Smart Warehousing Market Size, Growth, Share & Industry Report 2030

Name: Smart Warehousing Market Size, Growth, Share & Industry Report 2030
Creator: Mordor Intelligence
License: https://www.mordorintelligence.com/privacy-policy

Smart Warehousing Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 2.32 Billion
Market Size (2030)	USD 9.78 Billion
Growth Rate (2025 - 2030)	33.27% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Smart Warehousing Market (2025 - 2030) — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Smart Warehousing Market Analysis by Mordor Intelligence

The smart warehousing market stands at USD 2.32 billion in 2025 and is forecast to reach USD 9.78 billion by 2030, advancing at a 33.27% CAGR. Accelerated e-commerce expansion, labor shortages, and the quest for real-time visibility are reshaping fulfillment operations in every major logistics hub. Continuous price pressure on warehouse space and rising energy costs further push operators toward automation that maximizes cubic utilization and lowers total cost to serve. Cloud-native warehouse management systems (WMS), autonomous mobile robots (AMR), and sensor-rich Internet of Things (IoT) networks now converge into cohesive platforms that deliver near-perfect inventory accuracy while cutting travel time inside facilities by double-digit percentages. Venture investment and strategic acquisitions indicate that integrated automation stacks rather than single-point tools will capture the largest pools of value in the smart warehousing market.

Key Report Takeaways

By component, software led with 47.4% revenue share in 2024, while services are projected to grow at an 18.56% CAGR through 2030.
By deployment, cloud platforms accounted for 61.1% of the smart warehousing market share in 2024 and are expected to post a 19.4% CAGR to 2030.
By technology, automated storage and retrieval systems captured 28.8% of the smart warehousing market size in 2024; autonomous mobile robots and drones are forecast to expand at a 24.8% CAGR between 2025-2030.
By end-user, retail and e-commerce held 38.9% of smart warehousing market share in 2024, while healthcare and pharmaceuticals are set to advance at a 21.8% CAGR through 2030.
By geography, North America led with 33.75% revenue share in 2024; Asia-Pacific is projected to register the fastest regional CAGR of 17.4% over the same period.

Global Smart Warehousing Market Trends and Insights

Drivers Impact Analysis

Driver	( ~ ) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Expansion of e-commerce ecosystems	+8.2%	Global; strong in North America & Asia-Pacific	Medium term (2-4 years)
Rising demand for warehouse automation and robotics	+7.5%	Global; led by North America & Europe	Long term (≥ 4 years)
Rapid adoption of cloud-native WMS platforms	+6.1%	Global; early in North America	Short term (≤ 2 years)
IoT-enabled real-time inventory visibility	+4.8%	Global; strong uptake in Asia-Pacific	Medium term (2-4 years)
Government incentives for logistics tech upgrades	+3.2%	North America, Europe, select Asia-Pacific markets	Medium term (2-4 years)
5G private networks powering large-scale warehouse IoT	+2.9%	North America, Europe, Japan, South Korea	Long term (≥ 4 years)

Source: Mordor Intelligence

Expansion of E-commerce Ecosystems

E-commerce order profiles shift SKU velocity from pallets to single-unit picks, forcing operators to adopt flexible automation that processes thousands of discrete lines per hour. Material Bank scaled its robotic fleet from 10 to 45 units within seven months to handle over 300,000 units monthly, tripling revenue without expanding floor space^{[1]Material Bank, “Automated Fulfillment Case Study,” locusrobotics.com}. Same-day delivery promises amplify the need for dense urban fulfillment nodes, where smart warehousing systems cut cycle times by routing AMR fleets through algorithm-optimized paths. Retailers also cite energy savings and reduced lighting needs as secondary gains when goods-to-person systems shrink travel distances. Together, these factors make automated micro-fulfillment a default roadmap item for omnichannel leaders in the smart warehousing market.

