Global Warehouse Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Warehouse Automation Market is segmented by Component (Hardware ( Mobile Robots (AGV, AMR)​, Automated Storage and Retrieval Systems (AS/RS)​, Automated Conveyor & Sorting Systems​, De-palletizing/Palletizing Systems​, Automatic Identification and Data Collection (AIDC)​, Piece Picking Robots​), Software (Warehouse Management Systems(WMS), Warehouse Execution Systems (WES))​, Services), End-user (Food and Beverage (Including Manufacturing Facilities and Distribution Centers)​, Post and Parcel​, Groceries​, General Merchandise​, Apparel​, Manufacturing (Durable and Non-Durable)), and Geography.

Market Snapshot

Warehouse Automation Market Size
Study Period: 2019-2026
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: 12.5 %
Warehouse Automation Market Key Players

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Market Overview

The Global Warehouse Automation Market is expected to register a CAGR of approximately 12.5% during the forecast period of 2021-2026.

Warehouse Robots have witnessed massive deployments, but amid COVID-19, a significant speed on deployment is expected. The COVID-19 pandemic has led warehouse operators to consider accelerating their timetables to adopt automation and robotics. Those who have successfully deployed also depicted the creation of safer workplaces by reducing interactions among workers by simultaneously enhancing productivity to meet increasing demands for e-commerce. The surge in e-commerce during the last several months has led thousands of brick-and-mortar stores to close businesses.

  • Automation in warehousing offers extreme convenience when cutting down the overall business costs and reducing errors in product deliveries. According to DHL, a prominent 3PL company and a significant end-user of warehouse automation solutions, 80% of warehouses "still manually operate with no supporting automation" despite the advantages. Furthermore, warehouses that use conveyors, sorters, and pick and place solutions, among other equipment (not necessarily automated), account for 15% of the entire warehouses. In contrast, only 5% of the current warehouses are automatic.
  • According to the Bank of America, by 2025, 45% of all manufacturing will be performed by robotic technology. Following this trend, large firms, such as Raymond Limited (an Indian textile major) and Foxconn Technology (a China-based supplier for large technology manufacturers, like Samsung) have replaced (or plan to replace) 10,000 and 60,000 workers, respectively, by incorporating automated technology into their factories.
  • These factors have had a direct impact on the increasing adoption of warehouse robotics. The rising number of warehouses and increasing investments in warehouse automation, coupled with the global rise in labor costs and availability of scalable technological solutions, have been driving the market for warehouse robots worldwide. For instance, prominent logistics brands in the United States, like DHL, XPO Logistics, and NFI Logistics, are investing in expansion activities, despite the adverse commercial renting climate.
  • Further, Companies, such as IAM robotics, Grey Orange, and Bleum, offer mobile robotic picking solutions that add a new efficiency level to the process. Increasing technological advancements, such as automation of warehouse vehicles, like forklifts and pallet jacks, draw attention from companies with massive warehouses and high throughput transactions.
  • Similarly, Amazon's Manchester Warehouse robotics helped the company process many incoming orders with a high-efficiency level. Advancements in sensors' artificial intelligence and mobility enable automated robotic machines to be easily deployed virtually anywhere.
  • Moreover, the primary goal of each company is to increase the efficiency of the processes by using simulation. These goals have further resulted in the warehouses equaling the developments in manufacturing segments and making logistics seamless. It results in removing or mitigating any risk that can lead to creating a bottleneck situation. IoT technologies allow warehouses for real-time data transfer, flexible communication, and Big Data analytics. These, along with the cloud-based solution, enable automated, sophisticated, and agent-based control.

Scope of the Report

The global warehouse automation market study involves segmentation by component wherein, Hardware (AGV/AMR, AS/AR, piece picking, etc.), Software (warehouse management systems, warehouse execution systems), and services (value-added services, maintenance, etc.) sub-segments are being analyzed. Further, the warehouses and fulfillment centers perform activities across end-users, such as food and beverage, post and parcel, apparel, general merchandise, manufacturing, to name a few. The manufacturing industry majorly includes the automotive, electronics, pharmaceutical sectors. The study also provides the impact of COVID-19 on the market studied and geographic coverage on significant regions, North America, Europe, Asia Pacific, Latin America, Middle East and Africa.

