Southeast Asia Warehouse Automation Market Analysis by Mordor Intelligence
The SEA warehouse automation market size is valued at USD 0.81 billion in 2025 and is forecast to climb to USD 1.46 billion by 2030, reflecting a 12.51% CAGR. This expansion is underpinned by government-backed logistics parks in Indonesia and Vietnam that shorten payback periods for automated storage and retrieval systems, coupled with rising dark-store and quick-commerce models across Jakarta and Bangkok that require high-speed sortation capacity. Land scarcity and escalating wages in Singapore accelerate autonomous mobile-robot adoption as firms seek vertical storage density, while the RCEP agreement amplifies intra-regional e-commerce flows that push throughput requirements higher. Temperature-controlled pharmaceutical logistics is another tailwind, stimulated by data-center-led cold-chain investments in Malaysia and stringent mRNA vaccine handling standards. Meanwhile, fragmented power infrastructure and a shortage of certified mechatronics technicians temper growth but have not derailed overall investment momentum in the ASEAN warehouse automation market
Key Report Takeaways
- By geography, Singapore led with 21.44% of the ASEAN warehouse automation market share in 2024, while Vietnam is projected to expand at a 13.50% CAGR through 2030.
- By product type, conveyor and sortation systems held 24.00% revenue share in 2024; autonomous mobile robots are set to grow fastest at 14.80% CAGR to 2030.
- By end-user industry, retail and e-commerce commanded 34.00% share of the ASEAN warehouse automation market size in 2024, and the e-grocery and quick-commerce subsegment is advancing at an 18.00% CAGR through 2030.
- By warehouse size, facilities over 100,000 sq ft accounted for 46.00% share in 2024, whereas sites below 50,000 sq ft are expanding at 8.20% CAGR as micro-fulfillment centers rise.
- By automation level, semi-automated systems led with 39.00% share in 2024, while fully automated lights-out sites are accelerating at 17.50% CAGR.
- By temperature zone, ambient storage captured 78.00% share in 2024; cold-chain facilities are growing at 11.00% CAGR.
- By ownership type, third-party logistics providers held 51.00% share in 2024, and e-commerce platform logistics units are growing fastest at 15.00% CAGR.
Southeast Asia Warehouse Automation Market Trends and Insights
Drivers Impact Analysis
| DRIVER | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
|---|---|---|---|
| Government-funded Logistics Parks in Indonesia & Vietnam Compress Pay-back for AS/RS | 2.8% | Indonesia, Vietnam, with spillover to Thailand | Medium term (2-4 years) |
| Land Scarcity and Rising Labor Costs in Singapore Fuel Mobile-Robot Adoption | 2.1% | Singapore, Malaysia urban centers | Short term (≤ 2 years) |
| Surge of Dark-Store & Quick-Commerce Models Across Jakarta & Bangkok | 2.4% | Indonesia, Thailand, expanding to Philippines | Short term (≤ 2 years) |
| RCEP-Led Intra-ASEAN E-commerce Volumes Elevating Throughput Needs | 1.9% | ASEAN-wide, strongest in Vietnam, Thailand | Long term (≥ 4 years) |
| Temperature-Controlled Pharma Distribution Driving AIDC Uptake | 1.6% | Singapore, Malaysia, Thailand | Medium term (2-4 years) |
| Same-day Delivery Expectation via Super-Apps Boosts High-Speed Sortation | 2.2% | Urban centers across ASEAN | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Government-funded logistics parks compress payback for AS/RS
Indonesia’s Make Indonesia 4.0 roadmap and Vietnam’s SuperPort initiative supply subsidized land, grid upgrades, and streamlined permits that shrink automated storage system payback horizons from seven to five years. The Dong Nai free-trade zone in Indonesia links airport and seaport access, removing retrofit premiums that typically add 20% to project costs. Thailand’s USD 200 million logistics-training push illustrates spillover, positioning Bangkok as an integration hub. Vendors respond by localizing production and standardizing modules, accelerating deployment across the ASEAN warehouse automation market.[1] Vietnam Investment Review, “Vietnam SuperPort drives cross-border e-commerce,” vir.com.vn
Land scarcity and rising labor costs spur mobile-robot adoption
Singapore’s industrial land exceeds USD 400 per m² and rents climb 15% annually, prompting firms to deploy autonomous mobile robots that work vertically and in narrow aisles. Government support via a SGD 60 million national robotics program nurtures startups such as Lionsbot and Eureka Robotics that tailor solutions for high-density sites. Malaysian developers emulate the model, as seen in CapitaLand Malaysia Trust’s Elmina Logistics Hub featuring automated storage that trims staffing 40%. These blueprints spread to Manila and Bangkok, reinforcing regional demand within the ASEAN warehouse automation market.[2]Nikkei Asia, “Singapore's industrial robot startups eye global markets,” asia.nikkei.com
Dark-store and quick-commerce surge lifts micro-fulfillment demand
Jakarta hosts more than 2,000 dark stores, each requiring systems that finish orders in under 15 minutes. Bangkok facilities target 6,000 parcels per hour using vision-guided robotic sorters. Vietnam’s VTPost installed 160 LiBiao robots, doubling throughput per square meter. Retailers such as Malaysia’s MR DIY recorded 200% efficiency gains from micro-fulfillment automation. High density, low latency, and labor savings of 35% make these systems a core growth catalyst for the ASEAN warehouse automation market.