Rising Demand for Warehouse Automation and Robotics

Projected shortages of 85 million logistics workers by 2030 elevate automation from optional improvement to operational safeguard. Dorman Products recorded a 16% cut in picker travel distance after AMR rollout, freeing employees for exception handling and value-added kitting^{[2]Dorman Products, “AMR Deployment Results,” zebra.com}. Robotics adoption lowers incident rates; facilities report up to 60% fewer safety events owing to reduced forklift traffic. Higher hourly wages since 2024 compress payback periods to 18-24 months, strengthening investment cases for end-to-end robotics inside the smart warehousing market.

Rapid Adoption of Cloud-native WMS Platforms

Micro-services-based WMS eliminate version lock-in and push continuous feature drops that keep pace with shifting order profiles. Manhattan Associates’ platform allows rule changes without downtime, enabling a national distributor to standardize picking logic across 110 sites. Subscription pricing turns once-capital-heavy software into an operating expense, widening access for mid-tier warehouses. Scalability in peak seasons—automatic server headroom that supports Black Friday order spikes—is a decisive advantage driving cloud preference across the smart warehousing market.

IoT-enabled Real-time Inventory Visibility

Sensor tags deliver perpetual stock counts that lift inventory accuracy from 95% to 98%, reducing stockouts and cutting working capital needs. Temperature and humidity sensors secure pharmaceutical chains, with alerts triggering robotics-based relocations to safe zones in minutes. Predictive analytics harness this data to recommend reorder points and pre-empt slotting bottlenecks, deepening value extraction from IoT in the smart warehousing market.

Restraint Impact Analysis

Restraint	( ~ ) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
High upfront capital expenditure	-4.1%	Global; burdens SMEs	Short term (≤ 2 years)
Legacy system integration complexity	-3.8%	Global; acute in mature markets	Medium term (2-4 years)
Cyber-security talent gap in operational technology	-2.3%	Global; acute in North America & Europe	Long term (≥ 4 years)
Fragmented global robotics safety standards	-1.9%	Global; regional variation	Long term (≥ 4 years)

Source: Mordor Intelligence

High Upfront Capital Expenditure

Autonomous forklifts in Japan carry price tags near 15 million yen (USD 100,000), versus 2 million yen (USD 13,300) for manual units, with network upgrades adding to the bill. Robotics-as-a-service models smooth budgets but asset-heavy mechanical systems still demand credit lines beyond many SMEs’ reach. Rising steel and energy prices inflate new-build warehouses, pushing operators to weigh brownfield retrofits against pure greenfield automation. Although ROI windows compress, sticker shock continues to temper adoption pace within the smart warehousing market.

Legacy System Integration Complexity

WMS and ERP platforms built on monolithic codebases resist low-code interfaces that modern automation vendors supply. Integration services can represent up to 40% of project spend, particularly where multiple robotics brands converge. Lapses during cut-overs risk shipping delays, so operators schedule phased rollouts that extend timelines and inflate costs. API standardization efforts gain momentum, yet fragmented data models still slow seamless orchestration across the smart warehousing market.

Segment Analysis

By Component: Software Dominance Drives Platform Integration

Software controlled 47.4% of revenue in 2024, reflecting its position as the orchestration layer of every smart warehousing market deployment. Cloud-native WMS and execution platforms allow dynamic slotting, algorithmic task allocation, and predictive maintenance scheduling that elevate overall equipment effectiveness. Services, projected to grow at an 18.56% CAGR, address integration complexity and ongoing optimization demands as operators layer robotics, IoT, and analytics into legacy buildings. Hardware growth remains steady as falling sensor and servo costs widen automation’s addressable base.

The traction of software-defined warehousing shows how value migrates from physical machinery to data-rich control towers. Manhattan Associates uses machine learning to recalibrate pick paths hourly, producing double-digit throughput lifts without new conveyors. Service providers monetize continuous improvement mandates through managed automation contracts, reinforcing annuity revenue streams in the smart warehousing market.

