warehouse automation market

Warehouse Automation Market Share, Size, Trends, Industry Analysis Report, By Application (E-commerce, Grocery, Apparel, Food & Beverage, Pharmaceutical); By Type; By Technology; By Region; Segment Forecast, 2021 - 2028

  • Published Date: Oct 2021
  • Pages: 135
  • Format: PDF
  • Report ID: 2010
  • Base Year: 2020
  • Historical Data: 2016 - 2019

Report Summary

The global warehouse automation market was valued at USD 12.85 billion in 2020 and is expected to grow at a CAGR of 14.2% during the forecast period. Robotics automation is constantly becoming a key success factor in e-commerce and is about to create a huge impact on logistics. Thus, the growing proliferation of robotics technology in e-commerce fulfillment centers in developed and emerging nations, along with the increasing adoption and government initiative on industrial automation technology are the significant factors driving the demand for the warehouse robotics market.

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Apart from this, the implementation of warehouse automation market is extremely influenced by a fast-paced technological breakthrough in the form of artificial intelligence, motion control, computer vision systems, and motors in the robotic market are projected to create significant growth opportunities in the industry.

The market is experiencing significant growth on the back of the COVID-19 pandemic and various structural trends in consumer demand within e-commerce, 3PL logistics, and retailing. Despite this, there was a temporary reduction in retail and e-commerce due to the nationwide lockdown and economic distress in this pandemic.

Industry Dynamics

Growth Drivers
Warehouse automation increased due to rising investments in R&D activities, high labor costs, the dearth of skilled workforce, and increasing awareness associated with the benefits provided by warehouse automation. Apart from these factors, the increased proliferation of automation and robotics technology in the industrial sector further strengthens the demand for warehouse automation all over the world.

In terms of improving operational efficiency and raising safety for workers, companies are increasingly preferring technologically advanced components, such as RFID tags, sensors, and scanners. These technologies can track inventory in real-time, along with streamlining the logistics process with reduced manual error. Thus, the technological breakthrough is supporting the substantial growth of the market.

According to the International Federation of Robotics (IFR), warehouse automation adoption has witnessed an increase in decades and is projected to offer double-digit growth over the study period. Moreover, the U.S., the U.K., Germany, India, and China are among the few key countries wherein industrial automation and robotic technology have been expanding significantly.

Report Segmentation

The market is primarily segmented on the basis of type, technology, application, and region.

By Type

By Technology

By Application

By Region

  • Basic Warehouse
  • Warehouse System
  • Mechanized Warehouse
  • Advanced Warehouse
  • Automated Storage and Retrieval Systems (AS/RS)
  • Automatic Guided Vehicles (AGVs)
  • Autonomous Mobile Robots (AMRs)
  • Voice Picking and Tasking
  • Automated Sortation Systems
  • Others
  • E-commerce
  • Grocery
  • Apparel
  • Food & Beverage
  • Pharmaceutical
  • North America (U.S., Canada)
  • Europe (Germany, UK, France, Italy, Spain, Netherlands, Austria)
  • Asia Pacific (China, India, Japan, South Korea, Indonesia, Malaysia)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, South Africa, Israel, UAE, Africa)

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Insight by Technology

Based on the technology segment, the Automated Storage and Retrieval System (AS/RS) segment is expected to hold the largest market capture in the global market in 2020. The AS/RS system mainly offers exceptional benefits to the warehouse managers, such as lowering costs related to labor and energy while also promoting the usage of space and avoiding product damage.

The deployment of these systems in warehouses has been further lessening the amount of human intervention in the system. Such inherent benefits provided by AS/RS are ensuring a captivating ROI in warehousing and distribution technology and contributing towards the segmental growth on a global scale. Market players are also stepping up to make myriad developments in the AS/RS system to improve its capabilities to perform automated tasks efficiently, which eventually boosts segment growth across the world.

On the contrary, the autonomous mobile robots segment is expected to register a considerable share in terms of revenue in the global market. One of the key advantages of using autonomous mobile robots is supporting leaner operations and becoming more dynamic. These robots can also support navigation and operate tasks safely within these environments.

