What Has Driven the Growth of the Warehouse Automation Market in Recent Years?
The warehouse automation market has seen considerable growth due to a variety of factors.
• The size of the warehouse automation market has seen a swift increase in recent times. The market is projected to expand from a value of $21.42 billion in 2024 to $24.09 billion in 2025, registering a compound annual growth rate (CAGR) of 12.4%.
Factors such as the rise in e-commerce, increasing labor scarcity and overheads, intricate global supply chains, heightened customer expectations for quicker deliveries, and improved efficiency in inventory management have contributed to this growth in the historic period.
What Are The Predictions for The Warehouse Automation Market Size In The Coming Years?
The warehouse automation market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of warehouse automation is projected to witness an accelerated growth in the upcoming years. It is estimated to expand to a value of $42.25 billion in 2029, growing annually at a compound rate of 15.1%.
This anticipated growth in the projection period could be a result of factors such as an increase in the demand for same-day and on-demand delivery, adoption of sustainable and green warehousing practices, and the emergence of micro-fulfillment centers. Some significant trends predicted for this forecasted period encompass the use of warehouse execution systems (WES), voice-activated and wearable technologies, automated systems for palletizing and depalletizing, real-time monitoring, analytics, and sustainable green warehouse solutions.
What Factors Are Driving Growth In The Warehouse Automation Market?
The growth of the warehouse automation market will be propelled by the surge in e-commerce sales. As the volume of orders and last-mile delivery requirements escalates, retailers are increasingly turning to warehouse automation as a strategic advantage to stand out in the fiercely competitive e-grocery market. For instance, data from the United States Census Bureau shows that there was an 8.5 percent rise in e-commerce sales between the first quarter of 2023 and the same period in 2024. Meanwhile, overall retail sales saw a smaller increase of 2.8 percent. Hence, the booming e-commerce industry is predicted to spur the growth of the warehouse automation market in the future.
What Are The Core Segments Of The Globa Warehouse Automation Market?
The warehouse automation market covered in this report is segmented –
1) By Type: Conveyor Or Sortation Systems, Automated Storage And Retrieval Systems (AS Or RS), Mobile Robots, Warehouse Management Systems (WMS), Automatic Identification And Data Capture (AIDC)
2) By Component: Hardware, Software
3) By Function: Inbound, Picking, Outbound
4) By End User: General Merchandise, Healthcare, FMCG Or Non-Durable Goods, Other End Users
Subsegments:
1) By Conveyor Or Sortation Systems: Belt Conveyors, Roller Conveyors, Sortation Systems
2) By Automated Storage And Retrieval Systems (AS Or RS): Unit Load AS Or RS, Mini-Load AS Or RS, Automated Tote and Bin Systems
3) By Mobile Robots: Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs)
4) By Warehouse Management Systems (WMS): Cloud-based WMS, On-premise WMS
5) By Automatic Identification and Data Capture (AIDC): Barcode Scanners, RFID Systems, Voice Recognition Systems
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Which Emerging Trends Are Reshaping The Warehouse Automation Market?
One vital trend gaining traction in the warehouse automation market is the activity of investment in storage. More and more companies within the warehouse automation space are putting their money into storage capabilities to strengthen their new product development, and to launch cutting-edge technological products that offer more significant operational and performance capabilities, thereby gaining a competitive advantage. For instance, in July 2024, Mytra, a robotics automation company involved in warehouse operations in the US, revealed that they had received funding amounting to $78 million to deal with physical storage issues. They seek to bring about a game-changer in warehouse logistics by offering a solution for material storage and movement that is AI-driven and has high density. This funding aids in the creation of a flexible 3D lattice system that efficiently uses the space and reduces reliance on conventional conveyor systems. Mytra effectively tackles the intricate issues of material flow within its advanced robotic system, thus aiding businesses to adjust to changes in demand and layout without incurring excessive costs.
Who Are the Key Players in the Warehouse Automation Market?
Major companies operating in the warehouse automation market include:
• 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
What are the Regional Insights into the Warehouse Automation Market?
North America was the largest region in the warehouse automation market in 2024. 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.