RCEP-driven e-commerce volumes elevate throughput needs
Tariff elimination on 92% of goods and the ACTS single-declaration scheme have increased intra-ASEAN e-commerce traffic by 28%. Vietnam’s export-oriented warehouses must orchestrate multi-country labeling, while Indonesia’s new manufacturing FDI inflows create dual domestic-export flows. AI-enabled warehouse management systems route inventory dynamically to honor free-trade preferences, boosting demand for integrated automation across the ASEAN warehouse automation market.
Restraints Impact Analysis
| RESTRAINTS | (~) % IMPACT ON CAGR FORECAST | GEOGRAPHIC RELEVANCE | IMPACT TIMELINE |
|---|---|---|---|
| Fragmented Power & Building Codes Challenge Retro-fit Automation | -1.4% | Indonesia, Philippines, with moderate impact in Thailand | Medium term (2-4 years) |
| Shortage of Certified Mechatronics Technicians Across Tier-2 Provinces | -1.8% | Vietnam, Indonesia tier-2 cities, rural Thailand | Long term (≥ 4 years) |
| Customs / Inter-Island Regulations Dilute ROI for Fully Automated DCs | -0.9% | Indonesia, Philippines archipelagic regions | Medium term (2-4 years) |
| Legacy Narrow-Aisle Facilities Limit AGV Deployment | -1.1% | Singapore, Malaysia urban centers, Bangkok | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Fragmented power & building codes hinder retrofits
Voltage swings of ±15% outside Java and varying provincial building codes in the Philippines force expensive power-conditioning and compliance checks that prolong project approvals by up to 12 months. The ASEAN Power Grid plan, requiring USD 100 billion by 2045, aims to unify standards but progress remains gradual. These factors raise retrofit costs 15-25%, restraining smaller firms from joining the ASEAN warehouse automation market.
Shortage of certified mechatronics technicians
Demand for skilled maintenance staff outpaces supply three-to-one in Vietnamese and Indonesian tier-2 provinces. Vocational institutes graduate only 45,000 qualified technicians each year against a need for 500,000 by 2030. Aging workforces compound the gap in Thailand. Resulting commissioning delays and higher service fees weigh on project economics, especially for SMEs that rely on regional support networks within the ASEAN warehouse automation market
Segment Analysis
By Product Type – Conveyor Systems Anchor Growth While Robots Accelerate
Conveyor and sortation units maintained 24.00% of the ASEAN warehouse automation market share in 2024, underscoring their central role in high-throughput hubs. The ASEAN warehouse automation market size attributed to these systems is set to rise steadily as multinationals retrofit existing lines with smarter sensors and AI-based routing. Autonomous mobile robots, advancing at 14.80% CAGR, provide flexible capacity and integrate seamlessly into brownfield sites, which is critical for land-constrained Singapore and Kuala Lumpur. Mobile-robot vendors reduce costs through camera-only navigation, broadening adoption among mid-sized 3PLs.