By Deployment: Cloud Platforms Accelerate Market Transformation

Cloud installations covered 61.1% of sites in 2024 and will outpace on-premises solutions at a 19.4% CAGR. Elastic compute resources help warehouses ramp during holiday peaks, while vendor-managed updates cut IT workload. Security-sensitive industries, such as defense logistics, still retain on-prem systems to keep traffic behind firewalls, yet even those facilities test hybrid models that bridge local control with cloud analyts.

Sysco’s migration to a multi-tenant WMS across 110 distribution centers shows cloud’s ability to unify standard operating procedures without capital spikes. Subscription pricing shifts spend from capex to opex, letting small operators enter the smart warehousing market sooner than legacy models allowed.

By Technology: AMR Innovation Disrupts Traditional Automation

Automated storage and retrieval systems accounted for 28.8% of the smart warehousing market size in 2024. These high-density towers remain dominant in unit-load environments where throughput is predictable. AMR and drones, however, are slated for 24.8% CAGR as their plug-and-play nature sidesteps heavy steel and track infrastructure. IoT sensor grids supply live status feeds, while execution software synchronizes task cues across robots, conveyors, and humans.

CJ Logistics achieved 20% productivity gains after deploying AMR fleets on private 5G, proof that reliable connectivity multiplies robotics output. The convergence of AI navigation, machine vision, and 5G backbones forms the next innovation curve within the smart warehousing market.

By End-user: Healthcare Transformation Leads Growth

Retail and e-commerce produced 38.9% of revenue in 2024, leveraging automation to fulfill single-item orders with millimeter-level accuracy. Healthcare and pharmaceuticals will expand at a 21.8% CAGR, propelled by temperature-controlled storage and serialization laws that require item-level tracking. Manufacturers continue embedding warehouses into Industry 4.0 production loops, while third-party logistics providers position automation as a premium differentiator.

Cardinal Health doubled overall effectiveness after rolling out AMR fleets, slashing cycle times while lifting worker satisfaction. Such results fortify automation commitments across regulated sectors of the smart warehousing market.

Geography Analysis

North America maintained 33.75% revenue share in 2024 thanks to early technology adoption, robust venture funding, and programs such as the USD 160 million SMART Grants that subsidize logistics technology upgrades^{[3]U.S. Department of Transportation, “SMART Grants Program Fact Sheet,” transportation.gov}. Retail giants have steered more than USD 520 million into warehouse robotics partnerships, accelerating ecosystem maturity. Canada’s Green Freight Program adds a USD 200 million incentive pool that offsets capital and fuels energy-efficient retrofits.

Asia-Pacific is projected to post a 17.4% CAGR through 2030, narrowing the leadership gap. Chinese vendors such as Hai Robotics raised USD 100 million Series D+ funding to scale autonomous case-handling exports. In Japan, acute labor shortages justify 15 million yen autonomous forklifts despite high entry costs. Private 5G rollouts underpin warehouse IoT backbones, with early deployments demonstrating 15% capex savings versus wired alternatives.

Europe sustains steady growth, buoyed by European Investment Bank loans such as the EUR 8 million line to Nomagic for AI-enabled picking R&D. Vendors like Exotec surpassed USD 1 billion in systems sold and now target Central and Eastern European markets. Emerging regions in the Middle East, Africa, and South America remain nascent, yet rising e-commerce penetration and infrastructure investment signal mid-term lift for the smart warehousing market.

Competitive Landscape

The smart warehousing market shows moderate fragmentation. Enterprise software incumbents—including Manhattan Associates, Oracle, and SAP—extend orchestration layers that integrate robotics from specialist vendors. Robotics leaders such as Locus Robotics, Hai Robotics, and Symbotic push hardware and AI boundaries, while automation integrators bundle multi-vendor portfolios into turnkey deployments.

Recent consolidation underscores the race for integrated platforms. Symbotic acquired Walmart’s advanced systems unit for USD 200 million, adding proven solutions and a 400-site commitment to its backlog. Zebra Technologies purchased Photoneo to marry 3D vision with its scanning line, broadening appeal inside pick-and-place cells. Strategic partnerships, such as Manhattan Associates’ agreement with Shopify, fuse front-end commerce data with back-end inventory orchestration, highlighting omnichannel imperatives.

