UAE Warehousing Automation Market Outlook to 2026F Increasing demand of E-commerce sector and rapid integration of automation technology support the market growth

UAE Warehousing Automation Market Outlook to 2026F Increasing demand of E-commerce sector and rapid integration of automation technology support the market growth

The report provides a comprehensive analysis of the potential of Warehouse Automation industry in UAE. The report covers an overview and genesis of the industry, market size in terms of revenue.

Its market segmentations include by product category and component, by automated technology, by end-user; growth enablers and drivers; challenges and bottlenecks; trends and developments; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, the UAE Warehouse Automation Market expanded at a CAGR of 19.4% in between 2016 and 2021 on the basis of revenue generated. The market faced rapid growth owing to surge in manufacturing activities, burgeoning international trade, rising domestic consumption and ease in government regulation. UAE Warehouse Automation Market is estimated to grow at a positive CAGR of 13.4% in between 2021E and 2026F.

Increasing demand for fresh foods and quality products resulting from greater spending power, increases the demand for warehousing automation within the country.

The UAE FDI law now allows up to 100 per cent foreign ownership in more than 122 economic activities across 13 sectors including transport and storage, agriculture, space, manufacturing industry, renewable energy, hospitality and food services, among others

Key Trends by Market Segments:

By Product Category: Most of the warehouses in UAE are semi-automated. Very few companies have installed fully automated warehouses, for example Dubai duty free has installed a semi-automated warehouse. Major retailers/distributors in warehouse automated market such as Alshaya group & Chalhoub group have highly automated warehouses.

By Product Component: In 2021, conveyor system/sortation system accumulated the majority of the market share. The deployment of these systems reduces the need for additional warehouse workers, which further reduces spending on labor or reallocate those employees to other critical tasks. While, WMS has been observed to be an essential part of any automated warehouse in UAE to manage operations, including storage, replenishment, picking, etc.

Future Outlook

The UAE Warehouse Automation Market witnessed significant growth during the period 2016-2021, owing Ease in policies, investment in R&D, growth in e-commerce, adoption of 4.0 industry technology and government initiatives.

It is expected that UAE Warehouse Automation market will grow at a CAGR of ~13.4% for the 2021-2026F forecasted period.

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