Software is the connective tissue: warehouse management platforms that orchestrate conveyors, robots, and AS/RS lift overall utilization by 15%. PepsiCo’s AS/RS investment in Thailand illustrates a hybrid conveyor–shuttle approach that raises pallet density while preserving fast pick cycles. As component prices decline, integrated solutions are becoming the default for new builds across the ASEAN warehouse automation market.
Note: Segment shares of all individual segments available upon report purchase
By End-user Industry – Retail and E-commerce Sustain Momentum
Retail and e-commerce stakeholders controlled 34.00% of revenue in 2024, and the segment’s 18.00% CAGR reflects surging omnichannel demand. Same-day delivery commitments from super-apps force fulfillment centers to process peak orders in minutes, benefiting high-speed sorters and micro-fulfillment robots. Logistics carriers represent the second-largest slice, riding RCEP-enabled cross-border volumes that require customs-ready automation.
Healthcare and pharmaceutical firms pursue temperature precision and traceability, paying premium prices for AIDC and cold-chain robotics. DHL’s USD 500 million Singapore pharma hub illustrates how pharma-grade zones spur high-margin system sales. Food and FMCG operators such as Betagro adopt similar automation for food safety. Together, these patterns diversify revenue streams in the ASEAN warehouse automation market.
By Warehouse Size – Large Hubs Dominate, Small Sites Multiply
Facilities exceeding 100,000 sq ft delivered 46.00% share in 2024, leveraging economies of scale to justify full AS/RS deployments. The ASEAN warehouse automation market size for large hubs grows as e-commerce giants build regional megacenters near deep-water ports and airports. Medium warehouses hold steady as secondary nodes.
Small sites below 50,000 sq ft, notably urban dark stores, grow fastest at 8.20% CAGR. VTPost’s compact Hanoi depot, equipped with 160 robots, exemplifies how dense automation unlocks high throughput in modest footprints. The model propagates across Ho Chi Minh City and metropolitan Manila, reinforcing decentralized fulfillment within the ASEAN warehouse automation market.
By Automation Level – Semi-Automated Bridges to Lights-Out
Semi-automated configurations captured 39.00% share in 2024 by blending mechanized storage with human oversight for exceptions. They serve as entry points for firms hesitant about full autonomy yet eager for efficiency. Fully automated lights-out sites are rising at 17.50% CAGR as labor scarcity intensifies and component prices fall.
AutoStore’s new robot factory in Thailand will double output, compressing lead times and lowering capex barriers. Malaysia’s MR DIY gained 200% productivity from a semi-automated e-commerce hub, demonstrating scalable paths toward higher autonomy. Together, these tiers create a continuum that broadens the customer base of the ASEAN warehouse automation market.
By Temperature Zone – Ambient Dominates, Cold Chain Accelerates
Ambient warehouses represent 78.00% revenue in 2024, mirroring electronics and general merchandise dominance. Yet cold-chain sites expand 11.00% CAGR, powered by vaccine distribution and fresh-food delivery. The ASEAN warehouse automation market share for cold chain remains modest but yields above-average margins due to stringent compliance standards.
The Philippines’ Fast Logistics facility shows how automated pallet shuttles and IoT sensors maintain sub-zero stability in tropical climates. DHL’s Singapore pharma hub, accurate to 0.1°C, sets a regional benchmark. Multi-zone warehouses that combine ambient and chilled aisles in one footprint are gaining favor among 3PLs seeking versatility.[3]Philippine News Agency, “Cold chain sector seen to continue growing amid pandemic,” pna.gov.ph
Note: Segment shares of all individual segments available upon report purchase
By Ownership Type – 3PLs Pioneer, Platforms Close In
Third-party logistics specialists held 51.00% share in 2024, leveraging pooled demand to fund cutting-edge automation. They often pilot new technologies before rolling them out to customer-dedicated sites. In-house shippers follow, prioritizing control over sensitive goods such as pharmaceuticals.
E-commerce platform logistics arms, led by Shopee and Lazada, grow 15.00% CAGR as they internalize fulfillment for speed and data visibility. YCH Group’s SuperPort collaboration with Vietnam Post blends blockchain and AI to serve SMEs while anchoring a national automation showcase. These ownership archetypes inject competitive vigor into the ASEAN warehouse automation market.