By Component
Hardware
Mobile Robots (AGV, AMR)
Automated Storage and Retrieval Systems (AS/RS)
Automated Conveyor & Sorting Systems
De-palletizing/Palletizing Systems
Automatic Identification and Data Collection (AIDC)
Piece Picking Robots
Software (Warehouse Management Systems(WMS), Warehouse Execution Systems (WES))
Services (Value Added Services, Maintenance, etc.)
By End-User
Food and Beverage (Including Manufacturing Facilities and Distribution Centers)
Post and Parcel
Groceries
General Merchandise
Apparel
Manufacturing (Durable and Non-Durable)
Other End-user Industries
By Geography
North America
Europe
Asia Pacific
Rest of the World (Latin America and Middle East & Africa)

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Key Market Trends

Autonomous Mobile Robots Have Significant Growth

  • Autonomous mobile robots (AMRs) differ from AGVs by their degree of autonomy. Robotics for distribution centers (DCs), such as autonomous mobile robots (AMRs) and collaborative picking arms, are overgrowing, with well over a dozen robotics vendors aiming at the needs of DC operators.
  • AMRs are replacing AGVs in logistical applications. Unlike AGVs, AMRs incorporate more sophisticated onboard computers coupled to inertial measurement units (IMU), laser scanning range finders, 2D and 3D color cameras, and motor controllers. Such AMRs do not require tracking strips to be placed in a factory or warehouse.
  • Further, it is expected that AMRs would gradually replace forklifts in particular too. Mobile Industrial Robots, Inc. has taken the first initiative (MiR), which has designed The MiR1000 AMR. It can tolerate a payload of 1000kg. It is equipped with six laser scanners, 3D cameras, and an artificially intelligent camera.
  • AMR also offers new opportunities for inventory monitoring. When combined with RFID-tagged products and equipment, these machines can now conduct their inventory sweeps autonomously at schedules determined by the warehouse.
  • Considering the innovation in the AMR space, the applications and the total addressable market for AMRs are likely to increase beyond retail, warehouse, and hospitality. The companies, such as Amazon, Dematic, Fetch Robotics, inVia, and Robotics, have been shaping the market for AMRs and supporting the industries that are adopting them. For instance, the United Kingdom-based Iconsys expanded into autonomous mobile solutions with the launch of its iAM-R (Iconsys Autonomous Mobile Robot). It is designed to provide autonomous robotic solutions to the company’s customers.
Warehouse Automation Market Trends

North America is Expected to Hold Significant Share

  • The growth in eCommerce is the primary reason for increasing robots in warehouses and distribution centers in the United States. In addition to advancements in technology that have made robots better and smaller, lower costs, and a shortage of labor in some places further helping the market to grow.
  • Also, the major companies with many warehouses and distribution units utilize acquisition strategies to reduce labor costs and increase their profitability. For instance, until 2020, Amazon has installed more than 200,000 mobile robots that work inside its warehouse network, alongside hundreds of thousands of human workers in the United States. This robot army has helped the company fulfill its ever-increasing promises of speedy deliveries to Amazon Prime customers.
  • Further, universities in the region have contributed to the country’s dominance in the R&D aspect of warehouse robots. In 2020, UCLA engineers recently developed tiny warehouse logistics robots to help expedite and automate medical diagnostic technologies and other applications that move and manipulate tiny drops of fluid. The robots are disc-shaped magnets about 2 millimeters in diameter, designed to work together to progress and use droplets of blood or other liquids with precision. For example, the robots can cleave one large droplet of fluid into smaller drops equal in volume for consistent testing. Hence such innovation is expected to drive the market’s growth over the forecast period.
  • The outspread of coronavirus has across the world has beneficiated the studied market as large and small companies are expanding the use of robots to maintain social distancing and reduce the number of staff that has to come to work physically. For instance, the warehouse of Amazon and Walmart has increased the use of robots for sorting, shipping, and packing, which is expected to reduce the number of complaints by warehouse workers as they cannot social-distance from their colleagues under the current conditions. It is creating more opportunities for logistic automation to grow in the region.
  • In July 2020, Geek+, a manufacturer of autonomous mobile robots for warehouses, entered into a distribution partnership with Kuecker Logistics Group, a material handling systems integrator. The two companies would work together to provide intelligent logistics solutions to customers across North America. The companies at the distribution agreement allow KLG to offer Geek+ robotics solutions to improve efficiency, provide flexibility, and reduce warehouse and logistics operations costs.
Warehouse Automation Market Growth

Competitive Landscape

The competitive landscape of the warehouse automation market shows market fragmentation. Some of the global key players in this market are Dematic Group, Daifuku Co. Limited, Swisslog Holding AG, Honeywell Intelligrated, Jungheinrich AG. Product launch, acquisition, and partnership are key strategies adopted by market players operating in the warehouse automation industry. Some of the recent developments are:

  • September 2020 - KUKA AG launched the KR SCARA horizontal jointed-arm robots from KUKA are ultra-compact and, at the same time, deliver maximum cost-effectiveness. The robot has a reach of 500 or 700 millimeters, a short cycle time of just 0.36 or 0.38 seconds, and the KR SCARA robots are ideal for pushing ahead with automation in cost-sensitive markets.
  • February 2020 - ABB Limited and Covariant announced a partnership to bring AI-enabled robotics solutions to market, starting with a fully autonomous warehouse order fulfillment solution, and the partnership brings together the two companies with a common vision for robotics enabled by AI, where intelligent robots work alongside humans in dynamic environments, collectively learning and improving with every task completed.

