Latin America Warehouse Robotics Market - Growth, Trends, Forecasts (2020 - 2025)

The Latin America Warehouse Robotics Market is Segmented by Type (Industrial Robots, Sortation Systems, Conveyors, Palletizers, Automated Storage and Retrieval System (ASRS), Mobile Robots (AGVs and AMRs)), Function (Storage, Packaging, Trans-shipments), End-user Industries (Food and Beverage, Automotive, Retail, Electrical and Electronics, and Pharmaceutical), and Country.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

CAGR:

11 %

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Market Overview

The Latin America Warehouse Robotics Market is expected to register a CAGR of approximately 11% over the forecast period (2020 - 2025). Latin American nations have transformed themselves into a set of fast-growing, emerging economies.

  • Companies that have their manufacturing plants located in China are moving some production to Mexico and Brazil to reduce supply chain risk and serve the American market. With many players aggressively investing in Latin America, particularly in Brazil, Mexico, Chile, Argentina, and Colombia, the market scenario is poised towards growth.
  • The growth in the e-commerce industry in the Latin American region and the growing need for efficient warehousing and inventory management are factors driving the market studied. Automation in warehousing offers extreme convenience when it comes to cutting down overall business costs and reducing product deliveries errors.
  • The emergence of the Industrial Internet of Things (IIoT) and the advent of a network of connected systems are helping industries perform a multitude of tasks, such as material batching, picking, ordering, packaging, warehouse security, and inspection, as well as improve the operational efficiency by huge margins.
  • With the spread of the COVID-19 pandemic, robots and automation play a critical role in managing the situation. Furthermore, the situation is likely to bring new opportunities to the market. With workers quarantined across the world, warehouses that use manual picking are likely to halt, severely impacting the global supply chain.

Scope of the report

Automation in logistics refers to the use of control systems, machinery, and software to enhance the efficiency of operations. It usually applies to processes that must be performed in the warehouse or distribution center and result in minimal human intervention. Some of the benefits of automation logistics are improved customer service, scalability, and speed, organizational control, and reduction of mistakes, among others.

Warehouse robotics is the adoption of robotics in the warehouse that performs functions like Storage, Packaging, Trans-shipment, and Other Functions. End Users considered under the scope include Food and Beverage, Automotive, Retail, Electrical and Electronics, Pharmaceutical, and Other End Users. The study also provides the impact of COVID-19 on the market.

Type
Industrial Robots
Sortation Systems
Conveyors
Palletizers
Automated Storage and Retrieval System (ASRS)
Mobile Robots (AGVs and AMRs)
Function
Storage
Packaging
Trans-shipments
Other Functions
End User
Food and Beverage
Automotive
Retail
Electrical and Electronics
Pharmaceutical
Other End Users
Country
Brazil
Argentina
Columbia
Rest of Latin America

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Key Market Trends

The Adoption of Industrial Robotics Expected to Act as a Significant Driving Factor

  • The demand for industrial robotics is majorly observed in industries, such as automobiles and heavy engineering. The increasing global adoption of industrial robotics across industries is ecpected to create significant growth opportunities in the Latin America region. Robotic investments in January 2019 totaled at least USD 644 million worldwide, with a total of 25 robotics transactions. In 2020, an estimated 1.64 million industrial robots were in operation worldwide.
  • In July 2020, SpaceTime Labs and Small Robot Company collaborated to co-develop autonomous aerial and terrestrial robots to transform Latin American agriculture. The strategic partnership will focus on co-developing an on the ground, end-to-end per plant planting, weeds, pests and disease management and nutrition management.
  • The traditional industrial robot consists of a manipulator arm designed to perform repetitive tasks. This category also includes systems, like Amazon's warehouse robots and collaborative factory robots that can operate alongside human workers.
  • Deploying collaborative robots (cobots) is an excellent move for companies looking to enhance productivity and drive efficiency in order fulfillment operations. Rather than hiring more employees during peak periods and laying them off or keeping them on (at the detriment of bottom lines) as demand ebbs, businesses can deploy cobots as needed. For example, some collaborative robot companies allow warehouse operators to rent, buy, or do both.
  • Further, warehouses are large, which means associates walk long distances to find SKUs and transport orders to packing and shipping areas. An average warehouse wastes an estimated 6.9 weeks each year on unnecessary walking and other motion, which amounts to about 265 million hours of labor at the cost of USD 4.3 billion. Collaborative robots also eliminate the need for long walks between functional areas during each picking process stage.

