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Primary Catalyst Driving Warehouse Automation Market Evolution in 2025: Growing Demand From E-Commerce Spurs Expansion Of Warehouse Automation Market Driver
Warehouse Automation Market Size
The growth of the warehouse automation market is going to be fueled by the surge in online shopping. Warehouse automation has become an incredibly valuable resource as retailers grapple with the rising number of orders and the need for last-mile delivery, particularly within the fiercely competitive online grocery market. For example, statistics from the United States Census Bureau, a governmental body in the U.S, indicate that the value of e-commerce in the first quarter of 2024 had a growth rate of 8.5% compared to the same period in 2023. In comparison, total retail sales saw a smaller increase of 2.8% during the same timeframe. Thus, the buoyant e-commerce industry is poised to positively impact the warehouse automation market in the coming years.
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What growth opportunities are expected to drive the warehouse automation market's CAGR through 2034?
The dimensions of the warehouse automation market have been witnessing a swift expansion lately. It is predicted to rise from a market cap of $21.42 billion in 2024, to a value of $24.09 billion in 2025, marking an impressive compound annual growth rate (CAGR) of 12.4%. Factors contributing to the market's growth during the historic period includes the rapid rise of e-commerce, soaring labor costs due to shortages, complexities in the global supply chain, customers demanding quicker deliveries, and the need for improved inventory management efficiency.
It is anticipated that the warehouse automation market will experience significant expansion in the forthcoming years, with the market value projected to reach $42.25 billion in 2029, growing at a compound annual growth rate (CAGR) of 15.1%. This growth projected in the forecast period can be ascribed to the increased demand for same-day and on-demand delivery, sustainability and environmentally friendly warehousing solutions, and the rise of microfulfillment centers. Foreseen trends for this period include the rise of warehouse execution systems (WES), the adoption of voice-activated and wearable technologies, the implementation of automated palletizing and depalletizing systems, near-instantaneous monitoring and analytics, and the move towards more sustainable and green warehouse solutions.
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What are the emerging trends shaping the future of the warehouse automation market?
Growing emphasis on investment in storage facilities is a prominent trend being noticed in the warehouse automation market. To gain an upper hand over competitors and to facilitate new product development, firms in this sector are progressively directing investments towards storage operations. As an illustration, Mytra, a US-based leader in warehouse robotics automation, publicized $78 million in funding for addressing physical storage issues in July 2024. They intend to redefine warehouse logistics with a high-density, AI-powered automation solution for managing storage and movement of materials. This funding aids in the creation of an adaptable 3D lattice system, which augments space utilization and boosts efficiency by lowering reliance on conventional conveyor systems. Mytra's smart robotic system effectively tackles the intricate issues of "material flow", enabling companies to conveniently adjust to alterations in demand and layout without bearing excessive costs.
Which growth-oriented segments of the warehouse automation market are leading the industry's development?
The warehouse automation market covered in this report is segmented -
1) By Type: Conveyor Or Sortation Systems, Automated Storage And Retrieval Systems (AS Or RS), Mobile Robots, Warehouse Management Systems (WMS), Automatic Identification And Data Capture (AIDC)
2) By Component: Hardware, Software
3) By Function: Inbound, Picking, Outbound
4) By End User: General Merchandise, Healthcare, FMCG Or Non-Durable Goods, Other End Users
Subsegments:
1) By Conveyor Or Sortation Systems: Belt Conveyors, Roller Conveyors, Sortation Systems
2) By Automated Storage And Retrieval Systems (AS Or RS): Unit Load AS Or RS, Mini-Load AS Or RS, Automated Tote and Bin Systems
3) By Mobile Robots: Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs)
4) By Warehouse Management Systems (WMS): Cloud-based WMS, On-premise WMS
5) By Automatic Identification and Data Capture (AIDC): Barcode Scanners, RFID Systems, Voice Recognition Systems
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Which region dominates the warehouse automation market?
North America was the largest region in the warehouse automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the warehouse automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What companies are at the forefront of innovation in the warehouse automation market?
Major companies operating in the warehouse automation market include Viastore Systems Inc., ABB Ltd., Toyota Industries Corporation, Kion Group AG, Omron Corporation, Daifuku Co Ltd., Yaskawa Electric Corp Inc., KUKA Group, Schaefer Systems International Pvt Ltd., Honeywell Intelligrated Systems Inc., KNAPP Group, Vanderlande Industries BV, SSI Schaefer AG, Material Handling Systems Inc., WITRON Logistik + Informatik GmbH, Mecalux SA, Beumer Group, TGW Logistics Group, Swisslog Holding, Interroll Group, Bastian Solutions LLC, Kardex Group, Grenzebach Group, System Logistics SpA, Locus Robotics, Murata Machinery Ltd., Kardex Remstar LLC, Godrej Koerber Supply Chain Limited, Space Magnum Equipments Pvt Ltd., Fives Group
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What Is Covered In The Warehouse Automation Global Market Report?
•Market Size Forecast: Examine the warehouse automation market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the warehouse automation market for a structured understanding.
•Key Players Overview: Analyze major players in the warehouse automation market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the warehouse automation market.
•Segment Contributions: Evaluate how different segments drive overall growth in the warehouse automation market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the warehouse automation market.
•Industry Challenges: Identify potential risks and obstacles affecting the warehouse automation market.
•Competitive Landscape: Review strategic developments in the warehouse automation market, including expansions, agreements, and new product launches.
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