Geography Analysis
Singapore retained 21.44% of the ASEAN warehouse automation market in 2024. Government robotics grants, reliable infrastructure, and PSA’s USD 2 billion Tuas supply-chain hub attract pilot projects that later scale regionally. The Johor–Singapore Special Economic Zone signed in 2025 strengthens cross-border logistics synergies, amplifying spillover demand in southern Malaysia.
Malaysia leverages special economic corridors and skilled engineering talent to position itself as a regional integration center. Automated hubs in Selangor and Johor process both domestic and transit cargo, while CapitaLand’s Elmina facility proves investment appetite for modern hardware. Thailand follows with government-funded training and retail networks such as Café Amazon installing fully automated storage across 4,000 outlets.
Vietnam is the fastest-growing geography at 13.50% CAGR through 2030. Manufacturing exports and the SuperPort project foster large-scale distribution nodes connected to deep-water ports and highways. Indonesia holds vast potential owing to USD 33 billion in greenfield FDI, yet power variability and island logistics make nationwide rollouts complex. The Philippines accelerates cold-chain automation alongside new coastal barge terminals that shorten lead times between Luzon and Visayas. Collectively, these country dynamics diversify demand patterns across the ASEAN warehouse automation market.
Competitive Landscape
The ASEAN warehouse automation market is moderately fragmented; no company commands more than 15% revenue. Global incumbents such as Daifuku, Dematic, and Honeywell retain leadership through end-to-end portfolios and global support networks. Chinese entrants like Geek+ and LiBiao compete aggressively on cost and rapid deployment schedules, especially for mobile-robot fleets.
Technology remains the primary differentiator. SSI Schaefer received a 2024 LogiSYM award for integrated software-hardware solutions that cut commissioning time 20%. Local players add nuanced value: Vietnam’s Vinatech commissioned a 20,000 m² automated shelving plant, strengthening domestic supply chains and reducing lead times. True Robotics in Thailand develops service robots tuned to regional floor conditions, aligning with small-site automation momentum.
Strategic moves revolve around capacity expansion and partnerships. AutoStore opened a robot factory in Thailand that halves lead times for ASEAN buyers. Daifuku invested USD 1.1 billion in an Indian plant to feed Southeast Asian demand and diversify production risk. Mitsui O.S.K. Lines is co-developing multi-tenant automated warehouses with CapitaLand across four ASEAN nations, targeting completion of the first Thai project in 2027. These initiatives illustrate how vendors seek proximity, cost efficiency, and localization to capture share in the ASEAN warehouse automation market.
Southeast Asia Warehouse Automation Industry Leaders
-
Daifuku Co., Ltd.
-
Dematic (KION Group)
-
Swisslog (KUKA)
-
SSI Schaefer
-
Vanderlande Industries
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Vinatech Group inaugurated a modern automated shelving production factory in Hoa Binh, Vietnam, covering over 20,000 square meters with capacity to produce 30,000 tons of shelving annually. The facility features high automation levels with robotic welding machines and CNC laser cutting, positioning the company as a leader in ASEAN's automated shelving market while supporting the region's transition to smart warehouse models.
- May 2025: Vietnam Warehousing and Automation Show 2025 concluded successfully in Binh Duong, featuring nearly 100 companies and showcasing advanced warehouse management and automation technologies. The exhibition facilitated strategic partnerships and contracts, promoting growth in Vietnam's warehousing and automation sector while highlighting the country's emergence as a regional automation hub.
- April 2025: Daifuku launched a new plant in Hyderabad, India, with approximately USD 1.1 billion investment to meet rapidly growing automation needs in South and Southeast Asia. The facility expands Daifuku's production capacity by four times and will produce automated warehouses, high-speed transport vehicles, and conveyors for the regional market.
Southeast Asia Warehouse Automation Market Report Scope
Warehouse automation is the automation of the movement of inventory into, within, and out of warehouses for delivery to customers. As part of an automation project, a business can get rid of labor-intensive tasks that call for repetitive physical labor, manual data entry, and analysis. With the help of warehouse automation, users' facilities can more effectively meet customer demand. The initial step involves automating manual processes like data collection and inventory control with a warehouse management system (WMS). These systems integrate with other solutions to efficiently manage and automate tasks across various business and supply chain functions.
