The region’s dedicated warehousing trade show turns its focus to robotics and automation for its landmark 10th Edition
HE Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors, RTA, recently opened the 2019 edition of Materials Handling Middle East.
The event, which ran from 3 to 5 September at the Dubai World Trade Centre (DWTC), was co-located with SPS Automation Middle East 2019.
HE Mattar Al Tayer was joined by Simon Mellor, CEO, Messe Frankfurt Middle East, the show’s organiser, as they toured the show floor meeting with representatives of local and international exhibitors.
Now in its 10th edition, Materials Handling Middle East had a focused futuristic showcase of robotics and automation, ushered in by a rapidly changing industrial landscape.
The three-day tradeshow addressed hot-button topics for the industry, including automated solutions, operational and cost efficiency, production capacity and customer service.
Eclectic mix
Hosting close to 100 exhibitors from over 30 countries, international and local presence at the show was bolstered by Japanese automation providers, Daifuku; Germany’s Schafer; the regional branch of for industrial solutions provider, ACME; and Kuwaiti transportation logistics giant, Agility.
Swisslog, a global leader in robotic, data-driven and flexible automated solutions introduced highly efficient robotised storage and order processing solutions for small parts and pallets that can be integrated into existing buildings.
Commenting on its benefits to logistics automation, Alain Kaddoum, General Manager, Swisslog Middle East affirmed that the GCC automated materials handling equipment segment is growing at a CAGR of 8.6% was expected to reach US$ 498.5mn by 2023.
“This growth will cross from E-commerce and retail, to F&B and pharmaceuticals and is fueled by the demand for operational efficiencies. Businesses are now recognizing the full potential and need for warehouse automation investments,” he remarked.
Market prognosis
A new report was issued to coincide with today’s opening which has forecast double-digit growth for the region’s warehouse automation market with rising E-commerce demand being a key driver.
The report, produced by research and advisory firm LogisticsIQ, said the regional warehouse automation sector will attain compound annual growth of 17.5% to 2025 to reach a value of US$ 1.6bn, almost triple today’s US$ 600mn worth.
“Growing competition, good access to know-how and improving access to funding are some of the key factors driving Saudi Arabia online penetration growth,” says the report.
The report forecasts the Middle East’s E-commerce market to grow by 13% through to 2025, when it will be worth nearly US$ 28bn. Digital adoption is gaining momentum and there is a gradual development of the digital ecosystem in areas such as media and E-commerce, as there is a higher penetration of internet and consumers moving online.
E-commerce strides
E-commerce fulfillment is driving demand for more warehouse space, as well as increasing adoption of automation solutions in the warehouse itself, the report indicated.
The biggest customer segment base for warehouse automation in the region will be the E-commerce, fashion, beauty, and grocery sectors, according to the report. While demand from the UAE’s e-commerce sector is said to be leading regional growth – the Saudi Arabian market holds out huge potential.
There is still massive room for growth, as E-commerce penetration in the Middle East remains low compared with other regions.
“Few sectors are experiencing such all-embracing disruption as warehousing logistics, supply chain and transportation,” explained Mellor. “The pace of change in materials handling is rapid and although we are seeing a rethink of everything from warehousing locations to the introduction of robotics, AI and blockchain, the report suggests we are only at the start of this transformational journey,” he concluded.
