Industry research indicates ~15% global CAGR in warehouse automation through 2030, with an average estimate of global spend growing from ~$24.7B in 2023 to ~$65.2B in 2030 for hardware, software, and services.
The above values are directional estimates based on a synthesis of multiple publicly available market research reports pertaining to the size and percentage of global spend on warehouse automation hardware, software, and services in 2030.
AMRs are a fast growing category in warehouse automation due to their mobility, scalability, lower cost point of entry, and advancements in technology over recent years. Generally, they consist of good to person (GTP) systems, person to goods (PTG) systems, mobile sorters, and payload transporters. Unlike a more traditional automated guided vehicle (AGV), an AMR can navigate throughout a warehouse by leveraging on-board sensing, visioning, and location mapping technology to efficiently and safely get from point A to point B without following a predetermined path.
The AGV market will also grow but at a slower pace than AMRs. AGVs are generally larger load capacity vehicles used for moving pallets, large unit loads, towing, or tugging. AGVs follow predetermined paths and usually navigate via laser targets, magnetic tape, or guided tape or wires.
As a rule of thumb, AGVs operate at roughly half the pace of a manned vehicle, and business case justification often requires a multi-shift warehouse operation.
ASRS systems are perhaps the leading advanced warehouse automation technology deployed. Most of the labor activity in a typical warehouse is in storing and picking product. Therefore, such systems can significantly reduce costs by automating much of this activity. There are many types of ASRS systems, dependent on the type, weight, and velocity of the items to be stored and retrieved. Large unit load crane-based and shuttle-based systems typically handle and densely store palletized product. There are mini-load and shuttle-based systems for cases and bins of product. Cubically dense bot-based systems also store and retrieve bins of loose product, either within a fixed or decoupled grid of storage, bots, and piece-pick stations. Vertical lift modules and horizontal carousels typically support small, slower moving items in tightly confined areas.
The fastest growth segment in warehouse automation is anticipated to be piece picking robots. A key driver to this growth is the vast global deployment of bin-based ASRS systems. Bin-based ASRS systems have grown rapidly over the past several years in parallel with the growth in ecommerce retail and direct to consumer distribution. When using a bin-based ASRS, bins of individual items can be brought to a fixed location at a picking station for an operator to pick the product and place into a separate tote or conveyable container. Robotic pickers with articulated arms are in the early growth stages of replacing such labor to pick and place items.
Traditional mechanized conveyor systems make up a large portion of market spend on warehouse equipment and will continue to grow at a modest pace. However, superior growth is anticipated in more mobile and scalable automation technologies.
Similar to traditional conveyor systems, warehouse sortation systems will continue to grow at a slow but steady pace, particularly in high-volume, high-speed sortation facilities (e.g. direct to consumer parcel distribution)
Warehouse automation order intake will begin to grow again in 2024 after the market suffered a tough 2023, albeit at a low rate. From 2025 onwards, revenues are expected to return to double digit growth.
The mobile robot industry continued to defy the global economic slowdown and grew by 33% in 2022, with more than 120,000 AGVs and AMRs shipped during the year generating $3.6bn in revenue. Despite weakness in the global economy, high interest rates and inflation, we predict shipments will grow by a further 45% in 2023 and more than 30% in 2024.
Modern Material Handling / Interact Analysis
The long-term outlook remains strong, according to a study from research firm Interact Analysis, with the global warehouse automation expected to expand at a 19% CAGR from 2024 to 2027.
While demand for mobile robots has increased this year, the number of new warehouses being built in North America and Europe has declined during 2023. As a result of this, demand for end-to-end automation decreased.
Rising labor costs and supply chain constraints are likely to be key drivers for the market, as companies turn to automation to relieve operational pressures
Warehouse automation facilitates tools that improve productivity, minimize errors due to manual product handling, maximize efficiency, optimize throughput processes, provide a safe environment, and avoid stockouts
The AS/RS systems are a boon to the warehousing sector as the industry reels with labor shortages and skilled labor.
The research offers a detailed analysis regarding drivers, restraints, and opportunities to highlight the changing market dynamics. Moreover, the research provides an extensive analysis of major segments and their subsegments to determine fastest-growing and highest revenue-generating segments.
This research report categorizes the market for warehouse automation market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the warehouse automation market.
Warehouse Automation Market is expected to reach $41B by 2027, at a CAGR of 15% between 2022 and 2027.
Acumen Research and Consulting
The warehouse automation market is expected to witness outstanding growth in the coming years due to the rise in the e-commerce industry and increasing warehousing labor costs.
The increasing manufacturing complexity, technological availability, and the exponential growth of the e-commerce industry are driving the warehouse automation market over the forecast period.
Robotics 24/7 - Interact Analysis
Interact Analysis found that global sales of mobile robots jumped more than 70% in 2021, topping 100,000 units for the year.
Worldwide CAGR of 12.5% is anticipated for autonomous guided vehicles (AGVs) from 2021 to 2030.
The growth of this market can be attributed to the growth in the e-commerce industry, multichannel distribution channels, e-grocery penetration with dark stores & ultrafast delivery services, globalization of supply chain networks, emergence of autonomous mobile robots and rising need for same day / same hour delivery.
Our assessment is that the warehouse automation space currently provides investors with multiple avenues for investment. The market is large enough that players will be able to identify and evaluate a wide range of specific market opportunities.
via ChatGPT
The warehouse automation industry is growing rapidly. According to a report by MarketsandMarkets, the global warehouse automation market size is expected to grow from USD 31.3 billion in 2020 to USD 42.8 billion by 2025, at a CAGR of 7.1% during the forecast period. Factors such as the increasing adoption of e-commerce and rising labor costs are driving the growth of the market.