Press release
Growing Demand From E-Commerce Spurs Expansion Of Warehouse Automation Market: Core Growth Enabler in the Warehouse Automation Market, 2025
Warehouse Automation
How Large Will the Warehouse Automation Market Size By 2025?
Over the past few years, the warehouse automation market has significantly expanded in size. From a market value of $21.42 billion in 2024, it is expected to increase to $24.09 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 12.4%. Factors such as the proliferation of e-commerce, mounting labor shortages and costs, increased complexity of the global supply chain, rising consumer expectations for swift delivery, and the need for efficient inventory management have contributed to the growth recorded in the historic period.
How Big Is the Warehouse Automation Market Size Expected to Grow by 2029?
In the coming years, the warehouse automation market is projected to experience substantial growth, anticipating to reach $42.25 billion in 2029 with a compound annual growth rate (CAGR) of 15.1%. The predicted growth during the forecast period is due to the increase in same-day and on-demand delivery services, sustainable and green warehousing practices, and the rise of microfulfillment centers. Key trends for this predicted period include the integration of warehouse execution systems (WES), the adoption of voice-activated and wearable technologies, the use of automated systems for palletizing and depalletizing, real-time monitoring and analytics, and the prioritization of sustainable and green warehouse solutions.
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Which Key Market Drivers Powering Warehouse Automation Market Expansion and Growth?
The escalation in online shopping transactions is projected to propel the warehouse automation market's expansion. As the influx of order volumes and corresponding last-mile delivery requirements overwhelm retailers, automating warehouse operations is swiftly becoming their ace in the hole in gaining a competitive advantage. This is particularly true in the fierce e-grocery market. For example, the United States Census Bureau, a government agency, highlighted in May 2024 that the Q1 2024 e-commerce projections rose by 8.5% compared to Q1 2023. Meanwhile, total retail sales saw a 2.8% increase during the same period. Thus, the burgeoning e-commerce industry is anticipated to trigger a surge in the warehouse automation market over the predicted period.
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Which Fast-Growing Trends Are Poised to Disrupt the Warehouse Automation Market?
The recent rise in investment activities concerning storage facilities is significantly shaping the warehouse automation market. Many firms within this industry are penetrating deeper by enhancing their storage services, aiming to launch superior, technologically advanced products that outperform competitors. For example, in July 2024, the American warehouse robotics automation company, Mytra, revealed a funding round of $78 million to tackle issues related to physical storage. The company's revolutionary approach includes an AI-powered, high-density automation solution designed to simplify storage and movement of materials. The funding aids in the creation of a flexible 3D lattice system, which maximizes spatial utility and boosts efficiency, moving away from reliance on conventional conveyor systems. Mytra effectively meets the intricate issues of "material flow" with its smart robotic system, helping various businesses to swiftly adjust to layout and demand alterations without the burden of excessive costs.
What Are the Emerging Segments in the Warehouse Automation Market?
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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Who Are the Global Leaders 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
Which are the Top Profitable Regional Markets for the Warehouse Automation Industry?
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.
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