Insight by Application

In 2020, the e-commerce segment was expected to witness a large revenue size in the global market, owing to the extensive implementation of warehouse automation in e-commerce facilities because of the rise in vendor awareness regarding the robotics of distinct aspects of e-commerce fulfillment. E-commerce applications are also gaining wide popularity in the warehouse automation market due to the increasing e-commerce activities and the growing proliferation of robotics technology in e-commerce warehouses.

Therefore, such benefits offered by warehouse automation to e-commerce fulfillment centers are projected to gain a significant profit share that accelerates the segmental growth during the forecast period.

On the flip side, the grocery segment is expected to gain a significant CAGR in the global market during the forecast period. The grocery distribution center is the most labor-intensive part of the retail industry. Higher automation is driven by the growing concept of online grocery retailing; micro-fulfillment centers are going to be the largest opportunity in the market.

It is generally led by delivery robots, ASRS, and micro-fulfillment players, including Exotec, Fabric, AutoStore, Takeoff Technologies, Nuro, Attabotics, Dematic, Tele Retail, Starship, KiwiBot, and Robby Technologies. This is anticipated to create a higher demand for warehouse automation in commercial spaces and significantly contribute to the rapid segmental growth over the foreseen period.

Geographic Overview

Geographically, Europe is leading the global market in 2020 and is estimated for the largest share in terms of revenue. The regional government is drafting several industrial automation policies for effectively managing the material handling at warehouse facilities. Furthermore, the rise in the growth of e-commerce and packaging-related activities and the growing level of disposable income further contribute to the market growth.

Whereas incumbent warehouse automation vendors are continuously advancing their product offerings, the active manufacturers are intensifying their product portfolio to better serve the market. For instance, in May 2021, EU4Digital introduced an eCommerce pilot for the robotic exchange of eCommerce data through the virtual warehouse. It supports retailers, marketers, delivery operators, and customs to place the product for supply across the abroad and cross-border delivery. Such initiative is expected to contemplate the growth of the warehouse automation market in the region.

Moreover, Asia Pacific is anticipated to observe a high CAGR in the global market in 2020. The demand for warehouse automation in the region is attributed to an increase over the forecast period, backed by the growing e-commerce industry in the developing countries of Asia Pacific, especially promoting the deployment of warehouse automation for inventory management.

Competitive Insight

Some of the Major Players operating in the global market include Addverb Technologies Inc., Armstrong Ltd., Bastian Solution LLC, Daifuku India Private Limited, Falcon Autotech Private Limited, Godrej Consoveyo Logistics Automation Ltd (GCLA)., GreyOrange, Hinditron Group, Honeywell Intelligrated, Kardex India Storage Solutions Private Limited, Kion Group (Dematic), KNAPP Group, KUKA Group (Swisslog), Muratec Machinery, ltd., Richfield Automation Ltd, Schaefer Systems International Pvt Ltd, Space Magnum Equipment Pvt. Ltd, The Hi-Tech Robotic Systemz Limited.

Warehouse Automation Market Report Scope

Report Attributes

Details

Market size value in 2020

USD 12.85 billion

Revenue forecast in 2028

USD 30.69 billion

CAGR

14.2% from 2021 - 2028

Base year

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Segments covered

By Type, By Technology, By Application, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key Companies

Addverb Technologies Inc., Armstrong Ltd., Bastian Solution LLC, Daifuku India Private Limited, Falcon Autotech Private Limited, Godrej Consoveyo Logistics Automation Ltd (GCLA)., GreyOrange, Hinditron Group, Honeywell Intelligrated, Kardex India Storage Solutions Private Limited, Kion Group (Dematic), KNAPP Group, KUKA Group (Swisslog), Muratec Machinery, ltd., Richfield Automation Ltd, Schaefer Systems International Pvt Ltd, Space Magnum Equipment Pvt. Ltd, The Hi-Tech Robotic Systemz Limited

Key Take-Away
Polaris Market Research
Warehouse Automation Market Size | Global Industry Report, 2021 - 2028