Competitive differentiation now turns on ecosystem breadth, time-to-value, and outcome-based pricing. As-a-service models let mid-size operators defer capital outflow, eroding barriers historically favoring giants. Patent activity around predictive maintenance, human-robot collaboration, and AI navigation indicates future battle lines across the smart warehousing market.

Smart Warehousing Industry Leaders

Manhattan Associates, Inc.
Korber AG
Oracle Corporation
SAP SE
Tecsys Inc.
*Disclaimer: Major Players sorted in no particular order

Smart Warehousing Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

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Recent Industry Developments

January 2025: Symbotic completed a USD 200 million acquisition of Walmart’s Advanced Systems and Robotics business, securing commitments for 400 automation sites Symbotic.
January 2025: Shopify and Manhattan Associates launched an omnichannel alliance; Nautica became the inaugural customer Manhattan.
December 2024: Zebra Technologies acquired Photoneo to strengthen machine-vision robotics portfolios Robotics 24/7.
December 2024: Exotec surpassed USD 1 billion in systems sold, marking a milestone in robotics adoption Exotec.

Table of Contents for Smart Warehousing Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Expansion of e-commerce ecosystems
- 4.2.2 Rising demand for warehouse automation and robotics
- 4.2.3 Rapid adoption of cloud-native WMS platforms
- 4.2.4 IoT-enabled real-time inventory visibility
- 4.2.5 Government incentives for logistics tech upgrades
- 4.2.6 5G private networks unlocking massive warehouse IoT
4.3 Market Restraints
- 4.3.1 High upfront capital expenditure
- 4.3.2 Legacy system integration complexity
- 4.3.3 Cyber-security talent gap in operational technology
- 4.3.4 Fragmented global robotics safety standards
4.4 Value Chain Analysis
4.5 Evaluation of Critical Regulatory Framework
4.6 Technological Outlook
4.7 Porter's Five Forces
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes
- 4.7.5 Competitive Rivalry
4.8 Impact Assessment of Key Stakeholders
4.9 Key Use Cases and Case Studies
4.10 Impact on Macroeconomic Factors of the Market
4.11 Investment Analysis

5. MARKET SIZE AND GROWTH FORECAST (VALUE)

5.1 By Component
- 5.1.1 Hardware
- 5.1.2 Software
- 5.1.3 Services
5.2 By Deployment
- 5.2.1 Cloud
- 5.2.2 On-Premises
5.3 By Technology
- 5.3.1 Automated Storage and Retrieval Systems (AS/RS)
- 5.3.2 Autonomous Mobile Robots (AMR) and Drones
- 5.3.3 IoT Sensors and Connectivity
- 5.3.4 Warehouse Management and Execution Software
5.4 By End-user
- 5.4.1 Retail and E-commerce
- 5.4.2 Manufacturing
- 5.4.3 Healthcare and Pharmaceuticals
- 5.4.4 Automotive
- 5.4.5 Energy and Utilities
- 5.4.6 Third-Party Logistics (3PL) Providers
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Rest of South America
- 5.5.3 Europe
- 5.5.3.1 United Kingdom
- 5.5.3.2 Germany
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Nordics
- 5.5.3.7 Rest of Europe
- 5.5.4 Middle East and Africa
- 5.5.4.1 GCC
- 5.5.4.2 Israel
- 5.5.4.3 South Africa
- 5.5.4.4 Rest of Middle East and Africa
- 5.5.5 Asia-Pacific
- 5.5.5.1 China
- 5.5.5.2 India
- 5.5.5.3 Japan
- 5.5.5.4 South Korea
- 5.5.5.5 ASEAN
- 5.5.5.6 Australia
- 5.5.5.7 New Zealand
- 5.5.5.8 Rest of Asia-Pacific