The Southeast Asia warehouse automation market is segmented by product type (conveyor/sortation systems, automated storage and retrieval systems (AS/RS), mobile robots, warehouse management systems (WMS), and automatic identification and data capture (AIDC), by end-user industry (retail (including e-commerce), logistics and transportation, automotive, manufacturing, healthcare, and pharmaceutical), and by country (Malaysia, Thailand, Singapore, Indonesia, Vietnam, and the Philippines). The market sizes and forecasts are provided in terms of value (USD) for all the segments.
| Conveyor/Sortation Systems |
| Automated Storage and Retrieval Systems (AS/RS) |
| Mobile Robots (AMR/AGV) |
| Warehouse Management Systems (WMS) |
| Automatic Identification and Data Capture (AIDC) |
| Retail and E-commerce |
| Logistics and Transportation |
| Automotive |
| General Manufacturing |
| Healthcare and Pharmaceutical |
| Others (FMCG, Food and Beverage) |
| Small (less than 50,000 sq ft) |
| Medium (50,000 - 100,000 sq ft) |
| Large (greater than 100,000 sq ft) |
| Low / Basic Mechanization |
| Semi-Automated |
| Highly Automated |
| Fully Automated / Lights-Out |
| Ambient |
| Cold Chain |
| Controlled / Pharma-Grade |
| Third-Party Logistics (3PL) |
| In-house Shippers |
| E-commerce Platform Logistics |
| Malaysia |
| Thailand |
| Singapore |
| Indonesia |
| Vietnam |
| Philippines |
| By Product Type | Conveyor/Sortation Systems |
| Automated Storage and Retrieval Systems (AS/RS) | |
| Mobile Robots (AMR/AGV) | |
| Warehouse Management Systems (WMS) | |
| Automatic Identification and Data Capture (AIDC) | |
| By End-user Industry | Retail and E-commerce |
| Logistics and Transportation | |
| Automotive | |
| General Manufacturing | |
| Healthcare and Pharmaceutical | |
| Others (FMCG, Food and Beverage) | |
| By Warehouse Size | Small (less than 50,000 sq ft) |
| Medium (50,000 - 100,000 sq ft) | |
| Large (greater than 100,000 sq ft) | |
| By Automation Level | Low / Basic Mechanization |
| Semi-Automated | |
| Highly Automated | |
| Fully Automated / Lights-Out | |
| By Temperature Zone | Ambient |
| Cold Chain | |
| Controlled / Pharma-Grade | |
| By Ownership Type | Third-Party Logistics (3PL) |
| In-house Shippers | |
| E-commerce Platform Logistics | |
| By Country | Malaysia |
| Thailand | |
| Singapore | |
| Indonesia | |
| Vietnam | |
| Philippines |
Key Questions Answered in the Report
What is the current value of the ASEAN warehouse automation market and how fast is it growing?
The market is valued at USD 0.81 billion in 2025 and is projected to reach USD 1.46 billion by 2030, advancing at a 12.51% CAGR.
Which product category is expanding the quickest?
Autonomous mobile robots are the fastest-growing product segment, set to rise at a 14.80% CAGR through 2030 as companies seek flexible, retrofit-friendly solutions.
Why is Vietnam the fastest-growing geography?
Government-backed projects such as the SuperPort, strong export manufacturing, and RCEP-driven e-commerce flows propel Vietnam’s 13.50% CAGR.
What are the main barriers to wider automation adoption?
Fragmented power and building codes that complicate retrofits, along with a shortage of certified mechatronics technicians in tier-2 provinces, lengthen project timelines and raise costs.
How are third-party logistics providers shaping the market?
3PLs hold 51.00% market share by pooling multi-client demand, allowing them to invest early in cutting-edge systems that smaller shippers cannot independently afford.
What impact does the cold chain have on market growth?
Although cold-chain facilities capture only 22.00% revenue today, they are expanding at an 11.00% CAGR because pharmaceutical and fresh-food logistics require precise temperature control and end-to-end traceability.
Page last updated on: