HANDLING THE FUTURE! MHE’s Role in Construction & Infrastructure

Material handling equipment (MHE) has long been an integral yet often underappreciated component of industrial and infrastructure development. In today’s rapidly transforming economic landscape, its importance is more prominent than ever, finds Equipment Times.

As India pursues ambitious goals through the National Infrastructure Pipeline (NIP), the PM Gati Shakti initiative, and the development of industrial corridors, MHE is playing a pivotal role in ensuring efficient logistics, seamless project execution, and enhanced productivity across sectors. The material handling segment, once perceived as a support function, has emerged as a driver of operational excellence, technological innovation, and environmental sustainability.

Market Dynamics: Growth Driven by Infrastructure, Warehousing & Manufacturing

India’s MHE market is on a steady upward trajectory. Driven by expanding infrastructure, growth in warehousing and logistics, the manufacturing renaissance, and the increasing adoption of automation, the market is projected to grow at a CAGR of 10–12% over the next five years. Valued at over ₹18,000 crore in FY2024, the segment is expected to surpass ₹30,000 crore by FY2030. The surge in demand spans across a wide array of equipment, including forklifts, cranes, conveyors, reach stackers, telehandlers, automated storage and retrieval systems (AS/RS), and hoists. From construction sites to container terminals, factories to fulfillment centers, MHE ensures that materials are moved safely, swiftly, and efficiently. This growth is being driven by multiple demand catalysts. India’s infrastructure boom—spearheaded by government initiatives such as the National Infrastructure Pipeline (NIP) and PM Gati Shakti—has resulted in the need for heavy-duty equipment like cranes, telehandlers, and conveyors across construction sites, industrial zones, and public infrastructure projects. Parallelly, the logistics and warehousing segment, fueled by the exponential rise in e-commerce, retail, and 3PL logistics, has triggered robust demand for equipment such as forklifts, pallet stackers, order pickers, and electric reach trucks. Large distribution hubs and fulfillment centers operated by e-commerce majors are increasingly investing in automated storage and retrieval systems (AS/RS), conveyor belts, and robotic palletizers, further expanding the scope of the MHE segment.

Ports and shipping terminals are another significant driver, with the modernization of India’s coastal infrastructure creating demand for container handling equipment such as rubber-tyred gantry cranes (RTGs), straddle carriers, and reach stackers. Similarly, the manufacturing sector—particularly steel, cement, auto, electronics, and pharmaceuticals—is scaling up its investments in internal material movement systems, forklifts, hoists, and AGVs, supported by incentives under the Make in India initiative and PLI (Production Linked Incentive) schemes.

Technological Transformation: Automation, AI, and Electrification

The technological evolution in this sector is nothing short of remarkable. The push toward electrification has led to the rapid adoption of electric forklifts and automated guided vehicles (AGVs), especially in warehousing and retail. These machines offer zero emissions, reduced noise, and lower maintenance costs, aligning well with environmental and operational expectations. Some manufacturers are also experimenting with hydrogen fuel cell-powered variants for longer operations in ports and large logistics facilities. The integration of automation and IoT has turned conventional machines into intelligent, connected assets. Modern MHE now comes embedded with sensors that relay real-time data for predictive maintenance, asset utilization, and performance tracking. Remote diagnostics, GPS-enabled tracking, and telematics have become industry standards, especially for fleet managers overseeing operations across multiple sites.

Artificial Intelligence and machine learning are adding further layers of intelligence. AI-driven vision systems assist with dynamic picking and sorting in warehouses, while learning algorithms help optimize load management and prevent equipment overuse. These advancements are not just improving efficiency but also extending equipment life and ensuring safer operations. In construction and infrastructure, the deployment of high-capacity crawler cranes, tower cranes, boom lifts, and telehandlers is instrumental in handling large volumes of materials under challenging site conditions. With the execution timelines tightening for projects like metro rails, highways, and tunnels, MHE has become a strategic enabler, offering precision, strength, and reliability.

At ports, automation is taking center stage. Container handling equipment such as rubber-tyred gantry cranes (RTGs), ship-to-shore (STS) cranes, and straddle carriers are now increasingly automated. Real-time container tracking, digital twins of yard operations, and autonomous stacking systems are reshaping India’s major ports to match global standards. Similarly, the warehousing sector—boosted by the rapid expansion of e-commerce and third-party logistics—is turning to MHE for increased throughput and accuracy. Narrow aisle forklifts, robotic pallet shuttles, conveyor-based sortation systems, and AS/RS solutions are enhancing space utilization and order fulfillment speed.

Application Trends Across Sectors

Manufacturing plants, especially in sectors like steel, cement, automotive, and FMCG, are leveraging MHE to streamline internal logistics and reduce human error. From assembly line integration to bulk material transport, MHE plays a vital role in ensuring lean operations and minimal downtime. Notably, safety and ergonomics have emerged as critical focus areas across sectors. Today’s equipment is designed with the operator in mind—featuring anti-tip technologies, load sensors, automatic braking systems, and enhanced visibility. Operator presence systems and fatigue detection mechanisms further reinforce safety, while simulation-based training programs offered by OEMs and training institutes are raising the competency levels of machine operators across India.

Safety, Training, and Ergonomics: A Rising Priority

The growing awareness around workplace safety is being supported by the enforcement of international safety norms and domestic IS codes. Compliance is no longer optional, particularly for large infrastructure contractors, manufacturing plants, and logistics operators. Meanwhile, sustainability is taking root as a core theme in the MHE domain. Electrification is not just about reducing emissions—it’s about creating long-term operational savings and reducing carbon footprint. Lithium-ion battery technology is gradually replacing lead-acid variants, offering faster charging, longer life, and zero maintenance. Some warehouses and logistics parks are deploying solar-integrated charging stations to power their electric MHE fleets.

Rental and Leasing: Flexibility Over Ownership

OEMs are also focusing on recyclability of components, use of eco-friendly materials, and energy-efficient designs in their manufacturing processes. Fleet optimization through software tools is helping reduce idle time, cut fuel usage, and enhance route planning, particularly for mobile handling equipment used in construction and mining. A parallel trend transforming the sector is the rising popularity of rental and leasing models. Construction companies, especially small and mid-sized contractors, are increasingly opting for rented MHE to avoid high capital investment and ensure flexibility. Organized rental players are offering newer models, complete with trained operators, maintenance services, and telematics-based billing.

The MHE rental market is growing at an estimated rate of 15–20% annually. Platforms that offer tech-enabled equipment booking, performance tracking, and on-site support are creating a vibrant ecosystem where access matters more than ownership. Policy support from the government has also had a positive impact on the MHE sector. The Make in India initiative, along with the Production Linked Incentive (PLI) scheme, has encouraged local manufacturing. The National Logistics Policy (NLP) and development of Multi-Modal Logistics Parks (MMLPs) have boosted demand for high-capacity and technologically advanced equipment.

Additionally, the introduction of Bharat Series (BH) number plates and rationalized interstate movement norms have facilitated smoother deployment of mobile MHE across regions.

Challenges Ahead

The sector continues to face hurdles like high dependence on imported components, especially for automation systems, sensors, and battery technology. The high initial cost of electric and automated MHE deters adoption by MSMEs, despite long-term benefits. The shortage of skilled operators and technicians, particularly for advanced machines, poses operational risks. Moreover, small-scale contractors and industries often lack awareness about the benefits of modern MHE, resorting instead to outdated manual or semi-mechanized practices. Regulatory clarity around road usage, taxation, and insurance of certain types of handling equipment—especially mobile cranes and telehandlers—also needs improvement.

