PUBLISHER: The Business Research Company | PRODUCT CODE: 1436789
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436789
The warehouse automation refer to devices or systems used to streamline repetitive warehouse operations and make them less labor intensive to generate greater operational efficiencies. Warehouse automation is an integral part of supply chain optimization, as it reduces time, effort, and errors caused by manual or repetitive tasks. These automated systems are transforming operational facilities by increasing the speed of inventory movement, increasing storage density, reducing labor costs, and improving human safety inside the facility.
The main types of warehouse automation are conveyor/sortation systems, automated storage and retrieval systems (AS/RS), mobile robots, warehouse management systems (WMS), and automatic identification and data capture (AIDC). Sortation is the act of detecting individual objects on a conveyor system and routing them to the appropriate areas with the help of a variety of devices controlled by task-specific software. They are divided based on components in hardware and software that can perform activities such as inbound, picking, and outbound. There are various end users of warehouse automation, such as general merchandise, healthcare, FMCG/non-durable goods, and other end users.
The warehouse automation market research report is one of a series of new reports from The Business Research Company that provides warehouse automation market statistics, including warehouse automation system industry global market size, regional shares, competitors with a warehouse automation market share, detailed warehouse automation market segments, warehouse automation market trends and opportunities, and any further data you may need to thrive in the warehouse automation industry. This warehouse automation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The warehouse automation market size has grown rapidly in recent years. It will grow from $19.27 billion in 2023 to $21.9 billion in 2024 at a compound annual growth rate (CAGR) of 13.6%. The historic period's growth can be credited to the expansion of e-commerce, labor shortages and rising costs, increased complexity in global supply chains, consumer demand for faster delivery, and improved efficiency in inventory management.
The warehouse automation market size is expected to see rapid growth in the next few years. It will grow to $36.48 billion in 2028 at a compound annual growth rate (CAGR) of 13.6%. The forecasted growth is driven by an increase in same-day and on-demand delivery services, a focus on sustainability and eco-friendly warehouse practices, and the emergence of microfulfillment centers. Key trends anticipated during this period encompass the adoption of warehouse execution systems (WES), the integration of voice-activated and wearable technologies, the implementation of automated palletizing and depalletizing systems, the use of real-time monitoring and analytics, and the development of sustainable and eco-friendly warehouse solutions.
The rise in e-commerce sales will drive the growth of the warehouse automation market. As retailers struggle to keep up with the increasing volume of orders and their last-mile delivery needs, warehouse automation is briskly turning into the trump card for those who are looking for a leg up on the competition, especially in the competitive e-grocery market. For instance, according to the Robotic Business Review, e-commerce will grow and is expected to reach 22% of all retail sales worldwide in 2023, as compared to 14.1% in 2019. According to a study published by Prologis, a US-based real estate investment trust, in 2021, the use of automation in warehousing is expected to increase revenue per square foot from 10% to 20% in the e-commerce real estate sector in the next three years. Therefore, the rise in the e-commerce sector is expected to boost the warehouse automation market during the forecast period.
The integration of robotics is expected to propel the growth of the warehouse automation system market going forward. Robotics is the branch of technology that deals with the design, construction, operation, and application of robots. The warehouse management system enhances efficiency in robot-operated warehouses by optimizing inventory tracking, order fulfillment, and overall logistics. For instance, in October 2022, according to the World Robotics report by the International Federation of Robotics, a Germany-based professional non-profit organization, indicated a record-breaking number of 517,385 industrial robots introduced into global factories in 2021. This marks a growth rate of 31% year-on-year. Furthermore, in the US, there was a deployment of 50,712 industrial robots in 2021, reflecting a growth of 31% compared to 2020. Therefore, the integration of robotics is driving the warehouse automation system market.
Investments in research and development activities are a key trend gaining popularity in the warehouse automation market. The companies operating in the warehouse automation sector are increasingly investing in R&D facilities to boost their new product development activities and gain a competitive edge over other players through launching technologically advanced products with greater operational capabilities and performance. For instance, in November 2021, Honeywell International Inc., a US-based conglomerate company involved in building technologies, safety & productivity solutions, and performance materials & technologies, announced its plans to develop a new advanced research and development (R&D) testing facility in the Czech Republic for its own Honeywell Intelligrated warehouse automation business to meet the growing demand for technologies that enable secure, more accurate supply chains. The facility enables Honeywell software and hardware engineers to design, prototype, and test the innovative warehouse automation systems used by logistics companies to improve the efficiency, accuracy, and throughput of packages within warehouses and distribution centers.
Major companies operating in the warehouse automation market are focusing on strategic collaboration, to provide reliable services to customers. Strategic collaboration refers to a mutually beneficial partnership between two or more independent entities who work together to achieve shared goals aligned with their individual strategic objectives. For instance, in February 2021, Shadowfax Technologies Ltd., an India-based on-demand logistics services provider, partnered with Vinculum Solutions, an India-based software company, to develop warehouse management system. Combining Shadowfax's established 3PL services with Vinculum's advanced WMS created a unique and competitive offering.
In July 2021, Zebra Technologies, an Illinois-based company involved in the manufacturing and distribution of marking, printing, and tracking technologies, acquired Fetch Robotics for $290 million. The acquisition helps Zebra Technologies to accelerate its enterprise asset intelligence vision and expand its developmental activities in intelligent industrial automation by embracing new methods of empowering workflows and helping customers operate efficiently in increasingly automated and data-powered environments. Fetch Robotics is a US-based on-demand provider of warehouse automation.
Major companies operating in the warehouse automation market report are Viastore Systems Inc., ABB Ltd., Toyota Industries Corporation, Kion Group AG, Omron Corporation, Daifuku Co. Ltd., Yaskawa Electric Corp Inc., KUKA Group, Schaefer Systems International Pvt. Ltd., Honeywell Intelligrated Systems Inc., KNAPP Group, Vanderlande Industries BV, SSI Schaefer AG, Material Handling Systems Inc., WITRON Logistik + Informatik GmbH, Mecalux SA, Beumer Group, TGW Logistics Group, Swisslog Holding, Interroll Group, Bastian Solutions LLC, Kardex Group, Grenzebach Group, System Logistics SpA, Locus Robotics, Murata Machinery Ltd., Kardex Remstar LLC, Godrej Koerber Supply Chain Limited, Space Magnum Equipments Pvt. Ltd., Fives Group
North America was the largest region in the warehouse management system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the warehouse automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the warehouse automation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The warehouse management system market includes revenues earned by entities by providing services such as inbound logistics and outbound logistics tools for picking and packing processes, resource utilization, analytics, and others. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Warehouse Automation Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on warehouse automation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for warehouse automation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The warehouse automation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.