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Brazil is Expected to Witness Significant Growth Rate in Adoption

  • Owing to the decreasing operating cost, a few of the companies in Brazil are focusing on automating their logistics and increasing the warehouse robotics capabilities. For instance, Aromaty Fragrances, a Brazilian fragrance manufacturer, has completely turned its logistics around by opening an automated warehouse in Louveira (a town in São Paulo State). The warehouse, designed to house raw materials, also features the Mecalux Easy WMS management system.
  • The expanding millennial population and the increase in disposable incomes are creating many opportunities for retailers, like Amazon, to introduce new product lines, thereby, creating a considerable need for advanced warehouse facilities. In the case of such high throughput warehouses, AMRs can help in scaling up the efficiencies and mitigating the challenges related to labor.
  • The developing e-commerce industry contributes to the need for sorting systems across warehouses for retail and online retail companies. This has resulted in a growing need for managing the delivery process. This factor is leading to investments in warehouse robotics in the country. The established players in the global market, with an extended product portfolio, are utilizing the opportunity of this trend by expanding their reach in the country.

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Competitive Landscape

The competitive landscape of the Warehouse Robotics in the Latin America region is moving towards fragmentation, owing to the presence of several regional players and the expansion of global players in the region. The presence of these players and their constant innovative activities are intensifying the market scenario. Owing to their market penetration and the ability to offer advanced products, the competitive rivalry is expected to continue to be high.

  • August 2020 - Geek+, a global provider of Autonomous Mobile Robots expanded into South America with its first robotics project, providing smart logistics solutions to Walmart Chile, the largest supermarket chain in the country, with 345 stores distributed across the country under banners Liders Hiper, Lider Express, Superbodega Acuenta and Central Mayorista.
  • November 2019 - Komatsu received a contract to supply 37 autonomous trucks to a mine in Brazil – the Carajás mine owned by Vale, a Brazilian mining company wth annual revenues of around USD 34 billion, which is said to be the largest mine in Vale’s 77-year history. The company aims to leverage innovative technology to reduce impact on the environment and enhance health, safety and operational efficiency.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Number of SKUs

      2. 4.2.2 Increasing Investments in Technology and Robotics

    3. 4.3 Market Restraints

      1. 4.3.1 Stringent Regulatory Requirements

      2. 4.3.2 Hight Cost

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Industrial Robots

      2. 5.1.2 Sortation Systems

      3. 5.1.3 Conveyors

      4. 5.1.4 Palletizers

      5. 5.1.5 Automated Storage and Retrieval System (ASRS)

      6. 5.1.6 Mobile Robots (AGVs and AMRs)

    2. 5.2 Function

      1. 5.2.1 Storage

      2. 5.2.2 Packaging

      3. 5.2.3 Trans-shipments

      4. 5.2.4 Other Functions

    3. 5.3 End User

      1. 5.3.1 Food and Beverage

      2. 5.3.2 Automotive

      3. 5.3.3 Retail

      4. 5.3.4 Electrical and Electronics

      5. 5.3.5 Pharmaceutical

      6. 5.3.6 Other End Users

    4. 5.4 Country

      1. 5.4.1 Brazil

      2. 5.4.2 Argentina

      3. 5.4.3 Columbia

      4. 5.4.4 Rest of Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 ABB Limited

      2. 6.1.2 Kiva Systems (Amazon Robotics LLC)

      3. 6.1.3 Singapore Technologies Engineering Ltd (Aethon Incorporation)

      4. 6.1.4 InVia Robotics Inc.

      5. 6.1.5 Fanuc Corporation

      6. 6.1.6 Honeywell International Inc.

      7. 6.1.7 Toshiba Corporation

      8. 6.1.8 Omron Adept Technologies

      9. 6.1.9 Fetch Robotics Inc.

      10. 6.1.10 Geek+ Inc.

      11. 6.1.11 Grey Orange Pte. Ltd.

      12. 6.1.12 Syrius Robotics

      13. 6.1.13 Locus Robotics

  7. *List Not Exhaustive
  8. 7. INVESTMENT ANALYSIS

  9. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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