Smart Warehouses and Automation Drive India’s MHE Sector into a New Growth Phase

India’s material handling sector has rapidly moved away from its labor-intensive past, now leaning heavily on automation and smart machinery to manage growing volumes, ensure safety, and meet sustainability goals across industries like logistics, manufacturing, and construction.

Market Momentum: Size and Surge

The Indian material handling equipment (MHE) market, valued at USD 5.4 billion in 2023, is projected to grow to USD 8.7 billion by 2030, clocking a 7.2% CAGR, according to Grand View Research. This growth is attributed to a combination of infrastructure push, rise in smart city projects, and booming e-commerce, which collectively drive the demand for smarter warehousing and logistics systems.

Automation Gains Ground in Indian Warehouses

Faraz Alam, founder of Atmos Systems, observed a clear shift in how Indian industries operate. He noted that the adoption of modern material handling systems was not only improving workflow efficiencies but also strengthening the backbone of India’s economy. Automation and innovation in MHE have allowed businesses to handle larger cargo volumes swiftly and safely, thus playing a critical role in India’s industrial evolution.

From cranes and advanced lifting systems to automated racking solutions, Indian warehouses are undergoing a complete overhaul. The shift is not marginal—it's transformative. Companies now benefit from faster, safer, and higher-volume throughput, all while adhering to rigorous safety regulations.

Industrial Expansion Driving MHE Demand

India’s industrial upswing is tightly intertwined with the MHE sector’s growth. Leading players in automotive, FMCG, and pharma are setting up expansive production facilities and require robust material handling systems to cope with high-capacity operations. Automation, once considered a luxury, has become a necessity to cut costs, reduce human errors, and ensure compliance with health and safety norms.

Corporate Insight: Growth Reflected in Numbers

Rajan Luthra, CFO of Action Construction Equipment (ACE), stated that demand for advanced MHE reflects India’s industrial acceleration. He highlighted government support through initiatives like ‘Make in India’ and growing infrastructure investments as major catalysts. He shared that ACE reported its highest-ever quarterly revenue in Q4 FY25, with a 14.75% YoY growth in volumes and a 15.70% YoY revenue increase in the cranes, MHE, and construction equipment segment. According to Luthra, innovation and a commitment to quality have positioned ACE to support the evolving demands of Indian industry.

Sustainability and Smart Technologies Shape the Future

The industry’s trajectory is also being shaped by sustainability. MHE manufacturers are increasingly prioritizing energy-efficient systems and environmental consciousness. IoT-based predictive maintenance tools are turning traditional machines into self-diagnosing assets, ensuring longer equipment lifecycles and reduced downtime. These developments are critical in maintaining operational continuity.

Looking Ahead: AI, Urbanization, and Growth Opportunities

The future of India’s MHE sector looks promising. Continued urbanization, the expanding manufacturing base, and increasing FDI in logistics and retail will likely sustain the growth momentum. The integration of AI and machine learning is set to further enhance operational intelligence and automation capabilities in warehouse ecosystems.

Material handling systems are no longer just a support function—they are becoming the central nervous system of modern logistics and manufacturing. Their evolution signals the rise of a smarter, faster, and more resilient industrial India.

Disclaimer: This news article is based on industry reports and expert statements and is intended for informational purposes only. Readers are advised to conduct their own due diligence before drawing conclusions based on this content.