The Road Ahead: Toward Smart, Sustainable, Scalable Solutions

Despite these hurdles, the future for material handling equipment in India is undeniably bright. As businesses increasingly recognize MHE as a strategic asset rather than an operational cost, demand for smart, safe, and sustainable solutions will rise. The convergence of 5G connectivity, AI-based controls, and digital twin technologies will redefine the very fabric of material movement. Whether it’s placing concrete segments for metro projects, stacking containers at a smart port, or automating an e-commerce fulfillment center, MHE will continue to be the silent engine powering India’s industrial growth story.

In conclusion, the material handling equipment industry is undergoing a transformation that goes far beyond machines and mechanics. It is embracing a future where efficiency meets intelligence, sustainability aligns with profitability, and innovation drives competitiveness. As India charts its course toward becoming a global manufacturing and infrastructure powerhouse, MHE will remain a critical enabler—quietly but powerfully lifting the weight of the nation’s ambitions.

Leaders speak… 

Pinaki Niyogy, Chief Operating Officer & Chief Technology Officer, TIL, said, “At TIL Limited, we’re taking a systematic, customer-focused approach to technology integration. Our R&D centers have developed sophisticated IoT frameworks that enable real-time performance monitoring across our equipment range. These systems continuously capture operational data, including load characteristics, engine performance, hydraulic pressures, and structural stresses, which is then analysed to predict maintenance needs before failures occur. Through our global strategic partnership, we’ve incorporated intelligent monitoring systems into our machines that provide operators with comprehensive performance metrics and operational guidance. Our latest models incorporate several significant engineering advancements that address the evolving requirements of modern construction and material handling operations. To enhance load capacity and operational efficiency, we’ve redesigned our boom structures using advanced stress analysis techniques, optimising the distribution of high-strength steel to create lighter yet stronger components. This approach has increased lifting capacities without compromising safety margins, allowing our equipment to handle heavier loads while maintaining energy efficiency.” 

Manjunath S, Director - MH Sales, SIOP, Marketing, Doosan Bobcat India, said, “Doosan Bobcat is enhancing its forklifts by integrating automation, IoT, telematics, and robotics to improve safety, efficiency, and productivity. The company is developing advanced sensor systems to detect obstacles and support autonomous functions, enabling safer and smarter operations. In its manufacturing processes, Bobcat uses intelligent visual systems to boost inspection accuracy and streamline material handling, reducing time and errors. These efforts reflect a strong commitment to innovation, with a focus on improving operational performance, real-time monitoring, and predictive capabilities. The integration of these technologies’ positions Bobcat at the forefront of next-generation forklift design and functionality. Bobcat forklifts feature several design and engineering enhancements aimed at boosting load capacity, operational efficiency, stability, and manoeuvrability. High-strength structural components and reinforced frames allow the machines to handle heavier loads while maintaining durability. The Guardian Stability System (GSS) enhances safety by actively monitoring speed and mast tilt to reduce tip-over risks. To improve performance in tight spaces, Bobcat forklifts—such as the BNT series—are designed with a compact chassis and tight turning radius for better manoeuvrability. Additionally, high-visibility masts and low-profile dashboards improve operator sightlines, ensuring more precise and efficient load handling in confined environments.” 

Neville Mevawala, Head of Sales & Marketing, Material Handling Equipment, a part of Godrej Enterprises Group, said, “The material handling equipment market is undergoing significant transformation globally and in India. Key trends include automation integration with AI-powered solutions revolutionizing warehouse operations, sustainable equipment designs focusing on electric, and IoT connectivity enabling predictive maintenance and real-time tracking capabilities.

E-commerce growth is accelerating technology adoption, while compact equipment designed for tight spaces is addressing urban warehousing challenges. The industry is also moving toward flexible, modular solutions that can adapt to changing business requirements. At Material Handling Equipment business of Godrej Enterprises Group, we’re driving innovation through our comprehensive approach to equipment design and functionality. Our electric forklift range balances efficiency with performance requirements, addressing the market’s growing demand for sustainable solutions. We are set to launch India’s first IoT-enabled forklift trucks, empowering fleet owners to monitor equipment performance across multiple locations and optimize fleet utilization and maintenance costs through proactive, data-driven interventions.”