The U.S. and Europe Warehouse Automation Market Size was valued at $8,467.4 million in 2021 and is projected to reach $34,468.0 million by 2031, registering a CAGR of 14.9% from 2022 to 2031. Warehouse automation includes all the computer-aided robots, vehicles, and other machines such as mobile robots (AGV, AMR), automated storage and retrieval systems (AS/RS), and others including software that are responsible for automating the movement and storage of inventory and other goods in a warehouse.
“The U.S. and Europe Warehouse Automation Market was severely hampered during the lockdown period owing to the outbreak of COVID-19. Global and domestic trade were affected the most. However, the market recovered by the end of 2021.”
Market Dynamics
There is a rise in trade within the European region and the U.S., and between the two regions with the increase in disposable income. In addition, these two regions also export and import manufactured goods to and from across the world such as India, China, Vietnam, Indonesia, and others. The U.S. and European Union have one of the most integrated economic tries in the world, with highly admirable bipetal trade and investment connections in the product and services segment, as reported by the European Commission.
The trade between the two regions hit a record high of $1.36 trillion in 2021, up over 10% from levels seen before the COVID-19 outbreak. In addition, on June 15, 2021, during a summit between the European Union and the U.S., which took place in Brussels, both the regions initiated the EU-U.S.-Trade and Technology Council (TTC). Both organizations intended to strengthen economic and commercial relationships across the Atlantic as a result of this joint venture. These factors have played an instrumental role in increasing the average volume of inventory held by the warehouses.
Furthermore, significant growth of the domestic industrial sector is witnessed in various countries. This is largely attributed to the various favorable policies unveiled by the governments of their respective countries. In addition to this, rise in the e-commerce sector in European countries and the U.S. also plays a major role in increasing the volume of the inventory held by any warehouse. This has stressed out the traditional warehouses that use human efforts for functioning. Moreover, this brings inefficiency in warehouse management, while making it expensive to manage.
Thus, companies adopt warehouse automation, as it brings various benefits to the warehouse management process. For example, it helps in increasing the speed and accuracy of warehouse operations; thereby achieving faster order fulfillment and improved customer satisfaction. Businesses can save money on labor expenditures and lessen the likelihood of workplace injuries by using more automated technologies and relying less on manual labor. In addition, it helps in keeping a track of inventory levels and eliminates the risk of stockouts and stocking surplus inventory.
More efficient utilization of storage is a major benefit of using warehouse automation systems. Moreover, automated systems are easily scalable, and can easily be configured to meet the ever-changing requirements of warehouses in a dynamic business world. In addition, warehouse operation involves many repetitive and strenuous activities that may be hazardous to the health of the workers. Thus, the warehouses can bring down the rate of workplace injuries by adopting warehouse automation; thereby, reducing the costlier compensation claims of workers.
However, various components of warehouse automation systems such as autonomous robots, autonomous software, and others are very expensive. A fully automated warehouse may cost millions of dollars. In addition, the adoption of warehouse automation systems is a looming threat to jobs. Thus, such factors are anticipated to negatively affect the U.S. and Europe Warehouse Automation Market growth.
Moreover, automated hardware, and artificially intelligent software are common in the current era, innovative technological developments in the U.S. & Europe warehouse automation industry are expected to provide lucrative opportunities for players that operate in the U.S. and Europe Warehouse Automation Market. For instance, in March 2020, Ware Robotics an innovative player in the U.S. and Europe Warehouse Automation Market launched an innovative warehouse inventory automation solution. This system uses Skydio 2, one of the first commercially available autonomous flying drones to collect the data in the warehouse.
Furthermore, another player in the warehouse autonomous market launched innovative robotic systems for warehouses in July 2020. The new pick-pack robots are integrated with the latest technologies such as AI, advanced control theory, computer vision, and the sense of touch, making them safe to work alongside humans.
The novel coronavirus had rapidly spread across various countries and regions, causing an enormous impact on the lives of people and the overall community. It began as a human health condition and later became a significant threat to global trade, economy, and finance. The COVID-19 pandemic halted the production of many components in the U.S. and Europe Warehouse Automation Market due to lockdowns. The economic slowdown initially resulted in reduced spending on various U.S. & Europe warehouse automation components. However, COVID-19 has positively affected the e-commerce industry.
This prevented the warehouse automation market from a steep downward trend. However, the severity of COVID-19 pandemic has significantly reduced owing to the introduction of various vaccines. This has led to the full-fledged reopening of businesses involved in U.S. and Europe Warehouse Automation Market, and also led to increased activities in the construction sector. Furthermore, it has been more than two and a half years since the outbreak of this pandemic, and many companies have already shown notable signs of recovery.
Contrarily, as of the beginning of 2023, the number of COVID-19 infection cases surged again, especially in China, this brought negative sentiments in the market, which may have a negative impact on the U.S. and Europe Warehouse Automation Market for a short duration. Thus, businesses involved in U.S. & Europe warehouse automation system designing and manufacturing must focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19 infection cases start to decrease.
Segmental Overview
The U.S. and Europe Warehouse Automation Market is segmented on the basis of components, application, end-user industry, and regions. On the basis of component, the market is bifurcated into hardware and software, on the basis of application, it is divided into automotive, food & beverage, e-commerce, pharmaceuticals, and others, on the basis of end-user industry, the market is bifurcated into retailers, and manufacturers & distributors. On the basis of region, it is studied across the U.S., and European countries such as Germany, France, Italy, the UK, Spain, the Netherlands, and the rest of Europe.
By Component
Sofware segment is projected to grow at a highest CAGR
By Component:
The U.S. and Europe Warehouse Automation Market is bifurcated into hardware and software. In 2021, the hardware segment accounted for a larger U.S. and European warehouse automation market share. Moreover, the software segment is expected to grow with a higher CAGR during the forecast period. The hardware segment includes automated hardware such as 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), and piece picking robots. Growth in industries such as pharmaceutical, food & beverage, automotive, and textile, has increased the number of warehouses and complexities related to them. Thus, warehouses have begun making extensive use of automation, to be more productive, while being error free in their operation.
By Application
Automotive segment holds dominant position in 2021
By Application:
The U.S. and Europe Warehouse Automation Market is classified into automotive, food & beverage, e-commerce, pharmaceuticals, and others. The e-commerce segment accounted for a higher revenue share of the U.S. and Europe Warehouse Automation Market in 2021. This is attributed to the high disposable income of people in the U.S. and Europe and also attributed to the highly convenient purchasing experience, along with the availability of a large variety of products to choose from.
By End User Industry
Manufacturers & distributors segment holds dominant position in 2021
By End-User Industry:
The U.S. and Europe Warehouse Automation Market is bifurcated into retailers, and manufacturers & distributors. Among these, the manufacturers & distributors segment accounted for a larger U.S. and Europe Warehouse Automation Market share in 2021, owing to the larger inventory volume handled by the manufacturers & distributors. This is attributed to the rise in industrial sectors such as automotive, pharmaceuticals, and food & beverages, which has positively affected the manufacturers of industrial components, hardware, and industry-specific raw materials. However, the retailers segment is anticipated to grow with a higher CAGR during the forecast period.
By Region
U.S. holds a dominant position in 2021 and Europe is expected to grow at a significant rate during the forecast period.
By Region:
The U.S. and Europe Warehouse Automation Market is analyzed across the U.S., and European countries such as Germany, France, Italy, the UK, Spain, the Netherlands, and the Rest of Europe. In 2021, the U.S. accounted for a larger share for U.S. and Europe Warehouse Automation Market in terms of revenue. The U.S. is the largest market for the pharmaceutical and automotive industry; in addition, it also has a large e-commerce sector. Thus, the warehousing and supply chain has to be efficient to quickly and effectively meet the needs of customers. The long-term outlook for robotics in the U.S. remains very strong as additional companies in all industries become aware of the positive impact of automation on warehouse productivity, efficiency, and management cost.
The e-commerce, automotive, food & beverage, and pharmaceutical industries majorly drive the growth of warehouse automation in the U.S., and Europe. The reasons for growth in these industries are increase in competitiveness among the players in these industry verticals and the high cost of labor. To control labor costs, automation helps companies automate the ordinary and repetitive parts of their processes, allowing skilled workers to engage themselves in more important tasks. North America is the largest importer of goods due to which the requirement for warehouse infrastructure is increasing; this drives the U.S. and Europe Warehouse Automation Market Opportunity.
Competition Analysis
Competitive analysis and profiles of the major players in the U.S. and Europe Warehouse Automation Market has been provided in the report. The companies profiled in the report include ABB LTD., Amazon.com, Inc. (Amazon Robotics), Honeywell International Inc., Jungheinrich AG, KION GROUP AG (Dematic), Kuka Ag (Swisslog), Schneider Electric, Siemens AG, SSI-SCHAEFER, and Zebra Technologies Corporation (Fetch Robotics, Inc.).
Major players in order to remain competitive offer a wide range of designing and construction services pertaining to US and Europe warehouse automation. For instance, in September 2021, Honeywell International Inc. launched new innovative robotic technology for warehouses and distribution centers to automate the manual process of unloading pallets, reducing the operational risks of potential injuries and labor shortages.
Key Benefits for Stakeholders
- U S The report provides an extensive analysis of the current and emerging U.S. and Europe Warehouse Automation Market trends and dynamics.
- U S In-depth U.S. and Europe Warehouse Automation Market analysis is conducted by constructing market estimations for key market segments between 2021 and 2031.
- U S An extensive analysis of the U.S. and Europe Warehouse Automation Market is conducted by following key product positioning and monitoring top competitors within the market framework.
- U S A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- U S The U.S. and Europe Warehouse Automation Market forecast analysis from 2022 to 2031 is included in the report.
- U S The key players within the U.S. and Europe Warehouse Automation Market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the U.S. & Europe warehouse automation industry.
U.S. and Europe Warehouse Automation Market Report Highlights
| Aspects | Details |
 By APPLICATION |
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 By END USER INDUSTRY |
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 By REGION |
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 Key Market Players | SIEMENS AG, JUNGHEINRICH AG, ABB LTD., KION GROUP AG (DEMATIC, SCHNEIDER ELECTRIC, SSI-SCHAEFER, AMAZON.COM, INC. (AMAZON ROBOTICS), ZEBRA TECHNOLOGIES CORPORATION (FETCH ROBOTICS, INC.), HONEYWELL INTERNATIONAL INC., KUKA AG (SWISSLOG) |
Analyst Review
The U.S. and Europe warehouse automation market has witnessed significant growth in the past few years owing to a rise in the e-commerce sector, and domestic and international trade.
According to the Census Bureau of the Department of Commerce of U.S., the quarterly U.S. retail e-commerce sales as a percent of total quarterly retail sales was around 6% in 2013, and it increased to above 14% in 2022. Moreover, among all the EU nations, a larger percentage of total enterprises in the Netherlands, Denmark, Ireland, and Spain conducted their business via online mode when compared to other nations. Furthermore, owing to the increase in the number of players, and the rise in competition, small and medium enterprises adopt warehouse automation. Warehouse automation enables companies to improve their material handling and inventory handling activities. However, the high cost of warehouse automation systems and the risk of them taking over many jobs are expected to have a negative impact on the U.S. and Europe Warehouse Automation Market growth.
On the other hand, the development of innovative warehouse automation systems is expected to provide lucrative growth opportunities for market growth.
The global U.S. and Europe warehouse automation market was valued at $8,467.4 million in 2021 and, registering a CAGR of 14.9% from 2022 to 2031.
Based on component, the hardware segment holds the maximum market share of the U.S. and Europe Warehouse Automation Market in 2021.
The U.S. and Europe Warehouse Automation Market is projected to reach $34,468.0 million by 2031.
Growth in manufacturing sector are the key trends in the U.S. and Europe Warehouse Automation Market.
The product launch is key growth strategy of U.S. and Europe Warehouse Automation industry players.
The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
Fluctuating cost of raw materials is the effecting factor for U.S. and Europe Warehouse Automation Market.
The end user of U.S. and Europe Warehouse Automation Market includes retailers, and manufacturers & distributors.
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