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A31490 | Pages: 335 | Charts: 54 | Tables: 355 |
The global warehouse automation systems market was valued at $21.7 billion in 2021, and is projected to reach $93 billion by 2031, growing at a CAGR of 15.7% from 2022 to 2031.
Increase in investments in R&D activities and surge in adoption of IoT & robotics in warehouse management system drive the growth of the warehouse automation systems market. In addition, rise in e-commerce sales fuel the growth of the warehouse automation systems market. However, lack of skilled workforce to operate and high set up and installation cost of warehouse robots, high capital investment are expected to impede the growth of warehouse automation systems market. Furthermore, increasing adoption of technologies such as AI, bid data, ML, and others is expected to provide lucrative opportunities for the warehouse automation systems market growth.
Warehouse automation is the process of using technology to raise the efficiency of warehouse processes, such as moving and assembly. In addition, these processes could involve mechanics to help move products between facilities or database systems to help track each area or warehouse. Furthermore, implementing an automated storage and retrieval system in your operation, you can reduce labor costs in a number of ways. In extreme cases, some operations can employ a single AS/RS to replace all picking labor, freeing up workers to focus on other more productive functions. The warehouse automation systems market is segmented into Component, Automation Type, Enterprise Size and Industry Vertical.
The warehouse automation systems market is segmented on the basis of component, automation type, enterprise size, industrial vertical, and region. By component, it is bifurcated into solution and service. On the basis of automation type, it is fragmented into physical automation and digital automation. In terms of enterprise size, the market divided into large enterprise and SMEs. In terms of industrial vertical, the market is classified into retail & consumer goods, healthcare & pharmaceuticals, manufacturing, food & beverages, transportation & logistics, automotive, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the warehouse automation systems market analysis are ABB Ltd., Automation Tooling Systems, Amazon Robotics, Fetch Robotics, Inc., FANUC Corporation, Kuka AG, Locus Robotics, Honeywell International, Inc., SSI Schaefer AG, Omron Corporation, and Yaskawa Electric Corporation, Inc. Muratec, Kion Group, Daifuku, KNAPP Group, Seegrid, and GreyOrange. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
[COMPONENTGRAPH]
In terms of offering, the solution segment holds the largest warehouse automation systems market share in the forecast period, owing to the use of remote monitoring and management software to deliver warehousing services more cost-effectively, manage customer devices, and other warehouse automation systems solutions. However, the service segment is expected to grow at the highest rate during the forecast period as they assist in effective functioning of software and platforms.
Region-wise, 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 large scale adoption of robotics, IoT, artificial intelligence, and big data analytics in various countries in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, due to increasing adoption of robotics and sensor technology by various organizations.
[REGIONGRAPH]
Companies operating in the warehouse automation sector are increasingly investing in R&D facilities, to boost their new product development activities and gain a competitive edge over other players through launch of technologically advanced products with greater operational capabilities and performance. For instance, in November 2021, Honeywell International Inc, a US-based conglomerate company involved in building technologies, safety & productivity solutions and performance materials & technologies, has announced its plans to develop a new advanced research and development (R&D) testing facility in the Czech Republic for its own Honeywell designed warehouse automation business to meet the growing demand for technologies that enable secure, more accurate supply chains.
Furthermore, the facility enables Honeywell software and hardware engineers to design, prototype and test the innovative warehouse automation systems used by the logistics companies to improve the efficiency, accuracy and throughput of packages within the warehouses and distribution centers. Therefore, the rise in such initiatives is expected to boost the warehouse automation systems market during the forecast period.
Increasing adoption of IoT in warehouse automation is expected to drive the market growth as it offers various benefits such as increased transparency, improved last-mile delivery, predictive maintenance, real-time product tracking, and higher employee productivity. Furthermore, many e-commerce and retail giants have already implemented IoT solutions and robotics technologies in their warehouses.
For instance, in June 2022, Amazon recently opened a semi-automated warehouse where humans and robots work together. Basic jobs are delegated to technology, such as moving items and scanning barcodes. For instance, over 400 robots and hundreds of humans work in Amazon's automated warehouse. As a result, industries are enabling IoT and robotic in warehouse management to increase warehouse efficiency as well as improve employee safety, which in turn is driving the growth of the warehouse automation systems industry.
The warehouse automation systems market has recorded continuous investments for its developments and has become a massive contributor to the economic growth. However, the COVID-19 pandemic has substantially impacted the value chain of the warehouse automation systems market. It has further resulted in decreased shipments of component and solution of warehouse automation and the revenues generated from them. Furthermore, COVID-19 pandemic has impacted almost all the industries globally including warehouse automation and machinery. Moreover, as a result, a drop was witnessed in the growth trend of the warehouse automation systems industry during 2020. This is expected to discontinue in the upcoming years as the demand is expected to increase due to the growing concern for smart automation, energy and resource efficiency.
Key Market Segments
Key Market Players