, according to the research, which was presented by Messe Frankfurt Middle East, the organisers of Materials Handling Middle East 2017, which will run from September 11 to 13, at the Dubai International Convention and Exhibition Centre.

Among the global heavyweights showcasing their latest offerings on the regional stage at the event are the likes of Swisslog, Daifuku and Kardex. Major local players, such as GENAVCO, SPAN Motors and United Motors and Heavy Equipment will also participate in the event, where they will be joined by debutants such as Feralco from France, MPM from Italy and Saudi manufacturer Power Rack Factory.

Frederic Zielinski, general manager of Swisslog Middle East, sees immense potential in the Middle East on the back of automation and the merging of digital and intelligent processes and systems as the road to the future of materials handling.

“The changing customer demands require forward-thinking innovative and flexible solutions from businesses. By implementing fully integrated, effective, future-proof automation solutions and keeping their facilities up-to-date, companies can not only speed up their processes and satisfy changing customer needs but also stay profitable by adding greater productivity to their supply chain and reducing the amount of errors,“ Zielinski said.

“Industry 4.0 has the potential to reshuffle the cards in how businesses operate. With networked intelligence in manufacturing and self-organising production processes, the ‘factory of the future’ will perform a quantum leap in productivity, flexibility, and efficiency. The focus in the future will no longer be on the manufacturing process of purely mass-produced goods, but on the customised product. This evolutionary step can only succeed, however, if we finally break down the barriers between the digital and real worlds,” Zielinski added.

Neeraj Mahajan, director, GENAVCO, said materials handling equipment represents an integral part of the supply chain of diverse industries for storage, control and movement of items – from the raw material stage to the distribution of finished products.

“The rising need for global production companies to automate operations and foster flow of goods in an efficient manner is the key force driving growth in the materials handling equipment market,” Mahajan said.

“The main challenge for customers in this region is to get a complete solution from a single source. They have to approach two or three companies for a complete warehouse solution. This process is time consuming and they face great difficulty to get an optimised solution meeting their needs. Here we play a vital role with our Warehouse Solution Engineering to overcome this challenge by offering end-to-end solutions. We design and develop custom-made concepts as per customer requirements, so projects are delivered from one source and in the timeliest manner.”

Realising the growth potential of the regional market, the top 20 of the world’s leading materials handling systems suppliers will participate in Materials Handling Middle East 2017. The event will also feature the Supply Chain and Logistics Forum, an interactive forum to discuss and examine the strategies, policies and trends that are of relevance to the industry today, as well as shine a light on new and existing opportunities in the field. The event will additionally showcase the Forklift Operator of the Year Challenge, a competition to decide the most talented and skillful forklift jockeys in the region.

“As the only dedicated trade and business development event for the materials handling, logistics, warehousing and freight handling industries, Materials Handling Middle East has through the years served as an invaluable networking and interactive platform for industry stakeholders, suppliers, traders and buyers to conduct business and scope out the latest developments in the industry,” said Ahmed Pauwels, CEO of Messe Frankfurt Middle East. “This year we not only have participation from the top global brands and service providers but also a considerable increase in interest from trade buyers from across with wider region.”


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