Global demand for materials handling products is forecast to climb 4% annually through 2016 to USD123.6 billion, according to a new study from The Freedonia Group Inc.

The World Material Handling Products study by the Cleveland, Ohio-based industry market research firm indicates that opportunities will be best for the sales of equipment like automated conveyors and automated guided vehicles.

Automated products reduce the required labour input in operating machinery, helping to curtail labour costs. Energy-efficient products like electric forklifts are also expected to see solid gains as end-users seek to cut costs.

The growing importance of e-commerce will also fuel demand for automated equipment, as business is increasingly conducted in large, lightly staffed warehouses.

India and China will see the fastest gains, the report says, largely due to rising manufacturing output that will spur demand for equipment to facilitate distribution and production.

West European markets include many of the most intensive materials handling equipment users in the world because manufacturers in the region have long been among the leaders in adopting automated equipment in response to high domestic labour costs.

The US market, which accounted for 22% of global sales in 2011, is expected to remain the leading consumer through 2016. After a period of sluggish gains in 2006-2011, demand in the US will perform better through 2016, bolstered by better manufacturing conditions, especially in the motor vehicle industry, the report says.

Japan and Germany are forecast to post stronger gains, although both have performed poorly compared to the global average in recent years.

World Material Handling Products (published August 2012, 383 pages), is available for USD6,300 from The Freedonia Group Inc. For more information, visit www.freedoniagroup.com.