India Material Handling Equipment Market: Growth, Trends, and Future Outlook (2025–2027)

The India Material Handling Equipment Market is poised for robust expansion, projected to grow at a CAGR of 9.8% through 2027. This growth is being fueled by the country’s rapid industrialization, strong government initiatives like Make in India, and the rising adoption of automation across sectors such as logistics, manufacturing, and construction.

Market Overview

Material handling equipment (MHE) plays a critical role in streamlining operations across manufacturing plants, warehouses, construction sites, and logistics hubs. The rising need to enhance operational efficiency, reduce human intervention, and improve workplace safety has accelerated the adoption of advanced equipment, including cranes, forklifts, and conveyors.

The COVID-19 pandemic initially disrupted supply chains, but it also highlighted the importance of automation and efficient logistics handling—leading to long-term investments in this sector. As industrial production rebounds and infrastructure projects accelerate, the market is expected to witness sustained growth momentum.

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Key Market Drivers

1. Industrial and Infrastructure Expansion:
   India’s continuous investments in infrastructure and manufacturing projects are increasing demand for cranes, forklifts, and conveyors. Urban infrastructure projects, steel manufacturing, and power generation are primary demand drivers.

2. Rise of E-commerce and Warehousing:
   The boom in e-commerce has led to a significant rise in warehousing demand, expected to grow at a 7.5% CAGR. Investments in warehouse automation and logistics centers are boosting the use of material handling solutions.

3. Technological Advancements:
   Integration of IoT, AI, and robotics in material handling systems is improving efficiency and precision. Automated guided vehicles (AGVs) and smart forklifts are becoming popular in organized warehousing facilities.

4. Labor Cost and Safety Concerns:
   Rising labor costs and workplace safety awareness are encouraging industries to adopt mechanized handling systems for improved productivity and reduced risk.

Market Challenges

Despite the positive outlook, high initial investment costs and a lack of awareness regarding advanced handling technologies in small and medium enterprises (SMEs) remain key challenges. Additionally, technical issues and maintenance costs can limit adoption, especially in cost-sensitive industries.

Segment Analysis

By Product Type:

• Pick and Carry Cranes: Accounted for around 30% of the market share, driven by widespread use in construction and industrial applications.

• Forklifts: Expected to record the fastest CAGR due to their flexibility, compact size, and ability to handle repetitive warehouse operations.

• Tower, Crawler, and Slew Cranes: Used for heavy-duty operations in large-scale infrastructure projects like refineries, metros, and mining.

• Screw Cranes and Others: Serve niche industrial applications with steady demand growth.

By Application:

• Manufacturing: Dominates the market, supported by government incentives and industrial expansion.

• Warehouse & Logistics: Rapidly growing due to e-commerce and supply chain modernization.

• Retail and Others: Gradual adoption in organized retail and distribution networks.

Regional Insights

The market analysis highlights strong growth across major industrial hubs—particularly in states like Maharashtra, Gujarat, Tamil Nadu, and Karnataka—where manufacturing and logistics infrastructure are well-developed. Northern India is also emerging as a key region, driven by infrastructure development and the expansion of industrial corridors.

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Competitive Landscape

The India Material Handling Equipment Market is fragmented but highly competitive, with both domestic and international players competing on technology, price, and after-sales support.

Key Players include:

• Godrej & Boyce Mfg. Co.

• McNally Bharat Engineering Co.

• Mukand Ltd.

• Escorts Ltd.

• Ahluwalia Contracts (India) Ltd.

• Saico Engineers & Fabricators Ltd.

• Elecon Engineering Co.

• ElectroMech

• ACE

• Voltas Ltd.

• TIL Ltd.

• TELCON

• Ashoka Machines

• Venus Engineers

• Mekonix Systems

These companies are focusing on product innovation, automation integration, and capacity expansion to enhance market presence. Strategic collaborations with logistics firms and e-commerce companies are further accelerating market penetration.

Future Outlook

India’s material handling equipment market is entering a transformative phase. Increasing automation across industries, rising warehousing investments, and the government’s focus on infrastructure will continue to drive demand. The trend toward digitalization—such as using IoT-enabled equipment for predictive maintenance—will further redefine operational efficiency.

By 2027, the market is expected to witness strong adoption of electric and automated handling systems, driven by sustainability goals and efficiency needs.

Conclusion

The India Material Handling Equipment Market presents significant opportunities for both domestic manufacturers and international players. With a strong policy push, industrial expansion, and the rise of e-commerce, the sector is set for substantial growth. Companies that invest in technology-driven, cost-efficient, and sustainable solutions will emerge as leaders in this evolving market landscape.