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Manhattan Associates, Inc.
- 6.4.2 Korber AG
- 6.4.3 Oracle Corporation
- 6.4.4 SAP SE
- 6.4.5 Tecsys Inc.
- 6.4.6 PSI Logistics GmbH
- 6.4.7 International Business Machines Corporation (IBM)
- 6.4.8 Generix Group SA
- 6.4.9 Microsoft Corporation
- 6.4.10 Mantis Informatics, Inc.
- 6.4.11 Dematic Corp. (a KION Group Company)
- 6.4.12 Honeywell International Inc.
- 6.4.13 Swisslog Holding AG (part of KUKA AG)
- 6.4.14 Blue Yonder Group, Inc.
- 6.4.15 Infor Inc.
- 6.4.16 Zebra Technologies Corporation
- 6.4.17 GreyOrange Pte. Ltd.
- 6.4.18 Locus Robotics Corporation
- 6.4.19 KNAPP AG
- 6.4.20 Amazon.com, Inc.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

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Global Smart Warehousing Market Report Scope

Smart warehousing refers to the integration of advanced technologies and innovative systems in warehouse management to enhance operational efficiency, accuracy, and responsiveness.

The smart warehousing market is segmented by component (hardware, software, services), by deployment (cloud, on-premises), by end-user (retail and e-commerce, manufacturing, healthcare, energy & utilities, automotive, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component	Hardware
	Software
	Services
By Deployment	Cloud
	On-Premises
By Technology	Automated Storage and Retrieval Systems (AS/RS)
	Autonomous Mobile Robots (AMR) and Drones
	IoT Sensors and Connectivity
	Warehouse Management and Execution Software
By End-user	Retail and E-commerce
	Manufacturing
	Healthcare and Pharmaceuticals
	Automotive
	Energy and Utilities
	Third-Party Logistics (3PL) Providers

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Rest of South America

	Europe	United Kingdom
		Germany
		France
		Italy
		Spain
		Nordics
		Rest of Europe

	Middle East and Africa	GCC
		Israel
		South Africa
		Rest of Middle East and Africa

	Asia-Pacific	China
		India
		Japan
		South Korea
		ASEAN
		Australia
		New Zealand
		Rest of Asia-Pacific

By Component

Hardware

Software

Services

By Deployment

Cloud

On-Premises

By Technology

Automated Storage and Retrieval Systems (AS/RS)

Autonomous Mobile Robots (AMR) and Drones

IoT Sensors and Connectivity

Warehouse Management and Execution Software

By End-user

Retail and E-commerce

Manufacturing

Healthcare and Pharmaceuticals

Automotive

Energy and Utilities

Third-Party Logistics (3PL) Providers

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Rest of South America
Europe	United Kingdom
	Germany
	France
	Italy
	Spain
	Nordics
	Rest of Europe
Middle East and Africa	GCC
	Israel
	South Africa
	Rest of Middle East and Africa
Asia-Pacific	China
	India
	Japan
	South Korea
	ASEAN
	Australia
	New Zealand
	Rest of Asia-Pacific

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Key Questions Answered in the Report

What is the current size of the smart warehousing market?

The smart warehousing market is valued at USD 2.32 billion in 2025.

How fast is the smart warehousing market growing?

It is forecast to expand at a 33.27% CAGR, reaching USD 9.78 billion by 2030.

Which region leads the smart warehousing market?

North America holds the largest revenue share at 33.75% due to early automation adoption and supportive funding programs.

Which technology segment is growing the fastest?

Autonomous mobile robots and drones are projected to grow at a 24.8% CAGR between 2025-2030.

Why is healthcare the fastest-growing end-user?

Stringent regulatory mandates, temperature-controlled storage needs, and traceability requirements drive a 21.8% CAGR in healthcare and pharmaceutical warehouses.

What is the main barrier for smaller companies adopting smart warehousing?

High upfront capital expenditure remains the top obstacle, especially for small and medium-sized enterprises, though robotics-as-a-service models are easing that burden.