Market Size of India Warehouse Automation Industry
|2019 - 2029
|Base Year For Estimation
|Market Size (2024)
|USD 0.34 Billion
|Market Size (2029)
|USD 1.12 Billion
|CAGR (2024 - 2029)
*Disclaimer: Major Players sorted in no particular order
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India Warehouse Automation Market Analysis
The India Warehouse Automation Market size is estimated at USD 0.34 billion in 2024, and is expected to reach USD 1.12 billion by 2029, growing at a CAGR of 26.96% during the forecast period (2024-2029).
For estimating the market studied, types of solutions covered under the scope have been analyzed individually, including conveyor and sortation systems, palletizers, mobile robots (AGV/AMR), vision inspection equipment, and labeling equipment employed in the FMCG industry.
- Warehouse automation is the process of employing technology to increase the efficiency of warehouse processes, like moving and assembly. These processes involve mechanics to help move products between facilities or database systems to help track each area or warehouse. Warehouse automation has become essential, especially for FMCG players dealing with bulk goods and items. Several areas require adequate focus and advancements, from inbound to storage to outbound transit, to make the process seamless.
- A significant component of warehousing and fulfillment operations is proper inventory management. It enables the company to re-order and stock products effectively to avoid excess inventory and stock-outs. Warehouses handle inventory using warehouse management software that provides real-time inventory management capabilities.
- Material handling in warehouses has undergone various transformations that have changed the industry's outlook. Material-handling machines and mobile robots have replaced individual workers. Due to this transformation, many industries have grown, including FMCG. The rising infrastructure investment from the government, industries and the 'Make in India' initiative are expected to drive the demand for warehouse automation systems.
- Developing economies such as India have been representative of labor-intensive formats. With labor costs significantly low compared to other developed countries, high investment in specific warehouse automation systems with additional staff training has restrained the adoption of warehouse automation, especially in SMEs.
- In January 2022, due to the spike in COVID-19 cases across the nation, customers stocked up the goods, increasing demand for FMCG businesses, which increased supplies to their stockists to avoid a supply crisis. Companies like Parle Products, Dabur India, and ITC, which are already dealing with inflationary pressures on inputs, are keeping extra stock of raw materials to prevent any supply chain disruptions brought on by the new wave of the COVID-19 pandemic. They do this by applying what they learned from the previous two waves.