Warehouse Automation Systems Market Expected to Reach $93 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Warehouse Automation Systems Market," The warehouse automation systems market was valued at $21.7 billion in 2021, and is estimated to reach $93 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.

Warehouse automation is implemented to automate various warehousing functions such as palletizing, de-palletizing, transportation, picking & placing, and packaging. The use of technology in warehouses reduces the need for human intervention thereby reducing human error and increases the efficiency of warehouse operations. The technology has several applications in various industries, such as e-commerce, automotive, electrical & electronics, food & beverage, and pharmaceutical. Furthermore, increasing investments in research and development activities and surging adoption of IoT and robotic in warehouse management system drives the growth of the warehouse automation systems market. In addition, rise in e-commerce sales fuel the warehouse automation systems market growth. However, lack of skilled workforce to operate and high set up and installation cost of warehouse robots, high capital investment is expected to impede the warehouse automation systems market growth. Furthermore, increasing adoption of technologies such as AI, bid data, ML, and Others is expected to offer remunerative opportunities for expansion during the warehouse automation systems market forecast.

Depending on automation type, the warehouse automation systems market share was dominated by physical automation segment, as it helps in minimizing employee movement and build more efficient workflows. However, digital automation is expected to witness growth at the highest rate during the forecast period due to increase in adoption of advanced technology to reduce manual workflows in organizations.

By region, the warehouse automation systems market size was dominated by North America in 2021 and is expected to retain its position during the forecast period owing to high advancement in automation technology in developed nations such as U.S. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increase in number of warehouses and technological innovations in the automation industry.

With the rapid spread of COVID-19, majority of people faced sudden surges in demand for financial resources, owing to sudden increase in panic among public, which, in turn, increased the number of transactions performed at a time. In addition, many companies are taking active initiatives to mitigate the impact of COVID-19 on business. For instance, in May 2020, Honeywell accelerated the development and production of vaccines and medical therapies through fast-track automation. For instance, in April 2020, ABB offered free access to software-as-a-service and digital application to help manufacturing plants and processing industries. Thus, such developments are expected to drive the growth of the warehouse automation systems industry.

KEY FINDINGS OF THE STUDY

• By offering, the solution segment accounted for the largest warehouse automation market share in 2021.

• By region, North America generated highest revenue in 2021.

• By automation type, the physical automation segment generated the highest revenue in 2021.

The key players profiled in the warehouse automation systems market analysis are ABB, Badger Meter, Honeywell International Inc., Hydropoint, IBM Corporation, Itron, Landis+Gyr, Neptune Technology, Oracle Corporation, Schneider Electric SE, Siemens AG, Suez, Takadu, Trimble Inc., Xenius, Ayyeka, Ketos. These players have adopted various strategies to increase their market penetration and strengthen their position in the warehouse automation systems industry.