Recent Developments

  • December 2020 - ForwardX Robotics, an AI-focused developer of vision-first Autonomous Mobile Robots, has announced the launch of 6 new products under its Max range of AMRs: Max 300 Lift Lite, Max 300 Conveyor, Max 600 Conveyor, Max 1200 Standard, Max 1200 Lift, and Max 1200 Conveyor. All five new robots are built to safely and efficiently automate material handling within production and warehousing facilities.
  • September 2020 - GreyOrange announced patents for technology essential for companies to achieve high-yield omnichannel fulfillment and maximize facility space utilization through multilevel operation capabilities. The patents cover First-to-Fill Technology, Retail-Ready Fulfilment, Multilevel Robot Mobility.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Warehouse Investment Scenario

    5. 4.5 Impact of Macro-economic Factors on the Warehouse Automation Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Exponential Growth of the E-commerce Industry and Customer Expectation

      2. 5.1.2 Increasing Manufacturing Complexity and Technology Availability

    2. 5.2 Market Challenges

      1. 5.2.1 High Capital Investment

    3. 5.3 Impact of Covid-19

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Component

      1. 6.1.1 Hardware

        1. 6.1.1.1 Mobile Robots (AGV, AMR)

        2. 6.1.1.2 Automated Storage and Retrieval Systems (AS/RS)

        3. 6.1.1.3 Automated Conveyor & Sorting Systems

        4. 6.1.1.4 De-palletizing/Palletizing Systems

        5. 6.1.1.5 Automatic Identification and Data Collection (AIDC)

        6. 6.1.1.6 Piece Picking Robots

      2. 6.1.2 Software (Warehouse Management Systems(WMS), Warehouse Execution Systems (WES))

      3. 6.1.3 Services (Value Added Services, Maintenance, etc.)

    2. 6.2 By End-User

      1. 6.2.1 Food and Beverage (Including Manufacturing Facilities and Distribution Centers)

      2. 6.2.2 Post and Parcel

      3. 6.2.3 Groceries

      4. 6.2.4 General Merchandise

      5. 6.2.5 Apparel

      6. 6.2.6 Manufacturing (Durable and Non-Durable)

      7. 6.2.7 Other End-user Industries

    3. 6.3 By Geography

      1. 6.3.1 North America

      2. 6.3.2 Europe

      3. 6.3.3 Asia Pacific

      4. 6.3.4 Rest of the World (Latin America and Middle East & Africa)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Dematic Group (Kion Group AG)

      2. 7.1.2 Daifuku Co. Limited

      3. 7.1.3 Swisslog Holding AG (KUKA AG)

      4. 7.1.4 Honeywell Intelligrated (Honeywell International Inc.)

      5. 7.1.5 Jungheinrich AG

      6. 7.1.6 Murata Machinery Ltd

      7. 7.1.7 Knapp AG

      8. 7.1.8 TGW Logistics Group GmbH

      9. 7.1.9 Kardex Group

      10. 7.1.10 Mecalux SA

      11. 7.1.11 BEUMER Group GmbH & Co. KG

      12. 7.1.12 SSI Schaefer AG

      13. 7.1.13 Vanderlande Industries BV

      14. 7.1.14 WITRON Logistik + Informatik GmbH

      15. 7.1.15 Oracle Corporation

      16. 7.1.16 One Network Enterprises Inc.

      17. 7.1.17 SAP SE

    2. *List Not Exhaustive
  8. 8. VENDOR RANKING ANALYSIS

  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OF THE MARKET

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Frequently Asked Questions

The Global Warehouse Automation Market market is studied from 2019 - 2026.

The Global Warehouse Automation Market is growing at a CAGR of 12.5% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Dematic Group (Kion Group AG), Daifuku Co. Limited, Swisslog Holding AG (KUKA AG), Honeywell Intelligrated (Honeywell International Inc.), Jungheinrich AG are the major companies operating in Global Warehouse Automation Market.

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