Market Trends of Europe Warehouse Robotics Industry
Increasing Investment in Warehouse Automation by E-Commerce Industry to Drive the Studied Market's Growth
- The e-commerce industry in Europe has been gaining traction in recent years. Expanding marketplace, growing internet and smartphone penetration, and shopping convenience are among the significant factors expanding the e-commerce sector's growth in the region. Additionally, the e-commerce industry is also expected to grow further owing to the pandemic-led behavioral changes in customers' shopping patterns.
- According to the 2022 European E-commerce Report by Ecommerce Europe and EuroCommerce, the European e-commerce industry in 2021 grew by 13 percent to EUR 718 billion (USD 783.15 billion); according to the report, the industry witnessed a steady growth despite the pandemic-led restrictions being lifted across the European region and is expected to continue to do so during the forecast period.
- Several e-commerce players are investing in new warehouse technologies to improve work efficiencies, further supporting market growth. For instance, in April 2022, Amazon announced investing USD 1 billion into warehouse technologies to help the company build a supply chain, fulfillment, and logistic technologies. Through this investment, the company aims to improve delivery speed and upscale the experience of logistics and warehouse workers. Furthermore, the company had also acquired Kiva Systems to create wheeled robots for the warehouse and launched several robotic warehouses to speed up the delivery process.
- Furthermore, the increasing number of e-shoppers is also driving investment in warehouse robotics and automation solutions as leading players are focusing on making their supply chain highly efficient and less time-consuming to gain a competitive edge. According to Eurostat and the National E-Commerce Association, the percentage of e-shoppers that purchased goods or services online was expected to grow to 76 percent in 2022 from 74 percent in 2021.
- Considering such trends, several new players are entering the market. For instance, in October 2022, abrdn European Logistics Income PLC, an investment fund specialized in logistics real estate, bought two logistics warehouses, one in Horst, Netherlands, and one in Dijon, France, for an aggregate price of EUR 21.4 million (USD 23.32 million). Such trends are expected to support the European warehouse robot market during the forecast period.
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Germany to Hold a Significant Market Share
- Germany is home to many world-famous automobile brands such as Mercedes, Porsche, BMW, Lamborghini, Ferrari, etc., making the country among the largest producers of automobiles in Europe. According to the German Association of the Automotive Industry (VDA), in November and December 2022, about 3,85,700 and 2,53,700 cars were produced in the country, respectively.
- Furthermore, according to Germany's Federal Motor Vehicle Office (KBA), the sales of new passenger vehicles in the country increased by about 38.1 percent to reach 314,318 units in December 2022. Overall, the total annual sales increased by about 1.1 percent to 2,651,357 units.
- As the automotive supply chain involves several warehouses for storing raw and finished products, such trends support the growth of the studied market in the country. Such trends are also attracting new players to enter the country. For instance, in October 2022, Acme Intralog, a UAE-based company, opened a new office in Germany to expand its European operations. The company produces a complete range of AS/RS, conveyors, control systems, shuttles, mini loads, stacker cranes, and other material handling solutions.
- The growth of other major end-user industries of warehouse robots, including e-commerce, logistics, manufacturing, etc., also drives investments in new warehouses, creating opportunities in the studied market. For instance, in January 2023, DHL announced opening a robot picking system at its facility in Staufenberg, Germany, to manage its inventory better. This system comprises 160 robots, which are used to sort orders for clothing store customers across Europe.
- Similarly, in August 2022, Maersk announced its plans to construct a 43,000 square-meter Flow Warehouse in Duisburg, Germany, offering cross-dock, pallet storage, and all value-added services along the supply chain.
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